Tesla Criticized for Not Advertising During Super Bowl, Analyst Calls it Short-Sighted
Tesla, Inc. (TSLA) made headlines recently for its decision to not advertise during Super Bowl LVI, and one bullish analyst is criticizing the company for what he sees as short-sightedness. Gary Black of Future Fund pointed out that a 30-second Super Bowl ad slot costs $7 million, and to justify this expense, Tesla would need to sell 875 additional cars, assuming a gross profit of $8,000 per car.
Black argued that the follow-up interest generated by Tesla paying for a Super Bowl ad would be huge. Instead, the company chose to cut the price of its Model Y by $1,000 in the US for a month, which Black sees as a short-term move in contrast to long-term thinking.
Tesla has historically preferred a direct sales model and has not heavily relied on traditional advertising methods. However, Black has advocated for the company to advertise on platforms like YouTube and X to educate potential car buyers about electric vehicles’ benefits and address concerns about range and charging.
Supporters of Tesla’s absence from the Super Bowl argue that the brand is already well-known and ingrained in the minds of viewers, making branding ads during the event unnecessary. They also point to data showing that Tesla’s popularity spikes when rival companies advertise electric vehicles during the Super Bowl.
During the 58th edition of the Super Bowl, automakers like BMW, General Motors, Hyundai’s Kia, Stellantis’ Jeep, and Ram EV truck maker advertised their vehicles. However, some argue that Tesla is already on the radar of those who didn’t consider the brand before, making it a good investment for companies with excess cash and capacity.
While opinions differ on whether Tesla should have advertised during the Super Bowl, the company’s decision reflects its unique approach to marketing and its confidence in its brand’s appeal. Tesla ended Friday’s session up 2.12% at $193.57, further demonstrating its strong market presence.
In the rapidly evolving electric vehicle market, advertising plays a crucial role in educating consumers and driving sales. As traditional automakers enter the EV space and compete with Tesla, it will be interesting to see how advertising strategies evolve and how Tesla’s approach continues to shape the industry.
