- Tesla is finally resorting to advertising – something Elon Musk avoided for years.
- The company increased its advertising spending to $6.4 million in 2023, the Wall Street Journal reported.
- Investors are losing patience with Tesla amid fierce electric vehicle competition and managerial chaos.
Things are not going well for Tesla.
Between the bad press surrounding electric vehicles themselves and the chaotic whims of Tesla CEO Elon Musk, Tesla’s stock value has fallen this year by nearly 30%.
Tesla’s sales became so bad that the company resorted to advertising – something Elon Musk said he couldn’t stand.
“I hate advertising,” Musk job on Twitter, now X, in 2019.
Despite Musk’s aversion to ads, the company spent some $6.4 million in the United States in 2023, the Wall Street Journal reported. That compares to a paltry $175,000 in ad spending in 2022. Tesla’s ads touted its Model Y on Meta and Google, according to their respective ad libraries.
The company has faced competition from buyers who prefer a hybrid vehicle to a full electric vehicle, as well as from companies offering incentives for switching, such as the limited-time $1,000 reward offered by BMW to customers who trade in their own electric vehicle.
Musk agreed to try the ad in May after the suggestion was made at a company shareholder meeting, the Wall Street Journal reported. Investors would lose patience with Tesla’s performance and managerial chaos.
“We’re going to try a little bit of advertising and see how it goes,” Musk said, placating a meeting attendee who suggested Tesla lacked appeal to wealthy drivers looking for a sportier car, according to the Wall Street Journal.
Tesla did not immediately respond to a request for comment from Business Insider on Saturday.
businessinsider
