Taking Risks Tesla Knows Exactly What It’s Doing


Doing things differently has placed Tesla Inc. at the top of every premium vehicle category it finds itself in. risk. This week we find out about an even bigger set of risks and how most of them have been overwhelmingly rewarded. Despite the negativity and naysayers, Tesla Inc repeatedly shows the world that it knows exactly what it is doing.

Take the advertising policy of the electric car giant. Something mind-boggling to consider is that no ads for the Model 3 appeared on a billboard or TV location. Despite this, the new Tesla EV managed to get around 500,000 pre-orders before the car rolled out.

Tesla Inc. clearly doesn’t need to pay for ads in order to generate sales. This is backed by advertising analyst EJ Schultz, who also believes the company will not be short of buyers. Indeed, the fanfare of the Model 3 is proof of this. Schultz says that at this rate, “word of mouth and free media coverage” will continue to fuel demand for the new car.

No dollar spent on advertising has attracted half a million buyers. That number also doesn’t take into account Model S and Model X buyers. On the other side of the fence, Tesla’s biggest competitor in the affordable electric vehicle market, GM, spent $ 3.7 million. to push his Chevrolet Bolt. The Nissan Leaf topped that figure with its $ 4.3 million in advertising costs. These two numbers also represent only the first three months of this year.

Tesla Inc? Nothing. Still, the Model 3 is clearly destined for greatness, allegedly also in Model S sales, with its affordability.

Tesla risk builds its own life

AutoTrader’s Michelle Krebs is adamant that Tesla won’t “have to spend a dime on advertising anytime soon.” She highlights the powerful brand the company has built through word of mouth and unpaid media coverage. Indeed, you are reading one of those unpaid media articles right now. The Internet is with them, and they all help advance the brand for free.

Krebs says Tesla took his own life. This became clear when the company, which barely produces 100,000 cars a year, became the most valuable automaker in terms of market capitalization. GM’s manufacturing rate is far beyond that of Tesla. Ford and Chevrolet owners also have benefits to show for their efforts. Tesla is inferior in both aspects, but has no shortage of fans to support its rise.

Thanks for the free exposure, too – Tesla

This is something Tesla is clearly aware of as well. During its 10-K filing almost a year ago, the company praised its base of support. “Media coverage and word of mouth were the main drivers of our prospects,” the company wrote. They have led to relatively low marketing costs and unprecedented sales.

Indeed, no one is overwhelmed by the Model 3 anymore. reply than Tesla. The car isn’t even promoted, Musk explained. The company refuses to push something it cannot provide, the CEO continued. Standing in line now means buyers will get their Model 3 in about a year. So “we don’t even talk about it, really, because we want to talk about what we can deliver.” The Model 3 is clearly not.

Musk said the company could easily score a lot more preorders with just a little bit of effort in the advertising department. However, with the backlog as bad as it is, the company would only put a lot of pressure on itself.

Model 3 double assembly plants

The efforts of Model 3 do not stop, however. Tesla Inc. is booming, gearing up for mass production of its affordable sedan. This is of course done to accommodate the production of its new car and accelerate its delivery rate.

It is common knowledge that the Nevada Gigafactory is about to take on most of the increased workload. However, Tesla is also doubling the size of its Fremont plant. This will only help the company to better meet demand and also meet the demand for future models.

Musk used the term “production hell” when unveiling the Model 3. He was describing what his employees were about to face once manufacturing the process is accelerating. It’s clear that a drastic transition will come as Tesla steps up to 5,000 cars per week in December. That number will double by the end of next year and will roughly hold that pace for some time.

Clearly, a more immediate solution to Tesla’s order books is no more Gigafactories. Company assembly sites must also take over where they can. The company will speed up the workflow by raising the structures of its Fremont plant.

The public has been aware of Tesla’s plan to expand their space in Fremont for some time now. The city gave the green light to the plans in December 2016. Now the Elon Musk company will be implementing the plans.

Tesla Inc. is getting closer to profits

It is likely that part of the $ 1.8 billion in funding recently raised will be devoted to this expansion. That figure was $ 300 million more than what the company had asked for. On the contrary, it again proves the support Tesla has in its back pocket.

According to most analyst reports, profits are just around the corner for Tesla Inc. Investors in the company are eager to see the accelerated series production of the Model 3. These facility upgrades are clearly a step towards that goal. , moving cars off the assembly line to customers much faster.

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