EV maker Tesla (TSLA) is trying to lift its slumping sales by urging drivers they need to buy now before tariff price increases hit the market.
Consumers Under Pressure
According to a report in the Financial Times, Tesla is “preying on consumer fears” that President Trump’s tariff trade policy will soon hit them in the wallets and purses. The FT has found that prospective buyers logging on to Tesla.com in Canada are being greeted with a yellow banner at the top of the site declaring: “Explore pre-tariff priced inventory while supplies last.”
Rival car maker Nissan’s luxury car brand, Infiniti, has reportedly offered similar messaging. “Invest in an Infiniti without new tariffs during the Once in a Springtime Event,” is the message on its U.S. website.
Although President Trump has softened the impact of tariffs on auto makers there are still concerns over the wider impact of the policy on the economy, inflation and consumer spending power.
“The appeal [of these messages] rest on a very real, rational and borderline certain concern that prices will rise dramatically and very soon,” said Adam Alter, marketing professor at New York University’s Stern School of Business.
Be Careful Around Messaging
Indeed, the FT suggests that the sales lift seen in U.S. retail in March could have been helped by fear marketing around tariffs. “It’s probably very effective messaging,” said Brian Wieser, a veteran advertising analyst and former WPP executive.
It is yet to have that desired effect on Tesla however with the EV maker reporting sluggish recent sales in the U.S. and globally. But that is largely down to other factors such as the reputation of chief executive Elon Musk and more intense competition.
Tesla and other companies also have to be careful on their tariff messaging given the furor this week around Amazon (AMZN) and its reported move to display the impact of tariffs on prices on its website.
That did not go down well with Washington describing it as a “hostile and political act.”
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