Great stuff!-To The Moon - Tiger Brokers Online Investing Community - To The Moon

5
Comment
Favorite

Cklvin
2021-08-19

Great stuff!

Tesla's Ad Spending May Go From Zero To Meaningful In 2025: How Will Margins Be Impacted?

Unlike traditional automakers, which aggressively spend on advertising, electric vehicle giant Tesla

Tesla's Ad Spending May Go From Zero To Meaningful In 2025: How Will Margins Be Impacted?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

5

Report

Comment

Top
Latest

empty

No comments yet

Most Discussed

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"magic":2,"id":831429220,"tweetId":"831429220","gmtCreate":1629341948660,"gmtModify":1676530008983,"author":{"id":4087965431046850,"idStr":"4087965431046850","authorId":4087965431046850,"authorIdStr":"4087965431046850","name":"Cklvin","avatar":"https://static.tigerbbs.com/6005df9be4235fa1ab7087f5e7a50ed2","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":6,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"extraTitle":"","html":"<html><head></head><body><p>Great stuff!</p></body></html>","htmlText":"<html><head></head><body><p>Great stuff!</p></body></html>","text":"Great stuff!","highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/831429220","repostId":2160758681,"repostType":4,"repost":{"id":"2160758681","kind":"news","weMediaInfo":{"introduction":"Stock Market Quotes, Business News, Financial News, Trading Ideas, and Stock Research by Professionals","home_visible":0,"media_name":"Benzinga","id":"1052270027","head_image":"https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa"},"pubTimestamp":1629341030,"share":"https://www.laohu8.com/m/news/2160758681?lang=&edition=full","pubTime":"2021-08-19 10:43","market":"us","language":"en","title":"Tesla's Ad Spending May Go From Zero To Meaningful In 2025: How Will Margins Be Impacted?","url":"https://stock-news.laohu8.com/highlight/detail?id=2160758681","media":"Benzinga","summary":"Unlike traditional automakers, which aggressively spend on advertising, electric vehicle giant Tesla","content":"<p><img src=\"https://s.yimg.com/uu/api/res/1.2/ujl8oNRbSxqq5vMjYQ.nIA--/cT03NTthcHBpZD15dmlkZW9mZWVkczs-/https://media.zenfs.com/en/Benzinga/f8071bb441937f6c0fff91a10827e648\" tg-width=\"600\" tg-height=\"400\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"></p>\n<p>Unlike traditional automakers, which aggressively spend on advertising, electric vehicle&nbsp;giant <b>Tesla, Inc. </b>(NASDAQ: TSLA) allocates virtually nothing for this avenue of promotion.</p>\n<p>Loup Funds'&nbsp;<b>Gene Munster&nbsp;</b>delved into the prospects of Tesla eventually warming up to ads and the likely impact on its margins.</p>\n<p><b>Will Tesla Advertise? </b> Tesla&nbsp;CEO <b>Elon Musk</b> is not a big fan of traditional advertising but has hinted recently that he prefers informational advertising that can provide potential buyers a better knowledge of Tesla products, Munster said in a note.</p>\n<p>Teslas have sold themselves until now thanks to a tech-focused customer base that has formed a passionate community around the brand, he said.</p>\n<p>Over time, as the uptake of EVs improves and more players enter the market, Tesla's market positioning will likely see dilution, the analyst turned tech venture capitalist said.</p>\n<p>\"Our best guess is that competition becomes more measurable in the next couple years and that Tesla starts advertising meaningfully in 2025,\" Munster said.</p>\n<p>The company will unlikely to turn to advertising ahead of the period, given supply has been the rare limiting factor for growth rather than demand, he added.</p>\n<p><b>The Margin Impact From Ads: </b> Tesla's advertising will likely be a \"slow lift\" and end up below&nbsp;auto industry'sevels, Munster said.</p>\n<p>As opposed to <b>General Motors Company </b>(NYSE: GM) and <b>Ford Motor Company </b>(NYSE: F), which spend about 2.5% of&nbsp;total revenue&nbsp;on advertising, Tesla will eventually spend about 1% or $1.5 billion of its revenue&nbsp;in 2025, the analyst said.</p>\n<p>This, he said, would equate to about $400 per vehicle.</p>\n<p>Taking out $1.5 billion in advertising expenses out of operating income, operating margins would decrease from 15.3% to 14.3%, according to Munster's projections.</p>\n<p>The margin impact, therefore, is measurable, yet moderate, he said. Increasing advertising spend will likely weigh on Tesla shares&nbsp;given that margins are a big piece of the Tesla story, the analyst said.</p>\n<p>\"In the end, we see Tesla's advertising advantage as durable for the short to medium term.\"</p>\n<p>At last check, Tesla shares were up 3.5% at $688.99.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tesla's Ad Spending May Go From Zero To Meaningful In 2025: How Will Margins Be Impacted?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTesla's Ad Spending May Go From Zero To Meaningful In 2025: How Will Margins Be Impacted?\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/d08bf7808052c0ca9deb4e944cae32aa);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Benzinga </p>\n<p class=\"h-time\">2021-08-19 10:43</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<p><img src=\"https://s.yimg.com/uu/api/res/1.2/ujl8oNRbSxqq5vMjYQ.nIA--/cT03NTthcHBpZD15dmlkZW9mZWVkczs-/https://media.zenfs.com/en/Benzinga/f8071bb441937f6c0fff91a10827e648\" tg-width=\"600\" tg-height=\"400\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"></p>\n<p>Unlike traditional automakers, which aggressively spend on advertising, electric vehicle&nbsp;giant <b>Tesla, Inc. </b>(NASDAQ: TSLA) allocates virtually nothing for this avenue of promotion.</p>\n<p>Loup Funds'&nbsp;<b>Gene Munster&nbsp;</b>delved into the prospects of Tesla eventually warming up to ads and the likely impact on its margins.</p>\n<p><b>Will Tesla Advertise? </b> Tesla&nbsp;CEO <b>Elon Musk</b> is not a big fan of traditional advertising but has hinted recently that he prefers informational advertising that can provide potential buyers a better knowledge of Tesla products, Munster said in a note.</p>\n<p>Teslas have sold themselves until now thanks to a tech-focused customer base that has formed a passionate community around the brand, he said.</p>\n<p>Over time, as the uptake of EVs improves and more players enter the market, Tesla's market positioning will likely see dilution, the analyst turned tech venture capitalist said.</p>\n<p>\"Our best guess is that competition becomes more measurable in the next couple years and that Tesla starts advertising meaningfully in 2025,\" Munster said.</p>\n<p>The company will unlikely to turn to advertising ahead of the period, given supply has been the rare limiting factor for growth rather than demand, he added.</p>\n<p><b>The Margin Impact From Ads: </b> Tesla's advertising will likely be a \"slow lift\" and end up below&nbsp;auto industry'sevels, Munster said.</p>\n<p>As opposed to <b>General Motors Company </b>(NYSE: GM) and <b>Ford Motor Company </b>(NYSE: F), which spend about 2.5% of&nbsp;total revenue&nbsp;on advertising, Tesla will eventually spend about 1% or $1.5 billion of its revenue&nbsp;in 2025, the analyst said.</p>\n<p>This, he said, would equate to about $400 per vehicle.</p>\n<p>Taking out $1.5 billion in advertising expenses out of operating income, operating margins would decrease from 15.3% to 14.3%, according to Munster's projections.</p>\n<p>The margin impact, therefore, is measurable, yet moderate, he said. Increasing advertising spend will likely weigh on Tesla shares&nbsp;given that margins are a big piece of the Tesla story, the analyst said.</p>\n<p>\"In the end, we see Tesla's advertising advantage as durable for the short to medium term.\"</p>\n<p>At last check, Tesla shares were up 3.5% at $688.99.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉","F":"福特汽车"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2160758681","content_text":"Unlike traditional automakers, which aggressively spend on advertising, electric vehicle giant Tesla, Inc. (NASDAQ: TSLA) allocates virtually nothing for this avenue of promotion.\nLoup Funds' Gene Munster delved into the prospects of Tesla eventually warming up to ads and the likely impact on its margins.\nWill Tesla Advertise?  Tesla CEO Elon Musk is not a big fan of traditional advertising but has hinted recently that he prefers informational advertising that can provide potential buyers a better knowledge of Tesla products, Munster said in a note.\nTeslas have sold themselves until now thanks to a tech-focused customer base that has formed a passionate community around the brand, he said.\nOver time, as the uptake of EVs improves and more players enter the market, Tesla's market positioning will likely see dilution, the analyst turned tech venture capitalist said.\n\"Our best guess is that competition becomes more measurable in the next couple years and that Tesla starts advertising meaningfully in 2025,\" Munster said.\nThe company will unlikely to turn to advertising ahead of the period, given supply has been the rare limiting factor for growth rather than demand, he added.\nThe Margin Impact From Ads:  Tesla's advertising will likely be a \"slow lift\" and end up below auto industry'sevels, Munster said.\nAs opposed to General Motors Company (NYSE: GM) and Ford Motor Company (NYSE: F), which spend about 2.5% of total revenue on advertising, Tesla will eventually spend about 1% or $1.5 billion of its revenue in 2025, the analyst said.\nThis, he said, would equate to about $400 per vehicle.\nTaking out $1.5 billion in advertising expenses out of operating income, operating margins would decrease from 15.3% to 14.3%, according to Munster's projections.\nThe margin impact, therefore, is measurable, yet moderate, he said. Increasing advertising spend will likely weigh on Tesla shares given that margins are a big piece of the Tesla story, the analyst said.\n\"In the end, we see Tesla's advertising advantage as durable for the short to medium term.\"\nAt last check, Tesla shares were up 3.5% at $688.99.","news_type":1},"isVote":1,"tweetType":1,"viewCount":420,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":11,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}