Tesla ads may be appearing on Google already. Here's why it is significant

  • Tesla has always avoided adveritising its electric cars. It has not had the need too. So what has changed now?
Tesla Model Y is the carmaker's second best-seller around the world with more than 11 units selling every hour.
Tesla Model Y is the carmaker's second best-seller around the world with more than 11 units selling every hour.

Tesla has long steered its path clear of advertising and instead, relied on its cult following to popularise its electric cars. But with mammoth ambitions and even bigger goals of selling more of its electric vehicles (EVs) across the world, the company has opted to test the waters of conventional marketing.

While Tesla CEO Elon Musk previously confirmed that his company would experiment with advertising in a small way, ads have reportedly already started appearing on Google. This has been confirmed by several netizens on Twitter which, interestingly, is also owned by Musk.

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It is reported that the Google ads seen primarily showcase hot-selling Tesla EVs like Model 3 and Model Y while also trying to popularise the company's supercharger network in the US and the UK.

It is believed by many that Tesla is now dabbling with advertising because Musk has set the company humongous goals. Of special note is the Tesla objective of selling 20 million EVs in 2030. This is a major challenge because while global demand for EVs is expected to rise significantly, it would also require Tesla production capacity to be increased manifold. What could also make the task at hand tougher is that rival EV manufacturers are making some very big moves in order to widen their respective portfolios of battery-powered cars.

Also watch: Tesla to launch in India: Will it impact Mercedes-Benz’ EV plans?

So advertising could just be what the fictitious doctor ordered. Tesla has previously avoided advertising entirely because - and according to Musk, it was felt the money spent on advertising was being utilised to develop better products. And there was no need for advertising either because even without it, the Model Y was the best-selling car in Q1 of 2023 while Tesla has a market cap in excess of $800 billion.

But even as rivals adapt and evolve to reduce the gap to Tesla, Tesla too may be aware that it has to adapt and evolve as well. The company is now looking at establishing plants in new locations while tapping into markets where its EVs are completely absent. Musk recently confirmed Tesla will make big investments in India while he was in China earlier this month too. While China is the world's largest EV market and Tesla plays a dominant game here, India could indeed provide a fertile ground for the company's expansion plans.

First Published Date: 29 Jun 2023, 10:00 AM IST

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