Connect with us

Investor's Corner

Tesla spends $0 on ads, still tops automakers in organic engagement: report

(Credit: Harbles/Twitter)

Published

on

A recent report from competitive intelligence analysis firm BrandTotal recently determined that Tesla has the strongest organic engagement in social media among automakers. The electric car maker was able to accomplish this despite spending $0 in paid advertising campaigns on platforms such as Facebook, Twitter, YouTube, and Instagram.

For its report, the competitive intelligence firm analyzed all paid and organic social media campaigns initiated by major automotive brands over a 30 day period. These include companies such as Toyota, BMW, Ford, Audi, Honda, Nissan, Infiniti, Lexus, Cadillac, Porsche, and Tesla in the United States. Based on BrandTotal’s figures, it appears that veteran automakers are still investing a large portion of their budget on Facebook, despite the platform seeing a decline in users over the past years.

Toyota is among the automakers who spent the most on Facebook, allocating 62% of its advertising budget to the social media platform. Other carmakers such as BMW (46%), Ford (55%) and Infiniti (52%) also focused their campaigns on the platform. Alon Leibovich, co-founder & CEO of BrandTotal, noted that a plausible reason behind this is Facebook’s older audience, which fits more with the target demographic of the carmakers.

(Credit: BrandTotal)

“Facebook reigns supreme for paid campaigns among these four digital channels for major autos. Our data shows that when brands are looking to engage older audiences, they lean on Facebook to do so, while YouTube and Instagram are mostly used to reach younger audiences,” he said.

Other social media platforms that proved popular for advertising were YouTube, which took a third to almost half of the budget of brands like Honda, Cadillac, Porsche, and Audi. Instagram also proved very popular, with Porsche, BMW, and Infiniti spending 30-40% of their ad budget on the photo-sharing platform. Twitter takes the last place in BrandTotal’s list, with only BMW spending 20% of its budget on the site.

Standing in stark contrast from other carmakers is Tesla, which spent $0 in paid advertising on all social media platforms. Despite this, BrandTotal’s results point to the Silicon Valley-based electric car maker having the most organic engagements in social media. Tesla’s presence on Instagram was particularly prolific, with 55% of the company’s social activity happening on the photo-sharing site. Tesla also has a formidable presence on Twitter, with 11% of the company’s social media activity occurring on the platform. Of course, the presence of CEO Elon Musk’s personal Twitter account, which has over 26 million followers, augments Tesla’s social media presence further.

A company’s high organic engagement in social media happens when a brand attracts people that are highly engaged, according to Leibovich. This is particularly true for Tesla’s presence on Twitter, which sees daily activity from both the company’s supporters and skeptics. “Strong brands are able to command high engagement even without a robust digital ad spend. In Tesla’s case, we see their engagement numbers are high compared to other auto brands allocating spend in their digital campaigns. This may be a result of Tesla’s fans already being engaged and active users on Twitter and other platforms. The brand doesn’t feel the need to spend on paid social media marketing when their organic reach is so strong,” he said.

Advertisement

Tesla and Elon Musk’s strong online presence has proven to be a double-edged sword for the electric car maker. Musk’s Twitter account, for example, serves as one of Tesla’s most effective tools for the company to communicate with owners and enthusiasts, but it has also proven to be dangerous. The CEO’s Twitter account, for one, was a key reason behind the creation of safety features such as Sentry Mode, but at the same time, Musk’s tweets have also attracted the ire of regulators such as the Securities and Exchange Commission. The high interest garnered by Tesla and Elon Musk has also attracted an extraordinary amount of coverage from mainstream media, both negative and positive.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

Investor's Corner

Barclays lifts Tesla price target ahead of Q3 earnings amid AI momentum

Analyst Dan Levy adjusted his price target for TSLA stock from $275 to $350, while maintaining an “Equal Weight” rating for the EV maker.

Published

on

Credit: Tesla China

Barclays has raised its price target for Tesla stock (NASDAQ: TSLA), with the firm’s analysts stating that the electric vehicle maker is approaching its Q3 earnings with two contrasting “stories.” 

Analyst Dan Levy adjusted his price target for TSLA stock from $275 to $350, while maintaining an “Equal Weight” rating for the EV maker.

Tesla’s AI and autonomy narrative

Levy told investors that Tesla’s “accelerating autonomous and AI narrative,” amplified by CEO Elon Musk’s proposed compensation package, is energizing market sentiment. The analyst stated that expectations for a Q3 earnings-per-share beat are supported by improved vehicle delivery volumes and stronger-than-expected gross margins, as noted in a TipRanks report.

Tesla has been increasingly positioning itself as an AI-driven company, with Elon Musk frequently emphasizing the long-term potential of its Full Self-Driving (FSD) software and products like Optimus, both of which are heavily driven by AI. The company’s AI focus has also drawn the support of key companies like Nvidia, one of the world’s largest companies today.

Still cautious on TSLA

Despite bullish AI sentiments, Barclays maintained its caution on Tesla’s underlying business metrics. Levy described the firm’s stance as “leaning neutral to slightly negative” heading into the Q3 earnings call, citing concerns about near-term fundamentals of the electric vehicle maker.

Advertisement

Barclays is not the only firm that has expressed its concerns about TSLA stock recently. As per previous reports, BNP Paribas Exane also shared an “Underperform” rating on the company due to its two biggest products, the Robotaxi and Optimus, still generating “zero sales today, yet inform ~75% of our ~$1.02 trillion price target.” BNP Paribas, however, also estimated that Tesla will have an estimated 525,000 active Robotaxis by 2030, 17 million cumulative Optimus robot deliveries by 2040, and more than 11 million FSD subscriptions by 2030.

Continue Reading

Investor's Corner

BNP Paribas Exane initiates Tesla coverage with “Underperform” rating

The firm’s projections for Tesla still include an estimated 525,000 active Robotaxis by 2030.

Published

on

Credit: Tesla China

Tesla (NASDAQ: TSLA) has received a bearish call from BNP Paribas Exane, which initiated coverage on the stock with an Underperform rating and a $307 price target, about 30% below current levels. 

The firm’s analysts argued that Tesla’s valuation is driven heavily by artificial intelligence ventures such as the Robotaxi and Optimus, which are both still not producing any sales today.

Tesla’s valuation

In its note, BNP Paribas Exane stated that Tesla’s two AI-led programs, the Robotaxi and Optimus robots, generate “zero sales today, yet inform ~75% of our ~$1.02 trillion price target.” The research firm’s model projected a maximum bull-case valuation of $2.7 trillion through 2040, but after discounting milestone probabilities, its base-case valuation remained at $1.02 trillion.

The analysts described their outlook as optimistic toward Tesla’s AI ventures but cautioned that the stock’s “unfavorable risk/reward is clear,” adding that consensus earnings expectations for 2026 remain too high. Tesla’s market cap currently stands around $1.44 trillion with a trailing twelve-month revenue of $92.7 billion, which BNP Paribas argued does not justify Tesla’s P/E ratio of 258.59, as noted in an Investing.com report.

Tesla and its peers

BNP Paribas Exane’s report also included a comparative study of the “Magnificent Seven,” finding Tesla’s current market valuation as rather aggressive. “Our unique comparative analysis of the ‘Mag 7’ reveals the extreme nature of TSLA’s valuation, as the market implicitly says TSLA’s 2035 earnings (~55% of which will be driven by Robotaxi & Optimus, w/ zero sales now) have the same level of risk & value-appropriation as the ‘Mag 6’s’ 2026 earnings,” the firm noted.

Advertisement

The firm’s projections for Tesla include an estimated 525,000 active Robotaxis by 2030, 17 million cumulative Optimus robot deliveries by 2040 priced above $20,000 each, and more than 11 million Full Self-Driving subscriptions by 2030. Interestingly enough, these seem to be rather optimistic projections for one of the electric vehicle maker’s more bearish estimates today.

Continue Reading

Investor's Corner

Tesla’s comfort level taking risks makes the stock a ‘must own,’ firm says

Published

on

Credit: Tesla

Tesla (NASDAQ: TSLA) had coverage initiated on it by a new firm this week, and analysts said that the company’s comfort level with taking risks makes it a “must own” for investors.

Melius Research and analyst Rob Wertheimer initiated coverage of the stock this week with a $520 price target and a “Buy” rating. The price target is about 20 percent higher than the current trading price as shares closed at $435 on Wednesday, up 1.38 percent on the day.

Wertheimer said in the note to investors that introduced their opinion on Tesla shares that the company has a lot going for it, including a prowess in AI, domination in its automotive division, and an incredible expertise in manufacturing and supply chain.

He wrote:

“We see Tesla shares as a must-own. The disruptive force of AI will wreck multitrillion-dollar industries, starting with auto. Under Musk’s leadership, the company is comfortable taking risks. It has manufacturing scale and supply chain expertise that robotics startups possess more by proxy. It can rapidly improve and scale autonomy in driving, the first major manifestation of AI in the physical world.”

However, there were some drawbacks to the stock, according to Wertheimer, including its valuation, which he believes is “challenging” given its fundamentals. He said the $1 trillion market cap that the company represented was “guesswork,” and not necessarily something that could be outlined on paper.

This has been discussed by other analysts in the past, too. Yale School of Management Senior Associate Dean Jeff Sonnenfeld recently called Tesla the “biggest meme stock we’ve ever seen,” by stating:

“This is the biggest meme stock we’ve ever seen. Even at its peak, Amazon was nowhere near this level. The PE on this, well above 200, is just crazy. When you’ve got stocks like Nvidia, the price-earnings ratio is around 25 or 30, and Apple is maybe 35 or 36, Microsoft around the same. I mean, this is way out of line to be at a 220 PE. It’s crazy, and they’ve, I think, put a little too much emphasis on the magic wand of Musk.”

Additionally, J.P. Morgan’s Ryan Brinkman said:

“Tesla shares continue to strike us as having become completely divorced from the fundamentals.”

Some analysts covering Tesla have said they believe the stock is traded on narrative and not necessarily fundamentals.

Continue Reading

Trending