TESLA
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MARKETING STRATEGY ANALYSIS

TESLA MODEL 3

Redefining How Cars Are Sold in America

01

Introduction to Tesla & Model 3

Part 1
1.1 Background of Tesla
  • 2003 – Started with investment of $6.3 million by Elon Musk
  • 2008 – Tesla Roadster Launched (0-60mph in 3.7s, 395km range, lithium-ion battery)
  • 2012 – Model S, World’s first premium electric sedan
  • 2015 – Model X released with Autopilot for Model S
  • 2017 – Model 3 released
1.2 Story of Model 3
  • Hinted in 2006 as an affordable car
  • In 2008, announced to be a family car
  • Unveiled in 2016, 325,000 reservation within a week
  • By August 2017, 455,000 reservations made
  • 2020 Model 3 best selling EV worldwide
1.3 Why Consumers Choose Model 3
  • Design and Technology – Elon believed in building a good product rather than spending on marketing. Let product do its own marketing.
  • 5 Star NCAP safety rating
  • Priced above middle-income range but subsidy made it affordable for middle class.
  • Elon Musk Branding [Brand Recognition, Brand Loyalty, Similar to Apple]
  • Autopilot and Full Self Driving
02

Critical Analysis of Market Context

Part 2 — PESTEL, Porter’s Five Forces, SWOT
2.1 Market Trends
  • People being more environmental conscious
  • Shift to green energy cars
  • Cheaper maintenance and running costs
  • Government subsidies
2.2.1 PESTEL Analysis
P Political High
Support from government since made in US and pure EV.
E Economic Moderate
Made in USA and priced affordably
S Social High
Change in market from ICE to EV due to many benefits.
T Technological High
Minimalist design, Innovative features, Regular software updates.
E Environmental High
Pure EV, uses renewable energy. No pollution from fuels.
L Legal Moderate
Issues due to FSD and cybersecurity
2.2.2 Porter’s Five Forces
SuppliersModerate
Most of the materials self manufactured
BuyersModerate
Have many options.
New EntrantsModerate
Difficult since requires high investment and innovative technology.
SubstitutesLow
Better tech and cost alternative to ICE and hybrid
RivalryHigh
Competitive market, fast tech advancements
SWOT Analysis
S Good Product, Brand Loyalty
W Production Delays, Quality Control Issues
O Robotaxi, FSD, Emerging Market
T Competitive Market, Cybersecurity & FSD liability risk
03

Segmentation, Targeting & Positioning

Part 3 — STP Analysis
3.1.1 Demographic
  • Mostly Male buyers than female
  • 30-40 are major buyers
3.1.2 Psychographic
  • High brand recognition
  • Brand loyalty
3.1.3 Behavioural
  • Innovative ideas
  • Touch Screen display [Netflix, Games]
  • Connects to PS5
  • Many new fun features
3.2.1 Primary Target
  • Young People in their 20s and 30s
3.2.2 Secondary Target
  • Eco Friendly
  • Tech Savvy
  • Entry Level Buyer for Electric Luxury Car
3.3 Positioning Strategy
  • Ultra high End > High End > SUV > Mid Level [Priced at $35,000]
3.4 STP Recommendations
  • Target Women
  • More affordable car options for lower income market
04

Marketing Mix — 4Ps & Recommendations

Part 4
4.1 Product
  • Great EV product
  • Pure Electric
  • Simple Structure
  • Minimalist Design
4.2 Pricing
  • Priced Slightly higher than affordable range
  • But due to subsidy
  • Feels premium but affordable
4.3 Place
  • Online Shopping
  • No External Dealerships
  • All Stores owned and managed by Tesla
4.4 Promotion
  • $0 ad spent
  • Elon Musk (200m followers)
  • Bring in $19B of ad value
  • Referral programs
4.5 Recommendations
  • Spend more on digital ads, more product options, more customizations options
05

References

Sources & Citations
References
  • Model 3 – sports electric sedan | Tesla. Available at: https://www.tesla.com/model3
  • Admin (2025) Tesla’s marketing strategy and its impact on EV Growth, Aeternus.
  • Hu, J. (2025) ‘Research on the marketing strategy of Tesla marketing based on the 4P Theory and SWOT analytical method’, Advances in Economics, Management and Political Sciences, 240(1), pp. 81–90.
  • Hu, Z. (2022) ‘Research on the consumer behavior characteristics and marketing strategy of new energy vehicles’, BCP Business & Management, 31, pp. 168–175.
  • Mangram, M.E. (2012) ‘The globalization of Tesla Motors: A strategic marketing plan analysis’, Journal of Strategic Marketing, 20(4), pp. 289–312.
  • Young, J., Fattah, A. and Clark, P. (2020) Tesla: Direct Marketing Vs Franchising [Preprint].
  • ‘Tesla marketing analysis’ (2023) Academic Journal of Business & Management, 5(2).
Thank You