
Elon Musk is sounding the alarm once again over X’s financial troubles, formerly Twitter, in an email to employees this month. Musk revealed that user growth is stagnating, revenue is lackluster, and the company is “barely breaking even.”
This stark update coincides with reports from The Wall Street Journal, which revealed that banks, including Bank of America, Barclays, and Morgan Stanley, are scrambling to sell off parts of the $13 billion debt Musk incurred for his 2022 Twitter purchase. With over $1 billion in annual interest payments looming large, the debt has become a heavy anchor.
Despite Musk’s belief that X can influence “national conversations and outcomes,” the company has yet to see a financial breakthrough. His earlier optimism about turning a profit within months has evaporated, leaving the platform still grappling for solid ground. Banks are reportedly looking to offload senior debt at a discount of 5-10 cents on the dollar while holding onto junior stakes to limit losses. Equity investors, meanwhile, have slashed the platform’s valuation by up to 78%.
In an effort to pivot, X has added features like job listings and a video tab, but it’s still a far cry from Musk’s 2024 vision of integrating financial services. The platform also serves as a testing ground for Musk’s AI ambitions, but with no clear path to profitability, X’s future remains uncertain. As it navigates turbulent waters, the question remains: Can Musk turn the tide?
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