Tesla spends 6 times more than its competitors on developing electric vehicles
According to the report StockApps.com Tesla invests по 2,984 in R & D per electric car produced — six times more than the average investment of leading automakers. In particular, Elon Musk’s investment in development and research is greater than the collective budget for the goals of the entire “Detroit’s Big Three” – Ford, GM and Chrysler.
“Tesla spends more on research and development than any other automaker to maintain its leadership in electric vehicle technology. And if you ask why it does this, Tesla will say that it is necessary for customers to remain satisfied, and this is the main factor that keeps it in the automotive business,” – the analyst commented on the study. StockApps.com Edith Reids.
According to analysts, investment in R&D covers not only the electric vehicles themselves, but also related technologies and manufacturing solutions. Using large investments, Tesla accelerates the development of models, increases their safety level and integrates new technologies into electric vehicles. An additional advantage of the automaker is the status of a “fully electrified brand”.
Unlike Ford, GM and other traditional concerns, Tesla does not have to balance between internal combustion engines and battery platforms — all investments directed to one industry, which means progress is faster, experts are sure. Apparently, this business model works-now the brand’s electric cars are the best-selling passenger cars in the world.
StockApps.com also noted Tesla’s unusual approach to marketing. The industry average for these purposes is $485 per electric vehicle produced. Ford and Toyota spend $468 and $454 each on the car to promote their products, while GM and Chrysler spend $394 and $664 each. At that time, Tesla’s advertising budget was zero. Moreover, the American brand does not even have a marketing department.
Tesla’s unusual approach to advertising is due to two factors. Due to the fact that the company occupies the position of one of the fastest brands in the world, and its founder and CEO Elon Musk actively conducts social networks and often appears in public, Tesla itself is a “marketing magnet”. Analysts said that the electric car manufacturer dominates the press and social networks and, in this matter, significantly bypasses any competitors, so it does not need paid mentions.