Zinger Key Points
- Tesla should use a combination of price and advertising to accelerate global EV adoption, says Future Fund's Gary Black.
- As the going gets tough, it appears that Tesla is looking to try out advertising as an aid to push volume.
- Discover Fast-Growing Stocks Every Month
A section of analysts have recommended Tesla, Inc. TSLA to invest in advertising to lift its sagging sales instead of relying merely on margin-eroding price cuts. In the past, the company has tried out advertising on a small level in some geographies.
What Happened: A posting on Tesla’s website showed that the company is looking to hire a “Campaign Manager” at its Fremont, California location. The person will be key for orchestrating campaigns for “expanding our customer base, overcoming perception challenges, and enhancing the conversion rates of car buyers into Tesla ownership,” the company said as part of the job description.
“The ideal candidate will seamlessly integrate strategies, plans, and execution while fostering innovation and excellence in every campaign,” it added.
Tesla influencer Sawyer Merritt first noted the posting in a post on X, formerly Twitter.
See Also: Everything You Need To Know About Tesla Stock
Why It’s Important: Future Fund’s Gary Black is among the analysts who have sounded out the merits of advertising. The fund manager said in a post in late October Tesla should use a combination of price and advertising to further its mission of accelerating the world’s transition to sustainable energy.
He said that potential EV buyers are very confused or ignorant about EV charging convenience, range, lower upfront and operating costs, OTA updates, near autonomy, safety, and owner satisfaction. “A $100M education campaign with Tesla as product hero targeted at existing ICE owners would produce far greater ROI than an additional $50 per unit price cut (same $100M cost,” he added.
Tesla’s YouTube commercial highlighting the safety of its EVs was spotted earlier this week. Bowing to pressure from stakeholders, Tesla CEO Elon Musk said at the company’s annual shareholder meeting that it will test advertising on a small scale.
Traditionally, Tesla pursues a direct selling model, and most customers buy its vehicles online. The company also operates showrooms in some locations.
In premarket trading on Thursday, Tesla rose 0.43% to $234.60, according to Benzinga Pro data.
Photo by betto rodrigues on Shutterstock
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next: Not Cybertruck, But This EV Is Ray Of Hope For Tesla’s Continued Success, Says Analyst
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
