Tesla Scales brief experiment with advertising on Elon Musk’s social media platform X appears to be losing momentum. According to a new regulatory filing, the automaker spent just $10,000 on X ads in the first two months of 2025, putting it on track to spend only around $60,000 for the year if spending doesn’t pick up. That would represent a dramatic drop compared to 2024, when Tesla spent $400,000 in total, with half of that amount coming in the early months of the year.
The numbers mark a sharp reversal for a company that never used to advertise at all. For years, CEO Elon Musk proudly said Tesla didn’t need ads because its products “sold themselves.” But in 2023, facing pressure from shareholders to boost demand, Musk relented and Tesla dipped its toes into advertising. By late 2023 and early 2024, ads for Tesla vehicles were appearing in Google searches, YouTube pre-rolls, and even on X, Musk’s own platform.
A Retreat from X
Despite that push, Tesla Scales spending on X is now shrinking to almost nothing. In 2024, Tesla’s pace of ad spending slowed considerably after the first quarter, dropping from $200,000 in the first two months to just another $200,000 for the rest of the year. Now in 2025, the decline looks even steeper. While it’s unclear whether Tesla ramped up spending after February, filings suggest the automaker has shifted most of its ad budget elsewhere.
Google’s Ads Transparency database shows Tesla still has around 700 active ads running across Google properties, including Search and YouTube. That suggests the company sees better returns from mainstream digital platforms than from Musk’s X, which has struggled to hold onto advertisers since his takeover in 2022.
Other Musk-Linked Spending
Tesla’s filing also revealed other financial links within Musk’s business empire. For example, Tesla Scales paid SpaceX about $800,000 in 2024 to use one of the rocket company’s private jets, a perk Musk often relies on to travel between his companies. However, that figure has dropped sharply in 2025, with Tesla paying just $40,000 for jet use through February.
Protecting Musk during these travels isn’t cheap either. In 2024, Tesla spent $2.8 million on a security company owned by Musk, up from $2.4 million in 2023. By February 2025, the company had already paid $500,000, with filings noting this represents only a “portion” of Musk’s total security costs.
Perhaps the largest cross-company transaction came from Musk’s AI startup, xAI. In 2024, xAI paid Tesla nearly $200 million for its Megapack battery storage systems to power a Tennessee data center. Through February 2025, xAI had already purchased another $36.8 million worth of Megapacks, highlighting how Tesla’s energy business continues to benefit from Musk’s growing AI ambitions.
Family Ties
The filing also revealed a payout to Musk’s brother, Kimbal. Tesla Scales paid $300,000 to Nova Sky Stories, his drone show company, for a performance at Tesla’s “We, Robot” event in October 2024. It’s another example of how Tesla’s ecosystem continues to intertwine with
Musk’s personal and family ventures.
Looking Ahead
The decline in Tesla Scales advertising raises questions about both the company’s sales strategy and the long-term value of Musk’s social media platform. If Tesla, a Musk-led company, is pulling back ad spend on X, other brands may be even less likely to invest heavily there. Meanwhile, Tesla faces a tough year ahead as sales slow and competition in the electric vehicle market intensifies.
Still, Tesla continues to invest in other areas. Its growing energy business, highlighted by the xAI Megapack deal, shows promise as a major revenue stream beyond cars. But whether the company will stick with advertising as a long-term strategy, or retreat again to Musk’s belief that Tesla doesn’t need it, remains an open question.
Past Context
- 2023: Tesla advertised for the first time under shareholder pressure, placing ads on Google, YouTube, and X.
- 2024: Tesla spent $400,000 on X ads but slowed spending mid-year.
- 2025: Spending through February dropped to just $10,000, on pace for only $60,000 annually.
- Over the same period, Tesla kept hundreds of ads live across Google platforms, signaling a shift in priorities.
For Tesla, the experiment with advertising is still evolving. But the company’s shrinking spend on X suggests that when it comes to reaching car buyers, even Musk’s own social media platform may not be the right vehicle.