Elon Musk's Candid Email Reveals X's Financial Struggles

Elon Musk has admitted that X (formerly Twitter) barely stays afloat. In a recent email to employees, confirmed by The Verge, Musk painted a bleak picture, stating that user growth has stalled, revenue is unimpressive, and the company is "barely breaking even." This revelation comes as major banks, including Bank of America and Morgan Stanley, prepare to offload portions of the $13 billion debt Musk took on to acquire the platform in 2022.
Financial institutions have held onto the debt, reluctant to sell at a steep loss after Musk’s legal battle to back out of the deal. Equity investors have already devalued their stakes by up to 78%, and now banks are looking to sell senior debt at 90-95 cents on the dollar while retaining riskier portions. Meanwhile, X continues to face massive interest payments exceeding $1 billion annually, all while Musk pivots the platform towards AI-driven ambitions.
Despite past claims that X would be cash-flow positive "within months," the company’s transformation into an "everything app" remains uncertain. Recent additions like job listings and a video tab have done little to change its financial trajectory. With growing investor skepticism and mounting financial pressure, Musk’s vision for X seems more fragile than ever.
Source: The verge 2025.