The latest figures financial recovery paint a sobering picture. In 2024, X ’s total net revenue was $2.6 billion , down from $5.1 billion in 2021, the company’s last full year before Musk’s acquisition. Even after drastic cost financial recovery cuts, such as cutting 80% of its workforce and closing international offices, X continues to struggle.
Furthermore, there is a major financial recovery obstacle preventing sustainable growth: debt. Musk took out massive loans to finance the purchase of X, resulting in annual interest payments of $1.2 billion . This amount seriously compromises the company’s ability to invest in new projects and innovation.
Internal reports also indicate that
X is barely breaking even financially . To make matters worse, its most recent financial projections do not follow generally accepted accounting standards (GAAP), which are required for publicly traded companies. This raises questions about the platform’s true financial stability.
Faced with this critical scenario, Musk appears to be banking on his new political influence to reverse this situation – and some recent moves indicate that this strategy may be starting to yield results.
Pressure on Advertisers and Musk’s Political Influence
One of the main reasons for X’s financial crisis was the boycott of major brands . Companies such as Apple , Amazon , and Kraft usa whatsapp number data stopped advertising on the platform, concerned about brand safety and content placement issues.
To counter this, X took an aggressive approach: it filed a lawsuit against the Global Alliance for Responsible Media (GARM) and the World Federation of Advertisers (WFA) , accusing them of coordinating an advertiser boycott against the platform. In the lawsuit, X named brands such as Unilever, Mars and CVS , demanding that it resume its advertising investments or face a legal battle.
The strategy worked. Soon after
Unilever started advertising on X again, and other brands began to reconsider their positions. In addition, Musk and his team began threatening to include new companies in the process if they did not resume advertising.
This scenario became even more delicate when Musk consolidated his political influence in the US government. With his use of social media and email marketing proximity to the new presidential administration, large corporations began to fear reprisals if they continued to avoid X. This pressure could be a decisive factor in forcing companies to invest in the platform again.
Can AX Really Get Your Advertisers Back?
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Could Musk’s Political Influence Be Key to X’s Financial Recovery? 8
Pressure from Musk has already led some market giants to reverse their decisions and resume advertising on X. Apple, Amazon and Kraft have resumed advertising, and it is possible that other brands will follow suit to avoid problems with the new management.
But will this be enough to restore the company’s financial health?
1. Dependence on Advertisers
Even as many brands return to the platform, X still faces challenges in ensuring that revenue is stable in the long term. Distrust in canada email lead the advertising market remains high, and some companies may just be waiting for an opportune moment to exit again.
2. Alternative Revenue: The Role of xAI
In addition to the advertising revenue, Musk could be looking to another source of revenue: his artificial intelligence company, xAI . X recently began selling access to its data to train AI models, which could become a new source of revenue for the platform.
If this model proves viable, X could reduce its reliance on advertising and find a more sustainable way to generate revenue, making it less vulnerable to brand boycotts.
Is X’s Valuation Realistic?
Musk is currently seeking a new round of investment, aiming to value X at $44 billion . However, experts point out that this valuation is inflated , considering that most investors believe the company is worth significantly less.
Musk’s big bet appears to be on the impact of his political influence. If he can cement his position in government and use it to boost companies and investors, he may be able to artificially prop up that valuation — at least in the short term.