Tesla has been actively creating and maintaining accounts on Elon Musk’s X, formerly known as Twitter, to the extent that the company is now estimated to be spending approximately $20,000 annually on the social media platform.
However, the purpose behind this expenditure remains unclear.
Publicly traded companies like Tesla are obligated to disclose any “related transaction” that might involve a conflict of interest between their executives or board members and other companies they have stakes in.
In the past, Tesla has disclosed its interactions with SpaceX, such as the shared use of Elon Musk’s private plane or SpaceX’s procurement of Tesla parts.
Now, Tesla finds itself in a position where it may need to disclose and potentially justify its increasing financial commitment to X (formerly Twitter), a platform owned by its CEO, Elon Musk.
X has been grappling with profitability challenges in the realm of advertising, prompting a shift toward subscription services. Twitter Blue, now rebranded as X Premium, offers a $8 per month subscription service, providing users with verification, a blue badge, and increased visibility.
In addition to X Premium, X is also promoting a subscription for businesses called “Verified Organizations,” offering similar features. However, this service comes at a significantly higher cost. X charges $1,000 per month for the primary account and an additional $50 per month for each “affiliated account.”
Tesla subscripition
Tesla has subscribed to this service, and it has been identified that there are 13 accounts affiliated with Tesla’s verified org account. This means that Tesla is spending $1,650 per month, or approximately $20,000 per year, to maintain its presence on X.
The situation raises eyebrows due to Tesla’s apparent creation of multiple new accounts, each incurring an extra $50 monthly fee, since Elon Musk assumed control of Twitter and introduced this subscription service. For instance, Tesla introduced a “Tesla North America” account last month, “Tesla Europe” in January, “Tesla AI” in May, “Tesla Megapack” in January, and “Tesla Optimus” also in January.
This approach is unique to X, as Tesla maintains only a single official account on other popular social media platforms like Instagram and YouTube.
For example, the “Tesla Optimus” account, created in January, has posted only a single tweet to date. Tesla has been paying $50 per month for this account, despite its minimal activity.
