
Elon Musk’s X (formerly Twitter) is facing severe financial challenges as it heads toward a potential loss in 2024, with some speculating the company could face bankruptcy. Despite Musk’s increasing political support for Donald Trump’s presidential campaign, X’s revenue projections remain bleak.
Internal reports estimate X will bring in around $2.9 billion in 2024, primarily from advertising. However, Musk’s hopes for subscription growth via X Premium have faltered, with only 1.3 million paying users generating $176.4 million annually — just 6% of total revenue.
Debt obligations stemming from Musk’s $44 billion acquisition of Twitter are also a major concern, with X needing to service $1.2 billion in annual debt payments. This leaves little room to cover other operational costs.
While Musk has explored alternative revenue streams, like selling handles and pushing ad credits, advertising hesitancy remains due to his controversial political comments. Some speculate Musk could leverage his xAI project or Tesla to inject funds into X, but the platform’s fate may ultimately hinge on the outcome of the 2024 election.
A Trump victory could provide Musk the political leverage to secure new investments for X, but if Trump loses, the future of X may be in jeopardy.