Tesla starts running ads

Tesla has begun running some Google ads for the first time following Elon Musk’s statement that the automaker would try advertising.

Last month, CEO Elon Musk announced a reversal of his long-standing strategy that Tesla doesn’t spend on advertising but instead spends money to improve the products – counting on owners to spread the word.

Tesla investors have often suggested to the CEO that some advertising to highlight certain features and benefits of Tesla vehicles could be worth it. At Tesla’s annual meeting last week, Musk obliged for the first time. The CEO said that Tesla would “try a little advertising” and see how it goes.

Now we learn that Tesla has started to advertise.

Some Google users started to notice ads showing up in searches, and sure enough, they can be traced back to Tesla through Google’s ad transparency program:

So far, the ads appear to be concentrated in the UK, though some solar ads have been spotted in the US.

Tesla also seems to focus on ads in search engines rather than traditional banners.

With more electric vehicles hitting the market in higher volumes, the market is expected to become more competitive, and automakers are expected to shift some of their advertising budgets, which are amongst the biggest of any industry, from fossil fuel-powered vehicles to electric vehicles.

Electrek’s Take

While Tesla has never done “advertising,” the automaker has been creating promotional material and marketing for a long time.

Now it is actually paying for placement. This is a first.

The next step is likely TV commercials and banner ads. If not, I can see Tesla trying to boost its referral program again.

What do you think? Let us know in the comment section below.

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