Should Tesla Do Paid Advertising?

[thejohnllama]

How does everyone feel about Tesla’s shareholder vote to begin investing in paid advertising?

I read the proposal was $50 per car sold. I bet Tesla’s profit per car is $5k or higher, so it’s a modest 1% of margin and ~1/1,000 of total sale value.

I’m all for it. Americans need to become better educated on electric cars and running a marketing campaign allows you to control the narrative. While digital presence and engagement has been successful for the coasts and tech demos, Tesla isn’t reaching a core audience of middle America/traditional media consumers.

 

[Eye of Elon]

They don't need ads, as long as they have Elon.

 

[Dids]

Is Tesla able to produce more cars than it sells? I thought that battery production was the choke point. Wouldn't advertising be a waste of money if you can't produce? Totally agree Tesla has an army of people doing free marketing.

 

[thejohnllama]

Is Tesla able to produce more cars than it sells? I thought that battery production was the choke point. Wouldn't advertising be a waste of money if you can't produce? Totally agree Tesla has an army of people doing free marketing.

Advertising is a long-term approach. They need to advertise now to get sales in 2-5 years ?

The “Tesla army” doesn’t exist in many American’s realities (e.g. the vast majority of people who don’t join future-electric-pickup owners forums like we do ?). Cable TV does though! OTT for the cord cutters.

Ultimately, advertising is a reinvestment strategy that pays off long-term. You’ll get a few sales within months, but long-term lift is the goal.

 

[ajdelange]

Advertising is a long-term approach. They need to advertise now to get sales in 2-5 years

I see this comment in a forum dedicated to a truck that has more than a 5 year backlog at a production rate of 100K trucks per year and marvel. And then I see what the poster does for a living and all is clear.

 

[thejohnllama]

I see this comment in a forum dedicated to a truck that has more than a 5 year backlog at a production rate of 100K trucks per year and marvel. And then I see what the poster does for a living and all is clear.

LOL ? Thanks for viewing my profile ?

I think five-year backlog is unlikely, but totally respect ya! Keep it fun ?

 

[Frank W]

Nailed it A.J. When Elon sent his Roadster to space, the Jay Leno segment, Sandy Munro’s videos and on today’s (finger crossed) launch riding to the launch pad in a Model X and word of mouth are enough marketing ways for Tesla at this time I think.

 

[ajdelange]

As we used to say when younger and and in an entirely different context "Why buy the cow if the milk is free?"

 

[thejohnllama]

Nailed it A.J. When Elon sent his Roadster to space, the Jay Leno segment, Sandy Munro’s videos and on today’s (finger crossed) launch riding to the launch pad in a Model X and word of mouth are enough marketing ways for Tesla at this time I think.

Totally agree with ya — each of the above will reach a percentage of the total available market ?
My guess at the saturation of all those examples? 35-45%, but that’s just me throwing a dart ?

 

[Sirfun]

Tesla as a company, has more demand for products than they can produce, for several years. Semi's , Roadsters, Powerwalls, Cybertrucks, Large storage batteries. Why spend money to get further backlogged. They need to spend money to increase the capability to build the products they already have deposit's on.

 

[BillyGee]

The best products don't need to be advertised.

 

[thejohnllama]

The best products don't need to be advertised.

True! Most people don’t buy good cars though ? their decision making is guided by image over application.

 

[thejohnllama]

Tesla as a company, has more demand for products than they can produce, for several years. Semi's , Roadsters, Powerwalls, Cybertrucks, Large storage batteries. Why spend money to get further backlogged. They need to spend money to increase the capability to build the products they already have deposit's on.

The question is: what is the conversion time for a gas car driver to learn about EVs, be skeptical, research more, consider getting an EV, be influenced by ads/content/reviews while reading, narrow it down to 2-3 options, save some cash, get an electrician out to install a level 2 charger, and buy their first EV? It could take years, which is why Tesla stockholders are voting to start advertising now ? Current supply/demand is fine, they’ll need established demand for future sales

 

[Bigvbear]

I think it's premature to start running ads for Tesla vehicles until the production can meet and exceed the current demand. Also until they have showrooms and car lots (or start farming this out as franchises)

Most car buyers don't want to order n wait for a vehicle. They go to the lot drive one and take it home.

 

[mrbulk]

I think it depends on what product/s Tesla truly intends to sell the most of in the future, especially with the advent (although we'll see) of their fully self-driven Robo taxis, in which case many might simply hail their rides and forego the expense of buying a car altogether, self-driving or not.
If that is the case then Tesla will begin to emphasize more service than hardware sales.