Tesla Marketing Mix (Tesla 7Ps of Marketing)

By John Dudovskiy
April 27, 2021

Tesla marketing mix (Tesla 7Ps of marketing) comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence.

Product Element in Tesla Marketing Mix (Tesla 7Ps of Marketing)

Tesla produces fully electric vehicles, and energy generation and storage systems, and also installs and maintains such systems and sells solar electricity. Tesla product positioning is associated with the idea that electric cars can also be fast and cool.

The company also runs Supercharger power stations that can be used by customers to charge their vehicles on the road.  A typical Supercharge station has between six and twenty Superchargers. Table 3 below lists Tesla product categories and products within categories.

Product category Products
Vehicles Model S, Model X, Model 3, Future Consumer and Commercial Evs
Energy storage Powerwall 2, Powerpack 2
Solar energy systems solar panels, inverters, racking, electrical hardware, monitoring device

Tesla product categories and products


Tesla produced and delivered approximately half a million vehicles in 2020.[1] The alternative fuel vehicles manufacturer updated Model S and Model X launched in January 2021.

Tesla Marketing Mix (Tesla 7Ps of Marketing)

Place Element in Tesla Marketing Mix (Tesla 7Ps of Marketing)

Tesla sells its vehicles through its own sales and service network. Tesla stores and galleries are highly visible, premium outlets in major metropolitan markets. Some Tesla stores and galleries combine retail sales and service.  Tesla sells its vehicles online and in company-owned showrooms. The company does not use dealership networks to sell its products. The electric automaker operates stores and galleries in the US and 35 other countries and regions worldwide. Official website of the company contains the full list of Tesla stores, galleries, service centres and superchargers.


Price Element in Tesla Marketing Mix (Tesla 7Ps of Marketing)

Tesla pricing strategy can be described as a premium pricing strategy. Tesla electric vehicles are expensive and customers are willing to pay extra for driving electric vehicles, rather than traditional fuel vehicle.

Unlike other automobile manufacturers, Tesla does not use geographical pricing strategy. The electric automaker exercises the pricing policy of “always offering the same prices everywhere aside from the difference through exchange rates and import duties.”[2]

Moreover, Tesla pricing strategy can be described as a planned and gradual shift from premium pricing strategy to product line pricing strategy. This is echoed in Elon Musk’s now famous blog post in 2006 about company’s strategy that contains the following[3]:

Build sports car

Use that money to build an affordable car

Use that money to build an even more affordable car

Tesla Inc. Report contains a full analysis of Tesla marketing mix (Tesla 7Ps of marketing) and Tesla marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Tesla. Moreover, the report contains analyses of Tesla leadership, organizational structure and organizational culture. The report also comprises discussions of Tesla business strategy, ecosystem and addresses issues of corporate social responsibility.

Tesla Inc. Report 2021

[1] Q4 and FY2020 Update (2021) Tesla Inc.

[2] Lambert, F. (2017) “Tesla offers ‘up to $30,000 showroom discounts’ and lowers interest rates to boost sales before end of the quarter” Electrek, Available at: https://electrek.co/2017/09/01/tesla-offers-showroom-discounts-lower-interest-rates-boost-sales/

[3] Musk, E. (2006) “The Secret Tesla Motors Master Plan (just between you and me)” Tesla. Available at: https://www.tesla.com/blog/secret-tesla-motors-master-plan-just-between-you-and-me

Category: Marketing