Word-Of-Mouth Alone Sells Tesla Model 3, Says Musk

SEP 9 2018 BY VANJA KLJAIC 43

According to Musk, lack of paid advertising and endorsements don’t hinder the success of the Model 3.

We can all argue whether Tesla uses subliminal messaging or other marketing tactics to promote the Model 3, but the fact remains: the Model 3 sells like hotcakes these days. According to Elon Musk, Tesla CEO, this is all done without any direct paid advertising or endorsement campaigns. Before everyone jumps in on the Musk bashing wagon, the CEO did claim no ads or paid endorsements. Items like selling expenses, fancy launch events or similar were not part of his tweet.

Unlike other (mostly legacy) car maker, Tesla does take a different approach to marketing. Elon Musk, the company CEO, makes a big impact on Tesla’s visibility. And yes, word of mouth helps sales tremendously. However, this couldn’t be possible without having a product worth telling others about. This is where Tesla excels.

Furthermore, Tesla owners – as most early EV adopters – are tech savvy. Most have social media accounts and are well-versed in the online ecosystem. Additionally, most Tesla Model 3 customers pre-ordered the vehicle thanks to the hype that surrounded the “entry level electric car” even before the first units rolled off the production line. To be fair, no other carmaker was able to do the same. Ever.

When the legacy carmakers finally produce a viable competitor to the likes of the Model 3, Model S and the Model X – things might change dramatically. Until then, word of mouth seems to be enough to move product.

Source: Twitter

Categories: Tesla

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43 Comments on "Word-Of-Mouth Alone Sells Tesla Model 3, Says Musk"

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ModernMarvelFan

Duh, that is how “cool products” get sold.

That is also why CA leads in sales…

Scott Franco

California does not lead in sales, northern California does, specifically the San Francisco and Silicon Valley areas. The reason for this is we are a group that understands technology and values this car. We don’t do “cool” here, cool is for followers. We lead, we don’t follow.

Awakeinlbc

SoCal has tons.

Why r NorCal folk such snoods

SJC

I have lived in Silicon Valley and Southern California, the people in the Bay area are genuine smart people. In the south a lot of people are phony users.

Vexar

Why did the hipster burn his mouth on the coffee? Because he drank it before it was cool!

John-EU

It’s probably true, but there aren’t any in Europe yet!

William

Patience young grasshopper!

When you are able to grab the pebble “Compton Style”, from Master Elons hand, then you too will finally become one with your own personal Tesla Model 3!

Now, go and serve lunch to the other ICE students (Dalimer, BMW, The VW group, PSA,FCA, etc.)!

https://youtu.be/xynf-fkOhXo

iamata

Europe is Not a Priority ..

Rolando

Your are right : America First is the meme of the year which also is valid for Tesla.
But Europe carmakers revenge: Europe first and N.A. after 2020.

Speculawyer

They are coming. Look on the bright side…the Americans are the early adopters that will deal with the bugs and you’ll get a more stable product after many bugs are worked out.

A.Berg

Norwegians are early adopters. Last month EV’s had 38 % marketshare of new sales. Add BEVS and we’re talking 50- 60 % 😉

Chris Stork

Well to be fair, it’s not just “word-of-mouth,” it’s “word-of-YouTube”

Awakeinlbc

Without mouth Where’s YouTube.

Dav8or

You can and many quality YouTubers do make videos without the mouth. Who really needs to hear some bonehead yammer on? Do we really need to hear yet another video that starts with “Hey, what’s up guys?”. You can convey the information with images and text.

MTN Ranger

It’s tough to do Youtube without voice. Here’s one of mine with just a little bit of talk in the beginning: https://www.youtube.com/watch?v=DuLHBNajw4c

Robert Weekley

Silent Movies, or maybe ones with Bad Music!?

CPO

Too many of those already on Youtube.

Speculawyer

And Twitter, Facebook, podcasts, Instagram, Tumblr, etc.

BTW, that Joe Rogan interview is pretty good. Dull parts but wide ranging, funny at times, weird, etc.

John

That’s why I keep saying that the waiting list won’t be depleted. The cars that are delivered to those receiving from the list are replaced by the car when it drives around and gets looked at, gives rides, etc.

Mike4700

Received my model 3 early June in north CA and since then took about 20 friends and coworkers for a drive 2 have purchased model 3 since one expecting delivery in 2 weeks and one received his car last Sunday and an additional friend is activley looking for an excuse to convince his wife so he can buy one. The car do sell itself to open minded people.

menorman

…and those who can afford it.

tim

I know poor people that pay as much as a Model 3 payment in just cigarettes and gas.

Scott Franco

But apparently not to those who studied English.

chano1

Yummy!

Mike4700

Hope your English studies can afford you a Tesla one day (:

Awakeinlbc

I help sell 5 last month not including myself

Will

So no commission for you

Darth

Other automakers don’t advertise EV s either. Of course they barely make them.

chano1

Because they truly, madly, deeply, don’t want to sell them perhaps?

Rolando

Because they seems to be loosing money. Fiat 500E was reported as 14,500$ loss per unit and even the Bolt seems to be sold for a loss.

Pushmi-Pullyu

Just because some Nimrod says that GM loses $9000 (or whatever) every time they sell a Bolt EV, doesn’t mean that’s true. I’m appalled that people who take the time to write about the subject don’t bother to make the slightest attempt to separate sunk costs from marginal/unit costs. Even though I’m not a “financial guy”, I’d still like better than a kindergarten level of financial analysis.

earl colby pottinger

I see that number repeated all the time, but never a cost break down to back it up.

Rob R

It is hard to see how the legacy car companies can make money on EVs for the same reason as Tesla. You need big volumes (Model 3) or sky high prices (Model S,X), to make money on a new model of car with all new technology. But the car companies deliberately restrict sales to compliance level, so they guarantee themselves losses, just as Tesla made losses on Model 3 up to (hopefully) this quarter.
If GM made 500,000 Bolts a year they would make profits on it.
I have not done research, this is simple logic/economics.

Pushmi-Pullyu

Not to dispute any of your points, but GM has some advantages, too. Tesla has had to build new production lines; Chevy/GM already has lots of them. Tesla is having to ramp up its supply/distribution network along with its production; GM already has a high volume of suppliers and a large scale distribution network for parts. Tesla has also had to hire and train lots of new employees, and drastically beef up its new car delivery system. GM… not so much.

I seriously doubt that the marginal cost (cost for making one additional unit) of a Bolt EV is so high that Chevy isn’t making any profit at all on the car. I simply don’t believe that Chevy loses money, on average, selling the car in the U.S. They may lose money selling it overseas, due to higher shipping costs, tariffs and import fees, etc.

If GM really lost money on every Bolt EV it sells, then it wouldn’t be selling it outside CARB States where selling the car earns them ZEV credits.

Nix

GM builds the Bolt on an assembly line that it shares with an ICE car (spark I believe from memory?) so they should already be getting the benefit of high production volumes at the assembly line level.

The other side of the deal (all the 12 systems that LG provides, including battery and electric motor) wouldn’t change price because they have contracts with LG. They even released that their contracts with LG included a $145 price for battery until something like 2020. They published a graph of it if you want to look it up in the insideev’s archives. So those costs are fixed.

Robert Weekley

Mitsubishi is a frequent Advertiser in Ontario, lately, for their PHEV SUV, more so than any other BEV Or PHEV! Still, its sales numbers don’t come near to Any Tesla’s sales here, let alone the “New Kid in Town”, the Model 3! I think it is less money, too! Model Y will sit at its Dinner Table soon, and quietly and quickly convince buyers to wait for it: causing Mitsubishi to lose sales!

CarGuy

4 Model 3s at the National Drive Electric Week event in Corpus Christi, Texas today. 11 cars total. The 3s are taking over and the owners love them.

Will

Yelp. There were 5 Model 3 and a Model X..Old leafs. Sparks EV. Sorento Plug in Focus Electric some other volt , Prius plug in not the prime. my Volt but no new Leafs or i3 at National Drive Electric Week here in Lakewood Ohio

Robert Weekley

Per: “When the legacy carmakers finally produce a viable competitor to the likes of the Model 3, Model S and the Model X – things might change dramatically.”, Yup! By that Time, Tesla Will have Semi’s & New Roadsters running around, Model Y will be where the Model 3 is today, dealing with a Massive Reservation Backlog, and a Tesla Pickup will be a conversation point! Maybe even a “Smaller” Tesla (the actual “Affordable” one, for the not so well off!) Will be “Coming Soon” to a Tesla Unveiling!

Jeffrey Songster

Events like the National Drive Electric Week help raise awareness also. The Reno Nevada event reportedly drew twice as many folks as last year. It was a well organized show for the local folks. Even made the local KOLO news here in Gigafactory land.

Roy_H

Why is there such a preponderance of mis-leading headlines that are not supported in the body of the article. “Word-Of-Mouth Alone Sells Tesla Model 3, Says Musk” Then in the article it says “Great word-of-mouth is why Model 3 is the best-selling electric car, despite no advertising or paid endorsements.” Where did “Alone” come from? It dramatically changes the whole sentence!

BillT

I think Tesla has been very shrewd about where they locate Tesla stores and this helps a lot. The one here in Austin is located in the most tech trendy part of this tech savvy city and it is *always* packed with potential customers. I wasn’t hard core enough to buy my model 3 sight unseen but was interested enough to rent one on Turo. That sold me.

Susan

I just bought a Model X75 and absolutely love it. We also have a Model 3 on order.