It’s not the technology…it’s the marketing.
No matter a company’s innovation, profits derive from good marketing. You could have a billion dollar idea but without the right message, you’re going nowhere.
New analysis of Tesla’s share of the auto market hit this week. Apparently, the company is valued at $48 Billion.
That means the new big three car companies are Ford: $45 Billion, Tesla and GM: $51 Billion.
Here’s the thing, Ford sells 200,000 cars a year. Tesla sells 4,000.
A fraction of output and they still are valued higher. That’s because Tesla’s brand is seen as an innovator. Much like Apple.
Ford is actually the most innovative, with self-driving cars and other initiatives. But Tesla’s sales are growing at a faster rate. And they are the undisputed leader in developing longer lasting batteries.
But at the end of the day, it comes down to perception. And Tesla’s marketing makes people perceive it as the future.