âThen why does Tesla advertise in Chinaâ
Gross margin and Ad ROI are both higher in China. Giga Shanghai COGS is much lower. Warranty costs are lower. Etc. etc.
âAnd why does SpaceX advertise?â
Gross margin is MUCH higher for Starlink.
Ad ROI is higher.
âNobody reads newslettersâ
- False
- Nobody watches ads
How many Ford and GM ads have you seen in the last year. Are they working on you?
Considering an alternative proposition:
SpaceX and Tesla, China both advertise. Therefore Elon understands that advertising works in some situations and that it doesnât work in other situations. Tesla doesnât advertise cars in America because it doesnât work in America.
Maybe you think General Motors and Ford are better run companies than Tesla? Should Tesla try to be more like them in other ways too?