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Tesla counters jab at lack of advertising with perfect response

Credit: Tesla

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Tesla’s strategy on advertising — or lack thereof — has been hotly debated for several years. Although the company has put forth more of an effort recently, it did not stop an investor from asking a very interesting question regarding the automaker’s strategy and how it could impact potential customers.

During the Q2 Earnings Call on Tuesday, Tesla confronted a jab at its lack of a more robust advertising strategy with what could have been viewed as one of the best responses possible.

Not using emotion or opinion, Tesla pointed out a strong and encouraging statistic that not only points toward the success of its limited ad campaign but also could give investors further hope for long-term growth.

“Do you feel you’re cheating people out of the joys of owning a Tesla by not advertising?” an investor asked the panel of Musk, Taneja, and Axelrod on Tuesday afternoon.

The response from Taneja was well done:

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“I’ll say something. The fundamental belief is that we need to be providing the best for — at a reasonable price to the consumers. I just [want] to give you a fact: in the U.S. alone in Q2, over two-thirds of our sales were — deliveries were to people who had never owned a Tesla before, which is encouraging.”

Advertising has been on the minds of many analysts, and they believe Tesla could truly benefit from putting a more committed effort forward when it comes to placing ads out there.

Elon Musk shares Tesla’s advertising strategy

This isn’t to say Tesla has not dipped its toes in the water of advertising — it has been putting carefully placed ads on X, Google, and other places for a while now. However, consumers should not expect to see a Tesla commercial during the Super Bowl anytime soon.

Tesla launches advertising on X in the U.S., expanding ‘small scale’ strategy outlined by Musk

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Musk has commented on why Tesla does not spend money on ads in the past:

“At Tesla we’ve never spent any money on advertising, we put all the money into R&D, manufacturing and design to try to make the car as good as possible.”

Of course, we cannot act like Tesla does not have some of the best indirect advertising ever. Case in point: Cybertruck.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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xAI supercomputer faces pushback from Memphis politicians

Local leaders in Memphis warn Elon Musk’s xAI hub could pollute local communities, despite Tesla Megapacks now stabilizing power.

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(Credit: xAI)

xAI’s supercomputer in Memphis faces pushback from local leaders and environmental groups over concerns about air pollution despite its promise of economic growth.

xAI’s Memphis facility was touted as the world’s largest supercomputer. It has sparked opposition from the NAACP, Sierra Club, and Mississippi Democratic Party Chairman Cheikh Taylor.

State Rep. Taylor spoke at a Southaven church press conference recently, arguing that the xAI facility in Memphis, Tennessee, would disproportionately harm black residents in north Mississippi.

“In the State of Mississippi, the goal is to separate Republicans and Democrats on race alone. So, if you’re a Democrat in this state, you probably look like me,” Taylor said.

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He also criticized prioritizing economic gains over environmental health, asking, “Can you trust Elon Musk to tell the truth?”

Tennessee State Rep. Justin J. Pearson echoed these concerns, linking the opposition to a broader fight against pollution. “The paltry money xAI has dangled in front of our short-sighted leaders is not worth the cost of breathing dirty and–in some cases–deadly air,” Pearson said.

These local leaders and environmental groups are urging local governments and the Environmental Protection Agency to deny xAI’s air permit applications for 45 to 90 methane gas turbines in the Memphis and Southaven areas.

xAI has not directly addressed the criticism but has taken steps to power its Colossus supercomputer sustainably. Last month, the Greater Memphis Chamber announced that Tesla Megapack batteries would stabilize the facility’s power, with a new 150-megawatt electric substation completing its first construction phase.

“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months,” shared the Chamber.

An additional 160+ Megapacks were delivered to xAI’s Memphis facility for the Colossus 2 data center within the same month.

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Announced in June 2024, the xAI facility was hailed by Greater Memphis Chamber CEO Ted Townsend as the largest capital investment by a new-to-market company in Memphis history. Despite its economic promise, environmental concerns continue to fuel opposition, highlighting tensions between technological innovation and community health in the Deep South’s emerging AI hub.

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Elon Musk reveals date of Tesla Robotaxi’s first rides open to public

Tesla CEO Elon Musk continues to roll out new details regarding the Robotaxi launch that is expected to happen soon.

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Credit: Tesla

Tesla Robotaxi is set to launch in the coming days, but the first rides will be confined to those who receive invitations that the company sends out. However, CEO Elon Musk revealed the date that Tesla is aiming for when anyone in the general public will be able to call for a Robotaxi.

There has been quite a bit of information today about what appears to be an imminent launch of the Robotaxi platform. The first video of a Robotaxi was captured on a public road in Austin today, just one day after Tesla was added to the City of Austin’s list of licensed autonomous vehicle operators.

First Tesla driverless robotaxi spotted in the wild in Austin, TX

In the coming days, it is expected that Tesla will launch the Robotaxi platform in Austin to a select few. For now, Tesla is taking this ultra-conservative approach as it pertains to the rollout, citing safety precautions. It will be the first time Tesla has done this in public and offered it to people outside of the company.

It did launch a small, limited version of it to employees last month in Austin and the San Francisco Bay Area, but there was someone in the driver’s seat. Today’s video only had an occupant in the passenger seat.

People are eager to know: when will they be able to fetch a driverless Tesla Model Y Robotaxi in Austin for themselves? Musk finally answered the long-awaited question with a tentative date of June 22:

Musk cited that Tesla’s utmost priority is still safety and not necessarily the speed of rollout. The current plan seems to be to deploy it in a controlled and slow fashion until confidence is at an extremely high level. Musk seems to believe the rollout will go smoothly, as the date comes less than two weeks after the initial launch.

Anyone who has experienced Full Self-Driving for themselves knows what the cars are capable of. However, Tesla, at this point in time, still requires drivers to pay attention and remain ready to take over the wheel in case of an emergency. This will be a major step in the right direction for Tesla as it prepares to launch Robotaxi in Austin and slowly expand to surrounding areas.

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Elon Musk

Elon Musk says Tesla Robotaxi launch will force companies to license Full Self-Driving

“The automakers keep being told that this isn’t real or that just buying some hardware from Nvidia will solve it. As Tesla robotaxis become widespread and their other solutions don’t work, they will naturally turn to us.”

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Tesla CEO Elon Musk says the automaker’s Robotaxi platform launch later this month will essentially force other companies to license Full Self-Driving to achieve their own goals of achieving autonomy.

Musk’s statement comes as a video captured today showed the first Tesla Robotaxi test mules on public streets in Austin, Texas, just one day after the City officially listed the company as an autonomous vehicle operator.

A prediction by investing YouTube and Tesla community member Dave Lee stated that “at least one automaker by end of year” will license Full Self-Driving from the Musk-led company, as it will give rivals the confidence to use the software to run their own self-driving operations.

Lee detailed his theory by stating that the company that chooses to commit to FSD licensing will not be able to integrate the hardware and sell those units immediately. Instead, it will take two years or so to solve the engineering and design applications.

First Tesla driverless robotaxi spotted in the wild in Austin, TX

Musk revealed his true thoughts on other automakers’ attempts at vehicle autonomy, and said many are being told that Robotaxi is not real or that they can solve their problems with hardware orders to Nvidia.

He went on to say that companies will be forced to turn to Tesla at some point or another, because Robotaxi will be widespread and their solutions to figuring out an effective deployment will prove to be failures:

“The automakers keep being told that this isn’t real or that just buying some hardware from Nvidia will solve it. As Tesla robotaxis become widespread and their other solutions don’t work, they will naturally turn to us.”

Musk has not been shy to respond to speculation regarding the video of the Robotaxi, which was shared on X earlier today. This is perhaps one of the more fiery things he revealed. He seems ultra-confident in what Tesla will prove and achieve in the near future with the launch of the Robotaxi platform.

Many believe it will be rolled out this month. Bloomberg reported recently that Tesla was internally aiming for June 12. The company has not directly responded to these rumors.

Tesla has discussed on several occasions that it is in talks with an automaker about licensing Full Self-Driving, but it has never revealed who. The company first revealed discussions with another automaker in early 2024 when Elon Musk said:

“We’re in conversations with one major automaker regarding licensing FSD. It really just becomes a case of having them use the same cameras and inference computer and licensing our software. Once it becomes obvious that if you don’t have this (FSD) in a car, nobody wants your car. It’s a smart car… The people don’t understand all cars will need to be smart cars, or you will not sell, or nobody would buy it. Once that becomes obvious, I think licensing becomes not optional.”

Tesla confirms it is in talks with major automaker for potential FSD licensing

Many, including us, suspected that Ford was the company that Tesla was speaking of due to Musk’s relationship with Jim Farley, which resulted in the legacy automaker being the first major car company to adopt Tesla’s North American Charging Standard (NACS), which gave them access to the Supercharging Network.

This catalyzed an onslaught of companies choosing to make the same move as Tesla had truly set itself apart in terms of charging infrastructure.

Companies may be forced to make a similar decision if it can make the same type of statement with the rollout of Robotaxi.

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