Tesla’s planning to advertise for the first time as EV competition revs into high gear
Coming to a billboard near you… Elon Musk dropped some electric updates at Tesla's annual shareholder meeting this week. Some highlights: the CEO said Tesla would finally deliver its first (long-delayed) Cybertrucks this year, and might eventually produce up to 500K/year. The EV icon teased two upcoming models with a (very dark) silhouette of a car. Elon also said Tesla “will try a little advertising” after years of relying on word-of-mouth fame.
Shifting gears: Elon tweeted in 2019 that Tesla “does not advertise or pay for endorsements,” but may have changed his mind after buying ad-reliant Twitter.
Speed bump: Despite record deliveries last quarter, Tesla’s profit dropped by more than $1B after multiple price cuts this year failed to fuel demand as much as hoped.
Elon has company(s)… For years, Tesla was in its own lane as the go-to EV maker. While it’s still the world’s top full-electric car seller, the competitive tide is turning. OG automakers like Ford, GM, and Volkswagen are spending billions to ramp up their own electric production, while Chinese EV makers are catching up with cheaper, high-tech whips. In January, BYD overtook Tesla as the world’s largest EV seller (if you count plug-in hybrids). In the first quarter, Tesla controlled just 60% of the full-electric market in California — down from 73% last year.
The first-mover advantage doesn’t last… Tesla has long enjoyed the advantages of being the buzzy EV pioneer. As its sleek cars turned heads on streets, it didn’t need to advertise to grow. But with a plethora of new (and cheaper) EVs flooding the market, Tesla can no longer lean on its first-mover status to compete. Now, it’s hoping ads will convince customers to look its way.