A recent report has found that Tesla spends more on research and development (R&D) than any other automaker. According to data presented by a trading app company (StockApps.com), Tesla spends US$2,984 on R&D per car produced, which is three-times the industry average and higher than the collective R&D budgets of Ford, General Motors (GM), and Chrysler per car.
Commenting on the report, StockApp’s Edith Reads said, “Tesla spends more than any other carmaker on R&D in order to maintain its lead in EV technology. And if you ask them about it, they’ll tell you this is the key to keeping their customers happy –which is what keeps them in business.”
She adds that Tesla’s R&D efforts in environmentalism, safety, speed, technology integration and ambitious production goals are what makes the company successful. Reads also says that Tesla is makes for a sound investment, as while some carmakers focus on marketing themselves as a brand first and foremost, Tesla is focusing on innovative engineering.
An interesting point is that Tesla spends $0 on advertising per car, while the industry average is US$485, according to StockApps’s report. This illustrates that consumers want to buy vehicles for their functionality and rely on testimonials for brand awareness rather than beautifully crafted commercials. Ford and Toyota spend US$468 and $454 per vehicle, respectively, on advertising while GM spends $394 and Chrysler $664.
