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Tesla’s marketing strategies in China could address the negative narrative in the US
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.
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.
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.
In a move echoing its earlier commitment to open innovation, Tesla CEO Elon Musk announced recently that the company plans to make the design and software of its Model S and Model X fully open source.
This follows the same approach Tesla took with its original Roadster, releasing all available design, engineering, and diagnostic materials in November 2023 so that “whatever we have, you now have.”
Just as Tesla made the original Roadster design & software open source, we plan to do the same with Model S & X
— Elon Musk (@elonmusk) July 24, 2026
The Model S, introduced in 2012, was Tesla’s first mass-produced vehicle and a groundbreaking luxury electric sedan. It offered impressive range, rapid acceleration, and over-the-air software updates that redefined expectations for electric cars.
The Model X, launched in 2015, built on that foundation as a high-performance electric SUV notable for its distinctive falcon-wing doors, spacious interior, and advanced safety features. Both models served as flagships that helped establish Tesla as a leader in the EV industry and popularized long-range battery-electric vehicles.
Production of the Model S and Model X was wound down earlier in 2026, with manufacturing ending in the second quarter. Tesla redirected the Fremont factory space previously used for these vehicles toward higher-priority projects, including Optimus humanoid robots and the Cybercab autonomous vehicle.
By the time of Musk’s open-source announcement, custom orders had closed and only remaining inventory was available.
Open-sourcing the designs and software offers several clear advantages. Owners of these aging but still capable vehicles gain better access to technical documentation, diagnostic tools, and software resources, making independent repairs and modifications easier and more affordable.
Independent repair shops and third-party specialists can support the large existing fleet without relying solely on Tesla’s service network. Enthusiasts and engineers can study real-world implementations of Tesla’s battery, powertrain, and software systems, potentially accelerating broader industry progress in electric mobility.
The step aligns with Tesla’s 2014 patent pledge and its overall mission to advance sustainable transport by sharing hard-won knowledge rather than locking it behind proprietary walls.
By releasing these materials now that the models have left production, Tesla ensures continued support for its early adopters while freeing internal resources for future technologies. The open-source release of the original Roadster already enabled simulations, community projects, and deeper technical understanding.
Extending that practice to the Model S and Model X should deliver similar benefits on a larger scale, helping keep these influential vehicles relevant and repairable for years to come
Tesla flexed one incredible Robotaxi metric during the Q2 Earnings Call that skeptics have to hate to hear. The company’s platform has already driven more than 380,000 miles of unsupervised ride-hailing across several states with no notable incidents.
During the company’s Q2 Earnings Call on Wednesday, Vice President of AI, Ashok Elluswamy, said:
“First of all, I’d like to state that the Robotaxi program has been operating extremely well. Especially in terms of safety, the program has had an impeccable safety record. We have driven more than 380,000 miles of unsupervised Robotaxi, now across six cities in two different states. We have had zero notable incidents. Any reports have been of other actors impacting us when we were stationary. I like to emphasize how safe the operation has been so far. Zero notable incidents over 380,000 miles.”
Elluswamy’s claim over Robotaxi miles is a significant milestone for Tesla in the grand scheme, especially considering this is a sizeable number of miles without any incident.
0 notable incidents across over 380,000 miles traveled by Robotaxi
— Tesla (@Tesla) July 22, 2026
Tesla’s self-driving approach is much different than that of other companies. Tesla has maintained that vision is the only thing needed to have a solid and effective self-driving suite. Many self-driving companies utilize things like LiDAR, sensors, and other elements to improve performance, but Elluswamy sent a jab at those who believe it’s needed.
“Historically, the so-called experts have always claimed that you need LiDARs, radars, HD maps, and the entire kitchen sink to drive safely. Here we show that such is not true. You can have safe, comfortable, and affordable autonomy with just cameras. This record should be a huge validation of Tesla’s entire AI approach.”
The feat of accumulating this many miles without any driver behind the wheel is impressive. The thing is, Tesla is also doing this across several different locations, with varying traffic rules, pedestrian levels, weather patterns, and other important factors.
While Tesla is not ready to roll out an unsupervised platform completely, it is a slow but steady indication that the company is well on its way to figuring things out.
The company’s attitude toward expansion is slow, safe, and controlled, and despite this huge milestone, it will still be some time until we see Tesla truly unleash unsupervised rides more aggressively.
Elon Musk
SpaceX Starship just nailed something it’s never done before
SpaceX’s Starship flew successfully Friday, landing both stages and deploying its first Starlink V3 satellites.
Starship’s thirteenth test flight delivered exactly what SpaceX needed with a clean liftoff, two successful stage recoveries, and the first real payload the vehicle has ever carried to space. Booster 20 and Ship 40 lifted off at 5:51 p.m. CT from Starbase, and by the time the mission wrapped roughly an hour later, both halves of the rocket had done exactly what they were supposed to do.
Booster 20 separated from Ship 40 a few minutes into the flight and stuck a controlled splashdown in the Gulf of Mexico about six minutes after liftoff. That is a meaningful turnaround from Flight 12 in May, when the booster lost several engines during its boostback burn before a hard water landing attempt.
Starship as seen from Starlink satellites pic.twitter.com/e2hvfmnewh
— Elon Musk (@elonmusk) July 25, 2026
Starship 40’s performance was arguably the bigger win. The vehicle deployed the first 20 operational Starlink V3 satellites Starship has ever carried, then flew a suborbital arc to a landing in the Indian Ocean that SpaceX commentator Dan Huot called the company’s softest splashdown yet. “This is a dream scenario for this team that’s trying to get this heat shield data,” Huot said on the live broadcast, according to Space.com’s live coverage. “I’m a little over the moon right now. Wow. Lucky number 13.”
Unlike the mass simulators SpaceX flew on Flight 12, these were production Starlink V3 satellites, meant to extend solar arrays and antennas and attempt to link with the broader constellation before reentering minutes later. Getting real hardware through a full deploy sequence on only the second flight of the V3 generation keeps Starship on schedule for the payload work NASA is counting on for future Artemis lunar landings.
What an awesome launch, really seems like everything went super well and it was all incredibly smooth.
SpaceX is awesome. Very interested to see how the market will respond on Monday pic.twitter.com/KSHmyBfV55
— TESLARATI (@Teslarati) July 25, 2026
— TESLARATI (@Teslarati) July 25, 2026
The flight also arrives at a moment when SpaceX needed a win. SPCX has traded below its $135 IPO price since mid-July, as Teslarati reported when the mission slipped to Friday, and short interest has climbed to roughly a third of the tradable float. A clean flight will not fix a balance sheet, but it does answer the one question SpaceX absolutely needed answered this week: whether the fixes made after the July 16 abort would hold up under real flight conditions. They did, on both stages, on the first try after the redesign.
SpaceX has not set a target date for Flight 14, though the company has said it wants to push toward an orbital attempt on the next mission. After Friday, that goal looks a lot more within reach.
Tesla to open source Model S and Model X designs and software
Tesla flexes incredible Robotaxi metric that skeptics will hate
