Tesla spent $200,000 to advertise on X
Tesla has disclosed in a recent Securities and Exchange Commission (SEC) filing that it spent $200,000 in advertising on X. The company's advertising spending occurred throughout February 2024, although the exact start date remains undisclosed due to the lack of detailed breakdown in the filing. Since Elon Musk took over X, the platform has experienced a decrease in advertisers. Many have withdrawn their ads due to concerns about being associated with Musk's controversial comments.
Tesla's shift in advertising strategy amid market challenges
Despite Musk's 2019 assertion that "Tesla does not advertise or pay for endorsements, instead we use that money to make the product great," recent market conditions have necessitated a change. Slower than expected growth in demand for electric vehicles and rising interest rates have made car purchases more expensive, leading to Tesla's first year-over-year sales drop since the pandemic peak.
Tesla's security expenditure disclosed in SEC filing
The SEC filing also revealed other expenditures by Tesla. The company spent approximately $700,000 in 2023 and an additional $100,000 in early 2024 on aircraft operated by SpaceX. Additionally, Tesla has invested substantial $1 million so far this year with The Boring Company. The SEC filing also disclosed Tesla's security expenses. The automaker spent $2.4 million on security services in 2023 and about $500,000 more so far this year. These security services were provided by a Musk-owned security company.
