- General Motors is suspending its advertising on Twitter in the wake of Elon Musk’s acquisition of the social media platform.
- “We are working with Twitter to determine the future direction of the platform under their new ownership” GM said.
- GM along with Musk’s Tesla are adversaries.
The company has stopped advertising on Twitter in the wake of Elon Musk’s acquisition on the popular social media site.
The Detroit automaker, which is a rival to Tesla’s electric vehicle maker, led by Musk Tesla has announced that it will be “pausing” advertising while it analyzes the direction Twitter is taking in its new direction. The company will continue to make use of the platform to communicate with customers but will not be able to make money from advertisements, GM added.
“We are collaborating with Twitter to better understand the direction that the platform is taking under the new control. Like the usual process of business following major changes to an online media platform we’ve temporarily suspended our paid advertisements. Our customer service interactions via Twitter are continuing,” the company said in an email statement.
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Under the leadership of CEO Mary Barra, the Detroit company was one of the first automakers to announce billions of dollars of expenditure to be able to compete better with Tesla in the market for electric vehicles powered by batteries.
The General Motors sign is seen at an event on Jan 25, 2022, in Lansing, Michigan. The – General Motors will create 4,000 new jobs, and keep 1,000 and will significantly increase battery cell and electric vehicle production capacity.
A spokesperson from Ford Motor, another Tesla rival, confirmed to us that Ford Motor does not advertise on Twitter and has previously not made any announcements in the past prior to Elon Musk’s take-private agreement. They added “We are continuing to assess the direction the platform will take under the new management.”
But when presented with a photo of a tweet that was promoted by Ford Chief Executive Officer Jim Farley, the spokesperson did not have the ability to confirm when the most recent moment Ford or its partners could have paid for advertising such as promoted tweets on the platform.
Ford continues to interact with its customers via Twitter.
Other auto manufacturers, including Rivian, Stellantis and Alphabet owned by Waymo have yet to respond to requests for comments on whether they are planning to end advertising or stop their use on the site as a result of Musk’s $44 billion acquisition of Twitter.
Electric truck manufacturer Nikola has said that it does not have plans to alter anything about the platform.
The direction that Twitter is heading in the future Twitter is a major part of the story of its takeover. Musk has claimed that he’s an “free speech absolutist” who wants to reinstate accounts of the former president Donald Trump, who was exiled for his tweets during his Jan. 6 Capitol protests.
Musk announced on Friday that Musk is planning the creation of a “content moderated council” and has said he will not reactivate accounts or make any important content decisions until it is set to meet. Musk added in a letter to advertisers on Wednesday that he would not allow Twitter to turn into an “free-for-all hell.”
Henrik Fisker, CEO of EV startup Fisker Inc., deleted his Twitter account in January when the board of Twitter’s accepted Musk’s offer to purchase the company and then take it under its own roof. Fisker Inc.continues to make use of Twitter which almost all major auto brands use to connect with customers and market.
Musk has often claimed that Tesla does not have to pay for traditional advertisements, the cost of which has been increasing for conventional automakers’ brand names over the decades.
In addition, Tesla rewards people who manage, or are members of Tesla owners clubs, along with other influencers on social media who promote Tesla’s products, its stock and Musk through social media particularly Twitter and YouTube and on fan sites.
They often get an early release of Tesla products, including Tesla’s Self Driving Beta software, or the Full Self Driving Beta software, and also are given access to corporate events, which are limited in attendance.
In September of 2020, Tesla evaluated a shareholder request to launch a plan to pay for strategic advertisements to inform people about its cars and charging networks. The Tesla board of directors voted against the idea, and shareholders voted together with the board against a decision paying for traditional ads campaigns.
In its annual report of 2021 Tesla said: “Historically we’ve had the ability to create significant media coverage for our business and our products, and we are confident that it will be the same in future. achieve this. This kind of media coverage and word-of-mouth are the main drivers of our sales leads . They have enabled us to achieve sales that do not require traditional advertising at a relatively low cost for marketing.”
It stated that marketing advertising, promotional and other expenses were “immaterial” for the three years which ended December. 31 2021, 2021 and 2020 as well as 2019 in financial filings filed with the Securities and Exchange Commission.