Balancing Brand Growth with Financial Health: The Prospective Evolvement of Tesla’s Marketing Strategy
Research Article
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Balancing Brand Growth with Financial Health: The Prospective Evolvement of Tesla’s Marketing Strategy

Xiao Du 1*
1 Henan Luoyang Orthopedic Hospital (Henan Provincial Orthopedic Hospital)
*Corresponding author: xiaod4869@aliyun.com
Published on 28 October 2025
Journal Cover
AEMPS Vol.234
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-487-8
ISBN (Online): 978-1-80590-488-5
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Abstract

This paper examines the evolving dynamics of Tesla’s marketing strategy in the context of growing financial pressures and intensifying market competition. Tesla’s distinctive “zero-dollar marketing strategy”, driven by product innovation, commitment to sustainable energy, Elon Musk’s influence, and viral brand moments, has historically created strong brand equity without traditional advertising expenditure. However, declines in the company’s automotive gross margin of recent years reflect the significant impact of global EV (electric vehicle) price wars, heightened competition, and changing consumer demands. Focusing on the tradeoffs between maintaining unconventional marketing model and embracing more traditional approaches that align with the innovative brand identity, this paper delves into Tesla’s dilemma in balancing brand growth with financial health. Through an analysis of Tesla’s segmentation, targeting, and positioning, as well as multiple financial metrics, the study suggests that strategic recalibration is necessary. A series of initiatives are recommended, including prioritizing market share retention while increasing cost efficiency, structuring storytelling-based campaigns to communicate technological superiority and sustainability ethos, and closely monitoring balanced KPIs across finance and marketing. In summary, Tesla’s capacity to adapt its marketing efforts without compromising brand authenticity is vital for sustaining leadership in the EV industry and achieving long-term profitability.

Keywords:

Tesla, electric vehicles, marketing strategy, brand equity, financial performance

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Du,X. (2025). Balancing Brand Growth with Financial Health: The Prospective Evolvement of Tesla’s Marketing Strategy. Advances in Economics, Management and Political Sciences,234,1-7.

References

[1]. Tesla. (n.d.). About us. Tesla Official Website. https: //www.tesla.com/about

[2]. Liu, C., Boothman, S.G. and Graham, J.D. (2025) The rise and recent decline of Tesla’s share of the U.S. electric vehicle market. World Electric Vehicle Journal, 16(2), 90. https: //doi.org/10.3390/wevj16020090

[3]. Zhang, Z. (2025) An analysis of Tesla’s development and profitability. In: Proceedings of the 8th International Conference on Economic Management and Green Development. Advances in Economics, Management and Political Sciences, 131, 108-113. https: //doi.org/10.54254/2754-1169/2024.18426

[4]. Tesla. (2025). Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2024. Tesla, Inc. https: //www.sec.gov/Archives/edgar/data/1318605/000162828025003063/tsla-20241231.htm

[5]. Agarwal, V. and Bangeja, H. (2022) Analysing Tesla’s $0 marketing strategy. International Journal for Multidisciplinary Research, 4(6), 1-8. https: //doi.org/10.36948/ijfmr.2022.v04i06.1080

[6]. Li, Y. (2023) Analysis of Tesla’s marketing strategy model. In: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis. Advances in Economics, Management and Political Sciences, 54, 33-39. https: //doi.org/10.54254/2754-1169/54/20230873

[7]. Long, Z. et al. (2019) What does Tesla mean to car buyers? Exploring the role of automotive brand in perceptions of battery electric vehicles. Transportation Research Part A, 129, 185-204. https: //doi.org/10.1016/j.tra.2019.08.006

[8]. Teodorovic, M. (2015) Impact of sustainability on brand positioning and value. In: Stakic, A.J., Kovsca, V. and Bendekovic, J. (Editors). Varazdin Development and Entrepreneurship Agency, Varazdin, Croatia and University North, Koprivnica, Croatia, Megatrend University, Belgrade, Serbia, Economic and Social Development (Book of Proceedings), 5th Eastern European Economic and Social Development Conference on Social Responsibility, 291-300.

[9]. Aeternus. (2025). Driving innovation: Tesla’s marketing strategy and its impact on electric vehicle adoption. Aeternus Website. https: //www.aeternus.rs/driving-innovation-teslas-marketing-strategy-and-its-impact-on-electric-vehicle-adoption/

[10]. Tesla. (2022). Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2021. Tesla, Inc. https: //www.sec.gov/Archives/edgar/data/1318605/000095017022000796/tsla-20211231.htm

[11]. Tesla. (2023). Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2022. Tesla, Inc. https: //www.sec.gov/Archives/edgar/data/1318605/000095017023001409/tsla-20221231.htm

[12]. Tesla. (2024). Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2023. Tesla, Inc. https: //www.sec.gov/Archives/edgar/data/1318605/000162828024002390/tsla-20231231.htm

[13]. Ewing, J. (24 Jan 2024). Tesla profit from car sales falls as price cuts hurt. The New York Times. https: //www.nytimes.com/2024/01/24/business/teslas-electric-vehicles-profit-price-cuts.html

[14]. Tesla. (n.d.). Current offers. Tesla Official Website. https: //www.tesla.com/current-offers

[15]. Lu, Z. (2025) An analysis of Tesla’s market position and future prospects. In: Proceedings of the 2025 International Conference on Financial Risk and Investment Management. Advances in Economics, Business and Management Research, 333, 919-928. https: //doi.org/10.2991/978-94-6463-748-9_100

[16]. Shi, M., Zhang, Y. and Zhu, C. (2022) A review of factors affecting Tesla’s profitability. BCP Business & Management, 26, 18-24. https: //doi.org/10.54691/bcpbm.v26i.1821

[17]. Sharp, B., Dawes, J. and Victory, K. (2024) The market-based assets theory of brand competition. Journal of Retailing and Consumer Services, 76, 103566. https: //doi.org/10.1016/j.jretconser.2023.103566

[18]. Liu, H. and Li, Z. (2023) Analysis and recommendation of Tesla’s marketing strategy. In: Proceedings of the 2023 International Conference on Management Research and Economic Development. Advances in Economics, Management and Political Sciences, 25, 187-193. https: //doi.org/10.54254/2754-1169/25/20230496

[19]. Moons, I. and De Pelsmacker, P. (2016) The effect of evoked feelings and cognitions, parent brand fit, experiences and brand personality on the adoption intention of branded electric cars for early and late adopter segments. In: Verlegh, P., Voorveld, H. and Eisend, M. Springer Gabler, Wiesbaden, Advances in Advertising Research (Vol. VI), 395-406.

[20]. Sawhney, M. (2025) Tesla: branding strategies for new products. Northwestern Kellogg, Case Study, KE1368 (KE1368).

[21]. Shimul, A.S. (2022) Brand attachment: a review and future research. Journal of Brand Management, 29(4), 400-419. https: //doi.org/10.1057/s41262-022-00279-5

References

[1]. Tesla. (n.d.). About us. Tesla Official Website. https: //www.tesla.com/about

[2]. Liu, C., Boothman, S.G. and Graham, J.D. (2025) The rise and recent decline of Tesla’s share of the U.S. electric vehicle market. World Electric Vehicle Journal, 16(2), 90. https: //doi.org/10.3390/wevj16020090

[3]. Zhang, Z. (2025) An analysis of Tesla’s development and profitability. In: Proceedings of the 8th International Conference on Economic Management and Green Development. Advances in Economics, Management and Political Sciences, 131, 108-113. https: //doi.org/10.54254/2754-1169/2024.18426

[4]. Tesla. (2025). Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2024. Tesla, Inc. https: //www.sec.gov/Archives/edgar/data/1318605/000162828025003063/tsla-20241231.htm

[5]. Agarwal, V. and Bangeja, H. (2022) Analysing Tesla’s $0 marketing strategy. International Journal for Multidisciplinary Research, 4(6), 1-8. https: //doi.org/10.36948/ijfmr.2022.v04i06.1080

[6]. Li, Y. (2023) Analysis of Tesla’s marketing strategy model. In: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis. Advances in Economics, Management and Political Sciences, 54, 33-39. https: //doi.org/10.54254/2754-1169/54/20230873

[7]. Long, Z. et al. (2019) What does Tesla mean to car buyers? Exploring the role of automotive brand in perceptions of battery electric vehicles. Transportation Research Part A, 129, 185-204. https: //doi.org/10.1016/j.tra.2019.08.006

[8]. Teodorovic, M. (2015) Impact of sustainability on brand positioning and value. In: Stakic, A.J., Kovsca, V. and Bendekovic, J. (Editors). Varazdin Development and Entrepreneurship Agency, Varazdin, Croatia and University North, Koprivnica, Croatia, Megatrend University, Belgrade, Serbia, Economic and Social Development (Book of Proceedings), 5th Eastern European Economic and Social Development Conference on Social Responsibility, 291-300.

[9]. Aeternus. (2025). Driving innovation: Tesla’s marketing strategy and its impact on electric vehicle adoption. Aeternus Website. https: //www.aeternus.rs/driving-innovation-teslas-marketing-strategy-and-its-impact-on-electric-vehicle-adoption/

[10]. Tesla. (2022). Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2021. Tesla, Inc. https: //www.sec.gov/Archives/edgar/data/1318605/000095017022000796/tsla-20211231.htm

[11]. Tesla. (2023). Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2022. Tesla, Inc. https: //www.sec.gov/Archives/edgar/data/1318605/000095017023001409/tsla-20221231.htm

[12]. Tesla. (2024). Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2023. Tesla, Inc. https: //www.sec.gov/Archives/edgar/data/1318605/000162828024002390/tsla-20231231.htm

[13]. Ewing, J. (24 Jan 2024). Tesla profit from car sales falls as price cuts hurt. The New York Times. https: //www.nytimes.com/2024/01/24/business/teslas-electric-vehicles-profit-price-cuts.html

[14]. Tesla. (n.d.). Current offers. Tesla Official Website. https: //www.tesla.com/current-offers

[15]. Lu, Z. (2025) An analysis of Tesla’s market position and future prospects. In: Proceedings of the 2025 International Conference on Financial Risk and Investment Management. Advances in Economics, Business and Management Research, 333, 919-928. https: //doi.org/10.2991/978-94-6463-748-9_100

[16]. Shi, M., Zhang, Y. and Zhu, C. (2022) A review of factors affecting Tesla’s profitability. BCP Business & Management, 26, 18-24. https: //doi.org/10.54691/bcpbm.v26i.1821

[17]. Sharp, B., Dawes, J. and Victory, K. (2024) The market-based assets theory of brand competition. Journal of Retailing and Consumer Services, 76, 103566. https: //doi.org/10.1016/j.jretconser.2023.103566

[18]. Liu, H. and Li, Z. (2023) Analysis and recommendation of Tesla’s marketing strategy. In: Proceedings of the 2023 International Conference on Management Research and Economic Development. Advances in Economics, Management and Political Sciences, 25, 187-193. https: //doi.org/10.54254/2754-1169/25/20230496

[19]. Moons, I. and De Pelsmacker, P. (2016) The effect of evoked feelings and cognitions, parent brand fit, experiences and brand personality on the adoption intention of branded electric cars for early and late adopter segments. In: Verlegh, P., Voorveld, H. and Eisend, M. Springer Gabler, Wiesbaden, Advances in Advertising Research (Vol. VI), 395-406.

[20]. Sawhney, M. (2025) Tesla: branding strategies for new products. Northwestern Kellogg, Case Study, KE1368 (KE1368).

[21]. Shimul, A.S. (2022) Brand attachment: a review and future research. Journal of Brand Management, 29(4), 400-419. https: //doi.org/10.1057/s41262-022-00279-5

Cite this article

Du,X. (2025). Balancing Brand Growth with Financial Health: The Prospective Evolvement of Tesla’s Marketing Strategy. Advances in Economics, Management and Political Sciences,234,1-7.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICFTBA 2025 Symposium: Global Trends in Green Financial Innovation and Technology

ISBN: 978-1-80590-487-8(Print) / 978-1-80590-488-5(Online)
Editor: Lukáš Vartiak, Sun Huaping
Conference website: https://www.icftba.org/Beijing.html
Conference date: 20 November 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.234
ISSN: 2754-1169(Print) / 2754-1177(Online)

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