Tesla Marketing Strategy: a brief overview

By John Dudovskiy
April 27, 2021

Tesla marketing strategy has been dubbed as USD0 (zero dollar) marketing strategy[1] largely for its avoidance of paid advertising. Instead, the electric automaker focuses on social media marketing.  CEO Elon Musk boasted that “Tesla shells out virtually nothing on advertising and endorsements, and relies heavily on word of mouth.”[2]

Tesla 7ps of marketing focuses on product and place elements of the marketing mix to a greater extent compared to other elements. Moreover, product and place elements of the marketing mix have been adapted as main sources of Tesla competitive advantages. Specifically, Tesla produces fully electric cars that are fast and attractively designed. Moreover, the electric automaker does not deal with car dealerships and distributors and sells its vehicles directly to end-users.

Tesla target market segment represent individuals and households who are not indifferent towards environmental issues and negative environmental implications of CO2 emissions. Tesla effectively appeals to the emotional needs of the target customer segment to feel themselves as environmentally responsible via purchasing electric cars and using solar panels.

Tesla Marketing Strategy

Tesla marketing strategy is based on the following principles:

1. Marketing through customer experience. Telsa referral program effectively enhances customer experience by offering USD 1000,00 credit and additional accessories and perks. These include Solar Roof, 21” Arachnid Wheels for Model S or 22” Turbine Wheels for Model X and VIP invitation for Tesla Unveiling events, among others.[3]

2. Effective use of social media. CEO Elon Musk has evolved as the face of Tesla and his direct engagement with customers via social media attracts media attention with generally positive implications for the brand. Musk uses his social media accounts as efficient tools for Tesla marketing strategy.

3. Cross-promotional opportunities. Tesla CEO Elon Musk also owns and runs other businesses, namely, SpaceX and Solar City. These companies benefit from unique cross-promotional opportunities. For example, Space X launched Tesla Roadster with a dummy driver named “Starman” into the space in 2018 attracting an extensive worldwide media attention to both brands – Space X and Tesla.

Tesla Inc. Report contains the above analysis of Tesla marketing strategy. 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] Melton, A. (2018) “What can we learn from Tesla’s $0 marketing strategy?” DMA, Available at: https://dma.org.uk/article/what-can-we-learn-from-teslas-0-marketing-strategy

[2] Leonhardt, M. & David, J.E. (2018) “Elon Musk: Tesla could produce a $25,000 car in around 3 years” CNBC, Available at: https://www.cnbc.com/2018/08/18/elon-musk-tesla-could-produce-a-25000-car-in-3-years–.html   

[3] Lambert, F. (2018) “Tesla announces new round of referral program” Electrek, Available at: https://electrek.co/2018/04/19/tesla-regerral-program-new-round/    

Category: Marketing