- Tesla's stock price fell more than 10% last year, and Elon Musk's net worth also declined.
- As Tesla struggles, Musk appears to be ramping up other businesses.
- These days, social media platform X is starting to look more and more like regular old Twitter.
Tesla has lost some of its luster this year as demand for EVs wanes and pressure increases in China.
Even the most bullish analysts say the company's most recent quarter was a “disaster.” And Elon Musk's net worth has fallen in tandem with the automaker's stock price, falling more than 10% last year, dropping the once richest man in the world to fourth place on the world's richest list. The former Golden Boy in the tech industry appears to be ramping up other businesses to prevent further losses.
For his social media venture “X,” that seems to mean returning the app to the old, pre-Mask days of Twitter.
“I think the strategy going on right now is going back to basics,” Gabor Cselle, a former project manager on Twitter's Trends team, told Business Insider. “I don't think it's really happening to make X dramatically different and reinvent the wheel. So we're trying to get back to basics.”
In recent weeks, Twitter (sorry, Mr. “It shows a sense of desperation,” CNN's Oliver Darcy said. To the platform. Since acquiring him in 2022, the company has slashed its trust and safety team by nearly half its workforce, built a new content moderation center in Texas and added two new senior executives. We are reinvesting in the security of our platform by hiring NBC News reported earlier this month that he will oversee moderation on the platform.
David Camp, co-founder of brand consultancy Metaforce, told Business Insider that the move appears to be an attempt to lure advertisers back to the platform after an exodus of advertisers due to the proliferation of hate speech on the site. he said.
When Musk bought Twitter, Camp said, Musk “showed a pretty blunt attitude toward the traditional way of running a business.” And companies did not want to be “bound” to the dynamics of an advertising-driven business that had to create and maintain stability and certainty in order to attract advertisers. But as revenue continues to decline and user engagement declines, it makes sense to try to pull back, Camp said. However, that doesn't mean it will work.
While loyal users remain on the platform, Variety reported last fall that X has lost 15% of its global user base since Musk took over. And Musk himself has acknowledged that the platform has lost about 50% of its advertising revenue during his tenure.
“Even if you make small tactical changes to the platform, like blue checks or insisting on more moderation, from a marketer's perspective and from a brand-building perspective, it's just lip service,” Camp said. “Every time he opens his mouth and says something controversial, which he enjoys doing, it reinforces the perception that Twitter is an unreliable advertising partner, so Twitter loses revenue. “It will continue to struggle to attract advertisers.”
Musk and representatives for Tesla and X did not respond to requests for comment from Business Insider.
Cselle said he believes a return to older, more reliable content moderation or verification models could win back some of the advertisers Musk left and strengthen the position X held during Twitter's heyday. Stated. But he said the app still benefits from “muscle memory” that prompts users to return to the site, rather than Musk's unfulfilled promise to roll out new features and make X an “app for everything.” He said he has received it.
Twitter's downward trend could be similar to another of Mr. Musk's flashier products, Tesla Inc.'s Cybertruck. “As the Twitter situation deteriorates in tandem with the disastrous launch of Tesla's Cybertruck in 2024, Musk's sanity will deteriorate,” PR expert Ed Zitron wrote in a December blog post. That's what I expected.
Despite becoming a status symbol for celebrities such as Kim Kardashian and Jay-Z, the Cybertruck's launch was marred by sharp criticism, and new owners of the $80,000-plus car were left with extensive bills, stubborn He warned of heavy rust and the difficulty of maneuvering the huge vehicle. It weighs over 6,600 pounds.
“In any case, Musk will have to continue paying interest on his debt, make up for Twitter's huge revenue shortfall, and be forced to sell more Tesla stock at a time when the company's performance is starting to stabilize. May be 'fragile',' Zitron wrote.
Camp said this despite Musk hiring Linda Yaccarino, former chair of global advertising and partnerships at NBCUniversal, in an apparent effort to make the platform a more brand-friendly place. He says he has only himself and his increasingly “toxic” personal brand to blame. Since taking the role last June, Mr. Yaccarino has appeared to be undermined by Mr. Musk on everything from announcing changes to his platform to curbing anti-Semitism and hate speech on his site. .
“Honestly, the best thing Twitter can do to regain its standing is put Mr. Musk aside. And the only way to make that happen is for Mr. Musk to sell the company. And Musk He's going to sell it at a huge loss,” Camp told Business Insider. “So unless he grows up as a person to the point where he no longer feels the need to be cocky, maverick, unpredictable, and decides to turn the corner on the elder statesmanship, I don't think so. I don’t think so, but trust me – I don’t think anything will change.”
