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Strategies & Market Trends : The Art of Investing

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Nov 21 4:00 PM EST

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To: kidl who wrote (3112)	1/1/2022 11:36:39 AM
From: robert b furman	Read Replies (1) of 10609

HI Kidl, Much of the OEM advertising is "built into" the invoice cost of a new vehicle's model price. The advertising credits are retained by the OEM's and rebated back to the franchised dealers upon submission of "correctly themed" new vehicle ads. To be part of a dealer advertising association is often strong armed upon the franchised dealers. It can represent up to 2% of the list model price of the vehicle. Incredibly that very often results in advertising expense actually exceeding the dealer's profit on a per new unit basis. When you see an ad that touts your "Texas Dealer Association" that's whose paying for the ad. To believe that Tesla does not advertise, is a bit naïve. They do have a new business model and it helps bury some of that advertising. Just what are the Tesla charging stations we see at grocery store parking lots? They no doubt are labeled as infrastructure, but they also darn sure have TESLA's name on them. Elon works many angles! Bob

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