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Elon Musk announces major change to Tesla's long-standing brand strategy: 'We'll see how effective it is'

"It's worth a try."

"It's worth a try."

Photo Credit: Getty Images

Elon Musk is expanding Tesla's advertising strategy, including online ads and airport displays.

Following a shareholders meeting earlier this year, Musk announced that Tesla would launch an ad campaign for the first time in the company's 20-year history.

To this point, Tesla has become a giant in the world of electric vehicles almost exclusively depending on word-of-mouth from Tesla owners, along with the celebrity of Musk.

Speaking of the decision at the time, Musk told CNBC: "It's worth a try, and we'll see how effective it is. I only just agreed to it, so it's not a fully formed strategy."

Following Musk's decision to start advertising, Tal Jacobson, CEO at advertising technology company Perion Network, said, "Tesla has not been like every other company, and he's not going to start now, so expect breakthrough creative that speaks to Tesla's disruptive technology and personality."

Jacobson added, "His ability to use media to amplify his brand and his company's brands is an art form."

Until its latest push, Tesla has spent just a fraction of what other major car manufacturers have spent on advertising. Tesla only spent $151,947 on advertising in the United States in 2022, compared to $370 million spent by Ford, $1.1 billion spent by Toyota, and General Motors spending $1.35 billion across its brands.

The change comes as Tesla faces ever-growing competition with more car manufacturers moving toward EV production.

Tesla began its advertising with just a few Google ads but has since expanded to roughly 300 different ads. The Google ads have largely focused on affordability, tax incentives, and vehicle safety ratings.

Tesla is also reaching out to overseas consumers with an ad featuring the Model Y that runs the length of an entire wall at the Haneda Airport in Tokyo, Japan.

A video of the wall-length ad was posted on X, formerly known as Twitter.

One person commented, "It's my first time seeing a Tesla advertisement!"

Another said, "Love the advertising, bright and eye-catching!"

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