Tesla has long eschewed advertising, relying instead on its cult following to popularize its electric vehicles. But because of its ambition, and its larger goal of selling more electric vehicles (EVs) globally, the company chose to test the waters of traditional marketing.
While Tesla CEO Elon Musk has previously confirmed that his company will experiment with advertising on a small scale, ads have reportedly started appearing on Google. Several netizens on Twitter also confirmed this, and interestingly, Twitter is also owned by Musk.
It is reported that Google ads mainly show popular Tesla electric vehicles such as Model 3 and Model Y, while also trying to promote the company’s super charging network in the United States and the United Kingdom.
Many believe that Tesla is now dabbling in advertising because Musk has set ambitious goals for the company. Of particular note is Tesla’s goal of selling 20 million electric vehicles by 2030. This is a major challenge because while global demand for electric vehicles is expected to grow significantly, it will also require Tesla to double its production capacity. What could also make the current task even more daunting is that rival EV makers are making some very big moves to expand their respective portfolios of battery-powered vehicles.
Also watch: Tesla to launch in India: Will it affect Mercedes-Benz’s EV plans?
So the ad might be just what the fictional doctor is asking for. Tesla previously avoided advertising altogether because, according to Musk, it was believed that the money spent on advertising was used to develop better products. And there’s no need to advertise, because even without ads, the Model Y is the best-selling car in the first quarter of 2023, and Tesla’s market cap exceeds $800 billion.
But even as competitors adapt and evolve to close the gap, Tesla may realize that it must adapt and evolve, too. The company is now considering building a factory in a new location, while tapping into markets where its electric vehicles are completely absent. Musk recently confirmed that Tesla will be investing heavily in India, while he was also in China earlier this month. While China is the world’s largest electric vehicle market, where Tesla dominates, India could indeed provide fertile ground for the company’s expansion plans.
First published date: Jun 29, 2023 at 10:00 AM CST
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