Tesla may be the only carmaker globally that can claim they don’t advertise. The EV manufacturer has never spent a cent on marketing—and they’re not about to start now. But that doesn’t mean they aren’t investing in ensuring their cars are the best out there.
In fact, Tesla spends more on research and development(R&D) than any other automaker. According to data presented by StockApps.com, the firm spends $2984 on R&D per car produced. That’s thrice the industry average of roughly $1,000 per car and higher than the collective R&D budgets of Ford, GM, and Chrysler per car.
Commenting on the report, StockApp’s Edith Reads had this to say.” Tesla spends more than any other carmaker on R&D in order to maintain its lead in EV technology. And if you ask them about it, they’ll tell you this is the key to keeping their customers happy—which is what keeps them in business.”
Tesla’s investment in R&D is paying off
And it shows! Its vehicles are not only making strides in environmentalism. They’re also doing so in safety, speed, and technology integration. Elon Musk’s commitment to spending time developing new products and services is what makes Tesla successful.
Tesla is famous for its ambitious production goals. So if anyone is going to invest in making those dreams a reality, it’s them. And you can see why: while most carmakers focus on marketing themselves as a brand first and foremost, Tesla is focusing on making every car a piece of innovative engineering.
The EV manufacturer leads in the race to build the future of transportation. One reason for this is their dedication to R&D. Tesla has been taking the car industry by storm with its EVs, which are the world’s best-selling plug-in passenger cars.
Advertising on $0
Further, Tesla’s spending proves they are future-focused, unlike other manufacturers. While Tesla spends $0 on advertising per car, the industry average is $485. This further illustrates that consumers want to buy vehicles for their functionality and rely on testimonials for brand awareness rather than beautifully crafted commercials.
The company’s lack of an advertising budget is even more impressive than its R&D spending. Tesla’s unique business model becomes clear when we consider what its competition spends per vehicle on advertising. Ford and Toyota spend $468 and $454 per car for that purpose. And on their part, GM and Chrysler spend $394 and $664, respectively.
Despite not spending anything on advertising, Tesla is technically a marketing magnet. That’s why it is one of the world’s fastest-growing brands. The firm dominates the press and social media engagements. Most of that comes from Elon Musk, who’s wildly popular.