Marketing Budget of Tesla Inc Case Study

Paper Type:  Case study
Pages:  2
Wordcount:  518 Words
Date:  2022-05-17


As Tesla Inc. seeks to get situated in Puerto Rico to intercede in the supply of power owing to its pathetic state, it ought to allocate financial resources to cater for its promotion and advertisement. However, it will not deal a massive dent in its finances since the current infrastructural condition of the country is pathetic. At the same time, it has to frame its marketing plan in such a way as to evoke confidence in the targeted customers' art and get encouraged to consume the incoming Tesla services. The Puerto Rican government, businesses, and households are more than willing to embrace the interception since their own is not reliable. Therefore, Tesla's budgetary allocation for marketing is; $ 568,768.

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Selling expense

Tesla Inc., as it enters Puerto Rican power market, will have to set aside finances to cater for the selling of its service. Since it is during its inception, it will have to set aside a significant portion to establish a firm customer base where sustainability, dependency, and reliability are assured. Included in the selling expenses is the forecasted wages and salaries of the sales staff and agents. They are all the forecasted costs to be incurred by Tesla Inc.'s sales department. They are allocated as follows:

  • Salesperson salaries and wages; $745,345
  • Payroll taxes; $673,264
  • Sales administrative staff wages and salaries; $478,354
  • Commissions to be paid; $467,383
  • Promotional materials; 678, 546
  • Utilities; $879,379
  • Advertising; $483,499
  • Depreciation; $268,586
  • Rents and rates; $867,396
  • Powerline materials; $45,488,368
  • Operating license; $100,478

Product cost

It refers to the expenses to be incurred in the generation, production and distribution of electric from the production plant to the households, government and private sector offices and premises and businesses. They are substantially allocated because Tesla Inc. is still entering the market and thus is massively establishing its infrastructure. The respective financial allocations for various sub-components under this sector are as follows:

  • Dam construction; $1,786,976
  • Electric pylon costs; $1,369,370
  • Electrical engineers; $764,684
  • Provisions for wear and tear; $446,736

Other costs

There are more different costs that Tesla Inc. is bound to cater for as it incorporates into Puerto Rico's power market. Their forecasted values are as follows:

  • Insurance cover; $567,399
  • Miscellaneous expenses; $176,396
  • Provisions for vagaries; $642,448
  • Consultancy charges; $247,296
  • Coupons production; $124745
  • Human Honoraria; $ 257497

B. Pro forma annual profit and loss statement (first year through fifth year)

III. Resource requirements.


The goal of every business is to make profits out of the investments made. Tesla Inc. is not excluded. Its foreign investment in Puerto Rico is, having provided electrical power to consumers, expected to make returns. Regarding finances and having all the losses and expenditure to be incurred, it is aimed at turning out as follows;

Profits; $ 1,687,547


Tesla Inc. will only achieve its objectives of developing a sound power grid with the central contribution of human capital. They provide technical support and expertise in all of its departments and segments. They range from engineers, managers, to casual laborers and subordinate staff like messengers and cooks. It is estimated that the number of finances to be sent to them is; $970,483

Production capacity

The estimated amount of electricity to be produced by Tesla Inc. Energy Company is 100,000 megawatts. It is expected that its own expense is $ 978,339.

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Marketing Budget of Tesla Inc Case Study. (2022, May 17). Retrieved from

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