Tesla, which spends $0 on advertising its cars, does not suffer from a lack of demand at all, and on the contrary, over the years, has been trying to expand its production capacity to satisfy it. The correctness of the manufacturer's strategy is obvious: Tesla spends its money on making a great product, which undoubtedly attracts more than a sufficient customer base. Tesla's latest vehicle order numbers show that the manufacturer received unprecedented ads during the Super Bowl 2022, even though it was fully paid for by competitors.
This year, the advertisements launched during the Super Bowl showed many ads from automakers promoting their EVs. Here you could see multi-million dollar advertisements for GM, BMW, Nissan, and Polestar. Ads during the game were reported to cost $7 million for 30 seconds, and automakers bought a total of almost 10 minutes of those time slots, not counting the ads before and after the game. However, there, like anywhere else, you will not see Tesla ads.
Tesla spent $0 on ads again for this year’s Super Bowl, staying true to its strategy ever since it started selling cars. "Tesla does not advertise or pay for endorsements. Instead, we use that money to make the product great," said Tesla CEO Elon Musk in a 2019 tweet, responding to an article with a call to change the company's multi-year-old advertising policy.
This year, Polestar excelled especially with its 30-second Polestar 2 commercial. Here, the manufacturer focused on taunting Tesla, Elon Musk, and VW. Thus, it only emphasized the fear of real competitors. The company's "no compromises" statement only showed that the manufacturer was trying to deceive consumers, because its Polestar 2 is not the fastest, longest-ranged, nor most capacious EV.
However, all this advertising has only pushed consumers towards the obvious choice. According to Tesla's Q1 2022 Financial Report, the company experienced a significant increase in orders for its vehicles the day after the Super Bowl. Thus, it would be logical to conclude that the multimillion-dollar ads of competitors caused the increase in Tesla orders.
As Musk subtly pointed out, Tesla has reached a market capitalization of $1 trillion while still spending $0 on advertising.
$1T valuation with $0 advertising spend— Elon Musk (@elonmusk) April 21, 2022
© 2022, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.