Tesla will advertise for the first time

Elon Musk during a shareholder meeting of Tesla, on Tuesday, announced that the carmaker will try advertising for the first time. Notably, the billionaire was adverse to advertising in the past.

Speaking at the company’s annual meeting in Austin, Texas, Elon Musk said, “We will try a little advertising, and see how it goes.” Reportedly, Twitter generated about 90 percent of its revenue through advertisers in 2022.

Musk and Tesla (TSLA) received overwhelmingly positive feedback from the audience. None of his promises, however, from hinting at the introduction of two new products he plans to release the following year to promising to continue as CEO of Tesla (TSLA) for the foreseeable future, were met with the same enthusiasm from the audience as his advertising choice.

Musk also commented on the advertising, “I didn’t realise people wanted it so much.” The choice represents a total about-face for Musk and Tesla. The company’s CEO has long back said that there is no need for advertising because there is an excess of demand for automobiles.

In 2019, mention it in a Tweet, Musk said,” Tesla does not advertise or pay for endorsements. Instead, we use that money to make the product great.” He also added that advertising was not something he decided to do until he was asked about it in the meeting.

He further added that over time one thing that has changed for Tesla is greater competition from the other car maker competitors, all of which have devoted much of their advertising on the advertisements on the electric vehicles which are not even launched.

Musk has previously claimed that Tesla prefers to invest its funds in research and development rather than marketing. However, Tesla has marketed the brand in a non-traditional way. Elon Musk has instead actively marketed it. SpaceX purchased an online advertising campaign for its Starlink satellite broadband service soon after Musk purchased Twitter.