In the news of what happens in the financial markets, Tesla is this week one of the main protagonists. The company has just crossed a significant threshold: its valuation on the stock market has exceeded a trillion (Anglo-Saxon, Spanish trillion) for the first time in its history.
Tesla was valued at $ 900 billion on Friday. On Monday it was already worth a trillion dollars. The acceleration has come, among other reasons, thanks to the announcement of the purchase of 100,000 vehicles by the car rental company Hertz. In October, Tesla shares have climbed 30%.
As they recall in Insider , the company is the second that has managed to climb up to a trillion dollars in market valuation in less time. Facebook did it in 17 years. They have done it in 18. It took Google / Alphabet 21 years, Amazon 24, Apple 44 and Microsoft 46.
The valuation on the stock market is marked by the movements of investors, but it can also be read as a perception of how much the brand is worth as such and how it is seen. What seems clear is that Tesla is in a very positive situation and that the brand is viewed as a rising stock.
184% growth in brand value
In the latest list of the world’s most valuable brands , Tesla made it into the top 20 of the most valuable, but the interesting thing was not that but how it got there. The brand had jumped in one year from position 26 to 14 on the list, with a 184% rise in its brand value.
According to Interbrand, the firm responsible for the listing, this has been marked by its leading position in the electric car market – this is how it is perceived – but also by its constant presence on social media. Everybody seems to be talking about Tesla all the time.
And there is, in fact, the key to Tesla’s success. To understand how it has come to position itself in such an advantageous situation and become such a valuable and powerful brand, you have to understand its marketing and non-advertising strategy.
Tesla has risen to the podium of the most valuable brands without investing a single dollar in ads , but with a very fine-tuned marketing strategy. “This does not mean that we do things poorly,” one of its managers said a few years ago, “but that we get the most out of what we do as a company.”
Tesla as an object of desire
Tesla has made its vehicles somewhat iconic for a certain demographic and function as an object of desire. The best example was in a classic Berlin shopping arcade a few years ago. It was one of those Parisian Galeries Lafayette sites that curious tourists and locals flock to in search of luxury goods. Upon entering through one of its main entrances, what was seen was a Tesla car.
In front of it was an urn. You could not buy the car yet, but you could leave your details so that they would contact you. Waiting for a Tesla car was something only those who could afford it did a few years ago. It was expensive, it was an object of desire, and it was something others would quickly recognize.
Build the myth
Tesla had managed to build its own myth, one that was closely connected to its CEO, Elon Musk (with a polarizing personality and viewed negatively by a large group of consumers), but also with its products.
For years, in fact, Tesla was selling a promise more than a reality, but nobody cared. They weren’t even the inventors of the concept – they sold electric cars, something that many other brands did and that had been invented a century ago – but they were seen as the great innovators.
They had managed to create a whole brand storytelling and that it fell. To do this, they had held hands with the media – which, as with Apple, have been making news about everything they do – and with consumers themselves. Tesla is one of the most talked about car brands on social media.
Even when the company ran into reputational issues , those very enthusiastic fans of its products and its brand took it upon themselves to function as a neutralizing army of comments (sometimes indulging in toxic behaviors that did not help win certain niche populations to worship). to Tesla). They themselves are in charge of generating conversations and more conversations, because the company is a great example of meme-marketing .
Both Elon Musk and his marketing actions manage to become material for conversations and debates (there it is, for example, when one of his cars traveled into space in another of Musk’s initiatives). All of this amplifies the brand and its recognition. Everything gets consumers to know who they are.