Following Elon Musk’s Takeover of the Company, General Motors Has Temporarily Suspended Advertising on Twitter

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Last Updated on October 30, 2022 by Bitfinsider

As a result of Elon Musk’s takeover of the social media network Twitter, General Motors has decided to halt its advertising efforts on the website, the company confirmed to Bitfinsider on Friday.

The Detroit carmaker, which is in competition with Elon Musk’s electric vehicle manufacturer Tesla, has said that it will “pause” its advertising on Twitter while it examines the platform’s recent changes. GM also stated that although it will continue to utilize the site to engage with customers, it will not pay for advertising on the platform.

“We are having conversations with Twitter in order to better understand the path that the platform will take now that it is owned by them. Because of the considerable changes that have been made to the media platform, we have temporarily suspended all sponsored advertising that we had been running. This is standard operating procedure. According to a statement that was sent out through email by the corporation, “Our customer care interactions on Twitter will continue.”

The Detroit-based business, which is led by CEO Mary Barra, was one of the first automakers to announce that it would be spending billions of dollars to improve its ability to compete with Tesla in the market for battery electric vehicles.

According to a statement provided to Bitfinsider by a spokeswoman for Ford Motor, another manufacturer that competes with Tesla, the company is not now advertising on Twitter, and it had not been doing so prior to Elon Musk’s take-private agreement. They went on to say that “We will continue to evaluate the direction that the platform is going in under the new ownership.”

However, when a screenshot of a promotional tweet from Ford CEO Jim Farley was given to the representative, they were unable to clarify when was the last time Ford or its partners may have paid for ads on the platform, including promoted tweets.

Twitter remains one of the primary channels via which Ford interacts with its clientele.

In the wake of Elon Musk’s $44 billion acquisition of Twitter, other automobile companies, such as Stellantis and Waymo, which is owned by Alphabet, did not immediately respond to requests for comments on whether they intend to pause advertising on Twitter or cease using the social media platform altogether.

The manufacturer of electric trucks, Nikola, stated that there were currently no plans to make any modifications to the platform. Rivian declined to comment.

The narrative around the takeover has placed a significant emphasis on Twitter’s plans for the future. Musk has stated that he is a “free speech absolutist” and that he would reinstate the account of former President Donald Trump, whose account was suspended due to his tweets during the insurrection that occurred on January 6, 2021 in the Capitol.

Musk announced on Friday that he intends to establish a “content moderation committee,” and he has stated that he would not reinstate any accounts or make any content decisions before the council is assembled. This week, Musk also issued a statement to advertisers in which he stated he could not allow Twitter to deteriorate into a “free-for-all hellscape.”

When the board of Twitter accepted Musk’s attempt to buy the firm and take it private earlier this year, Henrik Fisker, CEO of electric vehicle (EV) startup Fisker Inc., canceled his account on the social media platform. Twitter is still being used by Fisker Inc., as it is by every other major car business for the purpose of engaging customers and marketing their products. The business stated that it had no intentions of altering its presence on the social network in any way.

Musk has long talked about the fact that Tesla does not pay for traditional advertising, which is a cost that has accumulated for the brands of conventional manufacturers over the years.

Instead, Tesla rewards people who run Tesla owners’ clubs or are members of those clubs, as well as other social media influencers who promote the company’s products, stock, and Musk on social networks, particularly Twitter and YouTube, as well as on fan blogs. Tesla also rewards people who are active on fan blogs.

They are frequently given early access to Tesla products, such as the company’s Full Self Driving Beta software, and they are given passes to limited-capacity business events.

A stockholder proposal to launch strategic, paid advertising to educate the public about Tesla’s vehicles and charging network was under consideration at Tesla in September of 2020. The Tesla board of directors recommended against it, and shareholders voted in agreement with the board’s decision to vote against commencing payment for traditional advertising campaigns.

In the annual report that Tesla produced for the year 2021, the firm stated the following: “Historically, we have been able to generate significant media coverage of our company and our products, and we believe that this will continue to be the case.” Such media attention and word of mouth are currently the key drivers of our sales leads, and they have enabled us make sales without the use of traditional advertising while keeping our marketing costs to a reasonably modest level.

In its financial filings with the Securities and Exchange Commission, the company stated that its costs for marketing, promotional activities, and advertising were “immaterial” for the fiscal years that ended on December 31, 2021, 2020, and 2019.

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