Credit: Tesla CEO Elon Musk during the unveiling of the new Tesla Model Y in Hawthorne, California in March 2019. Photo: Frederick J. Brown/AFP, via Getty Images
The Tesla cars are like certain bands, either you love them or you hate them. Investors have been casting a dubious eye wondering how Elon Musk's car company will fair give COVID.
Tesla delivered a total of 90,650 vehicles during Q2 of 2020. This is an astounding 2,250 more than in the first quarter of the 2020. 82,272 Tesla cars were produced April to June this year, which is down from Q1 because of C19 holdbacks.
“While our main factory in Fremont was shut down for much of the quarter, we have successfully ramped production back to prior levels,” Tesla wrote during their Q2 announcement.
Credit: https://electrek.co/2020/07/02/tesla-announces-q2-deliveries-90650-electric-cars-beating-expectations/
Tesla Stock Rises
Audi just reported a more than 30% drop in deliveries in Q2, so Tesla is definitely ahead of the curve. Tesla’s market valuation is just over $224 billion (as of the date this blog is published).
Tesla has also passed the market caps of Dow components Coca-Cola (KO), Disney (DIS), Cisco (CSCO), Merck (MRK) and Exxon Mobil (XOM).
Tesla was predicted by CNBC analysts to deliver only around 70K and well over shot low expectations. As a result, Tesla's stock is rising. TSLA is up $100 (9%) trading at $1220 pre-market value (as of July 2nd, 2020).
Elon Musks's electric car company is showing great headline numbers for an auto industry struggling to make profits on new car sales due to the pandemic. Some of this is attributed to Tesla entering China as a manufacturer, when prior, Musk had only sold Teslas there.
The Secret to Tesla's Success
Tesla shares are on a bull run now even in spite of the economic downturn the world is facing, and this is largely possible because Musk understood how to dominate a niche market.
It wasn't just about going green, but targeting a market of buyers who wanted to go green without losing the class and style this level of luxury vehicles offer.
Just like Tuesday's blog reported that there is something beyond the surface at play, with how the Facebook algorithm prioritizes content, Elon Musk didn't just sell an electric car. He sold a lifestyle.
There are many lessons other automobile manufacturers and startups can learn from analyzing the rise of Tesla's success. Clearly cheap gas prices right now don't offer an incentive to buy electric cars.
Many sustainable energy companies that provided wind and solar options never survived, and this was largely because their marketing strategy depending on everyone just realizing going green is the right thing to do.
Elon Musk focused on dominating a single niche of wealthy-ish suburbanites who wanted to support renewable energy but not sacrifice aesthetics in the process. And his strategy is succeeding.
How can you use this strategy in your business? What sub niches exist with your main target audience that have potential for new products to serve their interests?
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