Electric vehicle maker Tesla has spent $200,000 on X advertising in the past year, a significant expansion for a company not known for such marketing.
According to the company’s annual statement released to shareholders Wednesday, Tesla bought $200,000 worth of advertising on X through February. The spending is part of what the document calls “commercial, consulting and support agreements.”
The proxy offers a glimpse into Tesla‘s new advertising effort. It began last year after the electric vehicle giant’s shareholders urged CEO Elon Musk to start spending on advertising to boost sales. Tesla famously shunned ads in the past, maintaining that demand was high enough so it didn’t need them.
However, as demand for EVs slowed and competition rose, Tesla management demanded changes like price drops and advertising.
The proxy also reveals the interconnected nature of Mr. Musk‘s companies. In the Related Persons section, the proxy shows how Tesla makes and receives payments to X, Boring Co. and SpaceX. The payments typically number in the hundreds of thousands of dollars and go to things like procuring a private jet, a security detail for Mr. Musk and Boring’s Las Vegas tunnel project.
Tesla‘s ad spending on X comes as it struggles with slumping advertising revenue. Mr. Musk contends that most advertisers have returned since he bought the platform, but some independent studies suggest most of X‘s biggest advertisers are staying away.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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