Tesla has been experiencing a notable increase in sales post-Super Bowl for the last few years, all without investing in traditional advertising during the event. As the leading electric vehicle (EV) brand now embarks on social media marketing, it aims to leverage the heightened interest around this time aggressively.
No updates for model Y this year
Before launching any promotional efforts, Tesla ensures its sales messaging is clear. According to information from Teslascope, Tesla has informed its delivery advisors that a Model Y update isn’t on the horizon for this year in North America. The memo shared internally highlights:
“We heard your feedback that some customers are waiting to place their Model Y order as they anticipate a refresh similar to Model 3. It is important that we communicate transparently that there is no refresh for Model Y launching this year. There is no better time for customers to start driving the world’s best-selling vehicle. “
This move reflects lessons learned from the Highland model’s introduction, where sales saw a dip due to anticipation of the new release. By dispelling rumours early, Tesla aims to maintain sales momentum, although it faces the ongoing challenge of managing leaks that can undermine the impact of new launches.
Discounts announced for model Y
In a bid to drive sales, Tesla has announced a price cut on the Model Y, with a $1,000 discount on the RWD and Long Range versions for the remainder of February 2024. The company is also offering attractive incentives, including complimentary transfers of the Full Self-Driving package, lifetime free Supercharging for early adopters, and extra discounts for those who reserved the Cybertruck early.
Tesla investor Gary Black commented on the situation, suggesting that a single Super Bowl advertisement might have significantly increased consumer interest in Tesla, potentially being more cost-effective than the discounts being offered. He calculated that with a $7 million investment for a 30-second commercial, selling an additional 875 vehicles (assuming a gross profit of $8,000 per car) would offset the advertisement costs. Black argues that the boost in consumer interest could surpass the costs associated with the advertisement, compared to Tesla’s current strategy of a $1,000 price reduction on the Model Y, which represents a $40 million expense for the month.
Tesla’s approach, characterized by clear communication and strategic pricing incentives, aims to sustain its sales momentum. This strategy is especially pertinent as competitors take to high-profile advertising channels like the Super Bowl to promote their EVs. Tesla, however, continues to rely on direct customer engagement and compelling offers to attract and keep its clientele.
