Tesla Marketing Mix and Marketing Strategy

Tesla Marketing Mix and Marketing Strategy

Tesla is the maker of high performance and fully electric vehicles and energy storage systems. Apart from that the brand also installs, operates and maintains solar and energy storage products. It is known for its focus on sustainability. The brand has also established a global network of vehicle stores and service centers.   In order to increase the pace of adoption of electric vehicles, it established a network of super charger stations. However, what truly differentiates Tesla from its competitors are its vehicles, engineering expertise and intense focus on transition towards a sustainable transport system.

Sustainability has become very important in the context of business, but apart from that people have also understood the value of sustainability and adopted products and vehicles that have low environmental impact. Increased popularity of sustainable vehicles is good for Tesla’s business. However, there are certain hurdles to the  widespread adoption of these vehicles. One of them is the pricing. Tesla has decided to overcome this hurdle by introducing a new lower priced model. Its product mix is still small and limited and it has complemented its vehicles with other energy products. This is a discussion of the marketing mix and marketing strategy of Tesla.



Model S:

Model S is a fully electric four door five adult passenger sedan that also provides compelling range and performance with no tailpipe emissions. Model S is a beautiful model that functionality, convenience and safety along with style and energy efficiency. Overall, Model S means performance, safety and luxury in one.

Model X:

Model X is a long range SUV. The vehicle offers functionality, high performance features and can seat up to seven. Its falcon wings give the vehicle a unique and luxurious look and feel. Apart from design, quality and technology, the brand also offers safety and convenience.

Model 3:

Model 3 has not been released internationally yet and sells only in US. This model of electric vehicles is also a combination of functionality, design, style and convenience. Tesla will produce it in larger volumes and price it lower than its existing vehicles. Apart from Model 3, Tesla is also planning to introduce commercial electrical vehicles in the future years.

Energy Storage:

Tesla has developed energy storage products for use in homes, commercial facilities and utility sites. Its energy product portfolio has systems with a wide range of applications ranging from those for home use to those that can be sued in large scale grid projects. Apart from the design and manufacturing of energy storage products, Tesla also continues to better its software capabilities for controlling energy storage systems.

Solar energy:

Major component of its solar energy systems includes solar panels for converting sunlight into electricity, inverters, racking and electrical hardware and monitoring devices.  Tesla has also revealed solar roofs in 2016 and expects to begin their sales and installation by late 2017.


Tesla’s battery packs are designed to achieve high energy density at low costs. However, they are also known for safety and durability.  Apart from these Tesla also produces power electronics, dual motor power train, vehicle control and infotainment software as well as autopilot systems.

In this way, while Tesla’s fleet of green vehicles is small, it has complemented its product mix by adding other sustainability and energy products.


Tesla markets and sells its vehicles directly to the consumers through its international network of company owned stores and galleries.  Currently Tesla stores and galleries can be found in key metropolitan cities globally in 27 countries.  The brand is also working on developing its supercharger network throughout North America, Europe, Asia and other key markets to enable convenient long distance travel. While Tesla has not been able to spread to all the corners of the world and is playing in limited markets then it is for two reasons. First, its concept is different and not accessible for all. Second are the prices. Still, the brand is working on extending its network of superchargers and stores.


In terms of prices, Tesla has utilized the premium pricing strategy. Apart from their functionality the brand is also focused on style and design. Its products are not just sustainable products but they are also great in terms of technology, quality and design. Apart from that Tesla also invests in research and development to make its vehicles and other products more efficient, safe and convenient. However, higher prices also mean a premium customer segment. So, Tesla is working on releasing more affordable products and has decided to release Model 3 which is priced lower than the existing two models of vehicles. This will also help it find a larger customer segment and grow its sales.


There are some important elements in the marketing strategy of Tesla. First of all what works in its favor is its brand image. Apart from it, its website and the strategic locations of its stores also work to promote the brand and its products. The brand promotes its products from its website. However, since it is a brand selling sustainability products, it also gets its due media coverage. Apart from that Tesla has been using the social media for promotion of its brand and products.

Tesla Marketing MIx

#Marketing strategy of Tesla: How does Tesla market its brand and products?

Tesla has a great marketing strategy that is based on product quality and efficiency. Its products are great in terms of technology, design and functionality. Every great brand offers great quality and great products. Great marketing always begins from great products. Tesla has made two superb looking and highly efficient vehicles. Both model S and Model X are great looking vehicles. One is a sedan and the other an SUV and both are great in terms of functionality and efficiency as well as customer convenience.  Primary attraction of these vehicles is there royal and sporty look and the falcon wing doors of Model X are especially a major attraction. The interiors of these vehicles are designed to make the drivers feel like in a sci-fi movie. These vehicles are designed to maximize safety and for higher customer convenience and satisfaction.  This is the first part of Tesla’s marketing strategy. Its promise of quality, customer satisfaction and driver safety has helped it create high level brand equity.

These things have always kept Tesla in the eye of the media and thus generated high level publicity. Moreover, its Model 3 is a much awaited model with thousands of customers globally awaiting its release eagerly. Elon Musk carries out regular meetings, media events and other forms of public events to publicize new releases by the brand and its future plans. Events including motor shows and media events are a great method of generating brand awareness and publicity for automobile brands. Elon Musk, Tesla CEO, is also an active social media personality who likes to remain connected with his fans and followers. He likes to respond to their curiosities and promote Tesla products through Twitter and other social media channels.

Apart from that Tesla has made great use of store locations to market its brand and to connect with customers.  Its stores are located strategically in key metropolitan markets where high end customers arrive frequently. It is because it sells mainly high end products. Same is true about its super charger networks which apart from serving its customers are aimed at promoting the brand. These supercharger stations are located at key points. These supercharger stations are located inside malls, restaurants and resorts. Tesla partners with these facilities and in this way attracts prospective customers who frequently visit these places. This increases brand awareness and is one of the most convenient methods of attracting and retaining customers.

Tesla’s website is also an efficient channel for sales and marketing.  Buyers do not always need to visit a store to book a car which is possible through Tesla’s website. This website showcases Tesla products and is also a major sales channel for Tesla. It complements its website with its social media channels for promotion and customer engagement. There are more than 150 videos and 364k followers on Tesla’s official YouTube channel.  These videos showcase the beautiful Tesla models of vehicles and  their great features. Its Facebook page has more than 2.2 million followers.

Tesla uses its Facebook account to ignite discussion about its products and technology. Not just Facebook and YouTube, Tesla has also used Twitter to successfully connect with a large base of fans and followers. There are more than 1.73 million followers following it through Twitter too. These social media channels are highly useful in terms of creating excitement and churning demand. Overall, Tesla's brand image as an environment friendly and socially responsible brand and high brand equity have played a major role in its marketing and ever growing popularity.

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