Tesla's Ad Spend on X Shrinks to Almost Nothing Amid Struggling Sales
In a regulatory filing, Tesla revealed that its advertising expenditure on Elon Musk's social media platform X has plummeted to almost nothing in 2025. The automaker spent $400,000 on X ads in 2024 but is now on track to spend just $60,000 annually unless it significantly increases its ad spending for the remainder of the year.
According to the filing, Tesla spent only $10,000 on X ads in the first two months of 2025. This is a stark contrast to the same period last year when it had already spent $200,000 on the platform. The company's advertising spend slowed down considerably after those initial two months, with another $200,000 paid out across the remainder of 2024.
Tesla never used to advertise until CEO Elon Musk gave in to shareholder pressure in 2023 and said his company would try it out. Ads for Tesla's cars started appearing on Google results, YouTube, and X in late 2023 and early 2024. It is unclear if spending has picked up on X since February, but Google's Ads Transparency database shows that Tesla still has around 700 active advertisements across Google's properties like Search and YouTube.
The sudden decline in ad spend on X raises questions about the effectiveness of advertising on social media platforms for automakers. "Tesla's decision to reduce its ad spend on X may indicate that they are reassessing their marketing strategy," said Emily Chen, a marketing expert at UC Berkeley. "As social media platforms continue to evolve, companies need to adapt and optimize their ad spend to reach their target audience effectively."
The reduced advertising expenditure on X also comes as Tesla struggles with sales. The company's revenue has been impacted by various factors, including supply chain disruptions, rising competition in the electric vehicle market, and regulatory challenges.
Tesla did not respond to a request for comment on its reduced ad spend on X. However, the company's decision to scale back its advertising efforts on social media platforms may have implications for other automakers considering similar strategies.
As Tesla continues to navigate the complexities of the electric vehicle market, it will be interesting to see how the company adjusts its marketing strategy and whether it returns to its previous ad spend levels on X.
*Reporting by Techcrunch.*
