By far the best of major auto cos — the rest ranged from -2% (Ford) to 9% (Mercedes) growth.$tsla @tesla @elonmusk https://t.co/VKDVwGOg2p pic.twitter.com/SUGvU4K2FH, — Not_an_Analyst (@facts_tesla) May 17, 2019. The Model 3 Standard Range Plus version delivers an EPA-rated all-electric range of 263 miles (423 km) and the Long Range versions deliver 353 miles (568 km). People love Tesla, especially now that the more affordable Model 3 is on the market and being mass produced. Tesla recently announced it will offer its customers car insurance. All rights reserved. I'm 6'8" & fit comfortably in the model 32. But it's not the electric car for everyone. But if one imagines our electric vehicular future, one can easily see it advancing on parallel tracks: one, in which a heritage team makes incremental advances; and the other featuring an audacious upstart … As they say, the best form of advertising is positive, organic word-of-mouth advertising. Short-sellers smell blood in the water as the stock has declined more than 20% in 2019. Tesla Chief Executive Officer Elon Musk doesn’t see that as a long-term problem for his car brand. The Model 3 average sales price was $57,000, and Tesla said the Model 3 gross margin is 20%, or $11,400. (Again, see the chart at the top. Another win for Tesla is the fact that it combines tech that helps the environment with high performance and luxury, at a price that the average consumer can afford.Â. There’s also a 2019 report. By 2015 they had sold over 100,000 Model S cars. “The Model 3 is a large-series model, and they are one of the biggest manufacturers of electric car batteries,” Diess added. Tesla’s brand has significantly increased in value over the past year, especially since the Model 3 unveiling and the more than 373,000 reservations it received. BCG Matrix in the marketing strategy of Tesla : Model 3 is the combination of design, style, convenience, and moreover safety. If the infrastructure is put in place to make the EV ownership experience as a whole ‘equally loveable’ Model 3 owners will likely continue to be brand loyal,” Edwards concluded. Appendix 6 - Tesla Model 3 target gross margin ..... 122 Appendix 7 - Porsche brand value at the time of the acquisition ..... 123 Appendix 8 - Tesla historical and forecasted units sold from Barclays Equity Power Initial Quality Survey. Having a successful mega-brand lets you play chess, while others play checkers. The percentage of the value from 2017 to 2018 shows a 60% increase. Tesla already has over $800 million in deposits for future cars. Maybe some do, but I doubt the demand is higher than the percentage of Tesla owners who own life insurance and is undoubtedly lower than the percentage with mandatory auto insurance. Tesla's automotive products include Model 3, Model Y, Model S, and Model X. 2015 Roadster Tesla released their first electric car which partnered with … Published on July 14th, 2019 | It might mean Tesla would be less dependent on Wall Street to raise capital to fund its core business, robo-taxis or anything else Elon Musk dreams of. B. Straubel, and Ian Wright. In the 2018 “Cars Top 10” chart, we see Tesla listed at #8 with a brand value of $9,415 million. Tesla’s cars are expensive to insure, at about $2,000 to $3,000 per year. Karl Stark, the CEO of Elagy (a digital insurance agency) said “numerous insurance companies recognize they need help to acquire customers and would be more than happy to have Tesla bring them leads and sales that they can fulfill. Nonetheless, it is most known and most valued for its cars. Model 3 comes with the option of dual motor all-wheel drive, 20” Überturbine Wheels and Performance Brakes and lowered suspension for total control, in all weather conditions. While Tesla Model S and X come with a hefty price tag of above $70K, Tesla Model 3 is currently the one with the lowest price tag at above $35K. The Model 3 average sales price was $57,000, and Tesla said the Model 3 gross margin is 20%, or $11,400. In Mid 2017, production of the Tesla 3 began, with over 300,000 … Robo-taxis are exciting, but do Tesla owners want strangers riding around in their car to earn some cash? tesla was started by Martin Eberhard and Marc Tarpenning and later Elon Musk, J. But that’s just the 2018 summary. However, mega-brand strategies need both the sizzle of new technologies and the steak of trillion dollar categories where you can bring something unique to the table. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries. 2012 Model X & Model 3 Model X- Seven Seater and delivered in 2015. In 2017, Gerber baby food generated $900 million in life insurance premiums; that’s 75% the size of its core baby food business. The company, Brandz, tried to determine how much the superficial brand by itself is. In June 2012 the company released the Model S, a vehicle aimed at the luxury end of the market costing between $50k up to $90k. Tesla scored poorly on the recent 2020 J.D. Model 3- Plan to produce smaller vehicle and sell for $35,000 with range of 200 miles. The Tesla Model 3 is an electric four-door fastback sedan developed by Tesla. ... And that kind of brand equity is a company's best defense during economic turmoil. Research the 2020 Tesla Model 3 with our expert reviews and ratings. This was a 60% jump in brand value compared to 2017. Tesla's mass-market growth may hurt the brand's appeal and diminish demand for its cars, Morgan Stanley said Friday. One thing you can take note of is that Tesla is the only auto brand listed in the top ten risers. Holy crap it's AMAZING pic.twitter.com/S3TeEpUliG, — Chris Williams ☁️ 🐍 (@mistwire) July 14, 2019, I love this Tesla feature 😊 pic.twitter.com/Ju1OzhWFqe, — Michelle Pinsky (@MichellePinsky) July 14, 2019. by kasi | Brand Equity of Companies. Perhaps Tesla’s best brand boost is from owners sharing their experiences with people they meet. CleanTechnica is the #1 cleantech-focused news & analysis website in the US & the world, focusing primarily on electric cars, solar energy, wind energy, & energy storage. And a carbon fiber spoiler improves stability at high speeds, all allowing Model 3 to accelerate from 0-60 mph in as little as 3.1 seconds. The official launch and delivery of the first 30 cars said to be on July 28, 2018. What if Tesla could raise debt financing platforms like Yieldstreet from retail consumers or Tesla enthusiasts who love them? This move could add significantly to its per-vehicle profits, and could prove the first in a series of moves into other adjacent categories. … The Drive. The Model 3, which can be leased for, CleanTechnica member, supporter, or ambassador, Stunning Video Chart: Tesla [TSLA] vs. Other Auto Company Market Cap Changes (2006–2020), Human Rights Campaign Responds to Elon Musk, With “Hyperscale” Renewable Energy Storage, Energy-Sucking Data Centers Suck Less, The Zero Waste Movement Is Finding A Resurgence, Real Friends Interrupt You When You Are Making A Mistake, Spokane Police Will Be Forced To Buy 4 Tesla Model Y Vehicles, Largest Renewable Energy Project In World Will Be 30 Gigawatt Solar–Wind Project In India, Tesla Model Y RWD Deliveries Reportedly Starting In January, Canoo Electric Multi-Purpose Delivery Vehicle Starts At $33,000, Offers Best In Class TCO. However, what if insurance helps the path to profitability and is just the first act of a powerful mega-brand adjacency that paves the way to Elon Musk’s grander visions? On the other hand, Tesla ranked highest on J.D Power’s 2020 APEAL Strong brand image can overcome negative quality issues The content produced by this site is for entertainment purposes only. The median age of Tesla owners ranges from 46 (Model 3) to 54 (Model S). Agents typically make 10% to 15% commissions on first-year premiums, and then 2% to 5% on recurring premiums. If we said the commission was 70%, that would add another $770 in commission revenue to Tesla, or another 135 basis points of margin on a Tesla Model 3. The Model 3 has achieved the best safety scores, was the #1 best selling car in the US in terms of revenue over a 12 month period, and has won top honors from the world’s auto journalists and magazines. @elonmusk @Tesla just took my first ride in a Tesla and can safely say im going to work my ass off until i can afford one. Tags: Brandz, Brandz Global Top 100, Tesla, Tesla brand value, Johnna Crider is a Baton Rouge artist, gem, and mineral collector, member of the International Gem Society, and a Tesla shareholder who believes in Elon Musk and Tesla. Tesla’s brand value increase of 60% was a notable rise from its already strong 32% rise from the year before. This paper is broken down into two sections, the Nissan Leaf and the Tesla Model 3. The Model 3, which Tesla Inc. started producing in Shanghai last year, costs roughly $37,600 after subsidies and is tilted more toward buyers in … U.S. life insurance is a $700 billion category with front-loaded commissions of 40% to 100% of first-year premiums. Model 3 is a four-door sedan. In Tesla’s case, the latter element is particularly important, because part of the reason why consumers buy electric cars is to save money by not buying gas. Tesla operates multiple factories and plants for making vehicles and their parts. Having helped several clients build multi-billion-dollar mega-brands, I’ve found there are several critical success factors. Starbucks has $1.2 billion of cash loaded on its app for a so-so rewards program. Since it holds millions of dollars in customer deposits, moves into other financial services could make sense. These reports also show the team at Tesla not only how much Tesla has grown but also how much it can continue to grow. Some of the Tesla subsidiaries are SolarCity, Tesla … Consider becoming a CleanTechnica member, supporter, or ambassador — or a patron on Patreon. In 2015 and 2016, Tesla’s Model S was the world’s best-selling plug-in electric car. This loss perhaps reflects some of the challenges that Tesla has faced after a somewhat controversial year and much negativity in the press, but the loss is minor compared to Ford’s (−12%), Audi’s (−12%), BMW’s (−9%), Mercedes’s (−9%), Nissan’s (−8%), and Honda’s (−7%).Â, According to @BrandZRankings, Tesla is the 7th most valuable car brand in the world. Its move into car insurance could be just the beginning. Google ranked #1 as the most valuable global brand. Model Y is a sport utility vehicle (SUV) built on the Model 3 platform. #tesla brand value grew 60% to $9.4B from 2017 to 2018, according to new report from brandZ. The ranking is for the brand alone. Assuming a weighted average cost of capital of 7%, auto insurance commissions have a net present value of $660. Sign up for our free daily newsletter or weekly newsletter to never miss a story. According to the report, the Palo Alto car maker ranked above average in three areas: innovation, brand purpose and brand experience. Since taking delivery of my Tesla Model 3 and sharing questions with the Tesla community on Twitter, I have helped many in purchasing of their new electric car. One other impediment to the fast growth of Tesla is the premium cost of its products. The world of finance is certainly not as sexy as technology and autonomous driving. These reports simply reflect what many shareholders and owners already know: Tesla is growing rapidly in both its mainstream product lineup and its value as a brand. News is published on CleanTechnica.com, while reports are published on Future-Trends.CleanTechnica.com/Reports/ and buying guides are here. Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Although it was listed in the category “cars,” Tesla is more than an auto company. Brand Equity of Tesla. The Model 3, which can be leased for $399/month, takes Tesla from the luxury level to the everyday level — meaning that most people in the market for a new, unused car can afford to choose a Tesla. The Model 3 strikes a balance that is seen as innovative, refined, and environmentally friendly. It has evolved into a tech and energy company as well. ), The 2019 report shows that Tesla has moved up from #8 to #7, despite a loss of $130m in brand value. For Tesla, becoming its customers auto insurance agent has an attractive return on investment in and of itself. Gucci ranked #6, Adobe #10, and Paypal #4 on the list of top risers, showing just how diverse this list is. Final Brand Analysis Report 3 Executive Summary Slate has tasked MCS to do a brand audit on two cars, the Nissan Leaf and the Tesla Model 3. Tesla is doing the latter by partnering with a unit of Markel to provide insurance. You can find Johnna on Twitter. The average annual life insurance premium is nearly $1,100 for a 50-year-old non-smoker. However, that savings is offset by the costs of insuring a Tesla, which are among the automotive industry’s highest. The Model X, a hybrid SUV with ‘falcon wing’ doors followed in 2015. On the list of “Top 10 Risers,” Tesla ranked #8. Auto insurance may seem like another distraction for a company that should be focusing on its core business. In addition, the company announced a $5 billion equity sale on Tuesday morning -- a move that gives the company significant financial strength. So the Model 3 belongs to the question mark … In context, this is a minor loss of −1% — other automakers had far greater losses in their brand values. Therefore, if Tesla can reduce the price of its insurance, it should help make owning a Tesla more attractive and drive more core business car sales. Learn about lease, loan and cash payment options, warranties, electric vehicle incentives, gasoline savings and … Overall, Tesla has maintained the image of a premium car brand and released Model 3 … (adsbygoogle = window.adsbygoogle || []).push({}); Appreciate CleanTechnica’s originality? When I did a by-the-numbers comparison of the Tesla Model 3 and the Chevrolet Bolt EV, I noted that Tesla had not yet released several key Model 3 specs.Now, it appears those numbers may never arrive. Secondly, the first adjacency should have attractive economics measured by both the inherent financials of the adjacency itself–but also based on how it improves the economics of the core business. How much in deposits could Tesla raise if it offered slightly more interest on a Tesla checking account? However, lost in the shuffle is Elon Musk’s announcement that Tesla will offer a ‘compelling auto insurance product’ within a month. The final critical success factor is to avoid too many mega-brand extensions. This is just another win for Elon Musk and those who own stock in Tesla — as well as a win for our planet. In 2018, Tesla was listed among the Top 100 Most Valuable Global Brands by WPP BrandZ. It is presumably related to the company’s continued growth, the rollout of the Model 3 in high numbers, and the many awards and high praises Tesla continues to receive. It’s not #1 yet! A new factory in Shanghai, wholly owned by Tesla, opened in late 2019 with capacity as of fall 2020 for 250,000 Model 3 units and another 150,000 Model Y units online in 2021. Your mega-brand is only as strong as its weakest category. The company is selling far more lower-margin Tesla Model 3 sedans that higher-margin Model S and Model X vehicles. People love Tesla, especially now that the more affordable Model 3 is on the market and being mass produced. Auto insurance premiums were $246 billion, according to S&P Global Market Intelligence, but life insurance is nearly triple the size of auto insurance. The fact that Tesla is a household name without paying for any conventional advertising is astonishing in itself — Tesla has achieved something that is almost impossible. It is perhaps worth highlighting here that this is not a ranking of company valuation. The study includes all types of brands, ranging from Coca Cola to Tesla to Uber. it seems like we are looking at a new iconic automobile brand. Elon Musk is not the founder of Tesla but he is the mastermind who turned Tesla into a multi-billion dollar giant. In the two sections, there are subsections that discusses all eight branding elements. Design and order your Tesla Model 3, the car of the future. Tesla could easily offer its affluent customers life insurance. pic.twitter.com/GLMkYygMba, — Zachary Shahan (@zshahan3) July 15, 2019. Tesla’s main competitive strength will be “primarily manufacturing” in the future. As of 2021, Tesla sells Model S, Model 3, Model X, and Model Y cars. Edmunds also has Tesla Model 3 pricing, MPG, specs, pictures, safety features, consumer reviews and more. Advertise with CleanTechnica to get your company in front of millions of monthly readers. Range was greater than 300 miles and sold 500 cars/week in 2013 for $52,400. It has been priced as the least expensive model developed. Appendix 6 - Tesla Model 3 target gross margin ..... 122 Appendix 7 - Porsche brand value at the time of the acquisition ..... 123 Appendix 8 - Tesla historical and forecasted units sold from Barclays Equity According to Tesla, the Model 3 carries full self-driving hardware, with periodic software … Most of the buzz about Tesla’s recent quarter is about its $700 million-dollar loss or its seemingly wild robo-taxi idea. Tesla's Model 3 is a top seller. At Tesla’s current equity value, Musk could theoretically snap up a target worth $100 billion or more. 0-60 in about 4 seconds😭 pic.twitter.com/cDNbzWosva, — dat boi (@JacobVBarnett1) July 14, 2019, Test drove a @Tesla while on vaca:1. Harvard Business Publishing is an affiliate of Harvard Business School. The first move is the hardest, so you want an adjacency that either has a very similar go-to-market model or has a partner who does the heavy lifting for you. This would not be a stretch at all.”. When paired with an exciting … The company passed 300,000 vehicles production in 2018. People love Tesla, especially now that the more affordable Model 3 is on the market and being mass produced. That’s the equivalent of 120 basis points of margin to Tesla’s model 3 by simply leveraging its brand to sell auto insurance, take the commission revenue, and then pass on the policy to an insurance company to fulfill. Tesla is one of many good things to believe in. by Johnna Crider. The Model Y is already confirmed to now come with double pane front windows, the same as the 2021 Model 3.Owners are still expecting Tesla to begin deliveries of a rear-wheel drive Model Y next month. Contact us here. If Tesla succeeds in auto-insurance, where else could it go next? Of course, these brands have been built on the backs of products and company policies, so the value changes as products and policies change. While Tesla has staked its future on the Model 3, the Bolt it is just a stake in the ground for GM. Car transporter carries Tesla Model 3 vehicles along the highway. Copyright © 2020 Harvard Business School Publishing. Elon Musk advised her in 2018 to “Believe in Good.” You might laugh at the idea of Tesla life insurance, but if they crack the code on auto insurance, is it really that hard to imagine Tesla offering life insurance? the company was the brainchild of Martin Eberhard and Marc Tarpenning and they were tackling a problem Elon … First, you must pick the right first adjacency to enter. After 11 years in the market, Tesla became renowned as the world’s best-selling plug-in as well as best-selling battery electric passenger car manufacturer by cars sold in 2019, both as a brand and by automotive group, with a market share of 17% of the plug-in … Too many extensions add a ton of organizational complexity. This piece offers advice on how companies with strong brands should think about moving into adjacent categories. Tesla could notionally increase Model 3 gross margins from 20% to 22% just on auto and life insurance commissions. 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