‘The Unknown Podcast’ Hosts Say Musk’s Marketing Strategy is a High-Stakes Branding Gamble
By Rick LaRivière with Michael Volpe and Richard Luthmann
On Episode 35 of The Unknown Podcast, investigative journalists Michael Volpe and Richard Luthmann dug into Elon Musk’s evolving strategy for Tesla.
What began as a car company may soon evolve into a high-tech empire.
Tesla Unplugged: From Cars to Cyborgs?
“When you think of Tesla, what do you think of?” Volpe asked. “Elon? An electric car,” Luthmann replied.
That’s the brand—and branding is everything.
Volpe said Tesla is trying to break out of the mold.
“It’s more than simply cars,” he said, pointing to Tesla’s 2023 financial filings. “Auto sales account for 80 percent of Tesla’s revenue. The rest is stuff like solar, robots, and gadgets—but it’s not moving the needle yet.”
Volpe believes Musk is playing the long game.
“He wants Tesla to evolve from a car company into a cutting-edge tech company.”
To him, it’s a strategy similar to how Apple became a lifestyle brand or how Amazon evolved into more than just a bookstore.
Tesla’s website now offers electric toys, such as the Cyberquad—a mini version of the Cybertruck—as a glimpse into the company’s lifestyle push. But can Musk turn toys and robots into a meaningful revenue stream?
Luthmann asked the obvious question: “Would you buy one of those for Jack?” Volpe paused. “Not right now… maybe in six years.”
Brand or Bust: Lessons from Jordan, Blockbuster, and Cereal Wars
To explain Musk’s high-wire act, Volpe drew lessons from business history.
“Brands evolve—or they die,” he said.
He pointed to the Jordan brand.
“It started as a Nike basketball shoe. Now it’s its own division, its own identity.”
That evolution worked. Others failed.
“Remember Blockbuster?” Volpe asked. “They didn’t evolve. Technology passed them by.”
Luthmann agreed: “If they had pivoted to streaming like Netflix, Blockbuster could’ve owned the space.”
They also discussed Levi’s failed attempt to enter the suit market in the 1980s.
“They tried to launch high-end three-piece suits,” Volpe explained. “Total flop. It was too far from their jeans brand.”
Luthmann offered a solution that companies often use: “You bifurcate the brand, like Gap and Banana Republic, which are the same company but offer different price points.”
Volpe then brought up a story about Charles W. Post, who stole cereal formulas from Kellogg and built Post Cereal.
“His daughter Marjorie took over and turned it into General Foods,” Volpe said. “She succeeded where many fail—expanding beyond a core product.”
Luthmann summarized the key point: “If Tesla remains only an auto company, that 113 price-to-earnings ratio isn’t justified. But if Musk pulls this off, it could be.”
Tesla Unplugged: A Future of Gadgets, Robots, or Pipe Dream?
Volpe said Tesla’s future depends on whether new products can generate serious revenue.
“Right now, the non-auto stuff is about 20 percent of total sales,” he said. “Elon wants to make it 40 or 50 percent.”
So far, the expansion looks more like brand experiments than breakthroughs. Tesla offers solar panels, battery packs, humanoid robots, and child-sized ATVs. Musk’s vision includes smart homes, AI bots, and even brain chips via Neuralink.
Luthmann was skeptical but intrigued. “You think the brand can carry that?”
Volpe didn’t blink: “If brand isn’t the most important thing, it’s close.”
That’s why Tesla’s website includes lifestyle products and futuristic prototypes. Volpe said it’s Musk’s attempt to turn Tesla into the Amazon of technology, where the brand itself guarantees cool, cutting-edge innovation.
But will consumers bite? And will Wall Street keep the faith?
“As I said, if ifs were fifths, we’d all be drunk,” Volpe quipped. “If Elon pulls it off in three to five years, the valuation is justified. If not, it’s just a car company with toys.”
Tesla Unplugged: The Final Verdict
Luthmann and Volpe agreed that Tesla is in the middle of a major branding war.
“It’s a gambit,” Volpe said. “Elon wants to be more than just cars. The question is—can the market see him as more?”
Musk is no stranger to reinvention. He’s sold flamethrowers, launched satellites, and is building humanoid robots. But reinventing a brand with $80 billion in auto revenue won’t happen overnight.
The Tesla brand evokes sleek cars and Silicon Valley magic. But as Musk tries to make it more about tech than transport, he’ll need more than hype. He’ll need results.
“Brands have to evolve,” Volpe said. “Or they become Blockbuster.”
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