Tesla has confirmed that it spent $200,000 in advertising on Elon Musk's X, previously known as Twitter, up to this point.
Over the years, Elon Musk has made it clear that he has an intense opposition to advertising.
Tesla Spent $200K for Elon Musk's X
According to his statement, Tesla does not offer any special payment or discounts to celebrities for driving its cars, and they do not engage in paid advertising, although there have been a few exceptions in the past.
Tesla fans and investors have frequently proposed that the company give it a shot, but the CEO consistently resisted the notion - even expressing a strong dislike for advertising, according to Electrek.
Curiously, a shift occurred once Musk acquired Twitter, a platform heavily dependent on advertising. Several months following Musk's acquisition of Twitter, Tesla recently conducted its annual shareholders meeting where the CEO was questioned about the possibility of Tesla venturing into advertising.
The CEO then made an announcement that Tesla would indeed begin advertising.
There were suspicions that this move could potentially involve a transfer of funds from Tesla to Twitter. Tesla has already begun paying for more than a dozen premium accounts on Twitter.
Last year, Tesla began using targeted ads on Google, but chose not to engage with Twitter, now X.
There were concerns about Tesla's decision to advertise on X due to potential conflicts of interest. Additionally, Musk himself acknowledged that it would be redundant to target an audience that is already familiar with the brand.
Tesla Ads on X
Several users have noticed the appearance of Tesla ads on X beginning in February 2024.
In 2023, Tesla made a payment of approximately $50,000 to X, and continued to provide financial support of around $30,000 through February 2024 for various agreements related to commercial, consulting, and support services.
In a similar vein, X made a payment of $1 million to Tesla in 2023, followed by an additional $20,000 through February 2024 for the same undisclosed services, according to Tech Crunch.
Tesla has not provided specific details about the agreements, but it has been reported that the companies have exchanged or loaned employees. This occurred after Musk acquired X and started prioritizing the development of AI products in both businesses.
Throughout the years, Musk's various companies have consistently been involved in similar transactions, and 2023 was no exception.
According to the proxy filing, SpaceX made payments to Tesla totaling $2.1 million in 2023 and around $800,000 through February 2024. These payments were made in relation to specific commercial, licensing, and support agreements with Tesla.
Meanwhile, Tesla made payments to SpaceX totaling $700,000 in 2023 and $100,000 through February 2024 for the utilization of a corporate jet owned by Musk's space company.
In 2023, Tesla contributed $200,000 to support Musk's tunneling endeavor, The Boring Company. Additionally, they provided a further $1 million through February 2024.
Interestingly, in December 2023, Tesla announced that it had enlisted the services of a security company owned by Elon Musk. The company was hired to provide security services for him, specifically in relation to his responsibilities and work at Tesla.
According to the company, expenses amounted to $2.4 million in 2023 and approximately $500,000 as of February 2024. It is noted that this represents only a fraction of the overall expenses related to security services for Elon Musk.
In recent financial reports, Tesla disclosed that it received $11.5 million in 2023 and approximately $6 million through February 2024 from Redwood Materials, an EV battery recycling company. Redwood Materials is led by JB Straubel, a member of Tesla's board and former CTO.
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