Millions of people around the world drive Tesla electric vehicles (EVs), but no one buys an EV after being impressed by a charming ad. That’s because Tesla, as a matter of explicit policy, never advertises its EVs or the accompanying technology. once. no way. But while Tesla CEO Elon Musk has always prided himself on going the ad-free route and still building the world’s most powerful electric car company, a wind of change is blowing, pushing Tesla toward the Commercial route.
Musk has previously stressed that Tesla has never attempted to advertise its electric vehicles, as demand is usually always higher than supply. In this case, there is no need for ads at all. Musk, one of the richest men in the world, claimed in 2019 that the money saved by not advertising would be used to improve the technology used and increase production. “Tesla does not advertise or pay for endorsements. Instead, we use the money to make products better,” he tweeted.
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But Musk may have changed his thought process since then, recently suggesting Tesla could be on a path it hasn’t taken so far. “So I guess I should say ads are great and everyone should do them. We’re going to try to do some ads and see how that works,” he reportedly said at Tesla’s annual shareholder meeting in Texas. .
Tweeting for Tesla?
Musk owns Twitter, a social media platform that relies heavily on an advertising model to survive and possibly thrive. Yet Tesla thrives on the halo it builds around itself — in some cases, word of mouth. But the competition has been heating up. Not only are established automakers such as Mercedes, Volkswagen, Hyundai and even Toyota now adding to their all-electric offerings, local Chinese brands are also going beyond their borders and into foreign countries.
Tesla recently launched a price war in China – the world’s largest electric vehicle market – and many rivals have had to follow suit. The price war has crossed the Pacific and entered the United States. As Musk highlighted his ambition to sell 20 million electric vehicles a year by 2030, the once-fertile market is being bombarded by new competitors that may offer newer EVs at lower prices. So, even if advertising isn’t as much of a survival strategy as Twitter, could it be a shot in the arm for Tesla?
Suspended Product Lineup
Critics of Tesla also point out that the lineup has not seen any new models injected in recent years. Vehicles like the Model 3 and Model Y continue to sell well, but Tesla has failed to generate much-needed excitement. Even the current model doesn’t offer anything entirely new, beyond talk of in-car gaming, self-driving tech and pending likes. Talk but no specific buzz. There’s a reason Apple updates its iPhone lineup so frequently — the buzz.
Musk has previously highlighted how a more affordable Tesla than the Model 3 would go into production. Since then, not many people have heard of it. Musk also showed off a Cybertruck prototype in 2019, but the first customer units still haven’t rolled off the factory production line. And Musk’s efforts to enter emerging markets such as India have not yielded much results so far.
As such, many say that having the game in its existing market could mean that sales will level off at some point in the near future. No wonder the ad could be a booster that could add some steam to the American company’s prospects.
First published date: May 17, 2023 at 15:43 PM CST