Elon Musk Shakes Up Tesla: Major Layoffs and a New Marketing Strategy!

Tesla, the electric vehicle powerhouse known for its innovative approach to auto sales, has taken a drastic step by dismantling its entire US "growth content" team, according to Bloomberg.

by Faruk Imamovic
SHARE
Elon Musk Shakes Up Tesla: Major Layoffs and a New Marketing Strategy!
© Getty Images/Sean Gallup

Tesla, the electric vehicle powerhouse known for its innovative approach to auto sales, has taken a drastic step by dismantling its entire US "growth content" team, according to Bloomberg. This team, consisting of around 40 employees, was part of a broader initiative that Tesla has recently curtailed amid a wave of layoffs affecting more than 10% of its workforce.

The layoffs, communicated to many employees mere hours after Elon Musk's internal announcement, have sent ripples through the company. Tesla's decision comes on the heels of disappointing sales figures and lower-than-expected delivery numbers.

Despite these challenges, Tesla still maintains a small contingent of marketing personnel in Europe, suggesting a strategic pivot rather than a complete departure from promotional activities.

Musk's Marketing Experiment

Historically, Tesla has eschewed traditional advertising, relying instead on word-of-mouth and the substantial social media presence of its CEO, Elon Musk.

With over 181.5 million followers on X (formerly Twitter), Musk's influence has been a cornerstone of Tesla's marketing. However, a shift occurred last May when Musk, at a shareholder meeting, announced a tentative move towards advertising.

"We'll try out a little advertising and see how it goes," he stated, signaling a potential shift in strategy to align more closely with conventional corporate promotional tactics. This pivot to advertising was driven by pressure from Tesla investors, with comparisons being drawn to tech giant Apple's marketing approach.

The first fruits of this new direction appeared last year with what was reported as Tesla's inaugural advertisement. The move was met with mixed reactions, including criticism from Musk himself. Responding to a comment on X about the layoffs, Musk agreed with a user's critique of the ads being "too generic" and unremarkable.

The Future of Tesla's Marketing

As Tesla prepares to report its latest quarterly earnings, the market is watching closely. The recent decision to slash vehicle prices, coupled with the layoffs, suggests a strategic recalibration as the company navigates through economic uncertainties and shifts in consumer demand.

While the future of Tesla's marketing efforts remains uncertain, the company's ability to adapt and innovate continues to be watched by both supporters and skeptics. The coming months will likely be telling as to how Tesla will balance its pioneering technology and production challenges with the need to bolster its market presence through more traditional advertising avenues.

Elon Musk Tesla
SHARE