AN EVALUATION TESLA’s COMMUNICATION STRATEGIES

Executive summary

The ability to effectively communicate a message between one or two persons is usually
the beginning of unending visions and success of many affairs including business and political
careers. In fact, communication is an important element which always come before a successful
endeavor of working among people. They need communicate the vision of the business to their
followers in a proper way making it achievable. For without a clear communication in regard to
job that needs to be done, desired results cannot be achieved. As observed by Cornelissen (2008),
effective corporate communication is the touch stone upon which the foundation of successful
business ventures depends on. The importance of communication cannot be undercut as many
folds successful business are rest on a channel of effective and clear communication. Corporation
like Tesla with its communication smart CEO, Elon Musk exhibit the standards of communicate
and the mode of communication that should be adopted across corporations.
Tesla is green car manufacturer established in 2003 with a view of causing a transition
from oil fuel to electric cars. The company has its headquarters at Austin in Texas and it is
involved in the manufacture of green energy car and accessories such as solar panels, car
batteries and home power storage equipment. The vision of the company is to create the most
compelling cars of the 21st century in the advent of world’s popular transition from oil fuel to
green energy. The company has been at the forefront of effective communicating is vision to the
world thereby tapping customers across the world.
The company’s environment sensitive innovative attracts and sparks interest from all
divides since the world is united to reduce the effects of global warming. In terms of digital
integrated communications, it is recommended that Tesla goes a notch higher in exploiting the
yet unexploited market in other social media platforms like Facebook paid up ads. There are still
other marketing communication platforms that are collaboratively employed to ensure similar
marketing campaign across similar interconnected platforms such Facebook, WhatsApp and
Instagram.
Introduction

Communication is a critical recipe element that every business leader must practice in

order to fluently and effectively steer their businesses goals and most importantly communicate

externally with investors, customers and other firms. The ability to effectively communicate a

message between one or two persons is usually the beginning of unending visions and success of

many affairs including business and political careers. In fact, communication is an important

element which always come before a successful endeavor of working among people. They need

communicate the vision of the business to their followers in a proper way making it achievable.

For without a clear communication in regard to job that needs to be done, desired results cannot

be achieved. As observed by Cornelissen (2008), effective corporate communication is the touch

stone upon which the foundation of successful business ventures depends on. The importance of

communication cannot be undercut as many folds successful business are rest on a channel of

effective and clear communication. Corporation like Tesla with its communication smart CEO,

Elon Musk exhibit the standards of communicate and the mode of communication that should be

adopted across corporations.

Overview

Tesla is green car manufacturer established in 2003 with a view of causing a transition

from oil fuel to electric cars. The company has its headquarters at Austin in Texas and it is

involved in the manufacture of green energy car and accessories such as solar panels, car

batteries and home power storage equipment. The vision of the company is to create the most

compelling cars of the 21st century in the advent of world’s popular transition from oil fuel to

green energy. The statement reiterates the world’s transition from unclean energy consumption

to green energy consumption due to the compelling adverse impacts posed by climate change.
 The objective of the company is to speed the transition of the world from biofuel centered

car production to electric vehicles that are environmentally safe and conscious of the climate

change. Tesla being a manufacturer of zero-carbon emission Electric Vehicles (EVs)

manufacturers attracts a conducive business environment that supports its business objectives

and strategies as it invokes the general feelings towards environmental sustainability. The

company’s environment sensitive innovative attracts and sparks interest from all divides since

the world is united to reduce the effects of global warming. Socially, Tesla attracts global

consumer demographics in demand for emission neutral EVs. The increasing popularity of low-

carbon lifestyles provides Tesla with a competitive advantage over its bio-fuel and hybrid car

manufacturer competitors.

The company’s strategic plan is permeating the high-end capable and willing to pay

premium, price for value addition going down through the market in successive models. This has

truly been the case, as Tesla successive models have been able to cut through the middle class

making their cars affordable and progressively convenient to use for its ever-growing number of

customers.

By so doing, Elon Musk’s company has been at the forefront making innovative electric

cars in the transition from gasoline fueled cars to a sustainable electric and ultimate promotion of

solar energy. As well put down by Elon Musk in “The Secret Tesla Motors Master Plan”, Tesla’s

strategic was to prepare it for a head-to-head showdown with gasoline cars manufacturers. Tesla being a

manufacturer of zero-carbon emission Electric Vehicles (EVs) manufacturers attracts a

conducive business environment that supports its business objectives and strategies as it invokes

the general feelings towards environmental sustainability. It is therefore likely to attract

governmental incentives and subsidies in its innovation projects through partnership agreements

as well as for the sake green environment policy implementation requirement.

Internal communication analysis

To kick-start good and effective communication with Tesla, Musk as the CEO has in the

past sought to change the approach to communication, from one which communication flows

from the managers following the traditional top-down approach to free communication without

regard to bureaucratic positions. In one of his published emails” Communication within Tesla”

sent to Tesla employees, Musk intimated that he hates the traditional chain of command

communication approach and prefers a communication approach that serves the interests of the

company through a decentralized free communication channel in the organization. The email

looks at the chain of communication approach as one that causes unnecessary delays and seeks to

empowers the departmental managers at the cost of the company’s interests. Considering to the

challenging nature of this approach, Musk recommends that Tesla’s communication approach

should not be bureaucratic in nature and must ensure that there is free communication between

and among employees regardless of seniority. He advises the company’s top leadership to avoid

the sluggish communication approach as it is in their company’s interests that things be done

with utmost speed. Musk seeks to implement a corporate communication approach in which

bureaucratic communication is dismissed using a tough talking tone based on honest assessment.

In light of bureaucratic communication, Musk observes that “information has to flow back the

other way again. This is incredibly dumb. Any manager who allows this to happen, let alone

encourages it, will soon find themselves working at another company. No kidding.” (Baris,

2017). Musk’s email seeks to establish a fast and effective communication at Tesla where
everyone would be allowed to talk to anyone regardless of their leadership position to resolve

any problem according to what they think is best in the interest of the company.

In the email, Musk is tough-talking against such managers that will tolerate bureaucratic

kind of communication at Tesla since it wastes time having to move from one manager to

another. In the email, Musk is quoted giving the following instructions to the company

employees “you can talk to your manager's manager without his permission, you can talk directly

to a VP in another dept, you can talk to me, you can talk to anyone without anyone else's

permission.” Using this particular email, Musk brings a solution to rigid communicative channels

that according to him would hold the company from attaining its level best in as far as there is a

free and speedy flow of communication from one level to another. Musk in this email seeks to

address the barriers to communication where employees had to seek communication across the

corporate leadership rendering communication slow and non-responsive.

As to the style of communication, Musk adopts simple language that is readily

understandable by the laymen. This is one of the ways that Musk ensures that despite the fact his

companies deal with complicated technologies, Musk ensures that finer details of these

technologies are made clear and simple for each and everyone. When Musk thought his

engineers at SpaceX were technical terms during their meetings, he sent them an email saying

that acronyms unapproved by him should be eliminated. According to one of his letters sent to

Tesla’s employed, Musk shared against the use of jargons and technical terms in communication.

He advised against the use of jargons recommending the use of everyday language while

explaining that anything that requires an explanation in communication is barrier towards

effective communication. As explained by Men (2015), the use of interpersonal communication

channels such as an email being sent to Tesla’s employees build serves to reduce the speed with
which a communication is understood and acted on by the targeted recipients. It also serves to

reduce the power gap between the subordinate employees and the senior employees thus

eradicating the workforce silos, which Musk’s email describes as the portrayal of “the us v. them

mentality” intended to create barriers on effective communication through free and unlimited

access to communication channels.

External communication analysis

Tesla has embraced the use of various mediums of communication to deliver it important

communications to the external constituents as well as build a brand image. As held by Argenti

(Argenti, 1998: 74) external communication is critical to business success as it provides the

corporate image within which the external audience interact and view the corporation. Tesla for

instance maintains its corporate logo which is used to identify it in line with Argenti’s sentiments

that image elements such a logo, product and services created and maintained by the

organization gives it the visual manifestation to the outside world. accordingly, Tesla employs

the use of both digital internet-based mediums of communication such as social network through

social media sites likes Twitter, Facebook and Instagram and offline mediums of communication

such as posters, Television and billboard advertisements.

Social Media Communications

The first face of Tesla on social media again is its CEO Elon Musk who commands a

huge following on his Twitter handle alongside other social media platforms with which he uses

to promote Tesla’s brand image as well as market its products. By maintaining a huge follower

of up to 65.3M followers which according to Forbes’ Helen Popkin “Elon Musk's Twitter

Account Is Tesla's $40 Million Marketing Platform. 'Worth It', says is a free marketing platform

from which Musk makes all marketing communications. By so doing, Tesla get a platform in
which it is communicating to large number of customers couple with its customer strategic

marketing aligned with market segmentation (Corte, 2020). This gives the company an upper

hand even as it proceeds on the already existing competitive advantage it flourishes on, being a

manufacturer of green energy products. As he flourishes on selling the transitional electric cars

to the world, Musk is also selling SpaceX innovations which is characteristic by such a futuristic

plan to open space for exploration and exploitation (Corte, 2020). through the tweets made by

Musk as its CEO has the ability to affect, he public image of Tesla as embodies the company’s

reputation to a great extent. As studied by Corte (2020) Elon Musk’s tweets were capable of

influencing stock price in the stock market. This based on the notion that the public reputation of

CEOs as viewed by the society, the beliefs and attitudes go into making people want to judge

their corporations thus the CEO carries the corporate and personal reputation. Through Musk’s

daily tweets, replies and conversations held with prospective customers and target audience give

the company unlimited opportunity to reach out to the world concerning its new product on stage

on electric cars and space explorations. For example, the collaborative launch of Cybertruck on

its website as well as Elon’s twitter account gave the product more public awareness and

popularity as well as promoted Tesla’s brand image and reputation.

According to the study, Elon Musk is an active player on Twitter making an average of

2.59 tweets per day between 2015 until end of March 2020 (Corte, 2020). Of the 798 posts made,

168 twitter posts touched on Tesla’s product innovations which translates to 21% of the posts

dedicated towards promoting the brand image of Tesla. This shows that Tesla enjoys such a big

marketing platform within which it can make sales and promote its innovative ideas to the target

customers. On account of CEO’s ability to carry corporate reputation is the instance where Musk

made a tweet as to suggest that Tesla was going private a post that caught the attention of
Security Exchange Commission fining him $20 million for making inaccurate and misleading

posts only intended to spike up the stock price of Tesla (Corte, 2020, pp, 15). From the foregoing

observations, it is clear that Elon Musk’s presence on social media platforms like Twitter gives

Tesla an upper hand in so far promoting its brand image, product marketing’s, and manage its

public relations. As observed by Balmer, (2012), a corporate brand identity should be able to

display and offer the reputational cues it is thought or expected to possess in accordance with

corporate identity. Likewise, Tesla as a brand identity, it should be committed in providing

accurate information hence the intervention of SEC in the matter fining its CEO for hoisting

reputation of misleading the public against the brand identity expectations.

In addition, Tesla’s digital presence on Instagram is considerably large with again Elon

Musk’s personal account carrying the largest number of followers as compared to Tesla’s

account. Comparably, while Elon’s fan page account commands 2.4 million followers, Tesla’s

fan page has 451k followers which again speaks to the invaluable benefit a CEO’s reputation can

yield to his company. Using the fan page accounts, the company is offered a communication

platform through which its prospective customers can engage with them as well playing the role

of rolling out marketing campaigns. For example, Tesla and Elon collaboratively share and

update their prospective customers through pictures and short video films concerning their latest

innovation and newly finished products. Coupled with the option of paid-up advertisements, the

company enjoys an extensive channel of communication through which it can reach to a further

prospective customer. As a consequence of such unlimited opportunity, the company enjoys vast

benefits in so far as is marketing and brand awareness communication are concerned. For

example, through the online conversations between Elon and his followers, replies as well as
between Tesla’s digital communications team, gives Tesla a chance to market, and through

public relations stunts to the world.

Further, Tesla also exploits the digital communication on its website. The company’s

website embodies its logo alongside other sections displaying its products. The website has a

section for the company’s latest models including Model S, Y, 3, Solar roof and panels and

accessories alongside a nice pictorial representation of all the products in every category. The

background of the website is made of adverts on products such as the Model Y all weather

interior Liners advert which I bumped into on checking on Tesla’s website and the

communications made on the platform. Through its website, the company runs an online shop

through which its customers can place an order depending on worldwide destinations. It is also

worthy to note that Tesla’s website service language comes in various diverse languages across

the world cultures such as Asian, Middle East, European, and American languages. This gives its

marketing communication a wide spectrum of recipients which also comes with high number of

prospective customers buying from the company by virtue of the fact they can make a

transaction conveniently in their own language.

According to Bruijl Gerard (2017) corporation with more online presence and are keen

on fostering a genuine image to appeal to the target customer are more likely to attract who

contact with 80% of all customers first checking on websites. Tesla’s website is therefore a vital

advantage to the company in so far as enabling its marketing communications for instance the

online ads, sale shop and shipment services makes it an ideal place to go shopping for an electric

car enthusiast prospective customer.

Tesla being a green car and energy manufacturer enjoys a competitive advantage in

corporate social responsibility (CSR) advertising. Tesla adverts have an upper hand in the
competition for it offers products that offer a sustainable future transitioning the world to a clean

energy drawing the world to a zero emission. Product and brand awareness communications

tagged in environment conservation is likely to sway consumers attitudes towards buying from

such a brand being advertised (Balmer and Greyser, 2006). Accordingly, Tesla’s ability to

launch persuasive green energy campaign gives it an upper hand in the competitive edge as its

CSR adverts have the capability to inform and transform. That is to say, CSR ads have the ability

to inform about the need to combat adverse climate change by cutting on emission hence he need

to buy from a green energy manufacturer like Tesla. Adverts featuring CSR themes such as green

energy has been reported to have the ability to strengthen its corporate image as well as

command loyal customer base and ultimately promote green energy consumer behavior. This is

the transformative side of CSR adverts made by Tesla.

Recommendations

In light of the foregoing findings, Tesla enjoys an overwhelming market owing to its

green energy campaign aligned with its line of product manufacture. It is true that Tesla’s CSR

adverts coupled with its vision and mission statements drive the company towards a competitive

advantage beyond every other company which may not help but imitate the company’s strategic

goals. Firstly, the vision serves to rally and prepare the world in its transitive journey from

emissive to non-emissive energy consumption behavior for sustainability. With a strong concern

for the environment drives Tesla motor innovation by manufacturing environmentally conscious

and environmentally friendly products through revolutionizing automobile industry through

green innovation. The company’s environment sensitive innovative attracts and sparks interest

from all divides since the world is united to reduce the effects of global warming.
 In terms of digital integrated communications, it is recommended that Tesla goes a notch

higher in exploiting the yet unexploited market in other social media platforms like Facebook

paid up ads. There are still other marketing communication platforms that are collaboratively

employed to ensure similar marketing campaign across similar interconnected platforms such

Facebook, WhatsApp and Instagram. In as much Elon Musk personal reputation is worth it

digital marketing platform for the company, there are other avenues of marketing including

offline based advertisements such as radio and Television advertisements. In other words, Tesla

should move with speed at

With ongoing climate change campaign such as the recent Glasgow Conference, further

enactment of carbon tax legislation in a number of the US countries and with the likelihood of

more countries following the suit, Tesla enjoys and will continue enjoying a competitive

advantage over fossil-fuel-powered automobile manufacturers. This action presents both an

opportunity and threat for the company. It is an opportunity for Tal to the extent that it reduces

the tax burden on the company and a threat as it discourages fossil-fuel- automobile

manufacturers who in the long run will switch to Tesla’s niche market.
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https://doi.org/10.1108/03090560610669964

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musk-to-tesla-employees-descr.html

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