Elon Musk email to X staff: ‘we’re barely breaking even’

Jan 25, 2025 04:57 AM - 3 weeks ago 25667

Ever since Elon Musk closed his woody to bargain Twitter he’s claimed the company, now called X, is successful “a very dire business from a gross standpoint.” Now, the Wall Street Journal reports that banks are preparing a coordinated move to waste disconnected immoderate of the $13 cardinal successful indebtedness they loaned Musk to finance the deal. It mentions an email sent to labor this month, besides confirmed by The Verge, wherever the Chief Twit said, “...we’ve witnessed the powerfulness of X successful shaping nationalist conversations and outcomes,” but besides claimed, “Our personification maturation is stagnant, gross is unimpressive, and we’re hardly breaking even.”

Part of the logic Bank of America, Barclays, and Morgan Stanley are holding truthful overmuch of the debt is from trying to avoid trading astatine a loss after economical conditions changed, and Musk had an extended tribunal conflict attempting to get retired of the deal. While equity investors person reportedly slashed the worth of their stakes by arsenic overmuch arsenic 78 percent, the Journal reports, “banks dream to waste elder indebtedness astatine 90-95 cents connected the dollar, while retaining more-junior holdings.”

As Musk referenced successful his email, the study says the banks dream to usage the communicative of Musk’s nexus to Donald Trump, arsenic immoderate unnamed investors whitethorn beryllium willing successful buying based connected a belief that its financials are connected the measurement up.

However, Musk besides said that the institution could go cash-flow affirmative “within months” astir 2 years ago, and it still faces complete $1 cardinal successful yearly liking payments connected the loans. The level is progressively turning into a testing crushed for his AI ambitions, arsenic we reported earlier this month, and while X has added immoderate features, for illustration occupation listings and a caller video tab, there’s little sign of the work he’d said would beryllium capable to “someone’s full financial life” by the extremity of 2024.

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