Tesla Tesla



TeslaMotors Inc. is an automotive and energy storage corporation islocated in the United States. It manufacturers, designs, and vendsbattery products, electric power train elements as well as electricvehicles. Tesla Motors is one of the leading corporations in theautomotive industry. This paper will analyze Tesla by conducting adetailed audit on various aspects. The purpose of the audit is toanalyze the sources of the brand equity and thereby propose ways toimprove and leverage that equity. The audit will include five keyfeatures, i.e. the brand history, brand elements/inventory,competitive and consumer analysis, brand equity, and brandevaluation. By successfully evaluating all these aspects, it would beeasier to give recommendations and points that could be adopted tomake it even better. This paper will mainly dwell on the brandevaluation of Tesla.


Tesla’schampioning of clean ways of transportation is a significant boost toenvironment conservations. As a matter of fact, it was ranked amongthe best automobile company that is environmentally friendly. Withits already well built and appreciated philosophy, Tesla can takeadvantage of its brand equity to come up with innovations that aremost probably going to be accepted by its existing client base. Inaddition to that, it is more likely to expand the customer basedgiven that most countries are working towards achievingeco-friendliness thus sharing on the company core ideas and values.

Onething Tesla is doing right is necessitated pricings. The low cost ofTesla’s battery pack is a core competitive advantage. It allowsthem to vend the Model S at affordable prices. In addition to that,its capability to use commoditized small cylindrical lithium cellsthrough thermal management is also a major competitive advantage.Such mechanisms ought to remain in the company to develop its brandeven further. The company boasts of unique innovations that make adifference when implemented. For instance, it has a detailed,proprietary technology that has 40 patents given and another 200patent submissions pending. In other words, Tesla dwells much oninnovation to improve the current system. The uniqueness of theirinnovations can be exemplified by the vehicles i.e. electric cars.

Anotherculture that must be maintained is the target market. The company’starget market does not entirely focus on individuals looking forupscale vehicles. Instead, it emphasizes on persons who are friendlyto the environment and appreciate safety. A major addition to theircars entails the two child seats provided. It makes it possible tohave seven passengers inclusive of the two kids. This was adopted intheir Model S vehicles. In that respect, it entices family orientedpeople. Model X that is an SUV focuses further on family-orientedconsumers. As compared to their competitors, Tesla is moreenvironmentally friendly and has received much praise due to this.This aspect will boost the company’s future plans for maintainingits customers and attracting more.

Onerecommendation involves shifting of the corporation’s strategy fromFocus Differentiation to Differentiation. In the differentiationaspect, the company would provide unique products that suit variousconsumer segments. It will, therefore, give various benefits whichdiffer from their rivals at almost similar prices. Such a criterionwould heighten market share as well as the long-term profitability ofthe corporation. Asa way of attaining differentiation, the company must broaden therange of products or rather models in various segments. They must aimto be reasonably priced and accessible to various market segments. Itwould prevent focus on premium segment only.

Additionally,even though Tesla‘s goods are technologically advanced, it mustcarry on to remain a force in innovations and quality. Apart fromthat, it must fast-track novel product development. For instance,they might lessen the time taken to recharge the vehicles to make itcomparable to the gasoline models. Also, improve the types as well asthe modularity of batteries to heighten the distance covered on asingle charge. In other words, more innovations ought to be done onthe batteries to increase the distance covered. Apart from that, thecharging system should be faster, if possible closer or better thangasoline models.

Tesla’smode of operation regarding customer attraction and retention is alsounique. Itdoes not try to convince people to purchase instead, it educatesthem on how the vehicles function. Unlike other companies that dwellon involving dealers to press sales, Tesla’s main aim is to educateconsumers. The Tesla website provides a considerable range of info toany potential customers. In a section of the website, steps are givento show how a vehicle operates usually answering any query one mayhave. The set up on the website eases how one can follow-up andunderstand the different aspects of the car. The Corporation alsoutilizes social media as their mode of advertisement. They do nothave an advert agency instead, they promote their techniques viasocial media. This strategy must continue to attract even morecustomers.

Theability to customize the vehicles depending on customer preference isanother major boost. Such a criterion must be maintained to buildbrand equity. Already the company has a strong brand that attracts abroad range consumers. It, therefore, needs to maintain customizationeffects to suit the different customer preferences.

Althoughthe company is growing at a tremendous rate, it must seek to acquiremore international presence. In other words, Tesla is not wellestablished in the global perspective. Some continents have notexperienced its products due to its focus on the American markets.Being a young industry, the company has a potential to dominate theautomotive industry worldwide. The rising gas and oil prices can workin Tesla’s advantage. The fact that this company providesenvironmentally friendly products is a major advantage. Due to this,it enjoys government support that can help to propel it even further.If the company takes advantage of these facts, it would be able todominate the global markets.

Ingeneral, the company could manage brand equity by maintainingloyalty, awareness, perceived quality, associations, and proprietarybrand assets. This model would give value to the consumer and thecompany. It would assist in customer interpretations, confidence, andsatisfaction. Allowing the customers to customize their cars booststheir confidence and satisfaction. On the other hand, customerloyalty is improved. Brand equity, in this case, lessens reliance onpromotional events. As portrayed by the company’s operations, itdoes not rely on advertising agencies to reach potential customers.Instead, it uses social media and even educates consumers via theirwebsite. In that regard, consumer confidence on the quality of theproducts is heightened.


Baer, D. (2014, November 11). The Making Of Tesla: Invention, Betrayal, And The Birth Of The Roadster. Retrieved from The Making Of Tesla: Invention, Betrayal, And The Birth Of The Roadster: http://www.businessinsider.com/tesla-the-origin-story-2014-10

Greg Kumparak, M. B. (2015, July 28). A brief history of Tesla. Retrieved from A brief history of Tesla: https://techcrunch.com/gallery/a-brief-history-of-tesla/

Tesla. (2016). Tesla’s mission is to accelerate the world’s transition to sustainable energy. Retrieved from Tesla’s mission is to accelerate the world’s transition to sustainable energy.: https://www.tesla.com/about

Testla. (2010). Brand Guidlines.

Thill, A. (2016). TESLA MOTORS MARKETING MIX. Retrieved from TESLA MOTORS MARKETING MIX: https://portfolium.com/entry/tesla-motors-marketing-mix