Ch. 7 - Business Marketing

Model S Battery

While Tesla does not market its own products on a business level, they do, like most industrial companies, receive some parts and materials needed to produce said products from other companies who do just that. One part, in particular, that has been the focus of much debate over the last few months is the battery. Since the beginning, production and development of the 7,000 lithium-ion cell EV battery has been achieved through a collaboration with Panasonic. Panasonic was also contracted to manufacture all of Tesla's batteries thus far- which is where the problem begins. Panasonic seems to be having a hard time keeping up with rising consumer demand for Tesla vehicles. This in turn means that Tesla themselves are limited in growth to what Panasonic can produce. The problem is that even though it seems Tesla's battery design will one day become a market standard, for the time being there is a shortage in supply for them. CEO Elon Musk is openly considering cutting ties with Panasonic and opening a battery manufacturing facility of the largest scale in the world. While B2B is a necessary part of any industrial business to some level, there is a lesson to be learned here- if at all possible, certain essentials, supply of which is key to your entire line and production of which is not easy to come by, should most likely be under your own control.

Ch. 8 - Segmenting and Targeting Markets

It's difficult to say that Tesla targets any market, since they do no advertising and don't try to stick themselves in anyone's faces while they are scrolling down the facebook news feed. Not yet in any case. But when they have done is position themselves in the eyes of the consumer market as the best bet in electric vehicles for the long run as well as a legitimate competitor in the major industry of luxury car manufacturers. Although it's not just their price point that enables this positioning, it's not exactly due to any direct marketing efforts. The cumulative efforts in R&D, legal renovation and national infrastructure efforts seem to be noticed by the public at large in the form of buzz, that drives any idealist with a deep pocket to invest in this companies future. If we were to segment the market for Tesla consumers however, it seems Americas top 1 percent, and Europeans, specifically Norway, are very happy with their products.

And although Tesla is positioned as a high-priced luxury instant classic, as mentioned previously, that is bound to change by 2017 when the affordable model is unveiled. By then, if loyalty trends persist and promises keep getting met, they may just overcome a great deal of competitors by a landslide.

Ch. 11 - Developing and Managing Products

The concept of electric vehicles is not one conceived by Tesla by any means, but they are the first company to adopt it wholeheartedly and market it in the luxury market environment, competing with high end traditional vehicles such as Mercedes.
The amount of research they have invested into (both technological and market oriented) creating a "new" feeling to and idea that has been around is not surprising to anyone who has ever sat inside one. As a company who deals solely with electric cars, the only company in fact, they must be the epitome of the concept, becoming a synonym of the word.

While none of their products are exactly new-to-the-world, they have spent considerable time making sure their components (battery, engine, operation system, etc.) are several steps ahead of anyone who has previously conceived of similar ideas. One example is their automatically, constantly updating operation system (much like that of an iPhone), ensuring that all who have invested in their products enjoy the most up to date technology has to offer.
Though the rate at which they introduce new product lines is very slow(only two within 10 years), every product is significantly distinct and designed for a different utility. Although their investment in market research seems fairly limited at this point, the majority of their efforts are routed into R&D, which makes sense considering their technology has yet to have been accepted by the mainstream of automotive consumers, and there is yet a long way to go before it surpasses the existing no
rms in the minds of the majority, in both convenience and price.    

Ch. 18 -Social Media and Marketing

The subject of going "viral" in social media is aptly named, as topics of conversation are passed one from one person to countless others via tweets, posts, and blogs just like a virus traveling through a sneeze, a cut or by eating something someone else didn't like enough to finish. 

It is not surprise then, that any company with hopes for growth and recognition infects society with itself. And although sometimes this is unintentional or unwarranted (people to tend to talk about things all on their own sometimes), many companies use this system to monitor and influence
public opinion of their products or brand. 

In addition to utilizing # (hash-tag) functionality to find common subject posts and tweets to get a feel for what people think in the big broad world, Tesla uses giant media and social hubs such as Facebook and Twitter to seed conversation topics in the form of general information or event publication in the social discussion pool. 

One form of monitoring is direct public positive feedback in the form of "likes". The story of a Tennessee Tesla owner for example, whose car had struck object on the highway then instructed the driver to pull over safely before it shut itself down (eventually catching fire once the driver was safely out side), received close so 6,000 likes on Facebook as of now, showing great appreciation for the cars consideration of user safety. 

Beyond likes on the company Facebook page, tweets and comments on the company Twitter account, I myself, in this very blog, exhibit a form of unprompted positive social media presence supporting the brand and the product with my opinions. Although it is highly likely that hardly anyone reads my posts, I am but one of many, and some blogs become so popular they become a business in and of themselves. Despite being able to contribute some positive information into the pool of social media, it is very much a beast with no master, that reacts more to a company's' actions than it does to it's words.

Ch. 10 - Product Concepts

Model S

While most big name auto manufacturers carry some two dozen models at a time, Tesla these days is producing only one- the Model S. While the Roadster is still sold on the used car market, the Model X's announced release set for 2014, and the anonymous high production model estimated to be on the market somewhere around 2017- Tesla is still in its infancy compared to some century-old producers. With such a narrow product mix and shallow depth, the Tesla brand is practically a synonym of their only currently produced vehicle. Since the less-than-handful of their products have had significant reputation success, the brand equity is of high value despite it's still low market prevalence.

Model X- SUV

Roadster

It is important to stress, however, that he "products" Tesla offers are not only the cars they sell, but the infrastructure that comes along with them at no extra cost to the consumer. Tesla does not merely sell the cars, but also provides the charging stations for free use nation wide that makes driving their cars a viable option. Since owning an electric car would be significantly handicapped to a traditional car if charging stations were not available proportionally as gas stations, the two go hand in hand, and create a substantially higher perceived value.
Since the benefit derived from branding is usually only relevant when a company has many products for which to utilize the associated reputation, a company such as Tesla can easily afford to market the product as opposed to the brand.

Ch. 17 - Personal Selling and Sales Management

So what kind of communication does a $20 billion company with no advertising, niche market share, and expensive products have with its already and potential clients? Well, highly personal.


It is said that the smaller the target market and the more expensive the product, the more personal the relationship should be between provider and consumer. And while it is true that one could just go online, click on all the options he wants and order the car without any human interaction what so ever (as seen on the right), most of us are not that comfortable when it comes to buying a car. But should you ever walk into a Tesla store, beyond the art gallery like homage to automotive technology, you'd find a highly personal and tailored service to help prospective clients get what suits their needs and budgets.

Tesla Store

Since Tesla offers a wide variety of options, and make the cars to-order, the representatives in the store are there to walk you through the process, explain and demonstrate the variety of features, and even take you out on a quiet, clean test drive. While this is true for many other manufactures' dealerships offer such services, Tesla remains the only one of the bunch in the US that maintains a direct manufacturer-client channel of personal assistance throughout the purchase process and future service.  

Ch. 16 - Advertising, Public Relations and Sales Promotion

When the word "advertising" is used, the first thoughts to pop into most of our heads are all those annoying, interrupting TV and radio commercials (with a handful of positively entertaining ones) that give us a chance to use the bathroom during a show, and maybe a few billboards. If you're having a hard time remembering what a Tesla commercial looks like, that's probably because they don't have any. That's right- this 10 year old car company who's stock grew five times its values since January of this year, and who's net worth is in the $20 billion range, doesn't advertise. Yet.

Tesla does utilize social media very well, however this is still not in the realm of paid advertising. Tesla does not have an ad agency nor and internal advertising campaign at this point, as many believe it's too soon to worry about such things ,especially with such positive growth coming along on its own. This may very well be because one thing Tesla has a lot of (as anyone with a penchant for building their own version of a boat and then rocking other peoples old fashioned wooden rafts) is Buzz. Anyone who is even slightly interested in cars, and almost anybody with a hobby of gadgetry knows what Tesla is, despite never having taken a bathroom break on their expense. It's hard to say exactly how this comes about, but information does tend to have a life of it's own once it reaches the infinitely long arms of the internet and social media- and if people are naturally curious enough about what you have brewing it seems advertising is not much needed.

Between company posted tweets, news about the latest scuffle with whining auto dealers, and never ending innovation in technological coolness (Tesla invests most of its revenue back into R&D), there is enough to attract curious people seeking all sort of interesting stories to read with their morning coffee.

Now, I did say "yet" earlier in regards to the no-advertising-necessary mentality, and intentionally so. Thus far, Tesla was targeting a very niche target market that seemed to be drawn in all by themselves. However, CEO Elon Musk has already been openly discussing the 2017 estimated release of a $30,000, 200 mile range affordable sedan, to be released to a wider target market than the current luxury models, shortly after the completion of the major Supercharger project. At that point, the market being targeted is no longer niche, and the market development will require more fishing than before in order to sustain sales in the scale they expect.

Ch. 14 - Marketing Channels and Retailing

The fundamental concepts behind utilizing expansive or specialized marketing channels and retailers was always to get your product out to the most amount of potential buyers possible. In the pre-2000's world, this usually meant having product presence or retail in as many physical locations as possible. Since most commerce up until then was done in-store, this was always the best practice for mass produced products of pretty much any kind. In order to get these products out there, marketing channels were utilized so that manufactures didn't have to worry about the product once it was off the assembly line. In today's world, however, where anything and everything can be ordered online (and quite often with not shipping charges), physical product presence doesn't necessarily need to be as extensive, so much is a social awareness for it. All people need to know is that your product is out there. That is, if enough people know about a specific product and its reputation is well founded, people don't need to find it in a store to purchase it- they just go online.

Another concept that is of great importance to both sales and service is mark-up. Every intermediary in the marketing channel between the producer and final consumer will mark up the price at their level in order to make their profits. A producer will sell their product to a wholesaler at $X, the wholesaler then charges the retailer $X+10%, and the retailers charges the consumer $(X+10%)+10% (10% being a very modest markup in the world of retail).The more links in the chain the greater the markup. The consumer at the bottom of this chain ends up paying an addition of 21% (again, being modest) that essentially pays the way for the entire distribution line.

So once again the recurring question- in this world of online shopping, where a direct link can be established between customers and producers, where anyone can buy anything online, is the entire chain of distribution even necessary? Could we not, at the very least, remove a few links in the chain?

Tesla Motor does exactly that. Based on the Dell Sales Model (1994), Tesla customers can order their cars, online with the specifications they desire, and have their cars shipped to their houses, all while saving on all the marking up done along the chain. While there are many Tesla owned store-fronts, these are more of the informative institutions (product research, test driving, etc.), sales being conducted mainly online. Tesla doesn't need the power of quantified retail real estate to reach customers, since their product can be bought anytime and anyplace.
   

Ch. 6 - Consumer Decision Making

Need Recognition
"I need to get from A to B. I should buy a car"

Information Search
Let's face it, very few people decide to buy a car because they happened to see one in the window on their way to Starbucks, and they just had to have it. For the most part, the vast majority of car shoppers engage in more research and effort than they did on their college final papers. This is most likely because they usually end up paying more than they have in their bank account at any given time to have the car they want, and will spend the next few years paying it off.

With the exception of well-to-do idealists who would buy a Tesla because they can afford to make the statement they believe in without compromising luxury, and people rich enough to get anything for the iconic trendy value, for most people the immediate benefits of electric cars are not yet significant enough to strongly tip the scale in their direction. For the majority of people, in fact, the consideration of overall cost and convenience consideration takes place well before the fuel consideration- when you start up looking for a car, the first question usually is "how much can I pay?", followed (by reasonable consumers) with "what is practical?", and then somewhere down the line, providing the first two don't eliminate the option- "gas or electric?"

Evaluation of Alternatives
Tesla is not in the competitive market of Electric Vehicles. That highly specific market is still too insignificant to be considered competitive on an international scale. Tesla is in the competitive market of Vehicles. Period. And until people start caring about the source of a cars power more than the price or comfort, it will be in the same pool as all the other liquid hyped kids.

So lets talk about price- since that's the first question usually asked. At $69,000 base price, and a wide assortment of impressive technology, Tesla is still very clearly marketed to luxury oriented consumers, which prices it out of reason for the bulk of auto market consumers, much like Lexus. But even with the promise of no gas costs, the initial price and long term maintenance still make it a questionable investment on most people salaries. Now many people who are specifically in the market for luxury cars, who could afford the price tag, would also consider a key topic in that investment- convenience. Why is Telsa better than Lexus?

Now, assuming you are a common luxury car buyer, not necessarily too worried about the environment enough to consider it in balance with your own troubles- why would buying electric make sense compared to the gas fueled competitor? Well, some of the many answers to that are raw responsive power, quiet driving, and not having to worry about rising gas prices. But at this point it's still fair to say that put so simply it is still too good to be true. Well no, you don't have to worry about gas prices- but you do have to consider other factors such as driving range, presence of charging stations (that are still not nearly as ubiquitous as gas stations), charging time- and really many other not yet fully addressed EV issues. With all these things to consider on a daily basis, gas powered vehicles seem easier to deal with since gas stations can be found everywhere, and the average driver doesn't need to be bothered with how far he's driving or plan ahead to know when and where he'll need to refuel.

Purchase
"You had me at 17" touchscreen! I'll take it!"

Post Purchase Behavior
Now what most of us never even consider, is that the majority of cash flow in the auto industry runs in the river called "maintenance and parts". While this is an unavoidable fact, since driving a thousand miles is bound to cause some wear and tear on some thing-a-ma-jigger, it becomes a secondary nuisance if you can't find someone nearby to pop open the hood for you. While many people feel comfortable going to their dealer, many others enjoy shopping for cheaper parts and service at local mechanics. But seeing as only one out of every 100 motors is powered by a battery, and Tesla has less service stations per state than the average person has fingers on a single hand, finding someone to fix it when it starts making that noise you don't like hearing can be an issue.

The bottom line is that there is not yet enough on Tesla scale to tip the balance in their favor on a larger scale at this point in time. The majority of cost conscience and easy minded consumers would still not feel comfortable investing in a Tesla rather than a Lexus (if they could afford it). But as was mentioned in earlier posts- there is a plan to address all such concerns- price, convenience, service- it's all being implemented as I write this, and it is only a matter of time before the pile on the Tesla side of the scale gets larger than the other.

Ch. 5 - Developing a Global Vision

Practically since the invention of the combustion engine the market of motor vehicles was grossly dominated by fossil fuel derived energy. The growth potential and economic success of a company producing nothing but electric cars could be perceived as marginal at best when up against the ubiquity of oil fuel based infrastructure, consumer habit, and the overwhelming insistence on putting our faith in the devil we know.

But before analyzing Teslas' global market initiative in steps and measures, it may be worth while to consider what exactly it is they are getting at. In the 1950's a geo-scientist named M. King Hubbert, published a theory known as Hubberts Peak Theory, that asserted that at some point oil production in the world will reach a peak, and perpetually decline there after. The consequences of such perpetual decline and depletion of crude oil resource would include exponential increases in oil prices, and shutdowns of many industrialized, oil-reliant economies. This worrisome idea caused the U.S. Department of Energy to request a report published as the "Hirsch Report on Peak Oil". Robert L. Hirsch draws on many sources to estimate when peaking will occur, and what mitigation efforts should be in progress to prevent economic collapse, as the report states, the year peak is reached, worldwide economic recession is expected to ensue. The real frighting part of it all is that most projections in this report point to the 2010-2020 decade as the peak reaching time frame.

Now, beyond good intentions and idealistic hopes of saving our planet and our society- this is a market driven world nevertheless. Despite being a young American company, Telsa Motors has been reaching overseas almost with its conception. To date, the company has stores and service stations across Europe, a market share development project as significant as it's local one.

Supercharger Plans

Alongside it's sales and service centers, the Supercharger program projects the infrastructure plans seen in the picture above to be completed by the winter of 2014. Stores, service centers and charging stations are also being implemented in east Asia and Australia, albeit in a slower pace. The bottom line is that the impending effects of the projected peak oil issue apply to all industrialized nations, greatest of which markets are the EU and North America, and a day will come where gasoline prices exceed those of champagne. Despite the ideology involved in being "green" in the current not-yet-imminent-but-mildly-worried world of commerce, the tables are soon to be turned, and those who have already established the alternative will prevail.    

While Teslas plans to expand markets into India, Singapore, and further Asian presence, they are met with the general economic issue of out times. Infrastructure for both production and product use, corruption, and poverty in the existing market, burgeoning though it may be, still do not support good FDI returns. Despite being one of the largest economies for luxury, China's population is primarily poor, a problem afflicting a majority of Asian nations. The integration of their electric vehicles require the preparation of infrastructure alongside sales- an unviable endeavor where the sections of the population that can afford to invest in such cars are so small. It is in my opinion that once proper infrastructure is achieved in Europe and the U.S., affordable models are introduced, and Asian markets have further time to stabilize, only then will Tesla have a reasonable capacity to enter into the Asian market and tap into the masses therein.

Whether ideology driven or a market advantage plan is the primary motivation, there is no doubt that in the case of Tesla, good for one will be good for the other.

Ch. 4 - The Marketing Environment

It comes as no surprise to anyone that the rate of change of the market and its products and services as a function of the changing of its environment has grown exponentially over the last two decades. It used to be that a company's successes and follies took their time to be known as words traveled slowly from ear to ear, almost at Darwinian pace, and reputation slowly formed. Nowadays however, with the entwining of technology and social media into everyday life it only takes one disgruntled customer to inform thousands of people of the terrible service he just received within 60 seconds of having experienced it. The world is ever changing- economy, legislation, social trends, and even international politics all affect the conduct of business, and those who can't adapt will be eaten by the bear, while those who are paying attention get to survive another day.

Just like most companies do, the smart ones in any case, Tesla uses the same platforms that most people choose to use as mediums of complaining to keep customers, potential employees and society at large up to speed with everything they are doing to make them not want to complain. One of the most common sources of streamlined bits of information fed to the masses is Twitter. Telsa uses twitter to inform of upcoming sales promotion events, publish achievements and benchmarks, and even invite people to apply for various positions:

#WattsUp: More than 3.2 million miles have been charged at Tesla Superchargers, offsetting about 130,500 gallons of gas. #GoElectric
— Tesla Motors (@TeslaMotors) September 23, 2013

Engineers interested in working on autonomous driving, pls email autopilot@teslamotors.com. Team will report directly to me.
— Elon Musk (@elonmusk) September 18, 2013

That second tweet is evidence of Tesla's future plans to keep up with the advancement of technological factors in the external market environment. In this particular instance, it seems they are trying to out do Google's own driver-less car- an up-and-coming technology that may one day eliminate human error and slow reaction time on the road. While Tesla is a world leader in their category of vehicles, they understand that there is more to a car than just it's source of power, and invest in developing and innovating every aspect of what makes a car do what it does, and do it better.

Google's Driverless Prototype

In their efforts to conquer external factors that may hinder their progress, Tesla has had, and still has, many battles (some successful others not) against archaic legislation protecting franchised auto dealers from being overpowered by they manufacturers they do business with. It all started in the turn of the previous century when mass production of automobiles was perfected by Ford, it seemed easier for car producers to let someone else worry about the distribution. Franchised dealers began popping up, protected by contract clauses preventing their respective producers from selling within their territory. After decades of lobbying these clauses began taking form in the word of law, and have not been challenged in ages, until Tesla began rocking the boat insisting that there is no reason for them to use dealers, when they could distribute their product themselves and pass the savings onto their clients. Despite the uphill efforts on this front, Tesla is committed to innovating not just the cars we buy, but how we buy them.

Ch. 3 - Ethics & Social Responsibility

There is much debate in recent years over the impact of our consumption needs on the environment. Everything from waste disposal, pollution, and use of natural resources is on the plate in such discussions, where is becomes exceedingly clear that there is no one solution, and not one side responsible for damages or answers- but that an effort must be made on all accounts if we are to bring balance to our world again. One thing is certain- many people look at corporations as the culprits since environmental pollution is widely product based in one way or another, and finger pointing is as part of humanity as driving a car.

In examination of Tesla Motors Corporate Social Responsibility (CSR) we may look fist at the definition of sustainability as it relates to their business model and practices. Sustainability is "the idea that the socially responsible companies will outperform their peers by focusing on the worlds social and environmental problems and viewing them as opportunities to build profits and help the world at the same time."

To begin with, urban pollution in many of the worlds large cities due to exhaust fumes emitted by cars is one of the top on the list of environmental and health concerns. Electric car companies have come and gone over the last few years (Fisker, A Better Place, etc.) trying to give an alternative to the fossil fuel domination of the auto industry, all of which have collapsed due to financial or other factors. Companies producing electric cars face opposition from the natural habit and distrust of the consumer, and the heavy lobbying of oil companies and other auto producers, making it an exceedingly risky endeavor to pursue. Although large car manufacturers produce single models of electric cars, they have no whole-hearted transition in that direction as of yet.

Despite all risks involved Tesla is committed to this long term battle over market share and environment resolution. As mentioned earlier, Tesla is investing millions in the nation wide infrastructure development of the free-to-use Supercharger stations, an expensive move in a risky, virtually non existent market of electric cars (<1% of auto market share 2012). So why invest so much in such an uncertain future? The business side of that argument would say that Tesla is building the foundations for a market to emerge into, allowing them to create the market they would eventually lead in. This of course goes hand in hand with the green ideology that the more people use zero emission vehicles the better- should Teslas market share pick up, the boon to the environment would rise alongside their stock value, and everybody wins.

Ch. 2 - Strategic Planning for Competitive Advantage

There are many car manufacturers all over the world, competing in one of the broadest markets on the planet with countless comparable products. Of these companies, few operate in quite the same fashion as Tesla motors. To put aside the argument of political lobbying in support of fossil fuels, and legal protection of the standing of franchised auto dealers in the United States, it can be generally accepted that a company producing nothing but electric cars sold online with a wholesale price tag is a new species on planet earth.  

In examination of the four P's of Teslas' marketing mix we can see exactly how they stand out from general population of automobile producers, and how exactly they are attempting to change the market as a whole. 

Product Strategies

If you consider the companies long term development plan, it's easy to see that they aim for a greater share of the market than the average luxury car producer. But before we examine that plan we aught to look into unique way in which Tesla entered the market.

Tesla Roadster

Teslas' first production car was the Tesla Roadster, a super charged electric sports car with a starting price tag of $109,000. This luxury sports car that out did many of it's gasoline powered competitors, was produced in limited capacities and purchased by the few who could afford it, and quickly became an image of the exotic.

Model S

A few years later the Model S was announced with award winning features and safety, and a price stating at $69,000, about $40,000 less than the previous model. Although still a luxury level car, Tesla has expressed intention of eventually selling low-cost, high-production cars affordable to the common american, and feeding off of the exotic luxury brand reputation it has earned while entering the car market from the top down. 

Supercharger

Now, remember that development plan mentioned earlier? This was referring to Teslas Supercharger project- an international infrastructure project that aims to cover 98% of main highways and interstates in the US (and parts of Europe and Canada) with high-power 20 minute charger stations that enable long range and worry free travel in electric vehicles, and free of charge. The significance of investment in such a project in conjunction with it's product development ensures giving answers to concerns before they are even asked. Investment in such projects even before the effective production of an affordable Tesla model ensures that by the time they hit the market, peoples concerns over battery range will be void and irrelevant. 

Place (Distribution) Strategies

To the general public in the united states it seems fairly unchangeable that cars are bought at the local car dealers lot. Despite the legal battles that they knew they would face, Tesla embraced Dells' model of sales, where after a visit at a Tesla "gallery" for information and test drive, a perspective consumer may then go online in the comfort of his own home, choose the details he wants in his car, click "order", and 5-11 business days later the his new purchase is delivered to his door. Until now production cars were never built to order, never sold online, and whats more- never sold directly from the manufacturer to the consumer (within the US). Despite numerous legal battles and political lobbying put forth by worried and defensive auto dealer associations nation wide, Tesla is committed to the concept of dealing with the consumer directly and provide their specialized service. The general question in distribution strategies is usually "where?", and much like many other industries in the .com era, Teslas answer is "wherever!"

Promotion strategies  

Tesla's promotion so far is mostly based on word of mouth and general unprompted media. There are no commercials, ads, or billboards. Since the release of the Roadster the name "Tesla" was spoken with a reputation of high-end and exotic luxury, a reputation that yields great spread of word of mouth through car lovers and media alike. There almost seems no need to advertise the brand at this point in time, a fact that may change when the affordable models are expected to reach mass-markets. In addition, Teslas legal battles with local and national auto dealers, and other such publicity, are prompting media coverage in many outlets, spreading the brands recognition and "Robin Hood" like activities. 

Price Strategies

Much about pricing can be inferred from the above- starting from the expensive and working down the price as the reputation is seeded, is one aspect of these strategies. But the other very significant one was not yet addressed directly- wholesale prices. It may seem a little obvious to some, but still begs discussion, that the fact that consumers are able to buy the cars directly from the manufacturer means that there is no markup (~9%) that usually results from buying cars via dealerships. Tesla does not lose money from conducting business this way since they are selling cars to consumer for the same price they would have to a dealer, yet the consumers benefit directly.   

A second aspect that is unique to any car that uses "green" forms of energy, and is independent of Teslas marketing, yet relevant, is government subsidies. Many state governments shell out benefits when consumers purchase electric cars (California will give a buyer $10,000 back from the price tag) as further motivation. This benefits not only the consumer who enjoys the discount, but also Tesla- who enjoys a more attractive market price appeal without sacrificing any profit margins.

Ch. 1 - Overview of Marketing

Tesla Motors is an electric car designer and manufacturer founded in 2003 by entrepreneur Elon Musk, in Palo Alto California. 
Teslas' goal was to seed the electric car into the mass market, starting at the luxury sports car level and working their way down to mass produced affordable cars to have fair competition in the greater auto market. 
in 2008 Tesla began sales of their first production car- the Model X, a supercharged sports car that sold at the base price of $109,000. In 2012 the Model S sedan was unveiled, winning countless titles in quality and safety world wide, starting sales at $69,000.
In 2010 the company went public, and three years later though revenue earned in cars sales and stock trading was able to pay out the $450 million loan from the US DOE (given to companies promoting alternate forms of energy), 9 years early.
To date, Tesla remains the only manufacturer solely producing electric cars, with a notable presence in the world car market competing with the standard fossil fuel based companies.