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- Elon Musk stated during a meeting of shareholders that Tesla would "try out" advertisement for the first.
- In the past, the billionaire was not a fan of advertising.
- Musk's announcement at the event was met with cheers by investors.
Elon Musk announced that Tesla would begin advertising for its first time ever.
Musk stated this during Tesla's Cyber Roundup 2023 at its Austin facility.
Musk announced that Tesla would start advertising its products. Kevin Paffrath, also known as Meet Kevin on YouTube, suggested the company should do more to inform non-Tesla enthusiasts about Tesla's products.
Tesla's CEO responded, "I hear you" and added that it is "ironic", that Twitter "is highly dependent on advertising".
Twitter will generate about 90% of revenue in 2022 through advertising. Some advertisers have reportedly left the platform since Musk took over.
The crowd cheered Musk's announcement during the Tesla event. David Faber of CNBC told the billionaire on Tuesday that he had been surprised by this enthusiasm. He told CNBC Tesla will use advertising to combat misconceptions, particularly when it comes pricing and safety.
Tesla doesn't seem to have a strategy in place for its advertisements yet. Musk told Faber that he had only recently decided to test out advertising at the Tesla event.
Tesla investors have been calling for this move. Ross Gerber, a Tesla investor, said in April that the electric-car manufacturer needs to be more similar to Apple when it comes advertising.
He wrote on Twitter: "Tesla is going to have to advertise. They will eventually figure it out." "That's the reason almost all companies advertise." "To educate consumers about the products."
Musk did not mention where Tesla would begin to advertise its products. In a Tuesday tweet, Wedbush Tech analyst Dan Ives hailed the decision as a "big move forward" to combat rising EV competition.
Tesla has used less conventional methods to promote its products over the years. Musk has been a major promoter of the brand. The billionaire tweets frequently about Tesla and the various products on his 140 million-strong Twitter account. The brand has become synonymous with his image as the world's second richest man.
Musk has previously said that he dislikes advertising, and Tesla would rather spend its money on research and development than promotional content. Musk has softened his stance, as he named a top advertising executive as the new Twitter CEO. SpaceX purchased an ad campaign on Twitter shortly after Musk acquired the company.
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By: gkay@insider.com (Grace Kay)
Title: Elon Musk says Tesla will try out advertising for the first time in a major shift for the automaker
Sourced From: www.businessinsider.com/elon-musk-tesla-will-try-advertising-first-time-2023-5
Published Date: Tue, 16 May 2023 21:51:03 +0000
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