Tesla Inc Car Sales Are a Media-Driven Phenomenon (TSLA)

Compared to more established automakers, Tesla Inc’s advertising and marketing budget is extremely conservative. Mercedes-Benz spends over $ 12 billion a year on advertising costs. A review by Statistica points out that Toyota in 2015 spent nearly $ 2 billion on marketing in the United States. TSLA assigns only a fraction of these numbers to the same cause. Despite its limited advertising budget, the popularity of its battery-powered luxury vehicles is only growing. Meanwhile, Tesla Inc shares are down. They started Wednesday’s trading session in the green, after closing down 4% the day before.

Tesla Inc shares remain on the decline this week, a common feature among major tech stocks. The makers of the Model S broke several price records during the second quarter of 2017. The event sparked hordes of bullish traders, although the June close saw stocks lose momentum.

As Tesla Inc shares pause, the brand’s popularity continues to soar. The automaker does not come close to a billion dollars a year with its marketing. In 2016, he spent just $ 48 million on marketing and advertising. This amount was in fact lower than in the previous two years. However, the efforts to tighten the belt did not result in less influence.

Tesla Inc has operated “one of the strongest brands in the global automotive industry,” the Financial Time written this week. Company funds are clearly tighter now, but the auto brand appears to be thriving. The company even outperforms its competitors when it comes to brand influence.

Analyst Kantar Millward Brown believes TSLA now surpasses Porsche and Land Rover in brand value. Wall Street has yet to mitigate the company’s poor financial performance. However, this is taking a step back in light of the attractive shares of Tesla Inc and the heavy publicity being given to its luxury electric vehicles.

Elon Musk’s automotive business has yet to make its way into the 100 best brands worldwide. It is, however, one of the top 8 car brands in terms of value. These come from two separate sector studies. In a ranking, Tesla comes just behind German luxury car legend Audi.

Tesla says he manages to find other ways to gain notoriety. He says “media coverage and word of mouth” remains his main sales driver. This is also a good strategy, and one that works very well for car sales. Gathering great media coverage works wonders, admits Tesla Inc. When releasing last quarter results, the company said it would stick to this strategy in light of strong results.

Media drives Tesla sales

Promotional tactics involving the media allow TSLA to reduce its marketing costs. Obviously, innovative cars work well with innovative campaigns. Newspaper ads and online coverage appear to fill this gap, bringing results previously attributed to traditional advertising.

What is Tesla’s driving force? Well, the booming market for electric and self-driving cars keeps Tesla worthy of interest. The company is by far the most recognized brand of electric cars. Add to this a growing awareness of car emissions, Tesla’s position against fossil fuels, and the elegant yet sporty nature of its luxury electric vehicles. All of this is attracting attention in the very form of the article you are reading right now.

Companies can pay less for brand awareness when everyone else is pushing their brands, says Frazer Gibney. He is the CEO of FCB Inferno and believes Tesla has good public support to drive success.

Indeed, the company has all the right ingredients, according to Brown. “Brands with a strong purpose, a perception that you improve people’s lives, have a huge advantage ”, he said. Like the shares of Tesla Inc, the company’s cars are driven by a booming follow-up and futurism of electric vehicles.

The advertising is only growing as the automaker prepares to build its Model 3. The mass market car will cost $ 35,000 as standard. The opportunity to join the brand at a reduced price has proven to be so alluring that the Model 3 has recorded over 100,000 paid bookings before it was even revealed.

Tesla Inc stock and the Fed’s valuation issues (TSLA)

The US Federal Reserve is on a bubble watch. He fears that the valuation of assets is on the rise, especially in the equity markets. Asset prices and debt are skyrocketing again, reports VC Fischer. The reserve believes this calls for more caution, which is now scaring investors in many markets.

Tesla Inc shares are not immune to the Fed’s current concerns. They too withdrew in the wake of the news, although analysts cite other elements as well. A TSLA dip has been on the books for a long time. Stocks have been labeled “overvalued” for some time, along with warnings of a wacky uptrend. Midweek trading sees Tesla Inc shares still in the red, a break from its powerful second quarter performance.