From Nasdaq:

Tesla, Inc. is reportedly resorting to advertising to boost sales as EV competition intensifies. Tesla investor Ross Gerber criticized the move to advertise on X, owned by Elon Musk. Despite facing challenges, Musk hopes to increase advertising revenue on the platform. X generated over $600 million in ad revenue in each of the first three quarters of 2023, a significant drop from 2022. Tesla stock closed at $185.10 on Tuesday, a 2.23% increase.

Tesla’s reluctance to advertise has puzzled investors, prompting questions from Future Fund’s Gary Black. Black believes that Tesla’s mission could benefit from advertising by educating non-EV owners about the benefits of EVs. However, skepticism remains about Tesla’s communication methods and advertising targets. Under Musk’s leadership, X has faced significant changes and decrease in advertising revenue.

While Tesla is reluctant to advertise, analysts and investors believe that advertising could benefit the company amidst increasing EV competition and slower adoption. However, recent paid advertising on X by Tesla did not impress longtime investor Ross Gerber. Elon Musk’s ownership of X has brought about significant changes, including workforce reductions and the introduction of a two-tier subscription model. However, the platform experienced a wave of advertiser exits due to support for anti-Semitic posts by Musk.



Read more: Ross Gerber Says ‘Tesla Is Providing Charity To X’ After Fans Go Gaga Over EV Giant’s Ads On Elon Musk’s Platform