Musk opposes paying for traditional advertising Tesla shareholders want it to change its tune

BEIJING, May 29 (UPI) — Tesla’s shareholders will vote in July on whether the electric car maker should start advertising its electric cars, something CEO Elon Musk has long resisted,media reported.

Musk opposes paying for traditional advertising Tesla shareholders want it to change its tune

James M. Danforth, a San Diego-based shareholder who now owns 850 shares of Tesla, has proposed that the company spend at least $50 on advertising for every car it makes. Tesla’s board is currently opposed to the bill.

“Advertising can increase brand value, product awareness, and people’s interest,” Danforth wrote in the proposal. “Tesla’s ads can help mitigate and dilute the large amount of FUD (fear, uncertainty, questioning) propaganda and disinformation campaigns launched by competitors and critics, and make the narrative more favorable to Tesla. “

Musk, 48, opposes paying for traditional advertising and is critical of the company’s spending on marketing, arguing that more money should be spent on product improvements. The Tesla CEO prefers to promote the company through Twitter and other unconventional ways. Musk currently has nearly 35 million followers on Twitter.

This week, NASA astronauts will take Tesla’s Model X electric car to a rocket built by Musk’s SpaceX and fly into space. In February 2018, a SpaceX rocket sent a cherry-red Tesla sports car into space.

In its statement of opposition, the board said: “We welcome feedback from shareholders, but we also believe that we have an experienced management team that is best suited to determine Tesla’s day-to-day business operations, including the company’s marketing practices and expenses.” “

Tesla confirmed that some of Musk’s compensation had been awarded. The final milestone for the Tesla CEO to get 1.69 million stock options ($350.02 a share) was set on May 5, according to media data. Those stock options were worth more than $700 million that day. (Wind)