Investor Gary Black of The Future Fund LLC has criticized Tesla Inc.’s approach to marketing and public relations amid the controversy surrounding a fatal crash in Texas. In a recent post, Black lamented Tesla’s lack of a “proactive” PR strategy, stating that the media will serve up content that is spoon-fed to them, especially content that generates clicks.
“If Tesla invested in a proactive PR effort, the media couldn’t lie. The media will serve up content that is spoon-fed to them — especially content that generates clicks — and editors at the majors would be forced to include in the story any offsetting content by Tesla to balance it out.”
The Importance of Proactive PR
Black, who has previously managed multiple PR and ad campaigns, stressed the importance of communication for brands. “If you don’t put out your own proactive content, the media has no choice but to run with a one-sided story,” he said. Black also slammed bullish supporters of the EV giant, stating that most of them don’t get this basic concept.
“Most Tesla bulls who’ve never run an ad campaign or PR effort don’t get this basic concept. In a prior life, I managed numerous ad campaigns and PR efforts. The first step is to show up. If you don’t put out your own proactive content, the media has no choice but to run with a one-sided story.”
Journalists Complain About Tesla’s Lack of PR
Black mentioned that journalists he has interacted with often complain about Tesla’s lack of PR. He added that journalists would welcome someone from Tesla offering the other side of a story to balance it out, and that they do not naturally hate Tesla.
“I speak to many journalists about Tesla. Nearly all of them complain about Tesla’s lack of PR. No journalist wants to run a one-sided story and would welcome someone from Tesla offering the other side of a story to balance it out. Journalists don’t naturally hate Tesla.”
Elon Musk Clarifies Tesla’s Texas Crash
Following the crash, Tesla CEO Elon Musk, as well as the company’s AI lead Ashok Elluswamy, denied claims that the company’s Full Self-Driving (FSD) system was involved in the Texas crash. The crash, which happened when a Tesla Model 3 vehicle crashed into a home in Katy, Texas, resulted in the death of 76-year-old Martha Avila Mantilla. The National Highway Traffic Safety Administration (NHTSA) has launched a probe into the incident.
Tesla’s Safety Record Under Scrutiny
The safety regulator is already probing over 3.2 million Tesla vehicles amid an investigation into the FSD tech, which recently moved to the Engineering Analysis phase, a stage that usually precedes a recall. Tesla’s safety record has been under scrutiny in recent months, with many raising concerns about the company’s Autopilot system.
Price Action
Tesla shares fell 5.19% to $384.02 during pre-market trading on Wednesday. The company’s stock has been volatile in recent months, with many investors questioning the company’s valuation and growth prospects.
Conclusion
In conclusion, Tesla’s biggest issue isn’t Full Self-Driving, it’s poor public relations. The company needs to invest in a proactive PR effort to balance out the media’s narrative and provide a more accurate representation of the company’s story. By doing so, Tesla can improve its public image and build trust with its customers and investors.