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During the huge roller coaster ride that made up Tesla's first and second quarters this year, it became especially clear that the electric car manufacturer is facing a lot of misinformation. After underperforming first-quarter results, for example, Tesla was confronted with numerous accounts suggesting that the company's demand for vehicles was declining rapidly and that its growth story was dead. It was only when Tesla revealed its higher than expected delivery and production figures in the second quarter that the company's description changed somewhat.
Being one of the most outsourced companies on the market, Tesla is no stranger to misinformation campaigns. The company's vehicles are still popular with security agencies, but the idea that the 3, S and X models are dangerous and ignite all the time persists. Tesla's quarterly safety reports have consistently shown that there are fewer accidents when the autopilot is activated, but the driver badistance system is nevertheless perceived as dangerous by a considerable number of future car buyers, who are just the tip of the iceberg
One of the most memorable moments of Tesla's annual shareholders meeting in 2019, which took place last month, was a number of retail investors finding solutions to address the alarming amount of wrong information about the company. In response to the concerned shareholders, Elon Musk admitted that he was a little embarrbaded when it came to fighting the negativity surrounding Tesla, although he expressed his disgust for the campaigns misleading advertising for consumers. Nevertheless, given that the Tesla Model 3 is now positioned on a larger market than ever before, it would be wise for the electric car manufacturer to find a solid and subtle strategy to reach a wider audience, while moving the narrative in a more positive direction of the process.
What is quite remarkable is that Tesla does not need to look far to find a marketing strategy that works without being misleading. In China, a company has demonstrated outstanding intelligence in its marketing efforts using creative campaigns that help improve public perception of its brand. This company is Tesla.
Tesla has been present in China since 2014, when it began delivering the Model S to the region. For the most part, Tesla has pretty much competed as a niche car manufacturer in the country, with the S and X models being very expensive high-end vehicles that are sort of considered status symbols for the rich . This is changing with the arrival of Model 3, as the lower price of the electric sedan opens the Tesla ecosystem to a much larger demographic. The construction of Gigafactory 3 in Shanghai, which will produce the locally made 3 and Y models, will make Tesla's vehicles even more accessible to the consumer market in the near future.
As model 3 shipments are already underway and the implementation of Gigafactory 3 is progressing faster than expected, it is relevant for Tesla to ensure that the company is well-marketed for Chinese consumers. This is where things become particularly interesting, as Tesla has recently started a subtle, smart and probably effective marketing campaign. We immediately notice the care that society has taken to respect the culture and traditions of the country, as evidenced by the tastefully designed maps sent by Tesla during the dragon boat festival last month, and critics that the manufacturer of Electric cars published for high school students in the days leading up to the college national exam. These were simple gestures, but they showed that Tesla is a respectful and grounded company.
Other marketing campaigns also helped boost Tesla's visibility in the Chinese market. Recently, Tesla and QQ Music, a popular music streaming service in the country, have organized a series of "musical parties" in key cities. These were trendy events that targeted the younger population, many of whom are or are about to purchase their first vehicle in the near future. The company has also launched a Tesla Performance Driving School, which involves hiring professional drivers to teach model owners 3 how to get the most out of their vehicles. This program highlights the capabilities of Model 3, while giving the impression that Tesla is a responsible company that encourages high-speed driving in secure and regulated environments.
Tesla's extended road trips on scenic routes are also intended to promote the company's vehicles and the convenience of the Supercharger network. Online, Tesla's active marketing strategies in China are also impressive, as evidenced by the multiplication of tutorials about its vehicles and their features. These pages, which are accessible here, contain clear instructions on the proper use of the autopilot, its functions, limitations, and driver responsibilities while using the system.
When it comes to fighting misinformation, the best strategy is always to provide the right information. To change a subjectively negative narrative, it is better to push an objectively positive narrative. Contrary to what Elon Musk said at the Annual General Meeting, it appears that Tesla already has a very good strategy to remedy, at least to some extent, the misconceptions and misinformation surrounding the company in the United States. Admittedly, Tesla currently enjoys broad support from the Chinese government. The United States is a much more complex market than China. However, given the issues, these marketing efforts may well be worth trying.
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