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Tesla discloses it spent $200k advertising on X

cnn.com

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Re: Tesla discloses it spent $200k advertising on X

#21

Post by fblp »

rapsey wrote: post #14
hackerlight wrote: post #8

Earlier quoted context omitted.

There's also the obvious conflict of interest. How does that get resolved?

Is this a moral or legal code that is being broken somehow? Because he owns both companies it is somehow immoral to do business between them?

He actually doesn't own both companies.

He largely owns X which is a private entity. He owns ~20% of Tesla, and the rest is owned by other shareholders. As a company officer he has a fiduciary duty to act in the interests of all Tesla shareholders, and any sales or deals to other entities he has in an interest in pose a conflict. That conflict can often be mitigated by oversight or deferral of decision making to parties that don't hold the conflict such as other board members or corporate officers.

Re: Tesla discloses it spent $200k advertising on X

#22

Post by hackerlight »

rapsey wrote: post #14
hackerlight wrote: post #8

Earlier quoted context omitted.

There's also the obvious conflict of interest. How does that get resolved?

Is this a moral or legal code that is being broken somehow? Because he owns both companies it is somehow immoral to do business between them?

He owns a fraction of Tesla and a much larger fraction of X, so there's a financial incentive to pump money and reputation from the former to the latter.

Re: Tesla discloses it spent $200k advertising on X

#23

Post by lylejantzi3rd »

hackerlight wrote: post #8
kelthuzad wrote: post #3

Earlier quoted context omitted.

Elon has previously stated that he doesn't believe in advertising, "Tesla doesn't advertise". I assume that's the reason why it's newsworthy.

There's also the obvious conflict of interest. How does that get resolved?

There is no conflict of interest. Companies do this all the time. It's even considered a good thing in business circles. If you want preferential treatment, pricing, or scheduling, then buying the company is a great way to get it. Businesses call it "synergy."

Re: Tesla discloses it spent $200k advertising on X

#24

Post by hughesjj »

mandeepj wrote: post #16
kelthuzad wrote: post #3

Earlier quoted context omitted.

Elon has previously stated that he doesn't believe in advertising, "Tesla doesn't advertise". I assume that's the reason why it's newsworthy.

> Elon has previously stated that he doesn't believe in advertising I have seen numerous Tesla ads on Youtube

Also tons of astroturfing

Re: Tesla discloses it spent $200k advertising on X

#25

Post by nmfisher »

lylejantzi3rd wrote: post #23
hackerlight wrote: post #8

Earlier quoted context omitted.

There's also the obvious conflict of interest. How does that get resolved?

There is no conflict of interest. Companies do this all the time. It's even considered a good thing in business circles. If you want preferential treatment, pricing, or scheduling, then buying the company is a great way to get it. Businesses call it "synergy."

Tesla doesn't own X/Twitter though. Elon does. If I were a Tesla shareholder, I'd be mildly[0] irritated that Elon feels it's OK to take money out of "our" company to spend it on "his" company, even if there is some nominal benefit.

[0] the amounts are so tiny, I wouldn't really care. I'd be more angry that he thinks he can reasonably function as a full-time CEO for Tesla while gallivanting about with his other ventures.

Re: Tesla discloses it spent $200k advertising on X

#26

Post by lylejantzi3rd »

nmfisher wrote: post #25
lylejantzi3rd wrote: post #23

Earlier quoted context omitted.

There is no conflict of interest. Companies do this all the time. It's even considered a good thing in business circles. If you want preferential treatment, pricing, or scheduling, then buying the company is a great way to get it. Businesses call it "synergy."

Tesla doesn't own X/Twitter though. Elon does. If I were a Tesla shareholder, I'd be mildly[0] irritated that Elon feels it's OK to take money out of "our" company to spend it on "his" company, even if there is some nominal benefit. [0] the amounts are so tiny, I wouldn't really care. I'd be more angry that he thinks he can reasonably function as a full-time CEO for Tesla while gallivanting about with his other ventu…

Have you ever worked for a company that bought a software package that was so bad, you thought "who on earth would actually choose to buy this?" Chances are, the decision maker owns part of that company. It's considered a value-add because that said decision maker can put pressure on that company to make changes they want made, where if they went with another company they wouldn't have that inside leverage.

Re: Tesla discloses it spent $200k advertising on X

#29

Post by pjerem »

lylejantzi3rd wrote: post #26
nmfisher wrote: post #25

Earlier quoted context omitted.

Tesla doesn't own X/Twitter though. Elon does. If I were a Tesla shareholder, I'd be mildly[0] irritated that Elon feels it's OK to take money out of "our" company to spend it on "his" company, even if there is some nominal benefit. [0] the amounts are so tiny, I wouldn't really care. I'd be more angry that he thinks he can reasonably function as a full-time CEO for Tesla while gallivanting about with his other ventu…

Have you ever worked for a company that bought a software package that was so bad, you thought "who on earth would actually choose to buy this?" Chances are, the decision maker owns part of that company. It's considered a value-add because that said decision maker can put pressure on that company to make changes they want made, where if they went with another company they wouldn't have that inside leverage.

TIL that I must know a lot of people owning ATLASSIAN stocks.

Re: Tesla discloses it spent $200k advertising on X

#30

Post by spiderice »

nmfisher wrote: post #25
lylejantzi3rd wrote: post #23

Earlier quoted context omitted.

There is no conflict of interest. Companies do this all the time. It's even considered a good thing in business circles. If you want preferential treatment, pricing, or scheduling, then buying the company is a great way to get it. Businesses call it "synergy."

Tesla doesn't own X/Twitter though. Elon does. If I were a Tesla shareholder, I'd be mildly[0] irritated that Elon feels it's OK to take money out of "our" company to spend it on "his" company, even if there is some nominal benefit. [0] the amounts are so tiny, I wouldn't really care. I'd be more angry that he thinks he can reasonably function as a full-time CEO for Tesla while gallivanting about with his other ventu…

At least according to Elon, you have it backwards. It was the shareholders pressuring Elon to advertise, not him trying to pay one of his companies at the expense of the other.
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