The market capitalization of BMW is 54.59 billion, and Mercedes-Benz is 70.11 billion. And the market capitalization of Tesla is 896.65 billion US dollars. Tesla is the most valuable car company in the world.
Around 16 years ago, in 2006, Elon Musk revealed his master plan for Tesla. His goal was clear and straightforward. Tesla will sell premium quality cars with a low number. Because with that money, they will manufacture more cars with the same quality and will be sold at a lower price. In 2008, With $98500, Tesla brought their first car, Electric Roadstar, which sold only 2850 in number within 2012. In 2012 Tesla brought Model S Sedan, which price was $87000. 100k unit was sold in 2015, and achieved a milestone of 200k unit in 2017. In continuation of the Sedan series, Tesla launched the Model 3 in 2017, with a starting price of $54490. And till January 2022, 150654 units were sold. The fact is that Tesla is decreasing their price slowly.
why he reduced it step by step
When Tesla launched cars in the market, then the market was dominated by Fuel Engine Traditional cars. To disrupt this market and introduce new technology, they must maintain to methods.
Economies of Scale.
As with the increase of your business, per unit cost will be decreased.
Stages of Technology Adoption Diffusion of Innovations.
As Tesla is an electric car, People will not readily adopt new technology where fuel cars are in the market. You have to adapt step by step.
Tesla doesn’t spend their money on advertising
The motor industry giant, Ford, spent 1.8 billion dollars in 2020 in marketing. Toyota spent 1.39 billion dollars. America-based General Motors spent 10 million dollars in 2010 on Facebook ads. Elon Musk is always against spending money on traditional advertisements as Zero Doller Marketing policy. According to him, we spend that money to improve our products. And he is more optimistic about spending money on Research and Development.
To express the vision of Elon Musk, he needs a story. Elon Musk has done a wonderful mix of business and storytelling. He has a story behind every business. He built SpaceX so people could live on Mars because the world is spoiling daily.
He made Tesla because of using petrol and diesel, which are harmful to the environment. Elon musk made e-cars of environmentally friendly. Because he knew that people won’t spend money, if it didn’t look good.
Self Branding or Personal Branding
At present, customers are much more informed and intelligent. They always remain alert while buying something. Because every company claims that they are the best, people depend on the trusted person or influencer marketing to remove this confusion. According to this way, Elon musk introduces himself as the brand to the world. Even the mask’s influence in the global market or the buying pattern of customers is so high that it has to take approval from the SEC before any tweet on business or policy-making issues.
Marketing Strategy of Elon Musk
In 2019, Tesla announced that they would bring Cyber Truck. In just two days, Tesla got 200000 pre-orders. There is a simple strategy. There would cost only $100 for pre-order and which was fully refundable. Elon Musk knew very well that despite getting too many pre-orders, everyone won’t buy it becauseeveryone wanted clout to show off to others. And for this reason, Cyber Truck Gets free Publicity to the whole world. In the same way, Elon musk does Publicity in a calculative way.
