Tesla Embraces Advertising amid Slowing EV Demand and Increased Competition

In a major shift from its long-standing aversion to advertising, Elon Musk’s Tesla has recently begun investing in paid media campaigns across various platforms, showing the company’s desperation to revitalize sales and convince Americans that EVs are the future of transportation.

The Wall Street Journal reports that since taking the reins at Tesla, Elon Musk has been vocal about his distaste for traditional advertising. Musk famously declared in 2019, “I hate advertising,” relying instead on word-of-mouth endorsements from early adopters and his own rising public profile to raise brand awareness. However, the company’s recent actions indicate a significant change in strategy.

According to estimates from Vivvix, a division of ad-tracking company MediaRadar, Tesla spent approximately $6.4 million on U.S. digital advertising in 2023, a substantial increase from the estimated $175,000 spent in 2022. While this figure pales in comparison to the billions spent by other carmakers like General Motors, it marks a notable shift in Tesla’s approach.

The majority of Tesla’s ad spending has been directed towards YouTube, as reported by Sensor Tower, a firm that monitors digital ads. Additionally, the company has recently placed video ads on Facebook and Instagram, despite Musk’s past criticisms of Meta and its chief executive, Mark Zuckerberg. Tesla is also advertising on Musk’s own platform, X/Twitter.

The new ad campaign, which promotes the Model Y as “the #1 most American-made car,” features footage of a cowboy and Tesla’s Giga Texas factory in Austin. The ads also encourage viewers to make a purchase before April 1, when prices are set to increase by $1,000. Recent Tesla ads on YouTube have taken a more family-focused approach, highlighting the Model Y’s five-star safety rating and trip planner based on the locations of Tesla charging units.

Experts attribute this shift in strategy to slowing growth in consumer demand for electric vehicles and increased competition among EV makers. In January, Tesla warned of “notably” slower growth in 2024, and its stock price has dropped by nearly 30 percent so far this year. Furthermore, China’s BYD overtook Tesla as the largest global seller of EVs last quarter.

Read more at the Wall Street Journal here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.