Tesla spends more on research and development (R&D) than any other automaker. According to data presented by StockApps, the firm spends $2,984 on R&D per car produced. That’s thrice the industry average and higher than the collective R&D budgets of Ford, General Motors (GM), and Chrysler per car.
Commenting on the report, StockApp’s Edith Reads had this to say.” Tesla spends more than any other carmaker on R&D in order to maintain its lead in EV technology. And if you ask them about it, they’ll tell you this is the key to keeping their customers happy—which is what keeps them in business.”
Tesla’s investment in R&D is paying off
Its vehicles are not only making strides in environmentalism, they’re also safe, fast, and excellent at technology integration. Elon Musk‘s commitment to spending time developing new products and services is what makes Tesla successful.
Tesla is famous for its ambitious production goals. So if anyone is going to invest in making those dreams a reality, it’s them. And you can see why: while most carmakers focus on marketing themselves as a brand first and foremost, Tesla is focusing on making every car a piece of innovative engineering.
No Advertising Spending
Further, Tesla’s spending proves they are future-focused, unlike other manufacturers. While Tesla spends $0 on advertising per car, the industry average is $485. This further illustrates that consumers want to buy vehicles for their functionality and rely on testimonials for brand awareness rather than beautifully crafted commercials.
The company’s lack of an advertising budget is even more impressive than its R&D spending. Tesla’s unique business model becomes clear when we consider what its competition spends per vehicle on advertising. Ford and Toyota spend $468 and $454 per car respectively.
Despite not spending anything on advertising, Tesla is technically a marketing magnet. That’s why it is one of the world’s fastest-growing brands. The firm dominates the press and social media engagements. Most of that comes from widely popular Elon Musk.