Tesla and advertising: A new chapter or a continuation of the same path?
Although Tesla rarely spends on advertising, its strategy of lowering prices to boost sales has caused concern among investors. Some argue that these price cuts could lead to a loss of billions in Tesla's revenue.
Other car manufacturers spend huge amounts on advertising campaigns every year, but Tesla has been a notable exception. However, Gary Black, a prominent investor and Tesla supporter, questions this approach. He believes that Tesla could benefit from investing in larger marketing campaigns.
This perspective has gained support on social media. A recent online survey showed that half of the 8,000+ respondents thought Tesla should start advertising.
Elon Musk, Tesla's CEO, has expressed openness to the idea of advertising but has not yet implemented a major advertising campaign. Instead, price cuts have been his primary strategy for increasing interest in Tesla cars.
Black argues that these price cuts are effectively a marketing cost and may not be effective enough on their own. Tesla's market share among electric cars in the US has been declining despite the price cuts.
Many experts believe that a well-targeted Tesla advertising campaign could be the solution. While other automakers emphasize benefits such as design and performance in their marketing, Tesla often emphasizes price.
Finally, some analysts believe that despite its lower average prices, Tesla needs to change the perception of its brand through effective advertising.
