After years of prodding from investors and electric vehicle advocates, Tesla CEO Elon Musk has finally relented — Tesla will start launching advertisements for its products.
It’s been a long road to get to this point. While the automotive industry is among the market’s largest ad spenders, Tesla has been adamant in its efforts to avoid traditional advertisements. Instead, the company has relied on word of mouth and marketing strategies on social media platforms such as Twitter to promote its products.
Calls for Tesla to start advertising have been around for some time, though Elon Musk has maintained that he dislikes conventional advertising strategies. He previously noted that Tesla does not advertise or pay for endorsements, as the company would rather use the money to improve its products.
But the electric vehicle sector is very different today compared to several years ago. And amidst Tesla’s aggressive price cuts this year, numerous TSLA bulls have argued that the EV maker should start rolling out advertisements instead of losing margins due to frequent price cuts. This issue was brought to the forefront during the 2023 Cyber Roundup, and surprisingly, Elon Musk responded positively to the suggestion.
“We’ll try a little advertising and see how it goes,” Musk said. He also joked that it’s ironic how he now owns a company, Twitter, that relies heavily on advertisements. Musk’s comments received loud applause from the event’s attendees, and Tesla shareholders online also embraced the news.
“I didn’t realize people wanted it that much,” Musk admitted later.
In a follow-up interview with CNBC‘s David Faber, Musk noted that Tesla would be running informative, aesthetically pleasing, and beautiful advertisements. When asked for more details, the CEO mentioned that he only has ideas for now and does not have a fully formed strategy just yet.
“I just agreed to it. I don’t have a fully formed strategy,” Musk said.
Musk’s approval for some advertising for Tesla’s products bodes well for the electric vehicle maker. Longtime Tesla supporters, after all, have expressed their frustration at the fact that misinformation against the EV maker typically goes unchallenged. The wider public is largely unaware of the company’s products and their advantages as well. Such scenarios might very well decline with the advent of Tesla’s advertisements.
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