Tesla Inc TSLA, a frontrunner in the electric vehicle industry, has seen immense success with its Model Y, one of the world's top-selling vehicles. Despite its long-standing avoidance of conventional advertising, the company is now embracing this approach to attract more potential customers.
What Happened: For years, Tesla has relied on a strong fanbase and word-of-mouth advertising to continue its quarterly growth in vehicle sales.
The company has been very different from traditional automakers, who often spend aggressively on commercials and print advertising to show off new vehicles and vehicle features.
Earlier this year, Tesla dove into the world of advertising using Google Ads in the United States and the United Kingdom.
The company is now targeting another country with an advertising strategy spotted by a user on Twitter, now known as X.
The user showed a video of a video ad from Tesla at the Tokyo Haneda International Airport in Japan. In the video ad, the company’s Model Y vehicle is shown along with features like Superchargers, Camp Mode and the Autopilot system, as shared by Teslarati.
The video ad also features a QR code that takes consumers to the Tesla website when scanned.
Related Link: Tesla Q2 Earnings Highlights: Revenue Beat, EPS Beat, Cybertruck Update And More
Why It’s Important: After shying away from advertisements, Tesla CEO Elon Musk has shared that the company plans to do “a little advertising,” a strategy that generated positive reaction from some analysts and experts who have been suggesting it for years.
Japan has a low market share of electric vehicle sales, but it has grown in recent years, including 2022, which saw EV sales triple year-over-year.
The Haneda International Airport is one of two that service the Tokyo market and among the top 20 airports by annual passenger traffic.
Advertisements in Japan could help grow brand name recognition in the region that has many domestic automakers with a strong market share.
The advertisements could also be part of Tesla’s overall advertising strategy to expand beyond its loyal fan base in attempts to grow annual sales by 50% going forward.
Benzinga previously reported on other electric vehicle companies advertising in the 2022 Super Bowl and attempting to bad mouth Tesla, which had a reverse effect, causing Tesla to trend on social media and resulting in a lift in sales the day after the big game.
TSLA Price Action: Tesla shares traded at $262.20 on Wednesday versus a 52-week trading range of $101.81 to $299.29.
Read Next: Tesla Bulls Cheer Elon Musk's Decision To Try Some Advertising
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