Tesla is now shopping for promoting on Elon Musk’s X (previously Twitter) to get Tesla shareholders to vote for his CEO compensation package deal price as much as $1 trillion in inventory choices.
Tesla, underneath Elon Musk’s management, has famously been towards promoting. The CEO is even on the file saying that he “hates promoting” and that “different corporations spend cash on promoting and manipulating public opinion, Tesla focuses on the product.”
Nonetheless, that was earlier than he acquired Twitter, now X, which depends closely on promoting.
After that, he began to push Tesla to do some promoting, however the firm shortly stopped or vastly decreased its promoting efforts.
We reported that Tesla’s promoting effort picked again up final week, beginning with just a few Google adverts to encourage Tesla shareholders to vote for Musk’s new unprecedented CEO compensation package deal price as much as $1 trillion.
The automaker is in a full-on advertising and marketing blitz to persuade shareholders to vote for the package deal and to permit Tesla to difficulty extra shares in trade.
Now, Tesla is even shopping for social media adverts to push shareholders to vote for Musk’s compensation package deal and they’re even shopping for adverts on Musk’s privately owned platform, X:
They’re additionally shopping for adverts on Instagram, Fb, and Reddit.
As we beforehand reported, Tesla’s board has claimed that voting for the compensation package deal will decide the way forward for Tesla.
Musk went even additional and linked his compensation package deal to the way forward for the world.
Earlier right now, the CEO claimed that his compensation plan shouldn’t be about cash, however about management over Tesla:
It’s not about “compensation”, however about me having sufficient affect over Tesla to make sure security if we construct hundreds of thousands of robots. If I can simply get kicked out sooner or later by activist shareholder advisory companies who don’t even personal Tesla shares themselves, I’m not snug with that future.
The CEO beforehand threatened Tesla shareholders to not construct AI merchandise at Tesla, regardless of claiming they had been crucial to the corporate’s future, if he doesn’t get 25% management over the corporate.
Electrek’s Take
The CEO of a publicly traded firm threatens shareholders to achieve management over the corporate and makes use of firm funds to buy adverts that profit his privately held firm, with the aim of persuading the shareholders of the publicly traded firm to present him extra money.
If that’s not late-stage capitalism, I don’t know what’s.
Additionally, I do know I gained’t shock anybody right here, however Elon is mendacity about this not being about cash.
If he needs to extend his share of Tesla shares, he may do precisely what his pal Larry Ellison did with Oracle and do long-term buybacks. It could profit everybody, however it’s not what he needs. He needs the shiny new inventory choices.
