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Tesla’s marketing strategies in China could address the negative narrative in the US

(Photo: Tesla)

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Over the course of the massive roller coaster ride that was Tesla’s first and second quarters this year, it has become particularly evident that the electric car maker is dealing with a lot of misinformation. After the first quarter’s lower-than-expected results, for example, Tesla faced multiple narratives suggesting that the demand for the company’s vehicles was fast declining, and that its growth story was dead. It was not until Tesla revealed its higher-than-expected delivery and production numbers in the second quarter that the narrative surrounding the company shifted a little bit for the better.

Being one of the most shorted companies in the market, Tesla is no stranger to misinformation campaigns. The company’s vehicles consistently rank high with safety agencies, yet the idea that the Model 3, S, and X are dangerous and catch fire all the time continues to persist. Tesla’s quarterly safety reports have consistently shown that fewer accidents happen when Autopilot is activated, but the driver-assist system is perceived as dangerous by a notable demographic of would-be car buyers nonetheless — and these are but the tip of the iceberg.

One of the most striking portions of Tesla’s 2019 Annual Shareholder Meeting last month involved a number of retail investors brainstorming solutions to address the alarming amount of misinformation surrounding the company. Responding to the concerned shareholders, Elon Musk admitted that he is at a little bit of a loss when it comes to battling the negativity surrounding Tesla, though he expressed his dislike for advertising campaigns that are deceptive to consumers. Nevertheless, considering that the Tesla Model 3 is now breaking into a market that is larger than it has ever dealt with before, it would be wise for the electric car maker to find a solid, subtle strategy that allows it to reach a wider audience, while shifting the narrative to a more positive direction in the process.

(Photo: Tesla)

What is pretty remarkable is that Tesla does not need to look far to find a marketing strategy that works without being deceptive. Over in China, there is a company that has shown a notable degree of cleverness with its marketing efforts, utilizing creative campaigns that help improve the perception of the public to its brand. That company is Tesla.

Tesla has been around in China since 2014, when it started delivering the Model S to the region. For the most part, Tesla has competed much like a niche carmaker in the country, with the Model S and Model X being high-priced premium vehicles that are, in some way, considered as status symbols for the wealthy. This is changing with the arrival of the Model 3, as the electric sedan’s lower price opens up the Tesla ecosystem to a far broader demographic. The buildout of Gigafactory 3 in Shanghai, which will be producing locally-made Model 3 and Model Y, will make Tesla’s vehicles even more accessible to the mainstream market in the near future.

With Model 3 deliveries already underway and with Gigafactory 3’s buildout progressing faster than expected, it is pertinent for Tesla to ensure that the company is well marketed for Chinese consumers. This is where things get particularly interesting, since Tesla has been conducting a subtle, clever, and likely effective marketing campaign for the Chinese market as of late. Immediately noticeable is the care that the company has taken to respect the country’s culture and traditions, as shown in the tastefully-designed cards Tesla sent out during last month’s Dragon Boat Festival, and the reviewers that the electric car maker released for high school students in the days leading up to the national college examination. These were simple gestures, but they showed that Tesla is a company that is respectful and grounded.

Other marketing campaigns that have raised Tesla’s visibility in the Chinese market have been equally tasteful. Just recently, Tesla and QQ Music, a popular music streaming service in the country, held a series of “Music Parties” in key cities. These were hip events that were aimed at the younger demographic, many of whom are or will be looking to buy their first vehicle in the near future. The company has also launched a Tesla Performance Driving School, which involves the company hiring professional drivers to teach Model 3 owners how to get the most fun out of their vehicles. This program promotes the capabilities of the Model 3 Performance, while giving the impression that Tesla is a responsible company that encourages high-speed driving in safe, regulated environments.

Also notable were Tesla-organized road trips, which are extended journeys over scenic routes that are aimed at promoting the company’s vehicles and the convenience of the Supercharger Network. Online, Tesla’s active marketing strategies in China are quite impressive as well, as evidenced by the spread of tutorials featuring its vehicles and their features. These pages, one which could be accessed here, feature clear guidelines about Autopilot’s proper utilization, its features, its limitations, and the responsibilities of the driver while the system is in use.

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When it comes to battling misinformation, the best strategy is always to provide the right information. To shift a subjectively negative narrative, it is best to foster an objectively positive narrative. Contrary to Elon Musk’s statements during the Annual Shareholder Meeting, it appears that Tesla already has a pretty good strategy that has the potential to address, at least to some degree, the misconceptions and misinformation surrounding the company in the United States. Granted, Tesla currently enjoys widespread support from the Chinese government, and the United States is a far more challenging market than China, but considering what’s at stake, these marketing efforts might very well be worth a try.

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.

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Tesla Full Self-Driving v14.3.7 early review: FSD saved me from an accident

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Credit: Teslarati

Tesla released Full Self-Driving version 14.3.7 yesterday, and after about 90 miles of testing today, it is evident there are some definite fixes from version 14.3.6, which I wrote about last week and called a regression.

Within the first 40 minutes of my drive on v14.3.7, it saved me from getting into an accident with an unaware Dodge Charger driver, and some of the things Tesla seemed to miss in v14.3.6 were definitely improved. All in all, the release so far has some really great performance, and I’m looking forward to testing it further.

For now, here’s everything I noticed with v14.3.7:

Overall Improvement

Just generally speaking from a ride perspective, this was a really great experience. A lot of the hesitancy I experienced on v14.3.6 was gone. There were no instances of brake-stabbing, wheel-jerking, or any uncertain or unconfident movements. It was void of anything that I felt made it timid with v14.3.6.

The one thing I do hope to see down the road is a smaller need to adjust Speed Profiles so often. Because Tesla calls FSD “Supervised,” I’m okay with needing to hit the scroll wheel a few times a drive.

However, I hope that things can be incrementally improved upon with speed. Sometimes it’s too fast; other times it’s too slow. It’s a difficult thing to hone in and refine, but I hope it eventually gets there.

I didn’t notice any significant left lane camping or any behaviors that were completely out of line. I am hopeful that this opinion does not change, but after driving a few days with this version and putting it in a variety of different situations, you are exposed to more behaviors, some of which are not necessarily what I’d prefer.

The big things to notice, at least in my experience thus far, are that the major issues with previous versions — meaning the braking stabbing and wheel jerking — simply weren’t there. That’s enough to already consider this progress compared to .6.

Manual Signal Override is More Responsive

On .6, I had quite a few issues with FSD ignoring my manually input turn signals. If Tesla wants to call it “Supervised,” then the car should not ignore any input the driver gives. If I touch the accelerator on FSD, the car speeds up.

The car did a great job of obeying my turn signals when I wanted it to change lanes, which is welcome.

Parking Lot Performance

Before .6, I traditionally took over in nearly every parking lot my car entered, because I knew it would not park somewhere that I wanted, and usually, it was just a tad too timid in this setting.

The one bright spot of .6 was how well it handled parking lots. This continued with v14.3.7:

 

I’m always really happy to see progress at all, but once parking preferences come to FSD, as long as this performance is still around, that could potentially be the biggest improvement I’ve seen in FSD in the year I’ve been using it personally on a daily basis.

Full Self-Driving Averts Disaster

A Dodge Charger changed into my lane without checking if I was there, running me off the road. FSD made the initial avoidance maneuver; I grabbed the wheel out of instinct, looked in my side mirror to ensure I had nobody following closely behind, hit the brake, and straightened the car back up to avoid a curb:

There have been quite a few responses to this video stating that I should never have grabbed the wheel. To be honest, I really wish I had not done so, because I do believe FSD would have avoided any sort of collision with anything, including the car or the curb.

However, this was the first time I had ever been this close to being hit while using FSD. My natural reaction was to take over. I think if I had had something like this happen before, my reaction might have been different.

Hitting the brake avoided hitting the curb, while FSD swerved to avoid the car. My concern after the car was clear of my front end was the curb. All in all, I’m really happy with how things turned out, and I think anyone could be a critic of how I handled it. I only had a split second to really make a decision, and thankfully, any damage was avoided.

It is clear FSD managed to avoid the car coming down before I was able to. I truly credit FSD for avoiding the collision.

What Needs to Improve

Better Recognition of Potholes, Uneven Roads, Sharp Changes in Roadway/Bumps

On Friday, my Fianceè and I were in the car, and FSD was driving us. We crossed over a roadway that has a traffic light, and FSD was traveling at 40 MPH on Standard, 5 MPH over the speed limit. Everything was more than reasonable.

However, the road we were crossing at the light has a major bump both as you start and finish crossing it. Without a speed reduction, your car can go airborne. The Tesla did just this on Friday on v14.3.6; it was an uncomfortable bounce that pretty much confirmed I would not ever let FSD go over again unless we were sitting at that intersection when there is a red light.

I even tried scrolling down into Sloth quickly, but I ended up just taking over:

A few people have said it remains related to the vision-based approach and its difficulty comprehending 3D. This is a huge issue because this can cause serious damage at certain speeds.

Navigation

Nothing new here. I still turn off “Online Routing” quite frequently to get the car to take logical routes from time to time.

Auto Wipers

Auto Wipers are just plain bad. I really hope Tesla just uses a rain sensor. I thought they had improved at one point, but I still get dry wipes, Speed 4 on a drizzle, and Speed 2 on a steady rain. In reality, these should be switched.

You can watch our full review of Tesla Full Self-Driving v14.3.7 below:

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SpaceX’s biggest test yet arrives this week and it’s not a rocket launch

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SpaceX will report second quarter results after the market closes on Tuesday, August 4, marking the first time the company has opened its books to the public since its record IPO in June. Management will host a live audio only webcast at 4:30 p.m. ET, streamed on X, with no dial in option.

The debut carries more weight than a typical first quarter as a public company. Two trading days after the release, on August 6, the first tranche of SpaceX’s lockup expires, freeing roughly 911.5 million insider and employee shares, worth well over $100 billion at current prices and the largest such release in Wall Street history. A second, larger tranche tied to the stock trading 30 percent above its $135 IPO price never triggered, since shares have spent most of July trading below that price.

Wall Street’s models point to revenue near $6.9 billion for the quarter, up sharply from the $4.69 billion SpaceX reported in the first quarter, with a narrower per share loss than the $1.27 posted three months earlier, according to estimates compiled by Motley Fool. Those numbers will be the first look at how SpaceX’s three segments, Starlink, launch and AI, are performing independently.

SpaceX scores another massive Pentagon deal to support military satellites

Investors heading into the call have a specific list of questions. How many net new Starlink subscribers did SpaceX add after ending March with 10.3 million, and is average revenue per user holding up as the service expands into lower income markets. How much of the AI segment’s revenue reflects contract signings with Anthropic, Google and Reflection AI this year, deals that combined could annualize to nearly $28 billion if fully ramped. Whether capital expenditures, which nearly doubled in the AI segment alone between 2024 and 2025, are still accelerating or starting to plateau. And whether management offers any forward guidance at all, something SpaceX has never done publicly.

The report will also land days after Elon Musk publicly denied a Wall Street Journal report describing internal planning to separate Tesla’s China business ahead of a potential Tesla-SpaceX merger. Whether Musk or SpaceX executives address that speculation on the call, even indirectly, maybe something investors will be listening for on Tuesday.

As Teslarati reported after Musk’s own warning to short sellers last week, the CEO has made clear he expects skeptics to be proven wrong over time. Tuesday will be the first chance for the numbers themselves to make that case.

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SpaceX’s Starship just got filmed by its own cargo

SpaceX released new footage of Starship in space captured by the Starlink satellites it deployed.

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SpaceX released a new video Friday evening showing Starship from an angle showcased by its own Starlink satellites, watching the rocket drift away in orbit.

The 65 second clip, posted on X, stitches together footage from four cameras mounted on a single Starlink V3 satellite. It opens with a close view of Starship’s 171 foot upper stage, still catching sunlight, then pulls back as the two spacecraft separate.

The footage comes from Starship’s 13th flight test, which launched July 24 from Starbase after a scrubbed attempt and an abort caused by an engine issue the week before. When Flight 13 finally flew, it carried the first batch of functional Starlink V3 satellites Starship has ever deployed, twenty of them, with six equipped with cameras meant to scan the ship’s heat shield during reentry.

Flight 13 checked most of its boxes. Starship deployed all 20 satellites, relit a Raptor engine in space, and splashed down softly in the Indian Ocean off Western Australia. Musk’s longer term plan calls for a Starlink V3 constellation of 100,000 satellites, according to a recent FCC filing, with Starship as the only vehicle capable of launching them at the volume that requires. Each Starship flight is designed to carry up to 60 V3 satellites once the vehicle reaches routine service, well beyond what Falcon 9 can carry in a single mission.

Starship is next expected to fly with an attempt at catching the ship itself with the launch tower’s mechanical arms, a maneuver SpaceX has so far reserved for the Super Heavy booster.

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