Tesla has dramatically slashed its advertising spend on X by 85%, on track to spend just $60,000 in 2025 compared to $400,000 in 2024, according to new SEC filings. The revelation comes as the automaker simultaneously paid $300,000 to CEO Elon Musk's brother Kimbal's drone company, raising fresh questions about Tesla's strategic priorities amid struggling sales.
Tesla just pulled back the curtain on a stunning reversal in its relationship with Elon Musk's X platform, revealing an 85% collapse in advertising spending that signals deeper troubles for both companies. The automaker spent a mere $10,000 on X ads in the first two months of 2025, putting it on track for annual spending of just $60,000 - a dramatic drop from the $400,000 it invested in 2024, according to new regulatory filings.
The spending collapse mirrors Tesla's broader cost-cutting efforts as the company faces mounting pressure from slowing EV sales and intensifying competition from Chinese manufacturers like BYD. During the same two-month period last year, Tesla had already committed $200,000 to X advertising, suggesting the company made a strategic decision to pivot away from Musk's platform despite his ownership of both entities.
This represents a complete about-face from Tesla's historic advertising stance. The company famously avoided paid advertising for years until Musk caved to shareholder pressure in 2023, telling investors that Tesla would "try a little advertising and see how it goes," according to previous earnings calls.
While Tesla has dramatically reduced its X spending, the company maintains a robust presence on Google's platforms, with approximately 700 active advertisements running across Search and YouTube, according to Google's Ads Transparency database. This selective approach suggests Tesla is prioritizing platforms that deliver measurable returns over supporting Musk's struggling social media venture.
The advertising pullback comes as X faces an advertiser exodus following Musk's controversial content moderation decisions and his public endorsement of antisemitic conspiracy theories. Major brands including , , and have fled the platform, creating a revenue crisis that Musk has publicly acknowledged.
