Elon Musk has announced plans for Tesla (NASDAQ:TSLA) to use traditional advertising for the first time. This marks a shift for the electric-vehicle maker, which has previously relied on Musk’s star power and customer enthusiasm to promote its vehicles. Musk revealed the plans at the company’s annual meeting, saying they would try out a little advertising and see how it goes.
Ad agency executives and investors expect a unique and irreverent take that will clearly communicate Tesla’s advantages, including its technology. Musk has said he does not yet have a fully formed strategy for Tesla advertising, but that it should be informative, aesthetically pleasing, and have an artistic element.
Tesla spent $151,947 on advertising in the U.S. in 2022, compared to Ford and Toyota Motor Corp who spent $370 million and $1.1 billion respectively. Musk’s takeover of Twitter last fall may have influenced his decision to embrace advertising, as the social media platform requires advertising dollars to survive.
Thomas Martin, senior portfolio manager at Tesla shareholder Globalt Investments, expects the company to focus on what’s good for the environment and that it is a car of the future. Whatever advertising path Musk chooses, it is sure to be memorable and effective.