Part 5/10:
The Power of Price Reductions as a Marketing Tool
Musk highlighted Tesla’s frequent price cuts as a form of de facto advertising—each adjustment garners extensive media coverage, effectively serving as free promotion. For instance, price reductions for models like the Model Y in the US routinely trigger widespread media attention, thereby elevating brand visibility without traditional advertising budgets.
He suggested that a modest investment, such as $50 million in advertising, could dramatically amplify demand, especially when tied to promotional strategies like time-sensitive subsidies or discounts in specific regions. For example, a subsidy expiring on April 17th in Oregon could be effectively promoted as a last-chance opportunity, providing a cheap and powerful advertising hook.