Why Tesla’s Decision to Start Advertising Could Be a Sign of the Changing Times
Many buyers would say that Tesla makes the best EVs. The automaker is typically the first option that comes to mind when people think of more fuel-efficient SUVs. However, it seems the times might be changing as Tesla has begun advertising its vehicles in order to attract more buyers. While it’s normal for automakers to run ads, especially on YouTube, this move seems shocking and maybe hints that Tesla is feeling the pressure of increased competition.
Here’s a look into why Tesla now advertising could be a sign of changing times despite still offering what many would call the best EVs.
Tesla drops new ads on YouTube
According to Benzinga, at least one Tesla ad runs on YouTube. Seemingly, this came because the automaker wanted the world to know how safe its vehicles are, and advertising Tesla models is one of the most significant ways to do this. In the past, Elon Musk has even agreed that advertising is one of the only ways to ensure that more people know about its vehicles’ specialized features. However, this is the first time the company has gone this route.
The YouTube ad starts by saying, “We are the only carmakers in the world that has a fleet of well over a million cars on the road, fully instrumented.” It goes on to explain that because Tesla vehicles are fully instrumented, the design team has the ability to understand what it needs to make the safest EVs possible.
Essentially, the automaker is able to design its vehicles in a way that circumvents exposure points that would make vehicles less safe. In other words, Tesla is now advertising to illustrate exactly how advanced its electric cars are compared to other options. To many, this makes Tesla models the best EVs on the market. However, the company has never had to brag about it before.
This isn’t typically in Tesla’s playbook
Tesla arguably makes the best EVs on the market. In fact, it’s easy to argue that electric cars might not be as far along if not for Tesla. Because of this reputation and brand recognition, advertising has never been a part of Tesla’s playbook. Since the beginning, Tesla has only had to depend on word of mouth and product announcements to get attention.
It’s important to remember that advertising isn’t free. Having ads run on YouTube as potential buyers watch their videos comes at a staggering cost. Not only does the company pay to produce the ads, but it also has to pay YouTube to air it. This gets even more expensive if Tesla ever decides to advertise on broadcast television or streaming platforms such as Hulu. This is why having a product that essentially sells itself is so valuable to companies.
Is this a sign the company is feeling the pressure?
So, is Tesla advertising because it’s feeling the pressure of other automakers? Well, the answer is yes and no. According to Kelley Blue Book, Tesla is still far ahead in the EV race. The Tesla Model Y is the most popular electric car on the market, followed by the Model 3. The next most popular vehicle is the Ford Mustang Mach-E, but there is a massive disparity in sales. However, many models are more popular than the Model S, which is at No. 9 on the top 10 list. It should also be noted that some insiders are saying that the demand for EVs might be becoming stagnant
This means that it will still be some time before Tesla really needs to worry about the competition. However, it’s always best to make changes early as a company before things begin to go south. Tesla seems to understand this. The company wants to ensure that the world knows it makes what most would call the best EVs. The company is probably hoping more exposure will keep it on top as more automakers invest in an electrified future.
