Tesla, Inc. TSLA has so far stayed away from advertising, instead focusing on selling electric vehicles to consumers.
What happened: With demand stagnating and the competition breathing down our necks, Tesla has seen its volume growth slow in recent quarters. This prompted many Tesla bulls and fund managers whose portfolios included Tesla to clamor for publicity.
CEO Elon Musk apparently listened to the requests.
See also: Everything you need to know about Tesla shares
At Tuesday’s annual shareholder meeting in Austin, Texas, Musk said he was open to trying some advertising and seeing how it goes. When the crowd in attendance responded with great cheers, the billionaire said he didn’t expect the excitement.
Traditional marketing channels are great and it’s like preaching to the choir, Musk said, adding that Tesla will do a little advertising to educate potential customers who don’t know about Tesla’s many great features and functions.
We won: Gary Black of Future Fund came out victorious at the turn of events. Tag some of his fellow fund managers who did express support for advertising, Black said: “Despite the many vocal naysayers, we won big today.”
“Elon eventually realized that TSLA shareholders overwhelmingly preferred to allocate a portion of the pricing/marketing budget to educating non-EV users about the benefits of EVs,” he added.
Gerber Kawasaki Wealth & Investment Management Ross Gerber responded to Black’s tweet, saying: “You’re doing this right, it could be amazingly successful. I am convinced that most people have no idea.”
Price promotion: Tesla closed Tuesday’s session up 0.10% at $166.52 and added another 1.19% in after-hours trading, it said Benzinga Pro dates.
Check out more of Benzinga’s coverage of the future of mobility follow this link.
Continue reading: Will Elon Musk heed this one piece of advice from Warren Buffett to boost falling Tesla stock? “If you could buy dollar bills for 80 cents…”
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