Updated 14:40 IST, January 26th 2025

'We Are Barely Breaking Even...' Elon Musk Tells X Employees In Email- See Details

Musk acknowledged the company's role in shaping national conversations but emphasized the urgent need for user and revenue growth to secure its future.

Reported by: Business Desk
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Elon Musk’s Email Reveals Revenue Struggles at X
Elon Musk’s Email Reveals Revenue Struggles at X | Image: R Business

Elon Musk , who had been quite positive about the growth of X, formerly Twitter, since he bought it in 2022, has recently expressed a more pessimistic view in an email to employees. According to The Wall Street Journal, Musk described the company's situation as "very dire from a revenue standpoint." He said that user growth was flat, revenue was not up to expectations, and X was barely breaking even.

“Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even,” Musk said in an email, reported by Wall Street Journal.

Changes Under Musk's Leadership


After Musk took over Twitter with a $44 billion acquisition, drastic changes have ensued, such as removing the free verification program and introducing paid membership. He rebranded the platform to X. His support for Donald Trump during the 2024 U.S. presidential election also made the political landscape of the platform shift and thus led to a decline in advertising revenue, but recent updates from The Wall Street Journal noted improvements in terms of finance.


Banks Ready to Sell Debt of Twitter's Acquisition


The biggest banks in the United States and elsewhere, such as Bank of America, Barclays, and Morgan Stanley, have allegedly planned to sell a part of the $13 billion debt that they gave Musk to purchase Twitter. They kept holding on to the debt in hopes that economic conditions would become more favorable for selling the debt and to prevent losing money as Musk was battling court cases. Banks will reportedly sell the debt at 90-95% despite the losses faced by some investors who are experiencing up to 78%.

X's Financial Challenges and Vows


Musk has said before that X will turn profitable within months. However, the firm pays more than $1 billion in annual interest. Even with the addition of features such as job postings and a video tab, X has not realized Musk's bold promise of transforming into a site that can "manage someone's entire financial life" by the end of 2024.


While X is pivoting toward Musk's AI-related goals, its financial health remains uncertain. Musk acknowledged the company's role in shaping national conversations but emphasized the urgent need for user and revenue growth to secure its future.
 

Published 12:10 IST, January 26th 2025