It’s strange but true: Tesla Inc. has never advertised. Sure, they’ve released some hyped up videos from time to time on their YouTube channel. The company also holds a strong reputation for its salacious live reveal events every time a new vehicle comes to the forefront. However, the company still relies on the quality of its products and a word of mouth network effect to achieve sales and attention. Now, in a move completely new to the electric vehicle maker, Tesla Inc. plans to hold a shareholder meeting to vote on advertising efforts.
According to sources over at Business Insider, a single shareholder spearheaded the notion of advertising. Tesla shareholder James Danforth likes the idea of investing some of the company’s into advertising to increase awareness. As a holder of 850 shares, Danforth said he’d like to see the company spend “at least $50/car produced” on advertising “in order to increase brand and product awareness and interest.”
As hopeful as the proposal may seem, it’s lifespan seems limited. Tesla officials and directors already aim to squash the attempt. They have suggested that shareholders vote against the advertising proposal. Why? Well, they say the proposal “is based on an apparent misunderstanding of Tesla’s retail operations” and that Tesla continues to garner awards and recognition that function as publicity.”
