Gary Black, Managing Partner of The Future Fund, engaged in a very interesting debate on Twitter about whether an efficient PR (public relations) team can help drive a company’s brand and counteract negativity. For obvious reasons, the crux of the discussion was focused on Black’s personal favorite electric vehicle (EV) maker, Tesla (TSLA).
The debate started with CEO Elon Musk’s email regarding reducing salaried headcount by 10% due to overstaffing. While Black noted that the layoffs did not include PR team members, he believes that competitors and the media constantly try to tarnish the company’s image.
Meanwhile, twitter users have mixed opinions on the issue. While some tweeted that Musk has already equipped a legal team to deal with matters, others believe that a proactive PR team can handle things much differently than a reactive legal team.
Black is astonished by the fact that TSLA investors want it both ways; first, they aren’t willing to spend $1 million a year on a PR team, and then they complain every time the media gets a Tesla story wrong.
Replying to Black, Ross Gerber, Co-Founder and CEO of GK ETF and a self-proclaimed Tesla fan, believes that a PR department cannot help change the narrative that is built by the media. “Elon is on twitter and answers questions. You think the “PR” dept would stop fake news and attacks. Never,” Gerber said.
Gerber also believes that advertising controls the media in today’s times, and even hiring a PR team by paying huge fees will not stop the media and haters from writing the wrong stories about Tesla.
While Gerber believes that experts like himself and Black can influence the masses and change the narrative, several see the need to hire an efficient PR team to change the course of narratives. A few even noted that instead of hiring PR, the company must invest more in building superior products, which will eventually cut out any negative publicity.
Compared to the small costs involved in hiring PR, it takes years and even higher costs to counteract the negative image created by one incident.
On a separate note, Black also believes that Tesla needs a stronger Board to steer the company effectively. Black has openly questioned Musk’s take on PR, Bitcoin (BTC-USD), Full Self Driving (FSD), and even the Twitter (TWTR) takeover. “I’ve been right more often than wrong on $TSLA. Elon is brilliant and the richest man in the world but he’s not infallible. $TSLA needs a stronger Board,” he quoted.
