TSLA Stock Is Still King Despite Tesla Super Bowl Commercial Jabs
If there was one theme to be taken from the 2022 Super Bowl’s commercials, it was crypto. Ads of the day spotlighted companies such as FTX and Crypto.com (CRO-USD). While many viewers were enthralled by comedian Larry David’s performance, several electric vehicle (EV) producers also debuted commercials. One memorable ad was from Polestar, the EV brand that plans to come public in 2022 by merging with Gores Goggenheim (NASDAQ:GGPI). The company poked fun at Super Bowl commercials in general, but it took some not-so-subtle jabs at Tesla (NASDAQ:TSLA). More specifically, it took jabs at Elon Musk. If the recent performance of TSLA stock is any indication, though, the commercial hasn’t affected the company too much.
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What’s Happening With TSLA Stock
After a difficult end to last week, TSLA stock appears to be making up the ground it lost. It began the day by rising and, despite an earlier dip, has rebounded and is back in the green. As of this writing, it is up almost 2% for the day after rising 4% earlier. While TSLA remains in the red by 3.2% for the week, there’s certainly time for it to pull back into the green if this week’s growth continues.
Polestar, on the other hand, doesn’t have much to boast about. After calling out Musk, the company has watched GGPI shares fall while Tesla’s have risen. After a rocky start, GGPI stock is down 1.5% for the day. Despite an attempt to rebound, it is set to close out the day in the red. While it is still up 6.4% for the week, the day’s declines have pushed it down 0.98% for the month.
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Why It Matters
The Polestar ad doesn’t just make fun of Tesla. It begins by stating simply “No epic voice overs,” and goes on to state “No dieselgate. No dirty secrets. No hidden agenda.” The first thing listed is a clear nod to the Volkswagen (OTCMKTS:VWAGY) emissions scandal of 2019. A few seconds later, though, it states “No conquering Mars.” In that moment, the company’s ambition of criticizing its rival comes sharply into focus.
Fans were excited for Polestar’s Super Bowl ad debut. Unfortunately, it may have missed the mark, as the company has created as much buzz for Tesla as for itself. Shares are only up for one of those companies today, and it isn’t Polestar. It’s also bold of the tiny EV producer to take such a clear shot at the leader of its industry. The company clearly wants to paint itself as the picture of social responsibility in the EV sector. However, that doesn’t instantly make it a good investment. InvestorPlace contributor Josh Enomoto recently speculated that despite the company’s reasonably priced vehicles, inflation could easily work against it. Competition is also mounting all the while as other automakers work to concern the affordable EV market.
TSLA stock has seen plenty of obstacles lately, chiefly in the form of negative headlines. But through it all, the company is trading well today. Polestar, on the other hand, is down on a day when most of EV stocks are up.
What It Means
This scenario calls to mind an old proverb — if you’re going to strike the king, be prepared to kill him. Well, Polestar just struck the king of the EV sector, but it certainly didn’t kill him. And Musk is having the last laugh as TSLA stock responds to the ad by rising.
As a final note, conquering Mars may not be the negative thing that Polestar seems to think it is. Last week, Musk detailed some future SpaceX plans. In the past, major events from its sister rocket company have generated quite a bit of free buzz for TSLA stock, helping push it upward along with the spacecrafts.
Perhaps Polestar will reimagine its advertising strategy for future Super Bowls or similar events.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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