Tesla is the manufacturer that spends the most on R&D for the development of its vehicles

If Tesla’s policy is to spend nothing on marketing, this does not prevent the American manufacturer from putting the package on research and development (R&D) expenditure. According to data from StatisticsTesla spends 2,705 euros on R&D per vehicle, when the average is more around 1,000 euros per vehicle for other manufacturers.

Tesla spends three times more than its competitors on R&D

There is no debate on the subject: Tesla is the automaker that spends the most in the world on R&D. A recent study relayed by StockApps shows that Elon Musk’s company spends almost triple compared to its competitors. On the other hand, Tesla has never spent a cent on marketing, and the manufacturer is not ready to change this strategy. When Tesla spends 2705 euros per vehicle, Ford only spends 1075 euros, Toyota spends 963 euros on R&D, General Motors 796 euros and Chrysler only 710 euros.

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Comparison of R&D and marketing expenses. Illustration: StockApps.

The difference is huge. According to industry expert Edith Reads “If Tesla spends more than any other automaker on R&D, it’s to maintain its lead in the technologies offered by electric vehicles. If you ask Musk and his teams about it, they’ll tell you it’s key to keeping their customers happy.”. Objectively, it shows. Vehicles leaving Tesla factories are making progress in terms of safety, speed and the integration of new technologies. This strategy of going all out on R&D spending is actually the source of Tesla’s success.

No Marketing Spend at Tesla

Tesla does not have the same vision of the automobile as its competitors. Most manufacturers seek above all to market their vehicles on a very large scale. This is normal and it is also the key to profitability. Tesla, on the other hand, is more focused on making every car a piece of innovative engineering. While aiming for profitability, of course. If Elon Musk’s company is leading the race to rethink and grow “the future of transport”this is largely thanks to the effort devoted to research and development.

You just have to take a step back to understand. Who knew Tesla in 2015? Not many people… Yet, in just a few years, Tesla has become the largest reseller of electric vehicles in the world. As you will have seen, it is not thanks to marketing. Indeed, Tesla has never spent a single penny on advertising. The other manufacturers, however, spend 440 euros per vehicle, on average, in marketing actions. Ford and Toyota spend 424 euros and 401 euros, while General Motors and Chrysler spend 357 euros and 602 euros respectively per vehicle.

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