Ross Gerber Says 'Tesla Is Providing Charity To X' After Fans Go Gaga Over EV Giant's Ads On Elon Musk's Platform
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) has initiated a paid advertising campaign on X, featuring the Model Y EV. This move comes as Tesla faces challenges with slowing EV adoption and increased competition. The ad highlights the Model Y's features and the $7,500 EV subsidy. However, the decision to advertise on X, owned by Elon Musk, has drawn criticism, including from longtime investor Ross Gerber, who questioned the effectiveness and purpose of such advertising on X.
February 07, 2024 | 6:31 am
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Tesla's decision to launch a paid advertising campaign on X for the Model Y EV has sparked debate among investors and analysts. While some see it as a necessary step to boost EV adoption, others, including Ross Gerber, criticize the move, especially given the platform's ownership and recent advertising revenue challenges.
The impact of Tesla's advertising on X on its stock price is uncertain. While advertising could potentially increase awareness and sales of Tesla's EVs, criticism from investors like Ross Gerber and the peculiar nature of advertising on a platform owned by Elon Musk could raise concerns among some investors about the company's marketing strategies and governance. However, Tesla's stock ended higher on the day of the announcement, indicating mixed investor reactions.
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