The reason why Tesla is currently selling so well in the new energy vehicle market is that in addition to entering the industry relatively early, it is also inseparable from its own technical strength. Although many auto companies now also attach importance to product research and development. However, the R&D expenditure of each enterprise will still be different. So what is Tesla's R&D spending? What is the level of Tesla's R&D investment in the same industry?
Recently, according to a report released by The British financial transaction analysis company StockApps, it shows the research and development expenditure of Tesla and other manufacturers.
R&D/AD Spend Comparison of Major Automakers (Photo = Stock Apps)
According to a report released by British financial transaction analysis firm StockApps, Tesla is investing far more in research and development than its competitors. With an investment of $2,984 per car, it ranks first in the industry. Second place was Ford, $1186, and Toyota at $1063, in third place. Considering that the average R&D cost in the auto industry is $1,000 per vehicle, Tesla's investment has almost tripled.
If you look at the chart above, even detroit automakers Ford, General Motors and Chrysler have higher R&D investment costs than all automakers combined. In particular, unlike existing automakers, which also conduct internal combustion engine research and development, Tesla spends on electric vehicles and software. That's why Tesla was able to win in the competition.
StockApps also noted that Tesla didn't spend money on advertising. That's a big difference from the $500 it spends on advertising on average with other car companies. Tesla is known for using CEO Elon Musk's Twitter account without a dedicated public relations department. Elon Musk is Tesla's spokesman.
Last year, in addition to the solar panel business, tesla's recommendation program for all products to receive rewards by entering the recommendation code during the sales process officially ended. The program doesn't rely on marketing or advertising, but rather a way for Tesla to promote its vehicles by benefiting all users. As a result, Tesla currently relies only on self-sustaining growth, word-of-mouth and strong brand value.
Tesla's R&D expenditure not only exceeds Ford, Toyota, and General Motors, but also Ford's R&D expenditure, 100% of which is invested in the field of pure electric vehicles. Focusing on doing only one thing greatly increases the probability of success.