Death of the Centurion? Tesla offers a black card that AMEX cannot rival.
by Thiago Narvaez
With the depletion of new car sales within the United States Tesla has shifted its gear and is now looking at credit history as a means of gaining trust and new sales with millennials; even if it’s a peculiar industry that Tesla has no business trying to enter.
Here are the results that their innovative product was able to accomplish while only accepting pre-orders for their Model 3 and applications for their Tesla SE:
Tesla’s Model 3 is recognized as the best selling midsize premium sedan in the United States.
Elon Musk has made it clear that the future is green (electric) and that millennials are the driving force behind this movement. So how has Elon and Tesla accomplished this?
Tesla SE, a credit card that will assist millennials in paying off their student loans while also rewarding them on purchases that are deemed eco friendly or supporting a business that prioritizes on sustainable energy.
Here is how the credit card works:
Perks — no annual fee, cash back, earn 4% back at businesses that prioritize on sustainable energy, any expense that is college/education related and 2% on online purchases, restaurants, flights, etc…
So after every purchase with the Tesla SE, owners now recognize that their slowly but surely paying off their student loans while also building a sense of trust with a brand that is trying to do good for this world and its ecosystem.
Here is a direct quote from the creative that proposed this product to Tesla and how it can beneficial to millennials and the brand as a whole:
“Millennials appreciate convenience and when its comes to ones finances — expenses every penny counts for the striving student millennial. Therefore, The Tesla SE is designed to assist millennials with paying off their student loans but also build credit history so that they are able to one day make that one big purchase that they aspire for. We hope that with this new sense of trust between Millennials and Tesla, it will sway this demographic to make better decisions when it comes to sustainable energy but also buy into the movement — philosophy Elon has raised with Tesla.” — Thiago Narvaez
Here are the stats and insights that drove the creatives behind this black card for the debt conscious millennial:
67% of millennials do not own a credit card. Therefore, when it comes to a big purchase like buying a brand new car like the Tesla Model 3 they cannot do so for they do not have the credit history.
41% of millennials still have student loans. As a result, they are more likely to take on more debt for the pursuit of a home, family, or marriage.
Hence, the distrust with credit card companies and why millennials view credit cards “as necessary evils” after college. But one of the major insights that really drove millennials to sign up for these black cards is the exclusivity that Tesla promised.
Millennials want to feel that they’re a part of something exclusive. So when Elon revealed in his most recent livestream showcase of the Tesla Model 3 that students in debt can pitch their eco friendly — sustainable energy business ideas to the man himself as Tesla SE owners, applications went flying.
With this exclusive and insane opportunity Elon & Tesla then took it a whole new level the month after. Under the Elon & Tesla umbrella an SBIC was founded, now Tesla SE card owners can pitch their ideas when they have a well thought out — organized business plan. If any of the business plans were granted the green light these customers would also be rewarded with an exclusive Model 3 at no charge.
In addition to the hype around Tesla SE and its exclusivity, Elon and his team finally revealed a bike that they believe can combat ride sharing services. It rewards Tesla SE owners for every mile that they spend while riding these conventional bike. For every 30 miles on the bike the card owner is rewarded with either a free recharge at all supercharger stations. If they do not own a Model 3 they can transfer the miles into dollars and use it in paying off their student loans.
After this new channel was incorporated into the perks of being a Tesla SE owner it was clear that Tesla was not only trying to change the world with its electric vehicles — products but also change the lives of many students who wish to become entrepreneurs while doing good for the world.
Since April it is evident that Tesla is winning with its latest product and how it’s crushing the competition. Millennials are standing behind the brand and this is reflected in the amount of applications submitted for the Tesla SE. With over 37 million students in debt in the United States and the average student loan debt being 25,000 Tesla only offered the SE to 500,000 applicants.
Tesla looks to further expand this innovative product and program so that all millennials and future generations don’t fall into the black hole known as student debt.
Creative behind this “why didn’t I think of that” idea:
— Thiago Narvaez and his portfolio thiagoarielnarvaez.com
*I am an ad student and this is a what if concept. Tesla did not actually produce this product.