Tesla has begun airing ads on streaming services like Paramount+, marking one of its first forays into TV-style advertising. However, these ads are not promoting electric vehicles but instead urging shareholders to approve Elon Musk's proposed compensation package worth up to $1 trillion. This move comes as the company faces challenges in selling its current lineup.
Tesla, long resistant to traditional advertising under CEO Elon Musk's leadership, has historically avoided such efforts. Musk has publicly stated that he 'hates advertising' and prefers focusing on the product rather than spending on ads to manipulate public opinion. This stance shifted somewhat after Musk acquired Twitter, now known as X, which depends heavily on advertising revenue. He briefly pushed for Tesla ads, but the company soon scaled back.
Last month, Tesla resumed limited advertising through Google and social media platforms, specifically to encourage shareholders to support Musk's new CEO compensation package, valued at up to $1 trillion. These efforts targeted the upcoming shareholders' meeting where the board recommends approval.
This week, the campaign expanded to streaming services. Viewers on Paramount+ encountered a video ad featuring Tesla's future products, which are not yet available for purchase. The ad does not aim to sell existing electric vehicles (EVs); instead, it exclusively calls on shareholders to vote in line with the board's guidance.
Tesla is currently grappling with sluggish sales of its available models, operating production lines at around 60% capacity. Critics, including commentary from Electrek, question the prioritization, suggesting funds could better support advertising actual EVs or hiring more employees. One observer noted rural drivers' limited awareness of Tesla and the Cybertruck, arguing that traditional TV and streaming ads could highlight ownership costs and utility to reach less active social media users.
A top comment highlighted the irony: 'I joked that Tesla will do TV ads about Elon’s compensation plan before they do about their EVs. It literally took less than a week for Tesla to prove me right.' This development underscores Musk's influence, with some viewing the company's mission as centered on enriching him amid broader operational challenges.