Elon Musk Reveals X’s Financial Struggles in Letter to Employees: Elon Musk has acknowledged that X, the social media platform formerly known as Twitter, is “barely breaking even” in a letter to employees. Despite its struggles, Musk emphasized the platform’s influence in shaping national conversations and outcomes.
Financial Challenges Ahead
The revelation comes at a critical time for X’s funding. Bankers are seeking to offload some of the $13 billion in debt financed for Musk’s $44 billion takeover of Twitter in 2022. To succeed, they must convince investors of X’s long-term financial viability.
“Shaping national conversations is one thing, but paying the bills is another.” – Elon Musk’s struggles with X’s financial performance laid bare.
Advertiser Exodus and User Decline
X’s financial woes are partly attributed to an advertiser exodus sparked by concerns over objectionable content. Musk’s response to the exodus and his subsequent lawsuit against the advertisers have not alleviated the issue. Furthermore, Musk’s vocal support of Donald Trump led to a decline in user engagement, with approximately 115,000 US-based web visitors deactivating their X accounts after Election Day.
Rise of Alternative Platforms
As X struggles, alternative platforms such as Bluesky, Meta’s Threads, and Mastodon have seen significant user growth. Bluesky’s user base expanded nearly ninefold in 2024, while Meta’s Threads and Mastodon also experienced substantial gains.
Musk’s Controversial Remarks
Musk’s recent appearance at a rally for the far-right political party AfD, where he expressed support for German culture and values, has sparked controversy. The Anti-Defamation League has characterized AfD as an extremist, anti-immigrant party.
Implications for X’s Future
As X navigates its financial challenges, Musk’s leadership and controversial remarks may continue to impact the platform’s user engagement and advertiser support. The company’s ability to convince investors of its long-term viability will be crucial in determining its future success.
