In a context of increasing competition and poor stock market performance, You’re here is brushing aside CEO Elon Musk’s previous disdain for marketing and pursuing digital ads in search of a much-needed sales boost.
The company spent about $6.4 million on digital advertising last year, according to estimates. Wall Street Journal reported, citing data from Vivvix, a subsidiary of advertising tracking platform MediaRadar. The company’s marketing budget last year eclipsed the $175,000 that Vivvix estimates the company spent in 2022. Tesla spent 900 times more on U.S.-targeted digital advertising in the first quarter than it a year ago, according to a report from market intelligence firm Sensor Tower. .
Tesla’s advertising spending was primarily focused on Youtubereported Sensor Tower, but also included campaigns on FacebookInstagram, Googleand Musk’s property X platform, according to a review of publicly available data.
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The world’s best-selling SUV is getting $1,000 off this month
Prices will increase again in Marchhttps://t.co/tEj0udh3Ll pic.twitter.com/aFPqU1CnyG
-Tesla (@Tesla) February 11, 2024
Many of the ads promote the company’s Model Y vehicle, with a call to purchase before prices increase on April 1. Some tout Tesla features like its Autopilot and extra cargo space, while others show families using the touchscreen to play games or stream videos.
Musk and Tesla have often rejected traditional forms of promotion, relying instead on word-of-mouth, sponsorship programs and star power of its general manager to attract customers. Tesla’s CEO has previously said that money spent on advertising campaigns would be better spent elsewhere.
“Tesla does not advertise or pay for endorsements. Instead, we use that money to make the product great,” he wrote in a statement. job on X, formerly Twitter, in 2019.
However, Tesla almost shares 30% sharpness since January and increased competition from Chinese electric vehicle manufacturers has recently led Musk to become more open to publicity. In response to a question posed at last year’s annual meeting of shareholders at CanMusk said Tesla was “(Trying) to do a little publicity and see how it goes.” »
The company’s advertising turnaround comes as the first three months of the year wind down and analysts brace for what could be a weak quarter for the electric vehicle maker. Several analysts have already lowered their estimates for first-quarter vehicle deliveries (a proxy for sales) after Bloomberg reported last week that Tesla was cutting production at its factory in China.
On Wednesday, Wedbush Securities cut its estimate to 425,968 from about 475,000, according to a note. Wedbush’s ever-bullish analyst Dan Ives also lowered his price target from $315 to $300, although the company reiterated its “outperform” rating for the company.
A recent internal email to staff showed that Musk is not only relying on digital advertising, but also aggressive promotion to increase sales of his $12,000 per year subscription for “fully autonomous driving” . In an internal leak E-mail This week, Musk said Tesla staff were required to give potential customers a quick test drive while they picked up their cars.
“I know this will slow down the delivery process, but it is nevertheless a strict requirement,” he wrote in the internal email.