Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: kidl who wrote (3112)	1/1/2022 11:36:39 AM
From: robert b furman	Read Replies (1) \| Respond to of 10604

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

To: kidl who wrote (3112)	1/1/2022 12:20:14 PM
From: Sun Tzu	Respond to of 10604

Tesla is "software as a car". I seriously doubt that there are many (any?) auto companies that will be able to challenge Tesla on this front. VW would be the best bet to pull it off. I have a lot of cross-industry experience dealing with high tech as it applies to manufacturing, media, finance, etc. People who have not worked in software, and this includes the upper management, simply do not get the extremely important role that culture and community plays in software development. They think it is a production assembly line rather than the human centered activity that it is. So my expectation is that Tesla will take a hit as other competitors enter the market and EV becomes main stream. At that point it will be natural for Tesla to advertise how much better they are. But once it becomes obvious how wanting the new entrants are relative to Tesla, Tesla will pick up. As for including Elon's tweets or Tesla logo on their charging stations, I hope those were tongue in cheek. It's not as if other CEOs do not receive options and cannot twit or that they do not fund products carrying their logo.