Tech Global

Why does Tesla Spend $0 on Marketing?

Elon Musk lead automobile giant Tesla Motors has been growing rapidly for the last 7 years. Here are the reasons why Tesla Motors spends $0 on marketing.

We generally say businesses cannot grow without spending more on marketing. We have to be super creative while promoting a product.

On the other hand, there is a company named Tesla Motors spends $0 on marketing.

If we compare with the other automobile giants like Toyota, Audi, General Motors, Ford and BMW Group spend millions of dollars in marketing. In fact, few companies spend billions of dollars on marketing.

What makes Tesla Motors so Special that they don’t need to spend money on marketing.

You will be amazed that the company is facing difficulties to deliver the order on time because the company had never expected that they will get orders in millions.

5 Reasons Why Tesla Motors Spends $0 on Marketing:

Before coming to the main point let me clarify, Tesla’s main business is electric car manufacturing. There are also other businesses such as solar panels and the manufacturing of electric batteries.

1. First and Fast Mover Advantage:

In 2006, Elon Musk announced that Tesla Motors is going to launch the first-ever electric car.

At that time, all the professionals started making jokes on Elon Musk because any other company was not able to build a high-quality electric car.

It was a very difficult task.

In 2008, Musk launched Tesla’s first electric car (Tesla Roadster) and it became a successful launch.

Also read: 6 Reasons Why Norway has so many Tesla Cars

That’s how the company created the new automobile market that is electric cars.

After this launch, the company started boosting their work on research and development and manufacturing more and more cars.

This is how the company became not only the first mover but also the fast mover.

2. Design:

After the successful launch of many Tesla cars, other automobile companies also started spending more on research and development for making their own electric cars.

However, most of the companies are able to make their own electric cars.

But, they were not able to match the quality standard and design of Tesla.

Today, consumers know that Tesla provides the best design of cars.

3. Elon Musk: The Name is Enough

The founder and CEO of Tesla Motors Elon Musk is so popular that the company does not require to spend money on marketing.

The brand equity of Elon Musk is helping a lot to Tesla.

Because of this reason, when people hear about the electric car, the first name come in the mind is Tesla Motors and then Elon Musk.

Also read: 5 Biggest Reasons that Make Elon Musk so Special

So, that’s the legacy of Elon Musk.

4. Targeting the Right Consumer:

In the beginning of Tesla Motors, their target audience was fixed! The RICH CLASS.

By doing this, it started becoming a social symbol for RICH people just like Apple.

Slowly, the company started producing cars with a comparatively lower price.

Now, middle class and higher middle-class people also have started buying the cars of Tesla in order to get social status.

5. Consistent Growth:

Most of the automobile companies in the world have been struggling for the last 3 years.

Source: Wikipedia

On the other hand, Tesla has been maintaining consistent growth in car sales.

On November 21, 2019, Elon Musk revealed a new electric vehicle named Cybertruck. In the launch event, he tried to show the audience that the glasses of the Cybertruck were unbreakable.

Source: Forbes

He tried two times but both the times, the glasses broke.

People started making fun and calling this event as the biggest failure of Elon Musk. Millions of people got to know about this Cybertruck without spending a single dollar on marketing.

Just after two weeks of this launch event, he tweeted the company received 250,000 pre-orders of Cybertruck!

That’s massive!

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Anuj Vohra

Hi , I am Anuj Vohra. I write articles about technology, economics, and business case studies at

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Anuj Vohra

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