Elon Musk's X Reaches €41.8 Billion Valuation on Twitter
The future of X and Tesla remains uncertain, with both companies facing significant challenges in the coming months. Musk's leadership and vision will be crucial in determining the success of these companies, and investors will be watching closely to see how they navigate these challenges.
Elon Musk's X, formerly known as Twitter, has achieved a significant milestone by reaching a valuation of €41.8 billion, matching the amount Musk paid for the platform in 2022. This turnaround marks a notable recovery for X, which has faced numerous challenges and controversies under Musk's leadership.
Since Musk's acquisition, the platform has been marred by controversy, including the firing of nearly 80% of the workforce and the relaxation of content moderation rules. Advertisers pulled their budgets, and the platform became associated with disinformation and hate speech. However, Musk has continued to push forward, launching new ventures and rebranding X as a multifaceted platform.
Despite the challenges, X has regained its initial valuation, and Musk's vision for the platform's future remains uncertain. The company faces significant debt accumulated from the acquisition, and there is no clear path to ensuring long-term stability. The future of X will depend on its ability to win back advertisers and users, as well as its success in diversifying into new areas.
The valuation milestone comes as Tesla, another company led by Musk, faces its own challenges. The company's quarterly profits plummeted, with a 71% decline in net income compared to the same period last year. Musk has attributed the decline to overall economic weakness and consumer uncertainty, and has announced plans to scale back his efforts at the Department of Government Efficiency to focus on Tesla.