Did Tesla Just Foray Into Traditional Advertising?

Days after Tesla Inc TSLA CEO Elon Musk expressed his willingness to explore advertising, the EV giant made a surprising move by sharing a two-minute video that seems to mark its foray into traditional advertising.

What Happened: The video was posted on Tesla Asia’s official Twitter handle with the caption “Drive to believe—why she chose Tesla?”. It features Felicia, a branch manager in the financial industry and a mother of two toddlers, as she navigates through Singapore. Felicia highlights various features of the Model 3, placing particular emphasis on safety, child lock, heat protection, and autosteer.

Musk has acknowledged that many people are unaware of the numerous features and functionalities that Tesla offers. In an interview with CNBC, he expressed his desire to reach beyond Tesla’s existing fanbase, stating that advertising should be informative, visually appealing, and have an artistic element. He stressed the importance of creating ads that viewers won’t regret watching.

Although Tesla is not entirely new to advertising, it has traditionally allocated significantly less budget compared to other automakers. According to advertising intelligence firm Vivvix, Tesla spent $151,947 on advertising in the U.S. in 2022, while automakers like Ford Motor Co F spent $370 million and General Motors Co GM and its brands collectively spent $1.35 billion. This figure includes all advertising expenses, encompassing TV, social media, web banners, and billboards.

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