Musk's marketing play
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Tesla is investing more in marketing and advertising amid market headwinds, a decline in sales and rising EV competition from China.
Why it matters: Given Tesla CEO Elon Musk's history with communications and marketing, his interest in pulling these business levers now feels noteworthy.
Zoom in: Thus far, Tesla's ads have been limited to digital and can be seen across social media platforms like YouTube, Facebook, Instagram and X.
Between the lines: The EV maker previously relied on word of mouth, owned content and Musk's executive profile and cache to build a following. However, Tesla must expand its reach to keep up with the increasingly competitive market.
- "There's obviously a lot of people that follow the Tesla account and my account on Twitter — to some degree it is preaching to the choir and the choir is already convinced," Musk told shareholders in 2023.
By the numbers: According to the Wall Street Journal, Tesla spent just $175,000 on advertising in 2022, compared to $6.4 million in 2023.
What to watch: Because the operating software on EVs allows for updates, the depreciable asset narrative around cars could be changing.
- These vehicles could be marketed similarly to electronic devices like phones and computers — which would explain why automakers have been scooping up communications talent from the tech sector.
