Tesla CEO Elon Musk forwarded a 60-second video on his page of Twitter and Facebook, and the video soon went viral. The spot is called "Modern Spaceship" in which a boy makes the Tesla part of his other-worldly fantasy. Tesla said they invested on ...
The spot was co-directed by two college graduates, who said they spent only 1,500 US dollars in making the video, including the costs of food and accommodation. They did this out of their personal interests. They did not show how great the performance is, but worked to show some kind of spirit lying with the Tesla brand.
The video was highly recognized by Musk, who expressed interests in the creativeness and the possibility of hiring their service. This a breakthrough of Tesla.
Auto ads burn money like fire. Nissan Motor Co. spent 25 million US dollars advertising its Leaf EV in 2012. By contrast, Tesla has no advertising, no ad agency, no chief marketing officer, but only a marketing tem of 7 members. Tesla has no plans to hire agencies or run ads in the near future, said an executive of Tesla.
“We're very confident we can sell 20,000-plus cars a year -- without paid advertising," said Tesla spokeswoman Georgeson.
The stores and cars are Tesla’s advertising. Tesla intentionally invites celebrities to ride their cars, and their experience gives rise to word of mouth. The brand has also a high-profile positioning, like Apple’s iPhone, as a breakthrough product. Tesla has become a product representing taste and status, benefited from the high-profile positioning, differentiation, word of mouth by celebrities and media coverage. It is even regarded as car of the future. An owner in New Jersey claims many passers-by lay on the windscreen of his car taking photos of interior details with their iPhone.
Tesla’s refusal of marketing costs is also related to the personal experience of its CEO Elon Musk, also co-founder of Paypal, who is familiar with Internet operations. As the CEO of Tesla and SpaceX and chairman of SolarCity, Elon Musk is known as a pioneer of the Silicon Valley and is said to be Tony Stark, the leading character in Iron Man. He frequently releases updates about the company on Twitter with over 500,000 fans. His personal influence is part of the company’s image, and his fans are eager to interact with him on Twitter.
As with Apple, fascinated media do much of Tesla's PR, said Jeremy Anwyl, vice chairman of auto consultancy Edmunds.com. The company received positive coverage for posting its first quarterly profit. “You have to credit [Musk], who's very Steve Jobs-like in how he deals with the media. A lot of the attention is not generated through what we consider traditional advertising. It's really through social media”.