Tesla’s ad spend on X has shrunk to almost nothing

Tesla's advertising expenditure on Elon Musk's social media platform X has significantly decreased, falling from $400,000 in 2024 to an anticipated $60,000 in 2025 based on early figures. This reduction comes after Tesla only recently began advertising in late 2023 due to shareholder pressure, while still maintaining a presence on Google's advertising platforms. The article also highlights other financial transactions between Musk-affiliated companies.

QUICK TAKEAWAYS

• Tesla's ad spend on X is on track to drop by over 85% in 2025 compared to 2024.
• The company spent $400,000 on X ads in 2024, but only $10,000 in the first two months of 2025.
• Despite reduced X spending, Tesla maintains a significant ad presence on Google's properties.
• Inter-company transactions reveal Tesla's payments for private jet use and security for Elon Musk, as well as significant sales of Megapack batteries to xAI.
• Tesla also paid Kimbal Musk's drone company $300,000 for an event show.

KEY POINTS

• Tesla's advertising on X totaled $400,000 in 2024.
• In January-February 2025, Tesla spent only $10,000 on X ads, projecting an annual spend of $60,000 if the trend continues. This is a sharp decline from $200,000 spent during the same period in 2024.
• Tesla still has approximately 700 active advertisements across Google's platforms like Search and YouTube.
• Tesla paid SpaceX $800,000 in 2024 for private jet use, but only $40,000 through February 2025.
• A security company owned by Musk received $2.8 million from Tesla in 2024, increasing from $2.4 million in 2023.
• xAI paid Tesla $198.3 million in 2024, primarily for Megapack battery storage products, and an additional $36.8 million in early 2025.
• Tesla paid Kimbal Musk's company, Nova Sky Stories, $300,000 for a drone show at its "We, Robot" event in October 2024.

PRACTICAL INSIGHTS

• Marketing Strategy Shift: Tesla appears to be de-prioritizing X as an advertising channel, potentially reallocating budget or re-evaluating its effectiveness, especially given its continued presence on Google/YouTube.
• Inter-company Financials: The reported transactions provide transparency into the financial relationships and dependencies between Elon Musk's various ventures, impacting both Tesla's operational costs and revenue.
• Cost Management: The reduction in private jet expenses paid to SpaceX suggests a potential tightening of inter-company travel costs.
• Revenue Generation: Sales of Megapack batteries to xAI highlight a significant revenue stream for Tesla from its energy division, supporting other Musk-owned companies.

PRACTICAL APPLICATION

Businesses, particularly those in the automotive or tech sectors, can observe Tesla's evolving marketing strategy to inform their own digital advertising decisions. Investors and market analysts can use these financial disclosures to better understand Tesla's operating expenses, inter-company transactions, and potential strategic shifts, especially concerning its relationship with Elon Musk's other companies and its advertising effectiveness. This data offers insights into how large, publicly traded companies manage advertising budgets and related-party transactions under close scrutiny.