While Elon Musk’s Tesla (TSLA) was once the most impressive automotive company in the world to those who embrace EVs, the brand has been going through some major struggles as of late.
First, there’s general public opinion of Musk, whose heavy involvement in President Donald Trump’s administration with his DOGE project has taken his focus away from Tesla. During its recent Q1 earnings call, Musk confirmed that Tesla profit dropped 71% in the first quarter, leading the CEO to promise he would step away from his work with DOGE to refocus on Tesla.
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Even without this, there’s been a general souring from many towards Musk since he aligned himself with Trump. As the billionaire has become more openly far-right, many on the left (and even a fair share of Republicans) have voiced concerns about his public behavior. Many Tesla owners are also offloading their cars, as they no longer wish to be associated with Musk’s brand.
Related: Experts sound alarm on Elon Musk’s misguided Tesla plan
Another issue Musk faces is demand — or lack thereof — for his Cybertruck. “Reports indicate that since the Cybertruck’s release, an event preceded by years of hype, Tesla has delivered less than 50,000 to date,” TheStreet reporter Samuel O’Brient said in a recent story.
Tesla is attempting to combat this issue by rebranding the Cybertruck as less of a futuristic vehicle and more of a working man’s option. However, EV industry veteran Joseph Nagle is far from convinced, telling TheStreet in an interview, “Very simply, it’s not a truck for the working man. It doesn’t feel like the tank that is the F-150. Those feel like they can take a beating and still keep going. The Cybertruck feels like a prop from a TV show.”
While Musk has faced all these issues with his typical bravado, promising yet more major changes this year, he continues to face intense skepticism — and this time from a trusted investor.
Investor Gary Black has some harsh words for Tesla CEO Elon Musk.
Image source: Ed McRedmond etfEd™ Advisory LLC
High-profile investor takes aim at Elon Musk
In a tweet shared on X on April 29, investment advisor Gary Black has some choice words for the Tesla CEO that he may not like hearing.
The tweet starts with a quote from Tesla’s recent earnings call.
“Elon Musk on the $TSLA 1Q earnings call: “I continue to believe that Tesla, with excellent execution, will be the most valuable company in the world by far. That’s an important if; we must execute well. But if we do execute well, I think Tesla will be the most valuable company in the world by far. It may be as valuable as the next five companies combined.”
Related: Elon Musk takes aim at Uber, Lyft with his latest big promise
Following this quote, Black goes on to pose a question that many others have discussed online in regard to Musk’s Tesla efforts.
“How does $TSLA become the most valuable company in the world without great marketing skills?” Black writes. “$AAPL built the most valuable consumer product in the world with iPhone with a good technology and great marketing skills.”
The account SpringTesla popped into the comments to disagree, saying, “I strongly disagree! Over the past 12 years, Apple has made significant strategic missteps. I wouldn’t claim Apple’s marketing surpasses Tesla’s. Tim Cook may excel as a manufacturing executive in a globalized environment, but his reliance on total globalization exposed Apple to high-risk situations, making adjustments only when compelled to do so.” Black was far from convinced, replying, “Market cap $AAPL $3.2T – #1 in the world. They must be doing something right.”
Tesla’s marketing problem
Rather than embrace any type of traditional marketing strategy, Tesla has relied heavily on word of mouth to sell its vehicles, with Musk proudly parroting that his company has allocated $0 towards marketing and advertising.
That worked when both Tesla and Musk held better public opinion, but as problems have piled up, the data shows they’ve clearly hurt the EV company. This has led Musk to backpedal on his $0 marketing strategy, running ads on X, the social media platform he owns. The Tesla official account on X has also become more active, sometimes using memes to promote the product, which feel in line with Musk’s sense of humor but not so much in line with potential buyers.
While Musk has made the lack of marketing a point of pride in the past, if he hopes to bring Tesla back from the low it’s fallen to, he may need to consider some new options.
Related: Elon Musk gets more bad news as rival launches the anti-Tesla
