Elon Musk, the CEO of Tesla Inc, who is known for avoiding traditional advertising, announced on Tuesday that the automaker would experiment with it to gauge its effectiveness. Interestingly, Musk, who recently acquired Twitter, noted the irony of his position as the platform heavily relies on advertising.
Twitter is expected to be overseen by Linda Yaccarino, an advertising expert Musk hired last week. During Tesla’s annual shareholder meeting in Austin, Texas, Musk humorously endorsed advertising, suggesting everyone should try it.
His move to experiment with advertising is a strategy to bolster investor faith in Tesla amid increasing competition and a sluggish economy, leading to price cuts by the company.
Since Musk’s acquisition of Twitter in October, advertisers have left the platform due to concerns of their ads being displayed alongside unsuitable content, following Twitter losing nearly 80% of its workforce.
Despite his past resistance to advertising, even tweeting in 2019 about his disdain for it and preferring to spend on improving products, Musk acknowledged the need for more awareness about Tesla cars’ affordability and exceptional features.