Presented by Yuming Huang

An Analysis of Tesla’s Response to the Tesla

Model S Fire Incident

Company Background

• Tesla Motor Inc.

• Founded in 2003

• Manufacture and sell electric luxury cars

• Price starts from $60,000

Case Overview• Who: A driver and his Tesla Model S

• What: The Model S caught fire

• When: Oct. 1, 2013

• Where: On a highway in Kent, Washington

• Why: The fire was caused by the direct impact of a large metallic object to the battery pack

• How: Driver pulled over and departed without harm;

Stakeholders• Customers

- The owner whose car caught fire

- Other owners & potential customers

• Investors

• Mass media

- A bridge between Tesla & the publics

Communication Objectives

Elon Musk, Chairman & CEO of Tesla, issued a statement

on Tesla’s blog with an email form the owner.

• Spread the truth

• Earn coverage from mass media

• Build brand image & reputation

• Build customer’s trust toward Tesla

Key Messages

• The accident is an extremely uncommon occurrence

• Tesla’s design is well prepared for this circumstance

• Improper procedure leads to harder extinguishing

• Electric car is safer than gas-powered car

• Tesla has earned the owner’s support

Media Responses• Positive

- Reported by several powerful news outlets

- Most of the coverage include the blog’s key messages

- Every coverage has quote from the blog

• Negative

- Some of the coverage suggest that Tesla was being

defensive

Implications

• Tell the truth, and be transparent

• CEO directly responses media

• Avoid using jargon

• Well prepared before releasing

Thank You!