Tesla Spends $6 On Advertising Per Vehicle; The Industry Average Is $1,000

Tesla Motors Inc TSLA has gotten a lot of criticism for its aggressive spending in recent years, but there is certainly one thing that the company is not overspending on: advertising.

In a new email to investors, Global Equities Research analyst Trip Chowdhry discussed one astonishing metric about Tesla’s young business that should give Tesla bulls reason for optimism.

While other car companies are spending between $248 and $3,325 in advertising per car sold, Tesla is spending just $6 per car.

“Tesla Power and Leverage is unprecedented,” Chowdhry told investors. “$6 of Ad Spent per Vehicle for the product generating more than $8 Billion in revenues and more than $14 Billion in bookings is unheard of in the Industry.”

Related Link: How Predictions Of An Impending Market Crash Might Actually Be Evidence It Isn't Coming Yet

According to Global Equities Research, Toyota Motor Corp (ADR) TM and Honda Motor Co Ltd (ADR) HMC have the next lowest average ad costs per vehicle in the entire auto industry at $248 and $258, respectively.

On the other end of the scale, Tata Motors Limited (ADR) TTM spends $3,325 in advertising per Jaguar sold and Ford Motor Company F devotes $2,550 of ad spend to each Lincoln sold.

Chowdhry remains extremely bullish on Tesla and has a $385 price target for the stock.

Disclosure: The author holds no position in the stocks mentioned.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorLong IdeasTopicsTravelAnalyst RatingsTechTrading IdeasGeneralGlobal Equities ResearchTrip Chowdhry
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!