Musk admits Twitter advertising business struggles, Tesla will invest in advertising market

Tesla announced an important change at its shareholder meeting on May 17. Tesla CEO Elon Musk said Tesla will try to invest in advertising, marking a change in the company's strategy of going ad-free for the past 20 years.

Tesla has not invested a lot of money in advertising like other competitors, but mainly relies on Elon Musk's personal free publicity. At the same time, the company has also achieved continued growth through word-of-mouth and incentivized referrals. However, as Musk took charge of Twitter and made changes to its content moderation program, he began to realize the importance of the advertising business.

Similar to other social media companies, Twitter’s main source of revenue is advertising. However, after Musk took over Twitter, some advertisers pulled out due to concerns about his content moderation plans, causing Twitter's advertising revenue to plummet. Musk revealed that Twitter recently lost $40 million after two advertisers expressed dissatisfaction with their ads being labeled with misleading labels.

According to ITBEAR Technology Information, Musk acknowledged that Twitter’s advertising business is facing difficulties and said Tesla will try to invest in advertising to deal with existing challenges. He noted that advertising could be beneficial by showing off some of the hidden features of Tesla models. Musk said: "We will try to run some ads and observe the effect."

Musk owns Twitter as Tesla's marketing tool, and Twitter's main source of revenue is advertising. New Twitter CEO Linda Yacarino is expected to focus on Twitter’s advertising business. She was a former NBC Global Head of Advertising at Universal. The move allows Musk to focus on brand design and new technologies.

Although Musk has claimed for years that Tesla's cars are in short supply and advertising is unnecessary, his attitude toward advertising has changed. Tesla decided to launch an advertising campaign aimed at increasing market size and highlighting the uniqueness of its products. This incident has a major transformational significance for Tesla and Musk, and will also have a profound impact on the company's marketing strategy.

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