Part 4/10:
A core point of contention in the discussion revolves around Tesla’s handling—or lack thereof—of advertising. Critics like Ross Gerber have argued that Tesla's reluctance to advertise is a missed opportunity, especially given the proximity to competitors who invest heavily in marketing. Musk counters this notion, asserting that advertising does not make cars more affordable but can induce short-term demand without solving fundamental affordability issues.
He pointed out that Tesla’s product improvements—constant software updates, better features, safety enhancements—add value over time. Musk also noted that Tesla has successfully relied on word-of-mouth and organic growth, but acknowledged that advertising could significantly accelerate demand, especially during price reductions.