DIKSIA.COM - Prepare to witness an influx of Tesla exposure like never before.
In a surprising announcement at the annual shareholder meeting in Austin, Texas, CEO Elon Musk revealed that the company would embark on its first-ever advertising campaign.
Musk, known for his audacious vision and unconventional strategies, acknowledged the clamor for advertising when a shareholder broached the topic.
“We'll try a little advertising, and see how it goes,” he responded, eliciting an overwhelmingly positive reaction from the audience.
This decision marks a significant departure for Tesla and Musk, who have long maintained that advertising was unnecessary due to the soaring demand for their vehicles, surpassing the available supply.
In fact, back in 2019, Musk confidently declared in a tweet, “Tesla does not advertise or pay for endorsements. Instead, we use that money to make the product great.”
During a subsequent interview on CNBC, Musk admitted that advertising wasn't even on his radar until the topic arose at the shareholder meeting.
The evolving landscape of the automotive industry, coupled with intensifying competition from established automakers, has likely influenced this change of heart.
These automakers have dedicated substantial portions of their advertising budgets to electric vehicles, even for models yet to hit the market.
Another factor that may have influenced Musk's perspective is his recent acquisition of Twitter.
Previously, the social media platform heavily relied on advertising for over 90% of its revenue.
However, since Musk's involvement, Twitter has faced an exodus of advertisers.
Reflecting on this irony, he quipped, “It's indeed ironic that Twitter is highly dependent on advertising. I guess I should say, ‘Advertising is awesome and everyone should do it.'”
This witty remark prompted laughter from both Musk and the crowd.
Despite Tesla's profitability exceeding that of traditional automakers, increased competition and rising interest rates have compelled the company to implement a series of price cuts this year, straining profit margins.