Marketing strategy change planned TeslaHow Elon Musk announced that the company will advertisedfor the first time in its history.

“We’ll try some advertising and see what happens,” Musk said in response to a question from shareholders at the company’s annual meeting in Austin, Texas.

The public reaction was very positive. “I didn’t know people wanted it so much,” Musk later said.

Either way, this decision is a setback for Tesla and Musk. The billionaire CEO has insisted for years that Tesla doesn’t need publicity because the demand for vehicles already exceeds her offer.

“Tesla does not advertise or pay for endorsements (like having celebrities drive their cars). Instead, we use that money to make the product great,” he tweeted in 2019.

As Musk told CNBC after the AGM, he had no intention of placing the ad until he received this question yesterday.

One thing that has changed for Tesla is increased competition from other automakers, who have allocated a significant portion of their advertising budget to electric vehicles, even advertising cars that are not available for sale, CNN explains.

Increasing competition, coupled with rising interest rates, has prompted Tesla to lower the price of its vehicles this year. This price cut has reduced the company’s profits, although it remains more profitable than traditional automakers.

His acquisition Twitter it may also have played a role in Musk changing his mind about the value of advertising.

Prior to being acquired by the billionaire entrepreneur, the social media platform earned over 90% of its revenue from advertising. Of course, since the Twitter acquisition, advertisers have left the platform.