Tesla Spent $0 for Ads in 2019, While Hyundai, Lincoln, & Jaguar Spent $1.5-2K Per Vehicle

by Eva Fox September 13, 2020

Tesla Spent $0 for Ads in 2019, While Hyundai, Lincoln, & Jaguar Spent $1.5-2K Per Vehicle

Featured image: Statista

Tesla CEO Elon Musk has opposed paid advertising for quite some time now. He has always been clear in his position that Tesla will not advertise or pay for endorsements, and that the company's money is better used to create great products people love.

Source: Twitter

For Musk, like most people in the Tesla community, paid advertising is associated with "trickery" and doesn't really represent the quality or value of the products. This attitude is true because the purpose of advertising is to induce in you the desire to buy, and not to tell you the whole truth about the product.

Tesla, instead, has excelled at word-of-mouth advertising. Of course, this is due simply to sensational products, their happy owners, and a supportive community. Celebrities and influencers also help a brand grow without getting paid for it. They just buy Tesla cars, use them, enjoy them, and share their experiences with others. Tesla also receives free advertising from another Musk venture, SpaceX.

Tesla is the only such exception among all automakers. The data on advertising spending per vehicle sold, presented by Statista, indicate the five largest and the five smallest advertisers among automobile brands in 2019 in the United States.

According to this data, Genesis (Hyundai Motors) spends $2,057 per vehicle on advertising. That is, any car of this company is at least $2,057 more expensive for the buyer. Or, at the least, this amount represents money that didn’t go into making the car better.

Lincoln (Ford Motors) also spends not much less than Genesis—$1,911 per vehicle sold. Jaguar (Tata Motors) spends $1,542 per vehicle for advertising.

At the same time, Tesla spends exactly $0 on advertising!


Source: Statista

The truth is, because of advertising costs, buyers of any car other than Tesla will pay more than its actual value. Advertising costs and dealer fees force people to pay additional costs that are not directly related to the quality and performance of the vehicle.


Tesla's sales model and the lack of paid advertising are aimed primarily at the buyer. The money saved by the company is directed to the development and creation of high-quality products that will qualitatively differ from those of other manufacturers, and therefore also be offered at a relatively reduced cost. That is why Tesla cars are worth every dollar spent.

© 2020, Eva Fox. All rights reserved.


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Article edited by @SmokeyShorts, you can follow him on Twitter

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