DETROITT – General engines is suspending its ads on Twitter following Elon Musk’s acquisition of the social media platform, the company told CNBC on Friday.
The Detroit automaker, a rival to Musk’s Teslasaid it is “pausing” advertising as it evaluates Twitter’s new direction. It will continue to use the platform to interact with customers, but not pay for advertising, GM said.
“We are working with Twitter to understand the direction of the platform under their new ownership. As is normal with a significant change in a media platform, we have temporarily paused our paid advertising. Our interactions with customer service on Twitter will be continued,” the company said in an emailed statement.
Under CEO Mary Barra, the Detroit company was one of the first automakers to announce billions of dollars in spending to better compete with Tesla in electric vehicles.
A General Motors sign is on display at a January 25, 2022 event in Lansing, Michigan. – General Motors will create 4,000 new jobs and maintain 1,000, and significantly increase the production capacity of battery cells and electric trucks.
Jeff Kowalsky | AFP | Getty Images
Other car companies including: Ford Motor, Stellantis and AlphabetWaymo, owned by Waymo, did not immediately respond to requests for comment about whether they plan to suspend ads or discontinue use of the social media platform in the wake of Musk’s $44 billion buyout of Twitter. Electric Truck Manufacturer Nikola said it had no plans to change anything regarding Twitter.
Twitter’s future direction was central to Musk’s takeover of the social media platform. Musk has said he is an “absolute freedom of expression” who would restore the account of former President Donald Trump, who was banned for his tweets during the Capitol uprising of January 6, 2021. content moderation” and will not reinstate accounts or make major content decisions until it is convened.
Musk also said in a statement to advertisers this week that he can’t let Twitter become a “free for all hellscape.”
Henrik Fisker, CEO of EV startup Fisker Inc., deleted its Twitter account earlier this year when the Twitter board accepted Musk’s offer to buy the company and keep it private. Fisker Inc. continues to use Twitter, which uses every major car brand for customer engagement and marketing.
Musk has long boasted that Tesla doesn’t pay for traditional advertising, a price that has risen over the years for brands from traditional automakers.
Instead, Tesla rewards people who run or join Tesla owner’s clubs, as well as other social media influencers who promote the company’s products, stocks and Musk on social networks, especially Twitter and YouTube, and on fan blogs.
They often get early access to Tesla products, such as the company’s Full Self Driving Beta software, and get passes to Tesla events where attendance is limited.
In September 2020, Tesla weighed in on a shareholder proposal to begin strategic paid advertising to educate the public about its vehicles and charging network. Tesla’s board advised against it and shareholders voted with the board against paying for traditional ad campaigns.
In the company’s 2021 annual report, Tesla wrote, “Historically, we have been able to generate significant media coverage for our company and products, and we believe we will continue to do so. Such media coverage and word of mouth are the current primary drivers of our sales leads and have helped us achieve sales without traditional advertising and at a relatively low marketing cost.”
It reported marketing, promotion and advertising expenses that were immaterial for the years ended December 31, 2021, 2020 and 2019 in SEC filings.
– John Rosevear of CNBC contributed to this report.