April 18, 2024 – Tesla, known for its innovative electric vehicles, has invested approximately 200,000 USD (equivalent to roughly 144,800 RMB) in advertising on the X platform as of February 2024. This marks a significant shift for the company, as its CEO Elon Musk had previously expressed disdain for advertising, even going so far as to state his “hatred” for it on social media.
Historically, Musk had resisted advertising and marketing efforts, much to the chagrin of Tesla fans and investors who felt that advertising could benefit the brand. However, the acquisition of Twitter, a platform heavily reliant on advertising revenue, appears to have altered Musk’s perspective. In a shareholder meeting held a few months ago, Musk commented on the irony of his situation, stating, “I’ve never really used advertising before, and now I own a company that’s highly dependent on advertising. I guess I should say advertising is great, and everyone should do it.”
The decision to embark on advertising may have been influenced by a decline in Tesla’s sales. Recent data reveals that in the first quarter of 2024, Tesla delivered only 386,000 vehicles, falling short of analysts’ expectations of 449,000 deliveries. This was the first time since the third quarter of 2022 that Tesla’s quarterly deliveries dipped below 400,000.
Compounding the sales decline, Tesla has recently announced a major global layoffs affecting tens of thousands of employees. Whether advertising can help Tesla regain market momentum remains to be seen, but the company’s foray into this new territory signals a willingness to explore unconventional strategies to boost its position in the market.
