Tesla Marketing Strategy Crisis: Gary Black’s Urgent Warning to Elon Musk

Tesla marketing strategy debate: Gary Black urges Musk to boost brand equity; FSD take rate at 15%

In a bold and public challenge to one of the world’s most famous CEOs, investment advisor Gary Black has declared that Tesla’s current Tesla marketing strategy is its Achilles’ heel. In an era defined by artificial intelligence and fierce competition, Black argues that even the most groundbreaking technology—like Tesla’s Full Self-Driving (FSD) system—is doomed without a customer-first marketing approach. His message, delivered with a powerful quote from Apple’s late founder, is a wake-up call for the entire electric vehicle industry.

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Gary Black’s Message to Elon Musk: A Steve Jobs Reminder

Gary Black, a well-known investor and managing director, took to social media to deliver a pointed message to Elon Musk. He quoted Steve Jobs’ famous philosophy: “You start with the customer experience and work back toward the technology – not the other way around” . This wasn’t just a nostalgic reference; it was a direct critique of Tesla’s long-standing aversion to traditional advertising and structured marketing campaigns.

Black’s core argument is simple yet profound: in today’s AI-driven market, superior engineering is table stakes, not a differentiator. To unlock its full intrinsic value, Tesla must invest heavily in building its brand equity—the emotional connection and trust customers have with the brand beyond its products .

The FSD Take Rate Problem: A Symptom of a Larger Issue

Black points to a critical data point as evidence of Tesla’s marketing shortfall: the FSD take rate. Despite years of development and significant technological advances in unsupervised autonomy throughout 2025, the take rate for FSD sits at just 15% for new vehicle buyers .

This statistic is particularly jarring when you consider the price tag—$8,000 for a one-time purchase or $99 per month for a subscription . For a feature that is central to Tesla’s future robotaxi ambitions, such low adoption is a major red flag. It suggests that many customers either don’t understand the value proposition, don’t trust the technology, or simply aren’t being effectively persuaded to buy in.

It’s worth noting that the take rate is significantly higher—above 50%—for the premium Model S and X lines , indicating that the issue may be more pronounced in the mass-market segments where clear communication and trust are even more critical.

Why Brand Equity Is Tesla’s Missing Ingredient

Tesla has built its reputation on a foundation of innovation, disruption, and the cult-like following of its CEO. However, this organic, almost anti-marketing approach may have reached its limits. As the EV market matures and competitors like BYD, Rivian, and legacy automakers flood the space with compelling alternatives, Tesla can no longer rely solely on its first-mover advantage.

Building strong brand equity through a deliberate Tesla marketing strategy would help in several key ways:

  • Clarifying Value:** A robust marketing campaign could clearly articulate the benefits and safety of FSD, moving beyond technical jargon to real-world use cases.
  • Building Trust:** Consistent, professional messaging can foster greater consumer confidence in Tesla’s long-term vision and reliability.
  • Justifying Premium Pricing:** Strong brand equity allows a company to command higher prices, as customers are paying for the brand promise as much as the product itself—a lesson straight from Apple’s playbook .

Tesla vs. Apple: What Musk Can Learn from Jobs

The comparison between Tesla and Apple is not new. Both companies are known for vertical integration, a focus on seamless user experiences, and a business model that is increasingly shifting from hardware to high-margin software and services .

However, their marketing philosophies diverge sharply. Apple, under Jobs, was a master of creating desire and anticipation through meticulously crafted product launches and advertising. Tesla, under Musk, has famously spent $0 on traditional advertising, relying instead on earned media, social media buzz, and Musk’s own personal brand .

Black’s invocation of Steve Jobs is a plea for Musk to adopt a more holistic view. It’s not about abandoning engineering excellence; it’s about wrapping that excellence in a customer experience that is intuitive, desirable, and well-communicated.

Future Implications for Tesla’s Stock and Market Position

For investors, the stakes are high. Analysts believe 2026 is a “defining year” for Tesla, hinging on the successful launch of its unsupervised FSD and the scaling of its robotaxi network . If the current 15% FSD take rate is any indication, achieving mass adoption will be an uphill battle without a strategic marketing overhaul.

A failure to connect with a broader audience could cap Tesla’s market valuation, preventing it from reaching the ambitious $3 trillion mark some bullish scenarios predict . Conversely, embracing a more proactive Tesla marketing strategy could be the catalyst that unlocks its next phase of growth.

Conclusion: Engineering Meets Empathy

Gary Black’s urgent advice to Elon Musk is a pivotal moment for Tesla. The company stands at a crossroads: continue down the path of pure engineering-led growth, or evolve to meet the customer where they are. In the words of Steve Jobs, it’s time to start with the customer experience and work backward. For a company that has redefined an entire industry, this might be its most important innovation yet.

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