Tesla has sharply dialed back its advertising on X, trimming spend on the social network owned by its CEO to a negligible level, according to the company’s latest proxy filing. The disclosure shows early-year outlays in the low five figures and a prior-year total in the low six figures, putting the automaker on pace to spend almost nothing on X unless strategy changes.
The pullback is striking given the unique related-party dynamics and the company’s recent turn toward paid marketing after years of relying on word-of-mouth and product launches. It also underscores a practical shift: Tesla appears to be concentrating its dollars where it sees clearer intent and measurable conversions.
What the filing reveals
In the proxy, Tesla classifies ad purchases on X as a related-party transaction and spells out the totals. The company spent roughly $400,000 on X across the prior year, but only about $10,000 in the first two months of the current year. Tesla noted that pace was far below the comparable period a year earlier. The filing does not indicate whether spending meaningfully recovered after February.
By contrast, external transparency tools suggest Tesla remains active elsewhere. Google’s Ads Transparency database shows hundreds of live creatives spanning Search and YouTube, a signal that the automaker is prioritizing performance channels with stronger purchase intent signals and robust measurement. Tesla did not respond to a request for comment.
Why Tesla is dialing back on X
Return on ad spend: EV shopping skews high-intent and research-heavy. Search ads, comparison queries, and video walk-throughs routinely outperform broad social placements for driving configured orders and test-drive interest, according to agency strategists. Tesla’s digital-first sales funnel makes it naturally biased toward measurable, lower-funnel media.
Brand-safety headwinds: X has faced recurring scrutiny over content moderation. Major media-buying holding companies, including GroupM and IPG, have at times urged caution to clients. Even if CPMs are attractive, many marketers discount inventory with perceived safety or suitability risk, especially for big-ticket categories like autos.
Governance optics: Any dollar Tesla spends on X invites questions because the platform is controlled by the company’s CEO. Disclosing small or shrinking related-party spend simplifies proxy messaging and minimizes conflict-of-interest chatter at a time when investors are laser-focused on margins and execution.
Tooling and measurement: Advertisers also point to differences in audience targeting, third-party verification, and attribution fidelity across platforms. Compared with Google’s mature performance stack and YouTube’s full-funnel measurement, X’s buying interfaces and reporting have been a tougher sell for performance-driven campaigns.
Where the budget is going
Tesla’s mix appears to be consolidating around channels with clear shopper intent. Search queries for trims, incentives, and charging often convert efficiently to online configuration, which Tesla can retarget with owned CRM and email. YouTube has been a cost-effective bridge for feature education, safety demos, and software updates that benefit from longer-form video.
Industry trackers such as Sensor Tower and Vivvix have documented broad advertiser fluctuations on X across categories, while connected TV, retail media, and search continue to capture share. Against that backdrop, Tesla’s low outlay on X looks less like a political statement and more like a rational rebalancing toward channels that move units.
What it means for X—and for auto marketing
If the most prominent brand in the owner’s ecosystem isn’t meaningfully spending on X, it complicates the platform’s pitch to other automakers. Automotive is a marquee advertising category; cautious allocations there can ripple into broader perceptions of platform readiness for high-consideration goods.
For Tesla, the decision reinforces a disciplined, performance-first posture. Expect episodic bursts—around product refreshes or software milestones—but a continued emphasis on intent-heavy placements over broad social reach. The headline is simple: the checkbook is open, just not for X.