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Innovative Brand of Tesla Inc.

Executive Summary

The document offers in-depth research on Tesla Inc., an innovative brand that focuses on the creation of electric vehicles. The choice of the brand for the analysis is justified by the growing importance of environmental concerns, the need for the use of alternative sources of power, and the increased attention to technologies. Tesla combines all these features and makes them its main strength by emphasizing the eco-friendly vector of its evolution.

The paper consists of sections that outline the essential aspects of the brand’s work. These are Situation Analysis, Market Opportunity and Issues, Key Marketing Objectives, Marketing Strategy, Target Market, Marketing Mics, Marketing Metrics, and Contingency Plan. At the end of the paper, the conclusion is provided to summarize all the information and describe Tesla.

The information provided in the sections mentioned above outlines the key features of the company. There is a detailed description of its target audience with its peculiarities, strategies that are employed by the company to attract clients’ attention, and compete with its closest rivals, characteristics of the market environment, and a segment where Tesla functions. Additionally, there is an analysis of risks and ways to mitigate their negative impact on the brand.

Resting on the discussed data, the report concludes that Tesla remains a promising and evolving brand because of its focus on innovative technologies and unique image, although it has some problems in the financial aspect of its functioning preconditioned by the nature of the company.

Tesla Inc.

The given report is devoted to the analysis of Tesla Inc., one of the innovative brands of the modern world. The selection of the organization for the study is explained by several factors. First, being an electric vehicle and clean energy company, it embodies the values and features of contemporary society. It means that it combines innovation with a unique approach to manufacturing its products and the introduction of specific qualities. Second, because of the growing number of environmental concerns, the alternative sources of energy and vehicles that do not use fossil fuels acquire a top priority in the modern world, which makes Tesla one of the potential leaders of the industry. Finally, the growing popularity of the brand, its potent positions in the market, and high customers’ interest make the company an appropriate choice for the investigation and analysis. For this reason, the paper delves into the central aspects of the brand’s work to improve understanding of factors that stipulate the high speed of its evolution.

Situation Analysis

The first section of the report is devoted to the situation analysis as a tool to create the background for further investigation.


One of the important features differentiating the company is its target audience. For a certain period of time, Tesla served the target market of premium all-electric sports cars (About Tesla, n.d.). It contributed to the formation of a specific image of a customer:

  • 20-45 years’ old
  • High level of income
  • Interest for green technologies
  • Desire to differ from other individuals
  • Readiness to employ innovations (Tesla Inc., 2019)

However, with the further evolution of the brand, the need for the expansion of the target became evidence due to the increased level of rivalry, and the demand for new clients and distribution channels that can help to generate additional revenue.

For this reason, today, Tesla focuses on the expansion of the target audience by adding new products and new features. Thus, the vehicle line includes not only sports cars but also sedans designed for everyday use in cities. However, the peculiarities of customers remain specific as they should be wealthy (average level of income) to be able to buy an expensive product of the company, green-friendly, aware of technologies, and be ready to invest in their development by buying this sort of cars (Li, 2018). The comparatively narrow target audience might slow down the speed of the company’s growth and serve as one of the barriers. However, the focus on upper-class vehicles is justified by the fact that their outstanding quality is appreciated by individuals, successful entrepreneurs, or professionals who are ready to spend high sums.


Tesla operates in the highly competitive market as the automobile industry is characterized by the presence of giant multinational corporations affecting the evolution of the sphere and minimizing the chance of a new entry. For this reason, the influence of the leading competitors is one of the central factors affecting the selected company in its evolution. The leading rivals include both traditional auto companies such as Ford Motor Company, General Motors (GM), Honda, Volkswagen, and innovative brands focused on the creation of hybrid or completely electric vehicles such as NIO, and BYD (O’Donoghue, 2020).

As for the traditional segment, Ford, GM, Honda, and Volkswagen hold a traditionally dominant position in the market because of the rich product line, stable target audience, and the availability of resources that can be used to improve their states and support new projects. Moreover, properly realizing the growing number of environmental concerns, corporations launch new lines of hybrid cars that use both fossil fuels and electric power. They can affect the work of Tesla Inc. by attracting potential clients as their influence of the market is substantial (for instance, Volkswagen has about 7.59% of global automotive market share in 2019) (Tiwari, 2017).

As for NIO and BYD, they are fast-growing new and innovative firms that work in the same segment as Tesla and offer high-class premium electric vehicles to clients (Kumar, 2018). The high speed of their evolution is dangerous for the selected brand as they remain central competitors and focus on the same audience.


As for Tesla Inc. itself, the company has both facilitators and barriers impacting its rise. The central factors explaining the attention to the brand and its popularity are the interest for technologies and the need for environmentally-friendly vehicles that will help to reduce the negative impact of human activity on nature (About Tesla, n.d.). Under these conditions, in 2020, Tesla managed to reach a market capitalization of $160 billion and has opportunities to continue its growth (Tesla Inc., n.d.). The global sales of vehicles manufactured by the company increased by 50% from 245,240 units in 2018 to 367,849 in 2019 (Birk, 2017). Moreover, the number of delivered cars increases every year because of the growing demand for them (see Figure 2 in the Appendix). These numbers evidence the growing popularity of the company among clients worldwide.

At the same time, the innovative character of the brand presupposes significant investments to support the development, testing, and implementation of new technologies into the work of vehicles. For this reason, Tesla lost about $2 billion in 2017, which is about two2 times higher if to compare with 2016 ($675 million) (Li, 2018). Under these conditions, the company faces the need for a balance between spending and income to create the basis for the further development and implementation of technologies as they serve as the main factor differentiating the company from other ones.

In such a way, situation analysis shows the existence of the high level of rivalry peculiar to the sphere and the need for substantial investment to support the further rise of the brand. At the same time, Tesla benefits from the increase in the number of clients interested in eco-friendly vehicles that combine elements of luxury, technologies, and can demonstrate the status of their owner.

Market Opportunity and Issues

Analysis of the market opportunity includes the investigation of factors that might be considered facilitators of the company’s growth and barriers that might slow down its development. For Tesla, the vital components needed to investigate the market opportunity include industry, customers, environment, technology, and rivals.


The electric vehicles industry in 2017 was valued at around $118.856 million (Kumar, 2018). The forecasts also predict its growth, and by 2025 it will achieve about $567.299 million (Kumar, 2018). It means that the industry provides multiple market opportunities for Tesla operating in this very sector. The field of electric vehicles attracts both clients and actors because of the deterioration of the state of the environment, the emergence of new technologies, and economic benefits that can be associated with it. The obsolete nature of cars using fossil fuels, its high price, and exhaustible character stipulates the high profitability of this market sector (Birk, 2017). Tesla can also benefit from the appearance of areas for expansion such as Asia, the Middle East, and Latin America because of their economic development.


The demographical factor is another aspect that provides an advantageous opportunity for Tesla. Environmental trends are one of the central concerns of contemporary society, which means that more people need products that can be described as eco-friendly or useful for the environment. Additionally, because of the digitalization of the modern world and the growing power of technologies, there is a significant shift in people’s mentalities presupposing the encouragement of brands that integrate innovative solutions, materials, and software. Tesla, as one of the leaders in the sphere of technologies and a firm emphasizing its creativity, can benefit from the given trend as its products meet both requirements mentioned above (Wells, 2018). Additionally, the increased buying power of the youth and people under 40 offer a chance for the brand’s growth.


The continuous deterioration of the environment gives rise to multiple concerns among clients, regulatory bodies, agencies, and companies working in the automobile industry. Fossil fuel is considered one of the most disputable elements as cars using it are the major pollutants (Birk, 2017). Statistics show that about 15% of carbon dioxide associated with human activities comes from vehicles utilizing a traditional source of power (Kumar, 2018). That is why there are much criticism and multiple appeals to switch to other energy sources. In this regard, Tesla holds an advantageous position as one of the brands focused on the creation of electric cars that are friendly to the environment and can potentially replace traditional ones. It gives an opportunity for the expansion and attraction of new partners and customers.


The current level of technology development and advances is another facilitator of Tesla’s growth and success. Being a hi-tech brand, it critically depends on the level of scientific progress and implementation of technologies that can help to make the use of alternative sources of power less complicated and more beneficial (Li, 2018). The cost of equipment used in electric vehicles reduces because of the appearance of other ways of production. Additionally, materials used in cars also become more available and affordable due to technological advances. For Tesla, it means a new opportunity for the expansion of its production lines, reduction in the price per one vehicle, and new vectors of the brand’s evolution. In such a way, technology is one of the factors providing new marketing opportunities for Tesla.


However, rivalry, traditionally fierce in the automobile industry, is one of the issues that should be considered by Tesla. Powerful giants such as GM, Ford, Volkswagen, Honda, do not want to lose their leading positions and also try to occupy the niche by creating hybrid cars that are more environmentally friendly if to compare with traditional ones (Kumar, 2018). Moreover, there are brands such as NIO and BYD that develop electric vehicles and might deteriorate Tesla’s position. It means that the marketing strategy should consider the rivalry as one of the barriers to the company’s development, and there should be measures to overcome it.


Finally, the high price per vehicle is another limiting aspect that might push customers away. Tesla has a narrow target audience that is characterized by a high level of income; however, the creation of exclusive cars means high spending and extremely high cost of products (Li, 2018). There are attempts to make the products more affordable for clients, but, at the moment, the given factor still limits opportunities and prevents Tesla from entering new markets or areas.

Altogether, Tesla can enjoy multiple market opportunities because of the existing environmental concerns, technological factors, customers’ preferences and buyer behaviors, and attractiveness of the industry.

Key Marketing Objectives

The strategy of the company critically depends on the marketing objectives that are relevant at the moment. For Tesla, the primary goals are impacted by its unique nature and position in the selected segment. The brand’s vision statement shows its desire for dominance in the global electric vehicles market. Its mission statement includes the intention “to accelerate the world’s transition to sustainable energy” (About Tesla, n.d.). Tesla believes that it will help to reduce the dependence on fossil fuels and help to solve some environmental problems. At the same time, the company tries to “create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles” (About Tesla, n.d.). These two statements significantly impact the existing marketing objectives and the short and long-term plans of the company.

The first marketing objectives for the current Tesla’s campaign proclaims the positioning of existing models of cars as an affordable vehicle in the luxury and upper-class market (Bhasin, 2019). The given has several important factors that demonstrate the plans of the company. First, correctly realizing the growing rivalry and the need for loyal clients, Tesla Inc. tries to broaden its target audience by making its products more affordable in terms of the selected niche. It can be achieved via the constant improvement of technologies, an increase in reliability, and a decrease in the cost of final products and services associated with it.

The achievement of this marketing objective will create the basis for the further evolution of the company and meet its existing mission statement (to dominate the market of electric vehicles). At the same time, the given goal means the transition to a new model presupposing the inclusion of the increased number of clients and their participation in the evolution of the brand (Bhasin, 2019). The positioning of the Model S, Model X, Model 3, and Cybertruck demands specific investment and promotion to ensure that the market will be attracted by them, which means that the current company’s strategy is shaped to meet this purpose.

The second marketing objective is to raise clients’ awareness of Tesla’s products and educating them to improve their understanding of the brand and attitudes to it. Being a comparatively new player in the market, the company might suffer from misunderstanding, misconception, or poor knowledge related to its products (Tiwari, 2017). Clients can be confused by the high prices of vehicles, their unusual characteristics, and limits they have because of the low level of infrastructure preparedness for electric cars. For this reason, one of the central goals of the company at the moment is to alter the perception of the brand and create the environment favorable for the future sales of its vehicles.

The lack of clients’ awareness is a critical limiting factor for Tesla at the moment. Investigations show that a comparatively low number of potential clients correctly understand the nature of electric vehicles, their importance of society, and eco-friendly character (Tiwari, 2017). It slows down the speed of the brand’s growth and weakens its positions in the market. Under these conditions, the key marketing objective presupposes activities aimed at the further development of the brand’s image and explanation of its nature.

Finally, as any brand trying to achieve success in the market, Tesla has the objective of acquiring new buyers to create a solid customer base that can contribute to the future rise of the brand (Birk, 2017). The given goal is one of the most important tasks of any company as it is vital for the generation of income and stable revenues. For Tesla, it means diverse promotion activities that can contribute to the continuous improvement of the brand’s image. Additionally, the current goal is linked to the previous one, as better awareness might help to acquire new clients. The charismatic leader of the company, Elon Musk, also contributes to the popularization of the brand in different regions and the creation of its recognizable image.

In such a way, the three primary marketing objectives of Tesla can be formulated in the following way:

  • to position existing vehicles as affordable cars
  • to increase clients’ awareness of the brand and educate them
  • to acquire new customers to create a solid customer base

These three goals impact the strategy of the company, solutions accepted by top managers, and its future evolution regarding the mission and vision statement.

Marketing Strategy

As it has already been stated, the marketing strategy of Tesla depends on its mission, vision, and objectives. At the same time, the current state of the market and the company’s position also impact the marketing strategy of the brand and its solutions. The SWOT analysis is one of the tools that is used to evaluate the existing advantages and problematic aspects to understand the strategic decisions made by the company.


  • Technology – the company has always been associated with innovative decisions and cutting-edge solutions
  • Monopoly – the company was the first to occupy the niche of electric cars and eco-friendly power sources, which provided it with an opportunity to grow (Tiwari, 2017. Additionally, it is the leader in luxury cars’ sales in the USA (see Figure 3 in the Appendix).
  • Political support – the government supports the functioning of the company by investing in its projects
  • Leadership – Elon Musk functions as a charismatic leader promoting the products of Tesla
  • Distribution channels – the brand establishes its own channels to reduce dependence on other actors


  • Capacity – the brand has only one plant which limits the number of cars that can be created per year (Tiwari, 2017)
  • Poor customer awareness – the specialized nature of Tesla’s products and futuristic features might confuse clients
  • Price – the high price of its vehicles might also reduce sales and slow down the speed of the firm’s growth


  • New technologies –Tesla can become a brand associated with innovations and environmentally friendly incentives
  • Leadership in the segment – the company can hold leading positions due to the effective marketing strategy
  • Promotion of new energy sources –the brand can also facilitate the shift towards new technologies and the use of electric cars (Tiwari, 2017)


  • Competition – Tesla faces fierce rivalry as it competes with giants of the automobile industry, such as GM, Ford, Volkswagen, Toyota.
  • Rising technology brands – NYO, BYD, Google, might also try to occupy the niche of technologies

The given SWOT analysis demonstrates that the company has multiple strengths that might be employed as factors facilitating its growth and helping to decrease the risks. Resting on this data, the marketing strategy presupposes the three major features:

Focus on technology

Correctly realizing its role as one of the central innovators in the automobile industry, Tesla builds technology platforms that can help to create the infrastructure to support its cars and be used by other companies functioning in the same segment. It is on track to deliver innovative solutions such as fully autonomous driving capability earlier than its rivals, which can be taken as one of the strategic approaches guaranteeing the success of the brand (Tiwari, 2017). Being a pioneer in the field, Tesla’s marketing strategy presupposes support of this tendency to generate a competitive advantage and remain a brand that is mainly associated with innovations as it helps to evolve and attract both investors and potential clients.


The current success of the brand can be linked to its outstanding reputation and image created by an effective advertising campaign. Elon Musk, as the head of Tesla, also contributes to the popularization of the firm by attracting attention to its products and emphasizing the critical importance of innovations in the modern world. The company managed to transform the image of electronic vehicles from small and unattractive cars to exclusive, fast, and desirable products that might be the element of style (Tesla Inc., 2019). For this reason, the reputation of excellence and innovation creates the brand’s image, and the company’s marketing strategy presupposes the further focus on this aspect of its functioning. Underlining its unusual character, Tesla can struggle with competitors and generate a competitive advantage.


Limited capacities and price are the major weaknesses of the brand, and Tesla tries to mitigate its negative impact by diversifying its business and entering new markets (Tiwari, 2017). This strategy can be considered an effective measure to increase the number of products offered to clients and guarantee that the dependence on vehicles’ sales will be reduced. Thus, solar roof files and complements along with the distribution of rechargeable batteries to store the captured energy are new items provided by Tesla to its clients, and the company continues to diversify its products pool (Tiwari, 2017). This approach helps the brand to minimize risks and remain competitive regarding the existing market environment.

Altogether, the current marketing strategy employed by Tesla presupposes focus on technologies, their promotion, diversification of products, and creation of an outstanding reputation of the brand. It will help to create the basis for the further rise of the company and ensure that clients will be attracted by cutting-edge decisions implemented in cars that are offered to them.

Target Market

The target market of Tesla is characterized by specific segmentation and peculiarities that should be considered by the company to promote its sales and succeed.

Geographic segmentation

The development market of electronic vehicles is mainly presented in areas where the appropriate infrastructure is enhanced, and there are specific charging stations that are needed for hybrid or fully electric cars to move (Birk, 2015). For this reason, the target market of Tesla is limited by some European and North American states possessing the given feature.

Demographic segmentation

Family size and its composition influences the market of electric vehicles and demand for such products. For this reason, Tesla should focus on nuclear families with a high level of interest in eco-friendly incentives.

Socioeconomic Segmentation

Because of the significant price for products offered by the company, consumers with a high level of income comprise the target market. They also are more educated about the consequences of climate change and the effect traditional cars have on it (Wells, 2018). For this reason, Tesla focuses its marketing activities on this group.

Psychographic segmentation

Another essential factor preconditioning the offered segmentation is the interest in eco-friendly practices and sustainable transportation along with the consideration of their vital role in improving the state of the environment (Wells, 2018). Such cohort is ready to pay more to ensure that products can help to reduce pollution, and Tesla considers this element in its strategy.

Behavioral Segmentation

The target market is also segmented regarding the behavioral patterns peculiar to clients. These might include perceived benefits about quality, safety, performance, and unique character of the acquired good (Wells, 2018). For this reason, Tesla designs its electric cars for the audience with these specific behaviors.

The targeting strategy of Tesla Inc. also presupposes the differentiation of two current target markets and one future market that can be affected by the brand during its growth. The given approach helps to select the strategy to work in the chosen area more effectively and remain attractive to representatives of this segment.

Target market 1

The primary target market of Tesla Inc. consists of males and business executives (83.9%) (Wells, 2018). The average age is about 45 years, which can also explain their interest in environmental incentives and eco-friendly vehicles (Wells, 2018). Another feature of this target market is the high level of income of clients as it exceeds $100.000 (Wells, 2018). It means that representatives of this cohort belong to the upper-middle class. This feature is essential as it guarantees decreased price sensitivity and readiness to buy a Tesla car as a prestigious or luxurious element emphasizing their status. Unique service, speed, appearance, and reputation of the brand are also vital as they are part of the brand. Finally, these individuals are aware of environmental concerns and are ready to spend money to support eco-friendly companies.

Target market 2

Due to the reconsideration of its marketing strategy, and appearance of new vehicles in the product line, Tesla Inc. also focuses on families by offering Model S and Model X equipped with seven seats and convenient for big families. It can be a good option for trips, holidays, and other activities that presuppose the involvement of all members. Families should also have a high level of income because of the price of these models (Wells, 2018). Additionally, they should be educated enough to possess knowledge about the environment and factors that might impact it. In such a way, Tesla tries to broaden its target audience and market by attracting new groups and providing specific products to them.

Target market 3

With the further evolution of the electric cars’ segment and their popularization, Tesla plans to continue reducing prices for its models, such as Model 3, with the primary goal to target a more price-sensitive category. At the moment, the given approach is utilized and demonstrates positive outcomes; however, it is planned to enter the mass market and be able to compete with other lower-price electric or hybrid manufacturers (Wells, 2018). This solution is vital regarding the increased rivalry and constant appearance of new actors trying to attract clients. Tesla’s focus on this niche will help to acquire the background for the future company’s rise.

In such a way, the target market of the company is characterized by specific differentiation regarding the buying power of clients, their demographics, and the existing goals of Tesla. The given approach to targeting ensures the selection of better strategies to work in particular segments and enhanced ability to cooperate with clients possessing multiple characteristics, which is vital in the modern business environment.

Marketing Mix

Marketing Mix analysis is a critically important tool that contributes to an improved understanding of how the company functions and its central features. It includes the following aspects:


Tesla Inc. is mainly known as an innovative automaker that provides its clients with a wide range of eco-friendly electric cars made using cutting-edge decisions and characterized by unusual design and luxurious elements. The corporation adheres to a business to business model, which presupposes the encouragement of partnership with other actors in the segment and supply of products, services, and equipment to potential partners (Li, 2018). That is why Tesla operates in the sphere of mass-market vehicles and holds the reputation of a famous distributor and manufacturer of outstanding cars. Its current product line includes Tesla Model S, Tesla Model X, and Tesla Model 3 that possess various qualities regarding the target audience and existing goals.

At the same time, the company also creates and sells induction and magnet motors, unique autopilots that provide vehicles with an opportunity to move independently, batteries, special roof glass, and innovative sources of energy (Li, 2018). The character of products contributes to the increased competitiveness of the brand in the market as they remain unique and help Tesla to dominate the market segment.


The international character of the company means that it tries to spread its influence and offer its products in various regions. Tesla is headquartered in Palo Alto, the USA; however, even though this region remains significant for the distribution of vehicles manufactured by the company, it is not limited by this location and has a wide distribution network consisting of its stores in Asia, Europe, Australia, the OAE, and South Korea (Tesla Inc., 2019). The desire to reach as many places as possible helps to increase sales and achieve the company’s goal, which is to facilitate the transition to eco-friendly transport.

Moreover, speaking about the place, China remains one of the fundamental and largest markets of Tesla and electric cars. In 2019, the company managed to generate significant revenue in this area (about $669 million in the third quarter of 2019, and around $2.128 billion during the first nine months) (Tesla Inc., 2019). The correct understanding of the existing economic trends and the level of income among the population helps to function in the most beneficial locations. For instance, Tesla also operates in Canada by using its eight outlets in Montreal and Ontario (Tesla Inc., 2019).


In accordance with the company’s report, in 2017, Tesla managed to earn $11.76 billion, with the net income at -$2.24 billion and total assets around $28 billion (Li, 2018). To a greater degree, these outcomes are associated with the use of a premium pricing strategy as the company targets only wealthy buyers with the average level of income who can afford its vehicles. The high price per one care is explained by the use of innovative technologies and unusual decisions that differentiate the products of the company from other offerings present in the market.

Along with some advantages, the given pricing strategy also limits the company in its opportunities to continue its rise as the target population remains narrow. That is why Tesla launched the line of affordable cars with the central aim to cooperate with mid-scale general consumers and capture a significant part of the market by employing a reasonable pricing strategy (Tesla Inc., 2019). For this reason, at the moment, the company tries to reconsider its approach to pricing to acquire a more beneficial position and generate additional income.


Promotion can be considered one of the most advantageous elements of the company’s work as at the moment Tesla is associated with innovativeness, technology, and a luxurious lifestyle. The given multinational company tries to promote its products by using strong advertising campaigns, emphasizing its eco-friendly incentives, and using referral programs. It contributes to the stable growth of public interest to the company and the improvement of its image.

At the same time, the leader and the public face of the company, Elon Musk, also popularizes and promotes the firm by outlining its unique character and explaining its importance for the future of the planet. Under these conditions, the given approach to promotion becomes a useful tool to guarantee that clients will remain attracted and try to find additional information about Tesla.

The given peculiarities of the marketing mix show that the company has stable positions and a powerful strategy that helps to achieve the outlined goals and generate a competitive advantage.

Marketing Metrics – Review and Control

Tesla, as any modern company, devotes specific attention to the monitoring of its functioning by controlling marketing metrics and analyzing central performance data. Thus, in accordance with its report, its revenue in the most recent fiscal year comprised $24.58 billion, which can be considered a good result beneficial for the further rise of the brand (Tesla, Inc. (TSLA), 2020). Because of the importance of this aspect, Tesla controls it by reviewing its reports and sales in various areas. At the same time, its net income is about -$862 million, which shows that the company spends more than it earns (Tesla, Inc. (TSLA), 2020). It can be a threatening sign for the management as the development of the brand presupposes significant investment in expensive technologies, and it might decrease its profitability. The company also experiences negative cash flow as it worsened from -$1.4 billion in 2016 to -$3.5 billion in 2017 and continues to decrease (Tesla, Inc. (TSLA), 2020). The capital expenditures continue to increase if to compare with 2016 ($1.3 billion) and in 2017 are about $3.4 billion (Tesla, Inc. (TSLA), 2020). Tesla is aware of the given situation and monitors its performance to introduce additional investment to support the growth of the company.

Another important metric is the number of sold products and deliveries. It indicates the success of the company and its ability to generate revenue that stably grows (see Figure 1 in the Appendix). In the first half of 2017, the brand delivered 47,000 and 50,000 S and X models (Wagner, 2020). It also expects the rise in sales up to 33% over the year (Wagner, 2020). However, Model 3 deliveries were not as successful as it was expected as the company managed to sell only 1,764 vehicles when it was expected about 5000 per week (Sparks, 2018). Additionally, 55% of organic revenue growth was achieved (Sparks, 2018). It means that there are some successes in the given sphere that are preconditioned by the successful marketing strategy, promotion, and relations with clients. Tesla correctly realizes the importance of these metrics and monitors the market to solve some problematic issues if the level of sales does not meet requirements.

Finally, the return of equity is about -13.07, which demonstrates the existence of some problematic issues related to the use of capital and investment to generate additional revenue (Tesla, Inc. (TSLA), 2020). It mostly comes from the need for heavy financing of innovative technologies and the constant development of innovative solutions. Return on assets is -2.70%, which is also one of the negative trends that should be considered by management (Tesla, Inc. (TSLA), 2020).

In such a way, the marketing metrics of the company combines both positive and negative aspects. The high number of sold vehicles and the increase in revenue prove the effective strategy of the company. However, at the same time, the negative net income, cash flow, and ROI should be considered by the company to guarantee effective problem-solving. The brand evaluates these showings and creates reports that reflect all financial activity to remain informed and accept the strategies needed to improve the most problematic areas.

Contingency Plan

Being a giant corporation that functions in an extremely competitive environment, Tesla experiences some risks that can deteriorate outcomes and preconditioned the failure of the company. For this reason, there is a specific contingency plan presupposing effective responses to such threats as competitor development, problematic factory evolution, deterioration of the public image, and delays in product development. The introduction of in-time and sufficient response to these threats is an integral element of the strategy employed by Tesla as it guarantees its ability to recover and continue its growth.

As for the competitor development, the contingency plan presupposes the preservation of friendly competition with other brands present in the market and sharing some central research items to drive the shift towards eco-friendly vehicles and as it is stated by the primary mission of the brand. In case Tesla faces unfair rivalry or is pushed out of the segment, additional investment and use of unique offerings should be initiated by using its cutting-edge technologies (Tesla Inc., 2018).

Because of the adherence to innovative approaches, delays in product development are an integral part of the working process. For this reason, to reduce this risk and mitigate its negative impact, Tesla promotes an engineering environment that contributes to the constant improvement of all processes and working environment (Tesla Inc., 2018). The positive atmosphere facilitates creativity, conversation, and discussion between leading engineers in case of emergency.

The problematic evolution of the demanded infrastructure will introduce the need for appropriate responses. Thus, Tesla’s contingency plan presupposes improvement of the existing production line and construction of special facilities that will be able to support the rise of the brand and its functioning. Additionally, it will mitigate the negative effect of delays on the brand.

Finally, the deterioration of the public image of the brand is another risk considered by the contingency plan accepted by Tesla. Because the company boasts its eco-friendly character and transparent nature, its relations with potential buyers remain the major concern for the top management. If the critical deterioration of the image because some flaws are inevitable, the company’s plan presupposes the acceptance of responsibility and engagement in activities that will help to restore the image (Dana, 2018). It might mean the replacement of unsatisfactory products, direct communication with clients, or Elon Musk’s participation in debates regarding this very problem.

In such a way, the current contingency plan accepted by Tesla presupposes the existence of some problems that the company might face in the process of its evolution. Because of the high level of rivalry and complexity of the business environment, the brand offers a set of sufficient measures that can be put in action if any case of emergency appears. It will help to resolve relevant problems and align the effective functioning of al facilities that are demanded to produce high-quality products and deliver them to clients to meet their requirements and increase satisfaction levels.


Altogether, the given report shows that Tesla is a promising innovative company that has multiple opportunities for further development. The brand promotes its adherence to eco-friendly technologies and emphasizes the unique character of solutions that are implemented in its vehicles. This strategy helps to dominate the market of electric cars and attract a specific audience. However, for sustainable growth, the corporation has to broaden its target audience and ensure that new clients are attracted by cheaper models such as Tesla 3. It will help to avoid financial losses because of the substantial investment in technologies and compete with multiple rivals functioning in the same segment and trying to affect the same target audience. Tesla is one of the significant modern actors in the field of electric vehicles and continues its evolution to hold leading positions and promote a shift to eco-friendly technologies.


Tesla’s revenue 
Figure 1. Tesla’s revenue 
 Delivered units 
Figure 2. Delivered units 
Demand for luxury cars 
Figure 3. Demand for luxury cars 

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Wells, T. (2018) Target market segmentation: how Tesla pulled off a billion dollar pricing strategy in the automotive industry. Web.

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"Innovative Brand of Tesla Inc." StudyKraken, 9 Feb. 2022,

1. StudyKraken. "Innovative Brand of Tesla Inc." February 9, 2022.


StudyKraken. "Innovative Brand of Tesla Inc." February 9, 2022.


StudyKraken. 2022. "Innovative Brand of Tesla Inc." February 9, 2022.


StudyKraken. (2022) 'Innovative Brand of Tesla Inc'. 9 February.

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