Blog Tesla Shareholders Ask for Better Public Relations
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You've mostly got it but didn't touch on the media bias due to the advertising. The reality is it influences the stories that the news runs, above and beyond just the ads put out by competitors. So not only do they get the ads they get FUD articles by biased media thankful for the ad dollars. Tesla needs to spend to counter this negative narrative.
It's not about the actual ads, it's about the bias the money provided by the ads introduce against non-advertisers in the media, leading to negative media publicity.
Traditional ICE vehicle advertising is done by the brands AND by the dealers. Brand ads are typically split into: "Hey, our brand is better than your brand..." and "Hey, our national sales event is going on, so go to your local dealer to purchase..."
The dealer ads are typically, "Hey, $$ off Brand Models and %% financing available this week only..."
How would Tesla, an engineering company, fit into the typical advertising format? Since they don't really need to sell more vehicles per manufacturing capacity, the remaining position is in brand education or "feel good" branding campaigns (think Apple ads). The question there is, how much, if any money should be diverted from growth operations to increase public awareness of the Tesla brand?
One argument could be made that an increase in positive public awareness would increase the stock price. If that assumption is valid, then a calculation could be made to estimate the opportunity cost of removing say, $20 million from operations to redirect to public awareness advertising, to result in a % increase of share value. This type of advertising would not fall into the 'gimmicky' tit-for-tat ads that seem to be the mainstream now.
The dealer ads are typically, "Hey, $$ off Brand Models and %% financing available this week only..."
How would Tesla, an engineering company, fit into the typical advertising format? Since they don't really need to sell more vehicles per manufacturing capacity, the remaining position is in brand education or "feel good" branding campaigns (think Apple ads). The question there is, how much, if any money should be diverted from growth operations to increase public awareness of the Tesla brand?
One argument could be made that an increase in positive public awareness would increase the stock price. If that assumption is valid, then a calculation could be made to estimate the opportunity cost of removing say, $20 million from operations to redirect to public awareness advertising, to result in a % increase of share value. This type of advertising would not fall into the 'gimmicky' tit-for-tat ads that seem to be the mainstream now.
You are right Mr. TJ. I never thought of it that way. Bloomberg IMO is the most balanced news available and routinely covers TSLA in a negative light. They too are part of the racket. I used to love Porsche's Mercedes' BMW's etc. Now I look at them from my S and say...why?
jake13S
Member
I totally agree that there is no need to advertise when Tesla is not meeting the demand at this time,,,,,BUT have any other owners had problems contacting Tesla Service? No longer can we call and talk to a person to discuss service needs or questions, AND in trying to contact using email, I have not received even acknowledgment of my email, let alone a answer to a question. Appointments are difficult to set up without person to person contact.
I know Tesla is advanced in technical ability and thinking, but contact with owners is not working as well as it should.
Just saying!
John Kerns
Traverse City, MI
2013 Model S 85
I know Tesla is advanced in technical ability and thinking, but contact with owners is not working as well as it should.
Just saying!
John Kerns
Traverse City, MI
2013 Model S 85
That's kind of what I meant by "sponsored reviews" but I didn't make it very clear. I agree completely with your view. No advertising makes Tesla a target for negative media while their competitors milk the media to get a positive reaction. So far any negativity hasn't been a major issue for Tesla sales due to production capacity, but it has certainly made their share price pretty volatile. As Tesla ramps up on volume production at some point along the path they will have to start playing the media game like everyone else or risk losing ground. It obviously helps having great products and being ahead of the curve, but I don't think it's enough on its own to survive long term. For me it's a question of when, not if advertising is a good idea.
Seems like everyone is discussing the Public Relations problem in terms of advertising to fight the fud. Elon noted he didn't need to advertise because demand out paces production. However, the reason shareholders want better public relations is because the all the FUD has put downward pressure on the stock price.
When the stock price is higher Tesla benefits when it goes to the markets to raise cash. In this light, if advertising or any other action would help boost the stock price, then it would be worthwhile (less dilution) . At the meeting no one directly asked what are you doing boost the stock price. There must be some proactive actions they can take (besides making more cars at better margins) that can help turn the tide. Elon's compensation plan is directly related to the stock price, more specifically Tesla's market cap. So this has to be on his radar. It appears he's taking the long march of letting the sales, cashflow, and profits(?) do the talking. So it could be a while before the stock price is at levels that make shareholders happy.
When the stock price is higher Tesla benefits when it goes to the markets to raise cash. In this light, if advertising or any other action would help boost the stock price, then it would be worthwhile (less dilution) . At the meeting no one directly asked what are you doing boost the stock price. There must be some proactive actions they can take (besides making more cars at better margins) that can help turn the tide. Elon's compensation plan is directly related to the stock price, more specifically Tesla's market cap. So this has to be on his radar. It appears he's taking the long march of letting the sales, cashflow, and profits(?) do the talking. So it could be a while before the stock price is at levels that make shareholders happy.
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ddrmr
Member
Absolutely true about changing minds of people who have already decided how they feel about something...or someone. For example: Trump-haters aren't going to change their minds even with positive facts on Economy, etc.
Let me guess - anyone who shares your opinion "understands", whereas anyone who doesn't, just hasn't reached your level of wisdom?
Maximum Exposure (6 HOURS! minimum). No risk for/cost to Tesla. Great fun. We'll all support and laugh with (& at) you. With these caveats: ALL pre-interviews seated inside/standing at different angles around MS/X/Y/Roadster & Semi. And you, personally - with JB & Franz present, of course - gift each loser a Model 3. Ready? Go on "Dancing with the Stars". TES!!! LoL Vs. $20MM SEC fine for a tweet? That went well. Or play Pebble Beach Pro-Am golf with PGA #1 week prior?
Jim R
Member
Our local media puts out car articles, as all do. When they do mention EV's they don't seem to realize the advantages. One author came out and said he wanted hybrids.
My own preference is for a car that does NOT have or need to replace: Transmission, radiator, fuel pump, exhaust system, oil, water pump, emission control equipment etc etc. Why buy a car that has those things? I recently changed a NoX filter on my car and paid $1150 or so for the job.
I believe there are many who don't know these things. Still others believe the battery needs replacement every 5 years or less. They are scared of that. And that the cars can't handle winter. So ads may educate people, but Elon is right - why advertise when demand exceeds production?
My own preference is for a car that does NOT have or need to replace: Transmission, radiator, fuel pump, exhaust system, oil, water pump, emission control equipment etc etc. Why buy a car that has those things? I recently changed a NoX filter on my car and paid $1150 or so for the job.
I believe there are many who don't know these things. Still others believe the battery needs replacement every 5 years or less. They are scared of that. And that the cars can't handle winter. So ads may educate people, but Elon is right - why advertise when demand exceeds production?
Mobster
Member
To "ad" or not to ad, that is the question. Whether it is nobler in the minds of men (women?) to ad and ......do what?
On one hand, Tesla sales are fine ....and basic business is to advertise to increase sales (directly with "we won't not be undersold" or supposedly indirectly with "we drill wells in Africa")
On the other hand, we have something that is another subject. Public relations. PR. The old "any press, even bad press...is good" Methinks milord that possibly WE OWNERS care about what the public thinks more than Elon (reference: the Bently ad is shown in the above post with a finger extended.) Sales are good (too good if you are a grumpy "early adopter" like me---first MS in 2013-- snorting "in my day the Tesla service was great...now with all them there pesky M3 owners.......harrumph") I digress...sales are good so we are concerned with the image? Yeah, maybe. I fume when my son constantly says "taxpayers subsidized your Tesla. Elon wouldn't have a company without government money." arrrgggggghhh. Public perception is "I only know what I see on TV....your car explodes into flames right?" Yep. Last night we roasted smores.
I saw the "Price is Right" where they gave away the Tesla Model 3. Wait. What? Was that the "advertising" department giving the car to them? hmmmmm
Finally the other elephant in the ointment. (Like beating your head against a dead horse) "Advertising buys....you leniency from the media." Does it? Not sure about that. If so.....it is a bribe. Pay the cash directly to the media and skip ads.
So, I think I will let my son believe what he wants to, PR won't change his mind or the mind of a lot of people who just are pissed off by success.
No ad...no methinks not. In Elon we trust.
On one hand, Tesla sales are fine ....and basic business is to advertise to increase sales (directly with "we won't not be undersold" or supposedly indirectly with "we drill wells in Africa")
On the other hand, we have something that is another subject. Public relations. PR. The old "any press, even bad press...is good" Methinks milord that possibly WE OWNERS care about what the public thinks more than Elon (reference: the Bently ad is shown in the above post with a finger extended.) Sales are good (too good if you are a grumpy "early adopter" like me---first MS in 2013-- snorting "in my day the Tesla service was great...now with all them there pesky M3 owners.......harrumph") I digress...sales are good so we are concerned with the image? Yeah, maybe. I fume when my son constantly says "taxpayers subsidized your Tesla. Elon wouldn't have a company without government money." arrrgggggghhh. Public perception is "I only know what I see on TV....your car explodes into flames right?" Yep. Last night we roasted smores.
I saw the "Price is Right" where they gave away the Tesla Model 3. Wait. What? Was that the "advertising" department giving the car to them? hmmmmm
Finally the other elephant in the ointment. (Like beating your head against a dead horse) "Advertising buys....you leniency from the media." Does it? Not sure about that. If so.....it is a bribe. Pay the cash directly to the media and skip ads.
So, I think I will let my son believe what he wants to, PR won't change his mind or the mind of a lot of people who just are pissed off by success.
No ad...no methinks not. In Elon we trust.
Brando
Active Member
Please tell us how your test drive of the VW bus turns out. Which year might that be?
As someone with experience in the matter I can guarantee you it buys you positive spins in media articles and even guides the media in terms of which articles they pursue. This is far from a utopia, companies and individuals are motivated by money, whether you want to call it a bribe or not, its the way the world works. Bottom line is if Tesla spends nothing and a bunch of other car/oil companies buy ads monthly do you really believe the people running these companies are unbiased? The proof is already quite prevalent in the media bias against Tesla.
Hugh-SG
Member
Gud'day Tom !! You hit the nail on the head mate. Well said.
I am about to retire next year and as our reflexes decline with the advancing years, I wanted a car that would help keep me safe, a car that would be low costing in both maintenance and refueling over the next 30 years, and most important, keep those I love who are riding along with me safe as well.
I was going to replace my 31 year old Toyota 4-Runner with another, given the superior Toyota engineering that enabled my 1st 4-Runner to last that long.
When I saw that Toyota was chasing the Hydrogen fuel dream, I started to look around and discovered the Tesla.
It was Sandy Munro and Assoc's. tear down analysis of the Model 3 that persuaded me to buy a Tesla.
It was the US Gov't's crash test video's of the Model-X and the numerous video's on YT that nailed down my desire to splurge and get the Model-X.
I just saw the announcement of Toyota doing a 180 in the road and are now going all electric.
Too late Mr. Toyota, you lost my business when you went Hydrogen AND you made the 4-Runner an automatic transmission. You turned that great truck into fuel guzzler so Tesla now has my money, and not you.
I wish you well Tom in your volunteer work. Giving back to the community by helping those who have made a mistake in there immediate past, to try and help shape those souls back into productive members of the community is something to be commended.
Best wishes, Hugh-SG
Brando
Active Member
One can imagine the cost of a "media campaign" to fight just ONE example of FUD against Tesla.
e-tron fastest charging vs Tesla Model X and Jag i-Pace
https://www.audiusa.com/its/?img=/content/dam/audiusa/Models/e-tron-2019/ModelPage/range-desktop (2).jpg&crop=0,0,2880,990&bp=1919&fit=2880&ar=freeform
Charging | Audi USA
Now what might be a more accurate view of the performance of charging?:
Sorry, Audi, But Tesla Model 3 Crushes Audi e-tron In Fast Charging Times (Charts) | CleanTechnica
A lot of variables - which model car, date designed/manufactured, which charger, temperatures (battery temp also) and things change fast.
Buyer beware. IF these times were really important to the buyer you must decide which cars to compare and well, compare them.
What effect can an ad campaign have?
The more you consider, seems to me, the more your realize the wisdom of spending money on continuous improvement vs ads.
Build a compelling product and the product will sell itself. Well, IF people actually get to see this product and compare it.
And that is where you actual owners are so important.
Thank you all for showing your Tesla to others. PRICELESS
e-tron fastest charging vs Tesla Model X and Jag i-Pace
https://www.audiusa.com/its/?img=/content/dam/audiusa/Models/e-tron-2019/ModelPage/range-desktop (2).jpg&crop=0,0,2880,990&bp=1919&fit=2880&ar=freeform
Charging | Audi USA
Now what might be a more accurate view of the performance of charging?:
Sorry, Audi, But Tesla Model 3 Crushes Audi e-tron In Fast Charging Times (Charts) | CleanTechnica
A lot of variables - which model car, date designed/manufactured, which charger, temperatures (battery temp also) and things change fast.
Buyer beware. IF these times were really important to the buyer you must decide which cars to compare and well, compare them.
What effect can an ad campaign have?
The more you consider, seems to me, the more your realize the wisdom of spending money on continuous improvement vs ads.
Build a compelling product and the product will sell itself. Well, IF people actually get to see this product and compare it.
And that is where you actual owners are so important.
Thank you all for showing your Tesla to others. PRICELESS
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