Tesla, once the reigning king of EVs, is facing a decline while Elon Musk redirects his attention towards revamping X back into Twitter.
Challenges Faced by Tesla
This year, Tesla has been experiencing a decrease in demand for electric vehicles along with mounting pressures in the Chinese market. Analysts, even the most optimistic ones, have described the company's performance in the last quarter as a "trainwreck." As a result, Elon Musk's net worth has also taken a hit, dropping more than 10% over the past year and causing him to fall to fourth place on the list of the world's richest billionaires.
Elon Musk's Strategy with X
With Tesla facing challenges, Elon Musk seems to be focusing on bolstering his other ventures, particularly the social media platform X, by reverting it back to its earlier incarnation as Twitter. Gabor Cselle, a former project manager at Twitter, believes that Musk is steering X towards a more basic approach rather than attempting a complete overhaul.
Recent Developments with X
In recent weeks, X has reintroduced status-based blue check marks for accounts with a substantial number of verified followers, indicating Musk's efforts to attract high-profile users back to the platform. Moreover, after reducing the company's workforce and making changes to the trust and safety team, X is now focusing on enhancing platform safety by establishing a new content moderation center and hiring new personnel to oversee moderation efforts.
Challenges of Retaining Advertisers
David Camp, a co-founder of Metaforce, notes that Musk's unconventional approach to business operations has deterred advertisers. While Musk initially aimed to break away from traditional ad-driven models, the declining revenues and user engagement have prompted a shift in strategy to attract advertisers back to the platform.
Future Prospects for X
Despite efforts to make tactical changes and improve moderation, X has seen a decline in its user base and ad revenue under Musk's leadership. Camp underscores the need for a more reliable and brand-friendly platform to regain advertisers' trust and revenue.
Challenges Ahead
Musk's involvement in both Tesla and X poses challenges, especially as criticisms of the Cybertruck and Twitter's revenue shortfalls continue. Camp suggests that Musk's persona and management style may hinder the platform's growth, emphasizing the need for Musk to reconsider his approach to regain Twitter's former glory.
Ultimately, the future of X and its transformation back into Twitter remains uncertain as Musk navigates through challenges in both the tech and automotive industries.
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By: ktangalakislippert@businessinsider.com (Katherine Tangalakis-Lippert)
Title: Tesla’s Shift: Elon Musk’s Focus on Transforming X Back into Twitter
Sourced From: www.businessinsider.com/elon-musk-turning-x-back-into-twitter-2024-4
Published Date: Tue, 09 Apr 2024 00:51:06 +0000
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