Musk Ends Tesla’s Marketing Plan with Costco Tesla CEO Elon Musk announced he has ended Tesla’s marketing plan with Costco. Musk did not explain why. He stated he “did not approve” the project. For most of its existence, Tesla’s marketing and advertising efforts have been limited. The company relied on its customers to promote its brand. However, this word-of-mouth strategy has not brought in enough new customers in recent years. In the past two quarters, Tesla’s delivery numbers have declined year-over-year. The company began to explore advertising and new marketing activities to reverse this trend.
Recently, Tesla launched a new marketing campaign. It partnered with retail giant Costco. Costco has a car division. It sells cars to its members and collaborates with automakers to offer purchase discounts. For example, General Motors has worked with Costco for years. It sells cars to Costco members and provides exclusive discounts and pricing options when consumers buy new cars. Unlike other Costco car programs, Tesla does not offer discounts to Costco members. However, it will reward the first 50 members who buy a Tesla through Costco. Rewards include free Supercharger miles and charging accessories.
