In a move that potentially signals a brighter horizon for Tesla Inc, CEO Elon Musk has embarked on a landmark visit to China. Engaging with key officials and ministries, this significant step might lay a robust foundation for the company's future in the world's largest electric vehicle market.
Deepening Ties with China's Ministries
Elon Musk's tour of China started with meetings at the commerce and industry ministries. His interaction with officials from these important government bodies, which exercise regulatory oversight of the automotive industry, signifies the deepening of ties between Tesla and China's government. This potential easing of pathways for Tesla's ambitious growth plans in China indicates an increasingly positive relationship with these integral regulatory bodies.
Boosting Production Capacity
This visit is strategic, coming at a time when Tesla's Shanghai Gigafactory, a vital cog in Tesla's global manufacturing wheel, is facing challenges in scaling its production capacity. This is occurring amid intensifying competition from Chinese electric vehicle manufacturers. Last year, the factory produced over 700,000 Model Y and Model 3 vehicles, contributing more than half of Tesla's global output. Musk's engagement with Chinese officials could pave the way for smoother expansion plans, thereby fortifying Tesla's position in the global EV landscape.
Advancing Autonomous Driving Features
Tesla's Full Self-Driving features, currently available in the US and Canada as part of the FSD Beta software, is a major focal point for investors during Musk's visit. Securing clearance from Chinese regulators for these features could give Tesla a competitive edge. It could enhance the company's appeal to the tech-savvy Chinese consumer base, spurring further adoption of Tesla's vehicles.
Strengthening Partnerships with Local Suppliers
Musk's interaction with Zeng Yuqun, the chairman of CATL, a Chinese battery giant and a key supplier for Tesla, underscores another significant aspect of his visit. Strengthening this vital partnership could fortify Tesla's supply chain resilience and bolster its production capabilities.
The Impact of Musk's Visit on Tesla's Future in China
Musk's visit signals a new era of strengthened relations between Tesla and the Chinese government. His commitment to understanding and engaging with China's unique market dynamics shows a determination to cement Tesla's presence in the country. By fostering these important relationships, Musk is making strides toward securing a stable and prosperous future for Tesla in China.
Elon Musk's visit to China promises to be a significant milestone for Tesla. By fostering relationships with Chinese officials and industry partners, he's setting the stage for Tesla's growth in China's booming EV market. With an increasingly cooperative relationship with regulatory bodies, a robust supply chain, and the potential to bring cutting-edge technology to consumers, Tesla is poised for success.
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Tesla eliminated a newly formed marketing team of about 40 employees as part of its global layoffs, Bloomberg reported on Monday morning. On X, Elon Musk said the ads created by the team were “far too generic” adding that they would apply to “any car”.
Exactly. The ads were far too generic – could’ve been any car.
The team was led by Alexander Ingram who joined Tesla in August 2019 as Communication lead for Automotive. After a few different roles connected with content and social media, Ingram was promoted last December to Senior Manager of Global Growth Content. In the new role, he was leading a global team of creatives focused on Tesla's first ads, as well as social media.
Ingram put out some excellent behind-the-scenes videos on Tesla’s technological advancements such as the one below explaining Tesla’s single casting.
Tesla’s Advertisement Strategy
At Tesla’s 2023 annual meeting of shareholders, Elon Musk said that the company would “try a little advertising and see how it goes”. Since then, Tesla ads have been seen in Google search results and on YouTube.
In Tesla’s proxy statement filed last week, it is seen that the automaker has spent around $200,000 on X-advertising through February 2024.
“As part of a multi-platform advertising campaign, Tesla also directly or indirectly purchased advertising on X, which totaled approximately $0.2 million through February 2024”
Bloomberg’s source added that Tesla still has a smaller marketing team in Europe.
Tesla shared on X that it’s ending its current referral program globally by the end of April. It’ll be replaced by a new one, but that is still “a few months away”, according to CEO Elon Musk.
When Musk was asked if the current credits would be lost, Musk responded by saying “No, just that new credits would not be earned until we launch a future referral program.” That means there’ll be a gap of a couple of months when owners will not be able to earn referral credits.
Tesla was always famous for relying on its community to promote its vehicles rather than spending millions (or even billions) in ad campaigns.
Through Tesla’s referral program — which started back in 2015— customers have been earning referral credits by having friends use their referral link when ordering a Tesla product or taking their first demo drive. At the time, it started with a direct $1,000 prize for the referrer but later evolved to a more complex system with different tiers and points.
Prizes have changed a lot over the years
In its latest version, scheduled to end by the end of the month, Tesla models (S, X, and Y), along with Powerwall, solar panels, and solar roofs, are available for purchase using a referral link. In this version, owners can redeem credits from merchandise to software upgrades for their vehicles. They can even redeem credits for several months free of Premium Connectivity or FSD.
Our current referral program benefits will end after April 30 in all markets
Tesla’s first referral program was released in July 2015 where customers who referred new buyers would receive $1,000 for every new Tesla Model S delivered. For those who were able to accrue 5 or 10 referrals for the US automaker, Tesla raised the bar and offered invitations to the opening of its Giga Factories or even a fully loaded Model X.
Over the first 2 years, Tesla significantly increased the value of the prizes and even offered free or discounted Roadsters with enough referrals. However, in 2019, Elon Musk decided to stop amid cost concerns.
The referral program was re-launched in late 2019 offering new buyers free supercharging for a period of time, FSD access, premium connectivity, or $500 off a new vehicle.
What’s Next
Given the considerable gap of “a few months” between the current program and the next one, it is expected that Tesla will bring a new structure with updated awards focused on minimizing Tesla’s cost while increasing the brand’s awareness.
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Tesla Android Project enables you to run Android apps in your Tesla. The platform is Open Source and you can deploy it on your own Raspberry Pi 4. Consider supporting the initiative by donating or purchasing the Compute Module 4 Bundle that delivers the best experience. Get $20 off by using the code: NotATeslaApp
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