Analysis and Recommendation of Teslas Marketing Strategy

Abstract

As the increase in the global urgency of climate change, countries are devoting their resources in supporting the transformation to renewable energy. As a result, Electric Vehicle market become the hottest topic currently. Despise being the biggest company in leading the EV market, Tesla Incorporation now is facing a decline of its dominance as more and more other affordable vehicles come out to the market. This paper critically analyzed Teslas current marketing strategy and consumer psychology in the aspect of emotion and cognition and attitudes and persuasion to uncover the way that customers think. The author found out that Teslas current zero dollar marketing strategy is limited and needs further promotion. Therefore, Tesla has to improve its current strategies to accommodate the frequent-changing EV market. The paper recommends new strategies for Tesla to attract potential customers and maintain existing consumers based on the theory of Maslow's Hierarchy of Needs, the Self-Determination Theory, Cialdini's principles of persuasion and the elaboration likelihood model.