Gary Black Rejects Elon Musk-Led Tesla's Discount-First Communications Strategy: 'I Don't Think…'

Investor Gary Black has rejected Tesla Inc.'s (NASDAQ:TSLA) communications strategy, which was focusing on discounts rather than features.

Premium Brand

Quoting a post on the social media platform X by Tesla's official North American handle on Wednesday, which showcased that Tesla vehicles were available for under $40k, the investor shared his disappointment. "I don't think a strategy that leads with a discounted price for a premium brand like $TSLA is very smart," Black said.

He added that the Elon Musk-led company's communication and marketing should instead focus on "how Tesla EVs offer the greatest benefits to consumers," like range, charging, self-driving suite and more to consumers of other car brands.

Tesla's Unorthodox Marketing

The investor has, on several occasions in the past, criticized the automaker's lack of a robust marketing strategy, which often relies on Musk's relevance in pop culture to market its products. Black had earlier suggested ways in which Tesla could bounce back, including a "broad band awareness campaign."

Ross Gerber On Rivian

Meanwhile, Investor Ross Gerber of Gerber Kawasaki shared that he was pretty excited about Rivian Automotive Inc.‘s (NASDAQ:RIVN) upcoming R2 Crossover SUV, which would be priced at around $45,000 and is gearing up for a March 2026 reveal. Gerber hailed the RJ Scaringe-led brand, saying that it was leading the way for EVs in the U.S.

Benzinga Edge Rankings show that Tesla scores well on the Momentum metric and offers a favorable price trend in the Long Term.

Price Action: TSLA surged 0.72% to $428.27 at market close on Wednesday, but declined 0.18% to $427.52 during after-hours trading.

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