Tesla Paying $20,000 To Stay On Elon Musk's X Platform Raises Eyebrows

Tesla Inc. TSLA has been creating numerous paying accounts on Elon Musk‘s social media platform X, formerly Twitter, resulting in an annual expenditure of approximately $20,000, Electrek reported. The rationale behind this expenditure remains unclear.

Public firms like Tesla are required to disclose any “related transaction” to avoid potential conflicts of interest between its executives or board members and any other companies in which they hold interests.

Nowadays, Tesla has begun spending more to maintain its various subscriptions on X, which is now owned by its CEO, Musk. The platform, formerly known as Twitter, has been struggling to monetize through advertising and has now turned to subscription services.

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One of the subscriptions includes “Verified Organizations,” which costs $1,000 a month for the main account and then $50 per month for each “affiliated account.” Tesla is paying for the 13 accounts linked to Tesla’s verified org account—leading to a monthly bill of $1,650 or about $20,000 per year.

However, this is unique to only X as Tesla only operates a single official account on other social media platforms like Instagram and YouTube. Tesla has launched a series of additional accounts on X, each requiring an extra $50 per month payment since Musk’s takeover of Twitter and launch of revamped subscriptions.

While the dollar amount may seem insignificant for a company of Tesla’s size, the decision to spend this money on a platform owned by Musk, Tesla’s CEO, raises questions about potential conflicts of interest.

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