Tesla's Game Plan To Sell Model 3 Cars? 'Anti-Selling'

Tesla Inc TSLA's first-quarter earnings report and conference call offered investors and car enthusiasts an update to its Model 3 plans.

Tesla reaffirmed it is on track to commence production of the Model 3 car in July and expects to ramp production to 5,000 vehicles a week at some point this year and hit 10,000 per week next year.

'Anti-Selling'

The problem for Tesla is that its production outlook might not be enough to satisfy demand. According to a Bloomberg report, Tesla's CEO Elon Musk will now be "anti-selling" the new car by not offering test drivers or spending any money on advertisements.

Granted, Tesla is known for being very stingy on advertising and spend just $48 million on ads, promotion and marketing activity in 2016. By comparison, Ford Motor Company F and General Motors Company GM each spent more than $4 billion.

Another issue plaguing the company could come from consumers who assume the Model 3 is equal to or superior to the much more expensive Model S sedan.

To address this, Musk said during the post-earnings conference call that the company is doing its best to "clear up that confusion." After all, the "3" moniker could give the impression it is a next-generation vehicle that is more advanced than the prior despite a cheaper price tag.

Yet, despite the absence of marketing and an overall "anti-selling" strategy, Musk acknowledged reservations and deposits for the Model 3 "continue to climb week after week."

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Sifting Through Patent Applications Gives A Glimpse Of Tesla's Innovations _________ Image Credit: By Steve Jurvetson - https://www.flickr.com/photos/jurvetson/25687765044, CC BY 2.0, via Wikimedia Commons