Elon Musk runs Tesla like Steve Jobs runs Apple. Graham Robertson.

While Elon Musk and Steve Jobs have very different personalities, they are one of the top brand leaders of their generations. Here we intend to show how Eon Mask has used hype marketing straight out of the Apple playbook to create such an intense desire for their Electric Vehicles. Other major car brands appear confused and stuck in neutral. Tesla's production process failed miserably to keep up with all the rent$-$up demand. While that might spell doom for most brands, the scarcity of supply matched to the hype fuelled even more rent$-$up demand for Tesla. As Tesla's production finally caught up$,$ the Tesla stock price skyrocketed, leaving Elon Mask the wealthiest person on earth. With all the macro$-$world factors Tesla's stock has gone up$,$ down, up$,$ down and depending on when you read this, it could be up or down.

Tesla is the classic overnight success that look a long time to reach the market.

Over the past five years, consumers have discovered Tesla giving the impression of an "overnight success" that came out of nowhere. Yet, they have been in business since $2003.$ Moreover, it took Tesla the first eight years to sell a few thousand cars. By then, most of the founders were gone, leaving Elon Musk to steer the ship. In year nine, they launched the high$-$end Model S car. And they still only sold $100000,$ over next three years. Tesla is an excellent example of being in it for the long run.

People launch the Tesla $3$ was filled with hype. They struggled to produce to keep up with the demand. Everyone wanted one. But Tesla couldn't make them fast enough. From $2015-2019,$ the stock went up and down like a roller coaster, doubling from $$40$ up to $$85.$ And, in $2020,$ everything started to come together. The Tesla stock went up $-$ fold, From $$85$ to over $$900.$ Elon Musk is now of the richest people on earth. Almost twenty years in the making, Tesla has become one of our most beloved brands.

Tesla Brand Strategy

Let's map out the Tesla strategy using our five elements of strategic thinking:

Tesla started with a desire to shift the car market from gas$-$powered to electric $($vision$).$ While most other electric car companies failed, Tesla cars are remarkably different, as they score high for performance and style $($focus$).$ Tesla saw an opportunity to break the usual thinking that energy$-$ efficient meant ugly, slow, and always needing a charge $($identified opportunity$).$ Tesla has capitalized on the consumer's readiness to do something for the environment and has created a movement. So$,$ Tesla took a different approach. They started at the hight end to create a strong desire for their beautiful cars. and then, they moved down to open $-$ up to the masses $($market impact$).$ Well, the elite mass! Their cars remain a high$-$ticket item. Finally, Following the release of the Model $3$ in $2018,$ their quarterly sales jumped $4-$fold over two years $($performance result$),$ and the stock price is up $10-$fold.

What Tesla does Best?

Tesla has capitalized on the environmental trend. Tesla has done so well because of its $100\%$ focus on electric vehicle, whereas every other car company has treated it as an option. I equate that like a vegan getting a salad at a steakhouse. Those vegans would much prefer going to a restaurant focussed on their beliefs. Tesla understands that being an environmentalist is a lifestyle choice, not an option. the traditional car companies treat their electric vehicles as an afterthought. $"$We also have that in electric, for $ $20000$ more".

Tesla has used the hype$-$style marketing style of Apple. Elon Musk has borrowed from the Steve Jobs playbook. He uses event$-$style marketing, an outspoken visionary voice, and he is continually challenging the status quo. Yes, he goes offside on Twitter all the time, but we might glad that we never saw Steve Jobs tweet.

Another borrow from Steve Jobs is their simplified product. A traditional car engine uses $2000$ parts. In contrast, the Tesla engine uses only $20$ parts. Moreover, Tesla treats cars like technology. as Apple has done with fewer parts, Tesla can gain better control of their costs.

Tesla treats their cars like technology. They develop software for their cars, like how Apple develops software for their iPhone. Essentially, this allows Tesla to improve its car engine software to enhance the consumer experience every few weeks.

Stylish designs. Like Apple, Tesla emphasizes style, which adds to the desire. Paying $$55000$ or S$110000,$ Tesla understands that an expensive car must be beautiful. Teenagers want a Tesla car because they are call, adding to the pent$-$up demand they have created.

Question $\mathrm{<strong>1</strong>}$

Perform a critical evaluation of the Brand Strategy of TESLA as stated in the case study.

Question $\mathrm{<strong>2</strong>}$

Explain how an IFE matrix is prepared in strategic management. Evaluate tesla Motors using the IFE matrix as a benchmark. To answer this question appropriately, you will need to conduct additional research. Please 

Answer rating: 100% (QA)

1 Critical evaluation of Teslas Brand Strategy Strengths Visionary leadership of Elon Musk who effectively communicates Teslas environmental vision St... View the full answer