Musk's Surprise, Analyst: Tesla's Advertising is a Major Advantage

On May 18th, it was reported that after Tesla, an American electric vehicle manufacturer, held its annual shareholders' meeting, the company's plan to advertise was warmly sought after by investors. Tesla CEO Elon Musk later admitted that he was surprised by the enthusiasm shown by shareholders

On May 18th, it was reported that after Tesla, an American electric vehicle manufacturer, held its annual shareholders' meeting, the company's plan to advertise was warmly sought after by investors. Tesla CEO Elon Musk later admitted that he was surprised by the enthusiasm shown by shareholders.

Dan Ives, an analyst at investment bank Wedbush Securities, said investors' excitement is justified. In a report released on Wednesday, Ives stated that Tesla's advertising plan is a significant positive and can expand the company's visibility in the larger market. Ives stated in the report that "many parts of Tesla's product portfolio have been underestimated by investors. In addition to the company's expanding automotive and energy product portfolio, fully autonomous driving (FSD) functionality is also a potential major value-added tool." The report added that advertising can help the public gain a deeper understanding of Tesla's products.

Prior to Tuesday's announcement, Tesla had not conducted any advertising campaigns, but Musk would promote the company through his Twitter account and other social media platforms. Musk stated in an interview that the final decision to launch a marketing strategy was to answer a shareholder's question, and this decision was made at the time.

Although there is not yet time to develop a formal plan for advertising, Musk stated that advertising will focus on emphasizing Tesla's pricing and safety product information.

Ives also mentioned other favorable factors that may bring profit growth to Tesla.

It is worth noting that Musk recently hired Linda Yaccarino, a former advertising executive at NBC Global, as the CEO of Twitter. Ives stated that this is good news for Tesla shareholders. Last autumn, Musk's takeover of Twitter caused chaos, and investors were also frustrated by Musk's distraction and negative impact on Tesla.

The report states that Tesla's new car product was unveiled at Tuesday's press conference, which is crucial for accelerating the company's automotive business growth. Although Musk did not disclose details, he estimated that the annual sales of the new car product would reach 5 million units. Meanwhile, the long-awaited electric pickup truck Cybertruck is expected to be put into production this year.

Musk is also optimistic about the future of autonomous driving, and the application of artificial intelligence in Tesla products will also assist the company. The report states that Tesla's new generation of cars will reduce the factory footprint by half and will not require the use of rare earth metals.

Although Musk mentioned macroeconomic fluctuations next year, overall, we have heard more optimistic information. Musk believes that Tesla will continue to innovate in the coming year and demand is also strong, "Ives wrote in the report

On Wednesday, Tesla's stock price rose 4.41% to close at $173.86 per share. Wade Bush maintains an overweight rating with a target stock price of $215. (Chen Chen)