During Tesla’s 2023 annual shareholder meeting in Austin, CEO Elon Musk announced that the business would begin advertising its goods for the first time. Musk changed his mind, saying, “So I guess I should say advertising is awesome, and everyone should do it.” We’ll try some advertising and see how it goes.”
This decision represents a significant shift in viewpoint for Musk, who has traditionally opposed advertising for the Tesla brand. In a 2019 tweet, he stated unequivocally, “Tesla does not advertise or pay for endorsements.” Instead, we put that money towards making the product better.” Later that year, he reiterated his disdain for advertising, declaring, “I hate advertising.”
This abrupt shift in posture could be a calculated ploy to appease investors in a declining economy. Tesla dropped costs in January to boost sales and remain competitive in the face of increased competition from traditional automakers producing their electric vehicles.
Tesla intends to expand its brand presence and attract a broader consumer base by entering the advertising market. The desire of the corporation to pursue new marketing avenues indicates its developing strategy to maintain growth and meet investor expectations.