Share

Model Zero

While Tesla may have a TechnoKing and Master of Coin there is no room for a Chief Marketing Officer in the company’s c-suite. Tesla shockingly spends $0 on advertising. No TV ads, no billboards. A top 10 company by market, let’s look into how Musk has made this possible.

TechnoKing of Tesla, Master of Coin…Musk has given the c-suite some unique names in the last year. The one position without an outrageous job title? Chief Marketing Officer. That’s because Tesla doesn’t have one. Tesla has never spent a cent on paid advertising. The biggest car company in the world, a top 10 company by market cap runs its advertising like a mom-and-pop corner store.

Car companies traditionally spend big money on TV ads, event sponsorships and billboards. In 2019, BMW alone spent almost US$200m on advertising. To be clear, Tesla certainly spends resources researching the market, testing ideas with users which can all be classed as marketing, but paid promotional spend is zero. Don’t believe it? Here it is straight from the CEO’s fingertips. And again.

Tesla believes the company’s limited cash flows are better spent on its vehicle development. This makes sense when your cars practically sell themselves. Next-generation features wrapped into a sleek metallic exterior mean every time a Tesla drives past, onlookers recognise and comment on it. Linked to this is Tesla’s generous referral program. A successful referral grants referrers $1000 credit to use on a new vehicle. Referral marketing has a long track record of proven success. Much of Uber’s growth over the last decade came down to their referral campaigns…and unsustainably subsidising rides but that’s a story for another Wrap.

Then there is their outspoken, celebrity CEO Elon Musk. With 59.2m followers on Twitter, Musk moves markets within 280 characters. Known as a global visionary, Musk has built an audience as his reputation as the real life Tony Stark grows. Musk can advertise product announcements and company news to an immediate audience of 60million. That’s billions in advertising value at zero cost. The chance of virality, and the chance to be seen by an even bigger audience is only compounded by Musk’s never-hold-back sense of humour and attitude.

Underpinning Musk’s reputation and Tesla’s reach is the fact they produce an exceptionally high quality car. A car that can be updated to include new features via wifi, incredible safety and an environmentally friendly edge mean Tesla’s tend to sell themselves.

Sign up to Stake

Want more?

You know what to do

Insights, trends and company deep dives delivered straight to your inbox.


Stake logo
Over 7,000 5-star reviews
App Store logoGoogle Play logo

Subscribe to our free newsletters

By subscribing, you agree to our Privacy Policy.

Stakeshop Pty Ltd, trading as Stake, ACN 610105505, is an authorised representative (Authorised Representative No. 1241398) of Sanlam Private Wealth Pty Ltd (Australian Financial Services Licence No. 337927) ('Sanlam') and an authorised representative (Authorised Representative No. 1241398) of Airwallex Pty Ltd (Australian Financial Services Licence No. 487221) ('Airwallex'). Stake is not authorised by Airwallex under Airwallex’s AFSL to arrange for clients to be issued with securities as Airwallex is not authorised under its AFSL for this purpose. Stake is not authorised by Sanlam under Sanlam’s AFSL to arrange for clients to be issued with a non-cash payment facility as Sanlam is not authorised under its AFSL for this purpose. Stake SMSF Pty Ltd (‘Stake Super’) is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up a self managed super fund (‘SMSF’). When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment of a SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. Stakeshop Pty Ltd will also run marketing and promotions to you under. For more information about SMSFs, see our SMSF Risks page.The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake and Stake Super, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice given by Stake is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Financial Services GuideTerms & ConditionsPrivacy Policy and Disclaimers  before deciding to invest on or use Stake or Stake Super. By using our website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake and Stake Super are registered trademarks in Australia.

Copyright © 2024 Stake. All rights reserved.