ADVICE – Synthetic engine The company told CNBC on Friday that it will be suspending its advertising on Twitter after Elon Musk takes over the social media platform.
Detroit automaker, rival of electric car maker led by Musk Teslasays it’s “pausing” advertising as it evaluates Twitter’s new direction. GM will continue to use the platform to interact with customers but not to pay for advertising.
“We are interacting with Twitter to understand how the platform will work under their new ownership. As a normal business process with a significant change in the communication platform, we have paused advertising. Our paid customer service interactions on Twitter will continue,” the company said in an emailed statement.
Under CEO Mary Barra, the Detroit company was one of the first automakers to announce billions of dollars in spending. to better compete with Tesla in the battery electric vehicle segment.
A General Motors sign is seen during an event on January 25, 2022 in Lansing, Michigan. – General Motors will create 4,000 new jobs and retain 1,000 people, and significantly increase its capacity to produce battery cells and electric trucks.
Jeff Kowalsky | AFP | beautiful pictures
Spokesperson for Ford Motor, another Tesla rival, told CNBC that the automaker does not currently advertise on Twitter and did not do so prior to Elon Musk’s personal deal. They added, “We will continue to evaluate the direction of the platform under new ownership.”
However, when presented with a screenshot of a promotional tweet from Ford CEO Jim Farley, the spokesperson was unable to confirm the last time Ford or its associates were able to pay for advertising, including including promotional tweets, on the platform is when.
Ford is continuing to engage with its customers on Twitter.
Other auto companies, including Rivian, Stellantis and Alphabet-owned Waymo, did not immediately respond to requests for comment on whether it plans to suspend advertising or discontinue use of the social media platform in the wake of Musk’s incident. $44 billion buyback of Twitter.
Electric truck manufacturer Nikola said it has no plans to change anything related to the platform.
The future direction of Twitter is at the heart of the takeover story. Musk has said he is a “liberalist” who will restore the account of former President Donald Trump, who was banned from his tweets during the January 6 Capitol uprising. year 2021.
Musk said on Friday that he planning a “content moderation board” and will not reinstate any accounts or make major content decisions before it is subpoenaed. Musk also said in a statement to advertisers this week that he can’t let Twitter be the a “free hell scene for all.”
Henrik Fisker, CEO of EV startup Fisker Inc., deleted its Twitter account earlier this year when the Twitter board accepted Musk’s bid to acquire the company and made it private. Fisker Inc. continue to use Twitter, which every major auto brand uses for customer engagement and marketing.
Musk has long boasted that Tesla doesn’t pay for traditional advertising, a cost that has increased for conventional automakers’ brands over the years.
Instead, Tesla rewards executives or members of the Tesla owners club as well as other social media influencers who promote the company’s products, stock, and Musk. on social networks, especially Twitter and YouTube, as well as on fan blogs.
They are often given early access to Tesla products, such as the company’s Full Self Driving Beta software, and are given tickets to company events when attendance is limited.
In September 2020, Tesla considered a shareholder proposal to begin strategic, paid advertising to educate the public about its vehicles and charging network. Tesla’s board of directors recommended it not, and shareholders voted with the board to start paying for traditional advertising campaigns.
In the company’s annual report for 2021, Tesla wrote: “Historically, we have been able to create significant media coverage of the company and our products, and we believes we will continue to do so. The key drivers of potential customers and have helped us achieve sales without traditional advertising and with relatively low marketing costs.”
It reported marketing, promotional and advertising expenses as “non-material” for the years ending December 31, 2021, and 2019 in financial filings with the Securities and Exchange Commission.
– John Rosevear of CNBC contributed to this report.
