During Tesla's annual shareholder meeting in Austin, Texas, Elon Musk revealed that the company would venture into traditional advertising to evaluate its effectiveness, a departure from their usual approach of not using conventional advertising to sell cars. Musk jokingly mentioned the irony of now being the owner of Twitter as the CEO of Tesla, considering the social media platform heavily relies on advertisements. He recently hired advertising veteran Linda Yaccarino to lead Twitter, emphasizing the connection between advertising and the platform. In a light-hearted manner, Musk expressed that he should now promote the benefits of advertising and encourage everyone to utilize it. He stated that Tesla would experiment with advertising and assess the outcomes of this new approach.
This highlights his efforts to boost investor confidence in Tesla's future as the company faces increasing competition and a sluggish economy, resulting in price reductions. Since Musk joined Twitter in October, advertisers have been hesitant to use the platform due to concerns about their ads being displayed alongside inappropriate content, as the company experienced a significant decrease in staff. Musk has long been opposed to advertising, expressing his dislike for it in a 2019 tweet, stating that the company allocates its resources towards product improvement. However, he mentioned on Tuesday that many people are unaware of the affordability and impressive features of Tesla cars.
Movement of Tesla stocks in the last five years. (Source: Trading Economics)