Elon Musk Pledges 'Larger Scale' Ad Blitz After Tesla's Q3 Setback — But Still Finding 'What Works Best'

A user argued that relying solely on product quality and reduced pricing may not be enough to generate broader interest in Tesla vehicles if public awareness remains low.

Tesla, Inc.‘s TSLA fundamental woes have raised concerns among investors, enthusiasts, and various stakeholders. One recommendation to address these issues is for Tesla to emphasize the importance of transitioning to electric vehicles (EVs) and highlight how its EVs are the best choice for this transition. While CEO Elon Musk acknowledged the need for advertising during the company’s shareholder meeting in mid-May 2023, significant advertising efforts have not materialized.

What Happened: This call for advertising was recently reinforced by Tesla influencer James Stephenson. In response to Stephenson’s tweet on X (formerly Twitter), Musk stated, “I said we would advertise. We are doing so at [a] small scale and will do so at [a] larger scale as we figure what works best.”

I said we would advertise. We are doing so at small scale and will do so at larger scale as we figure what works best.

— Elon Musk (@elonmusk) October 23, 2023

Stephenson argued that relying solely on product quality and reduced pricing may not be enough to generate broader interest in Tesla vehicles if public awareness remains low. He cited an Ipsos research report, published by Drive Tesla Canada, revealing that 80% of surveyed Americans were unaware of how affordable Teslas have become.

Additionally, Stephenson addressed Musk’s assertion that advertising would not significantly impact consumers who are already interested in buying Tesla vehicles but cannot afford them. He used a Venn diagram to illustrate the three factors of affordability, desirability, and awareness, highlighting the need to address awareness issues.

See Also: Everything You Need To Know About Tesla Stock

Why It’s Important: Future Fund‘s Gary Black also supports the idea of advertising to enhance Tesla’s outreach. He had argued that Tesla should utilize both pricing strategies and advertising to advance its mission of expediting the global transition to EVs. 

“Potential EV buyers are very confused or at best ignorant about EV charging convenience, range, lower upfront and operating costs, OTA updates, near autonomy, safety, and owner satisfaction,” he said.

Black had proposed an educational campaign valued at $100 million, with Tesla as the central product, specifically targeting traditional internal combustion engine (ICE) vehicle owners. He asserted that such a campaign would yield a higher return on investment than further reducing Tesla’s unit prices by $50.

Black has consistently maintained that price cuts provide a temporary boost but do not lead to long-lasting benefits. Notably, in late June, Tesla initiated a Google ad campaign, and earlier in the month, a Tesla advertisement was seen at Tokyo Haneda International Airport in Japan.

In premarket trading, Tesla shares fell 1.44% to $208.93, according to data from Benzinga Pro.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

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