Can Tesla Beat Apple In Market Value? Analyst Points To 'Huge Missed Opportunity'

Tesla, Inc. TSLA has so far relied on a direct-selling model and spends zero dollars on advertising. Analysts, who once praised the electric vehicle maker for this policy, have now stepped up their campaign to convince the company regarding the merits of advertising.

What Happened: Not advertising is a huge missed opportunity for Tesla to educate non-EV owners and position the company's product as a "hero," said Future Fund's Gary Black in a tweet.

He made the observation while watching the National Basketball Association playoffs Tuesday night. There were so many EV commercials such as that of BMW AG's BMWYY i7 and Mercedes-Benz Group AG's MBGAF EQS, he said.

Providing more clarity on his view, Black suggested he wasn't pushing Tesla to be like everybody else. "Tesla needs more volume growth so that they can stop discounting like everyone else," Black said.

When a Twitter user pointed out that every time large EV ad campaigns were run during Super Bowl, Tesla gets a "free and significant spike" in search traffic.

The Tesla bull implied that he has an altogether vision for Tesla. "But I want $TSLA to be worth more than AAPL — not more than all other EV companies," he said.

See Also: Everything You Need To Know About Tesla Stock

Apple Inc‘s AAPL iconic commercials, such as the “1984” and “Think Different” campaigns, revolutionized advertising by focusing on emotional connections with the audience and telling stories that reflected the brand’s values and vision.

Tesla To $1T Without Ads: In late April, Gary Black tweeted a chart from Tesla's first-quarter earnings deck showing a surge in orders for the company the day after the 2022 Super Bowl. This validates the view that competitors' advertising their new EVs help Tesla as it is the leader of the market, he had said then.

Responding to the tweet, Tesla CEO Elon Musk said, "$1 Trillion valuation with 0 advertising spend."

Tesla's market capitalization is at $512.92 million currently, although its valuation topped the $1 trillion mark for the first time in October 2021. Economic, geopolitical and fundamental setbacks have served to cut the valuation in half now.

Tesla closed Tuesday’s session down 0.94% at $160.31, according to Benzinga Pro data.

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