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Comparing Tesla’s Spending on R&D and Marketing Per Car to Other Automakers
Visualcapitalist ^ | October 12 2021 | Aran Ali

Posted on 10/12/2021 9:28:29 AM PDT by SmokingJoe

The Briefing Tesla spends $0 of its budget on advertising, but instead spends a dramatic amount on research and development (R&D) Tesla’s Spending Per Car Sold vs. Other Automakers It’s often said that word of mouth is the best form of advertising.

In the case of Tesla and their rapid ascent to the top of the global automobile business, this might be true. After all, the electric vehicle company somehow manages to spend $0 on advertising year after year, despite the fact that marketing is typically a significant expense line item for most other auto manufacturers.

On the flip side, Tesla is spending an average of $2,984 per car sold on research and development (R&D)—often triple the amount of other traditional automakers.

----SNIP----

On this per vehicle sold basis, Tesla’s $2,984 in R&D spend per car is far greater than that of other car manufacturers. It’s even higher than the collective amount going to R&D per car from three of the other automakers (Ford, GM, and Chrysler) combined.

(Excerpt) Read more at visualcapitalist.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; Technical
KEYWORDS: elonmusk; musk; spacex; tesla
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A good thing Musk doesn't throw money to the fake news TV and print media and is still doing much better than Ford and GM who do.
1 posted on 10/12/2021 9:28:29 AM PDT by SmokingJoe
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To: SmokingJoe; SunkenCiv; Red Badger; Kaslin

Well, true. BUT! Tesla’s only real drive and effort to create a need for future sales is their continued “federal government” advertising and marketing demands for all-electric vehicles! if the “government” is demanding people buy your product (to reduce global warming), and if the government is sending your customers a big subsidy, then you don’t need to advertise to the public.

You MUST, however, “advertise to the government!


2 posted on 10/12/2021 9:33:06 AM PDT by Robert A Cook PE (Method, motive, and opportunity: No morals, shear madness and hatred by those who cheat.)
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To: Robert A Cook PE

The Government, and by that I mean every government on earth, will eliminate production, sale and continued use, of gasoline and diesel automobiles very soon, probably 2030-35 or sooner if they can.

You will not be able to buy one, sell one or drive one on the roads.......................


3 posted on 10/12/2021 9:39:59 AM PDT by Red Badger (Homeless veterans camp in the streets while illegal aliens are put up in hotels.....................)
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To: SmokingJoe

My town isn’t that big here in Montana but we have a lot of Teslas in town.

They seem to work very well with snow tires all winter.


4 posted on 10/12/2021 9:41:35 AM PDT by BBB333 (The Power Of Trump Compels You!)
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To: Robert A Cook PE
if the “government” is demanding people buy your product (to reduce global warming), and if the government is sending your customers a big subsidy, then you don't need to advertise to the public.

If that were the case, Ford and GM would be dominating the EV market.
After all, Dementia Joe invited Ford, GM, Chrysler etc to the White House to talk EVs and shilled for them but then left out Tesla for that EV conference.

5 posted on 10/12/2021 9:45:32 AM PDT by SmokingJoe ( )
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To: Robert A Cook PE
You MUST, however, “advertise to the government!

Of course you don't. Stop talking nonsense.

6 posted on 10/12/2021 9:48:52 AM PDT by SmokingJoe ( )
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To: SmokingJoe

Musk doesn’t have to advertise Tesla. The Dim media gives Tesla a ton of fawning PR almost daily in their desire to have a hero for their green agenda.


7 posted on 10/12/2021 9:55:10 AM PDT by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: Tell It Right

Musk is a one man PR machine. He don’t have to par for PR again when he’s getting it for free.


8 posted on 10/12/2021 9:58:06 AM PDT by SmokingJoe ( )
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To: SmokingJoe

The car makers have old school advertising departments. It works for them. Because they have to sell crappy cars. And you need a lot of advertising for that. They are just old school and they have a hard time changing too much or too fast.


9 posted on 10/12/2021 9:58:12 AM PDT by poinq
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To: SmokingJoe
Research and development of Internal Combust Engine (ICE) cars has been done for more than a century for billions of dollars, including technologies proven unfeasible such as steam-powered cars, turbine-powered cars and and rotary engines. The developers of ICE cars also funded research and development of nonviable alternatives such as electric cars, including solar powered.

Electric cars, steam-powered cars, turbine-powered cars, and rotary engine cars all work; they're just not feasible.

10 posted on 10/12/2021 10:03:18 AM PDT by T.B. Yoits
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To: poinq

You’re correct.

At GM, the saying was always “if it didn’t sell, we didn’t market it enough”.

They think that advertising is more important then product development. Musk is the opposite.


11 posted on 10/12/2021 10:09:17 AM PDT by Regulator (It's fraud, Jim)
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To: T.B. Yoits

Electric cars are feasible.
Tesla is making lots of profits with fast rising sales.
GM/Ford sales are tanking and their profits are nothing to write home about.


12 posted on 10/12/2021 10:15:58 AM PDT by SmokingJoe ( )
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To: SmokingJoe

Does anyone buy a car because they saw a commercial about it? Follow up question, does anyone watch commercials?


13 posted on 10/12/2021 10:17:28 AM PDT by Marko413
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To: Regulator

By the way, if GM and Ford stop advertising, the NFL dies. They hold up the prices for advertising on pro football. The believe is that men make the decision to buy cars. And men can only be advertised to with sports. And the NFL is the most reliable vehicle for advertising to men. Bear is the next biggest advertiser on football. Then there is pharma. But you take GM and Ford off of football and the NFL will feel it.


14 posted on 10/12/2021 10:21:43 AM PDT by poinq
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To: BBB333

“My town isn’t that big here in Montana but we have a lot of Teslas in town.”

California invaders?


15 posted on 10/12/2021 10:26:07 AM PDT by PTBAA
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To: PTBAA

Folks who own homes.

I’m fourth generation Montanian BTW...


16 posted on 10/12/2021 10:28:46 AM PDT by BBB333 (The Power Of Trump Compels You!)
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To: Robert A Cook PE

Federal subsidies for Tesla expired 2 years ago. They might be renewed under the 3.2 trillion spending bill but right now you will have to buy a Ford, GM, Honda, Toyota, etc. to get a subsidy for an EV purchase.


17 posted on 10/12/2021 10:30:50 AM PDT by Ron/GA
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To: poinq

“Bear is the next biggest advertiser on football...”


That RIGHT THERE is why I refuse to watch football of any kind- My arkoudaphobia precludes me from, you know - the thing!.


18 posted on 10/12/2021 10:32:36 AM PDT by BBB333 (The Power Of Trump Compels You!)
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To: Ron/GA
They might be renewed under the 3.2 trillion spending bill but right now you will have to buy a Ford, GM, Honda, Toyota, etc. to get a subsidy for an EV purchase.

And most of those Federal subsidies apply to union-shop EV makers - meaning Ford & GM but not Tesla.

19 posted on 10/12/2021 10:35:41 AM PDT by roadcat
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To: BBB333

Sorry, I’m from Chicago. Bear and Beer just go together.


20 posted on 10/12/2021 10:38:29 AM PDT by poinq
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