Elon Musk tells X staff: "We’re barely breaking even" amid revenue struggles

Elon Musk warns X staff of stagnant user growth and revenue challenges while banks plan to sell $13 billion in X debt.

Elon Musk has once again sounded the alarm over the financial health of X, formerly known as Twitter. 

In an email to employees this month, Musk acknowledged the company’s ongoing struggles, stating, “Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.”

This latest update comes as The Wall Street Journal reports that banks, including Bank of America, Barclays, and Morgan Stanley, are coordinating to sell portions of the $13 billion debt they provided to Musk for his 2022 Twitter acquisition. The debt has become a financial burden, with over $1 billion in annual interest payments.

Despite Musk’s claims of X's potential to shape “national conversations and outcomes,” the company has yet to see a significant financial turnaround. Musk previously predicted cash-flow positivity “within months” nearly two years ago, but X continues to face challenges.

The banks reportedly aim to sell senior debt at 90–95 cents on the dollar while retaining junior holdings to minimize losses. Equity investors have already slashed the valuation of their stakes by up to 78%.

X has introduced new features like job listings and a video tab, yet it falls short of Musk’s 2024 vision of managing “someone’s entire financial life.” Meanwhile, the platform is evolving into a testing ground for Musk’s AI ambitions.

With X navigating turbulent waters, questions remain about its ability to recover and fulfill Musk’s grand ambitions.