Since acquiring Twitter—now rebranded as X—Elon Musk has consistently described the company’s financial health as precarious. Musk recently reiterated this stance in an internal email, stating, “Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.”
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According to a report by the Wall Street Journal, banks that helped finance Musk’s $44 billion acquisition are now preparing to sell portions of the $13 billion debt tied to the deal. Financial institutions like Bank of America, Barclays, and Morgan Stanley have held onto this debt to avoid selling it at a steep loss, especially after Musk’s prolonged legal battle to back out of the acquisition and subsequent shifts in economic conditions.
The banks aim to sell senior debt for 90–95 cents on the dollar, while retaining riskier, junior debt holdings. Meanwhile, equity investors have reportedly devalued their stakes in the company by as much as 78%, further highlighting the challenges X faces in its financial recovery.
Musk’s email to employees emphasized the platform’s influence in “shaping national conversations and outcomes.” However, the company remains saddled with over $1 billion in annual interest payments on the loans. Despite Musk’s claim nearly two years ago that X could become cash-flow positive “within months,” that milestone remains elusive.
The banks reportedly hope to leverage Musk’s association with figures like Donald Trump to attract buyers who believe in X’s potential for financial recovery. Still, the platform’s progress toward Musk’s ambitious vision—a service that handles “someone’s entire financial life” by the end of 2024—has been limited.
While X has introduced new features like job listings and a video tab, it is increasingly being used as a testbed for Musk’s AI initiatives. Whether these efforts will significantly boost revenue remains to be seen, as X struggles to overcome its financial hurdles and regain stability.
