Tesla Spends $6 On Advertising Per Vehicle; The Industry Average Is $1,000
Tesla Motors Inc (NASDAQ: TSLA) has gotten a lot of criticism for its aggressive spending in recent years, but there is certainly one thing that the company is not overspending on: advertising.
In a new email to investors, Global Equities Research analyst Trip Chowdhry discussed one astonishing metric about Tesla’s young business that should give Tesla bulls reason for optimism.
While other car companies are spending between $248 and $3,325 in advertising per car sold, Tesla is spending just $6 per car.
“Tesla Power and Leverage is unprecedented,” Chowdhry told investors. “$6 of Ad Spent per Vehicle for the product generating more than $8 Billion in revenues and more than $14 Billion in bookings is unheard of in the Industry.”
According to Global Equities Research, Toyota Motor Corp (ADR) (NYSE: TM) and Honda Motor Co Ltd (ADR) (NYSE: HMC) have the next lowest average ad costs per vehicle in the entire auto industry at $248 and $258, respectively.
Chowdhry remains extremely bullish on Tesla and has a $385 price target for the stock.
Disclosure: The author holds no position in the stocks mentioned.
Latest Ratings for TSLA
|Oct 2016||Goldman Sachs||Downgrades||Buy||Neutral|
|Sep 2016||Cowen & Co.||Initiates Coverage on||Underperform|
|Jun 2016||Argus Research||Downgrades||Buy||Hold|
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