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TSLA: Tesla to Try “a Little Advertising” in Shift from Decades-Long No-Ad Policy

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Tesla CEO Elon Musk told shareholders “advertising is awesome” as the carmaker struggles with rising competition.

Tesla just wrapped up its annual shareholder meeting and the biggest takeaway wasn’t Elon Musk’s expansion plans, Twitter succession, or upcoming products. It was ads. The eccentric billionaire and meme lord hyped up Tesla shareholders with a simple “we’ll try a little advertising and see how it goes.”

The news flashed mixed signals and here’s how you break it down. Tesla never ran any ads and always eschewed conventional marketing simply because demand always exceeded supply. But that was the case because Tesla was a small automaker and wasn’t churning out hundreds of thousands of cars every quarter.

In that light, the move to advertise could be seen as a testament that the bigger you get, the harder it is to sell out. And, if you are Tesla, the easier it gets to act more like a traditional company. Tesla stock (ticker: TSLA) is up just over 1% in off-hours trading and is riding on a 35% gain year-to-date.

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