Editor’s Note: The stock market is closed today in observance of Memorial Day.
Even though the markets are closed today, there’s always something to keep an eye on, and that something is Tesla (TSLA).
Shares have surged more than 24% over the past month.
They’re now closing in on the pivotal 200-dollar mark, gaining more than 7% on Friday alone.
This sharp rally appears to be fueled by a series of strategic shifts that could redefine the trajectory of the electric vehicle (EV) titan.
Notably, CEO Elon Musk has announced that Tesla, famously averse to traditional marketing, is ready to “try advertising” for the first time.
What’s more is that, in a move that extends Tesla’s influence in the EV industry, rival Ford (F) has inked a deal with the company to grant its EV customers access to Tesla’s vast (and unmatched) Supercharger network.
Here’s what we know so far about these potentially game-changing developments…
What to Know: Tesla’s Advertising Pivot
Tesla, which has famously renounced traditional advertising thanks to Musk’s notorious aversion, is set to “try advertising” in a new strategy shift.
Investors are thrilled: The announcement was made at Tesla’s recent annual shareholder meeting, where Musk noted unexpected enthusiasm from investors about the move towards advertising. He clarified that this would be a trial period.
Oh, the irony: Musk acknowledged the irony in the decision, given his past criticisms of other automakers’ heavy reliance on advertising. Tesla has traditionally prioritized using funds for product improvement rather than promotion. That’s in stark contrast to automakers, some of which can spend up to $4,000 per vehicle on advertising.
A hefty demand trigger: The move towards advertising comes as Tesla seeks to boost demand to align with its increased production capacity. On top of its 2023 price-slashing campaign, advertising will add more fuel to the fire.
Ads with a twist: Musk is known to go against the grain. His ads will too. In a follow-up interview, Musk suggested that Tesla’s ads could be “informative and entertaining,” focusing on some of the automaker’s lesser-known features. This approach aligns with Musk’s belief that if ads approach content in this way, they can be more effective.
Could this be the first ad?
Drive to believe——why she chose Tesla? ❤️ pic.twitter.com/LXtGl15QUy
— Tesla Asia (@Tesla_Asia) May 19, 2023
What to Know: Ford Joins Forces with Tesla
Following the Biden administration’s announcement that Tesla’s Supercharger network would be opened to non-Tesla electric vehicles, Ford has reached an agreement with Tesla as of this week.
The deal will grant Ford’s EV customers access to approximately 12,000 Supercharger stations across North America, giving them unprecedented access to the largest network of fast chargers in the U.S. and Canada.
Adapter software integration: Starting in 2024, customers of Mustang Mach-E, F-150 Lightning, and E-Transit will be able to use Tesla Superchargers through an adapter and software integration.
Ford now playing to Tesla’s standard: As part of the partnership, Ford is swapping its Combined Charging System (CCS) charger port for Tesla’s North American Charging Standard (NACS) on all new models starting in 2025. This move indicates that future Ford EV owners will not require an adapter for Superchargers after 2025, making Ford the first major automaker to adopt Tesla’s NACS.
The Bottom Line
Teaming up with Tesla was a step in the right direction for Ford, who was already struggling to keep up in the EV race. But the company still has a lot of ground to make up.
We remain bullish on Tesla as the ONLY reasonable play in the booming EV sector.
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Until next time,
Andy Swan
Co-Founder