What are Tesla’s Competitors Missing in Their Strategy? Charismatic Leaders!
One of the key factors driving Tesla’s success is the charismatic leadership of its CEO, Elon Musk. Musk has a remarkable ability to connect with millions of people through platforms like X ( formerly Twitter) , podcasts, and TV interviews. In today's business landscape, CEOs must engage and entertain the public to foster trust and boost brand recognition. However, Tesla's rivals, such as Rivian Automotive Inc. and Lucid Motors, seem to lag behind in this aspect.
Rivian Automotive, headquartered in Irvine, California, was established in 2009. The company focuses on producing electric sport utility vehicles and pickup trucks, with major shareholders including retail giant Amazon. Despite aspirations to rival Tesla, Rivian has yet to capture the attention of the market leader.
With a market valuation of less than $10 billion and a slowdown in demand for electric cars, Rivian faces significant hurdles on its path to profitability. Competitors like Tesla and Ford have begun slashing prices to drive sales, while Rivian's CEO, RJ Scaringe, has struggled to establish a significant presence on TV and social media to promote the company's products. In today's social media-driven world, CEOs must step out of their comfort zones to become the face of their companies and instill confidence in the public.
By Faisale Shefawe
Updated on 05/07/24
8:40 PM ET
Another contender in the electric car market is Lucid Motors, headquartered in Newark, California, and founded in 2007. Lucid specializes in luxury electric vehicles and is majority-owned by the Public Investment Fund of Saudi Arabia.
Lucid Motors has faced recent setbacks, with its market valuation plummeting to less than $3 billion from over $90 billion in 2021. The company has failed to introduce a new sports model to diversify its lineup, and CEO Peter Rawlinson's public appearances have been limited, except for news about his hefty $379 million annual pay package, which drew criticism even from Elon Musk. Rawlinson lacks a significant social media presence to engage with the public.
In the realm of technology giants, leaders like Bill Gates, Steve Jobs, Jeff Bezos, and Mark Zuckerberg understood the importance of media, public relations, and brand creation. They went the extra mile to build the most successful companies. It's imporant for companies to encourage their leaders to engage with the public through social media, podcasts, interviews, or writing to share insights on social issues. Electric car manufacturers like Rivian and Lucid must elevate their brand awareness by encouraging their executives to connect with the public. Engaging with the public not only boosts sales but also attracts talent to address production challenges these companies face.
