Tesla Leads in R&D Spend Per Car Sold
In a recent analysis of automobile manufacturer research and development spending, Tesla steals the show when it comes to R&D spending per unit sold. An eyebrow-raising statistic from a report from StockApps.com states that Tesla spent more than twice as their closest rival on research and development (R&D).
Tesla spent an average of $2,984 per vehicle, according to a report. Ford Motor Company spent roughly $1,186 per vehicle. Toyota and General Motors each spent $1,063 and $878 respectively.
The automaker has been vocal about its plans to advance EV range and improve battery technology. This is especially important as the market for electric vehicles expands and the competition among automakers heats up.
Tesla's huge investment in research and development comes at a time when the company is spending next to nothing on advertising. The amount of R&D expenditure pales in comparison to what Tesla's competitors are spending on advertising to promote their vehicles. The company’s $0 advertising investment in 2020 is due, at least in part, to Elon Musk's ability to create lots of promotional interest on his own. On the other hand, the automaker's competitors spent an average of $485 in advertising per vehicle sold.
By showing a commitment to innovation and research, it will be interesting to see how Tesla's business model works out in the coming years. It's not uncommon for companies to increase their R&D budget once they've established themselves as leaders in their industry, but a company rarely becomes a leader by focusing so much on research and development. The car manufacturing industry is certainly changing quickly thanks to companies like Tesla, and we'll be excited to see what innovations come out of the automobile industry in the coming years.
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