- Tesla is finally resorting to ads — something Elon Musk has avoided for years.
- The company upped its ad spending to $6.4 million in 2023, The Wall Street Journal reported.
- Investors are losing patience with Tesla amid stiff EV competition and managerial chaos.
Things are not going well for Tesla.
Between bad press about the electric vehicles themselves and the chaotic whims of Tesla CEO Elon Musk, Tesla's stock value has dropped this year by nearly 30%.
Tesla's sales have gotten so bad that the company has resorted to advertising — something Elon Musk famously said he can't stand.
"I hate advertising," Musk posted on Twitter, now X, in 2019.
Despite Musk's dislike for ads, the company spent some $6.4 million on them in the United States in 2023, The Wall Street Journal reported. That's compared to a paltry $175,000 in ad spending in 2022. Tesla's ads have touted its Model Y on Meta and Google, according to their respective ad libraries.
The company has faced competition from buyers who prefer a hybrid vehicle to a full EV, as well as companies offering incentives to switch, such as BMW's limited-time $1,000 reward for customers who trade in for its own EV.
Musk agreed to try advertising in May after the suggestion came up at a company shareholder meeting, The Wall Street Journal reported. Investors are reportedly losing patience with Tesla's performance and managerial chaos.
"We'll try a little advertising and see how it goes," Musk said, assuaging a meeting attendee who suggested Tesla lacks appeal to wealthy drivers seeking a more sporty car, according to The Wall Street Journal.
Tesla did not immediately respond to a request for comment from Business Insider on Saturday.
