Tesla Motors, Inc. (NASDAQ:TSLA), Apple Inc. (NASDAQ:AAPL) — Tesla’s Religion: How Gigafactory Texas Fanfare Showcases EV Giant’s Strong Brand

Electric vehicle giant Tesla will cut a ribbon for its Gigafactory in Texas on April 7. The hype surrounding the event showcases the EV maker’s cult-like following and how the company has created a religion, according to a venture capital firm.

What happened: The ribbon cutting ceremony for Gigafactory Austin, the new manufacturing facility for Tesla Inc (NASDAQ: TSLA), is one of the highly anticipated events of the coming week.

“This feels a bit more like pomp than substance,” said Loup Ventures managing partner Gene Munster.

Munster emphasized that the plant will help increase Tesla’s annual production to more than two million vehicles in the future and help with a target of 1.5 million vehicles produced by 2022.

Loup’s managing partner Doug Clinton said the event will be more noise than news. “No other auto company would have so much fanfare around an opening and it shows Tesla’s religion,” Clinton said. “Religion is a very powerful advantage for a brand.”

Clinton and Munster discussed other companies that have created their own religions, with Apple Inc (NASDAQ: AAPL) discussed by the duo.

Clinton said Apple once had a religion, but it’s weaker now.

“I think they still have that (have a religion),” Munster said.

Unlike Apple with a weaker or watered-down religion, Clinton said Tesla’s religion remains strong.

“People want to see this opening, they still have it,” Clinton said. “This is a testament to their brand and the religion around it.”

Related link: Tesla climbs on potential stock split, here’s how EV stock performed after previous split

Why it matters: Tesla has built a strong following of fans and car owners, which have become the best form of advertising with strong word of mouth and repeat customer transactions.

“Don’t worry about spending a lot of money on advertising like the traditional car does, just create that religion and keep these gatherings from the fateful,” Munster said.

The April 7 event probably won’t give Tesla fans or investors any new updates on new vehicles or items, but the focus will be on the new factory, what it means in terms of production numbers and showing off some of the models that will be released. are produced at Giga Texas.

Price action: Tesla shares rose 1% to $1,084.59 on Friday. Shares are up 25% in the past month and are getting closer to a positive year-to-date, currently down 9.6% since January 1, 2022.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This post Tesla Motors, Inc. (NASDAQ:TSLA), Apple Inc. (NASDAQ:AAPL) — Tesla’s Religion: How Gigafactory Texas Fanfare Showcases EV Giant’s Strong Brand was original published at “https://www.benzinga.com/news/22/04/26437503/the-religion-of-tesla-how-gigafactory-texas-fanfare-shows-the-strong-brand-of-ev-giant”

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