Elon Musk Unsatisfied with X’s Business
Stagnant User Growth and Unimpressive Revenue
According to media reports, Elon Musk is unsatisfied with the business of his online platform X. In a recent email to X employees, Musk reportedly stated, “Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.”
The email was quoted by the Wall Street Journal on Friday, with German news agency dpa reporting on the development. However, Musk responded hours later to the article, denying the report. “This report is false. I sent no such email. WSJ is lying,” he tweeted.
Conflicting Reports and Reactions
Despite Musk’s denial, The Verge confirmed the email with its own source, casting doubt on the accuracy of Musk’s claim. The Wall Street Journal updated its article to include Musk’s reaction, alongside the unchanged quote and a note that they had seen the email.
Musk’s History of Accusations Against the Media
Musk has a history of accusing the media of lying and spreading propaganda. In a statement to X users, he wrote, “You are the media now.” This sentiment reflects his belief that users should be responsible for verifying the accuracy of information, rather than relying on traditional media sources.
Background on X’s Business
X was built upon the microblogging service Twitter, which Musk bought in October 2022 for around $44 billion. Since the acquisition, there has been no publicly accessible information on how the business is faring. It is known, however, that revenues plummeted after the takeover, with Musk stating that revenues have roughly halved.
Advertising and Revenue Concerns
The purchase by Musk had already deterred some advertisers, with more jumping ship after online researchers demonstrated how their adverts could appear alongside posts with hate speech. Musk largely lifted the content restrictions for posts that were in place at Twitter, which has raised concerns about the platform’s ability to attract advertisers.
Return of Advertisers and Competition from Meta
The X chief appointed by Musk, Linda Yaccarino, has stated several times since 2023 that advertisers are returning to the platform. However, Meta’s parent company is beginning to place adverts on its X alternative, Threads, which has more than 300 million monthly active users. The limited capacity test is set to begin, making Threads an attractive option for X advertisers.
Conclusion
The controversy surrounding X’s business highlights the challenges faced by the platform in attracting and retaining advertisers. As the company continues to navigate this issue, it remains to be seen whether it can recover from its stagnant user growth and unimpressive revenue.
FAQs
* What did Elon Musk say about X’s business in a recent email?
+ Musk reportedly stated that X’s user growth is stagnant, revenue is unimpressive, and the company is barely breaking even.
* Did Musk deny the report?
+ Yes, Musk responded to the article, stating that the report is false and that he did not send the email.
* Who confirmed the email with The Verge?
+ The Verge confirmed the email with its own source, contradicting Musk’s denial.
* What is the current state of X’s advertising business?
+ The platform has struggled to attract and retain advertisers, with some jumping ship after online researchers demonstrated how their adverts could appear alongside posts with hate speech.