Elon Musk is always in the news for its opinion on various topics. Significantly, political opinion leads the musk to trouble all the time. But as we know, Elon, being himself, doesn’t care what people think about him. He makes the same mistakes over and over again.
The only problem with his straightforward behavior is that his company goes through trouble when he speaks on specific topics. This time, after Elon Musk tweeted over the Anti-Semitism put him in trouble. While engaging in conversation on the open social media platform, Elon posted that Jewish people hold a “dialectical hatred” of white people.
After the report from the US government, top brands such as Apple and Disney stopped the ads on the X platform. X is a social media platform also known as Twitter.
Elon is pushing the other revenue source to make the platform more transparent and less dependent on the advertiser, but it may take some time. Currently, significant revenue of the platform comes from the top advertisers who spend millions of dollars to engage their customers on the X social media platform.
Ads pause could result in a massive loss to the company for the quarter. Moreover, when the big brand pulls their advertisement from the platform, all the small players also pause their ads, which leads to a domino effect on the advertising revenue.
Twitter was already a loss-making venture when Elon took over the site. He made significant changes in the platform to ensure the ship did not sink and kept floating with the available resources. However, the revenue generation through the platform where transparency is more important would be more challenging for the Musk team.
A drop in the advertisement revenue will affect the company’s valuation and may lead to a financial crisis.
Besides that, Tweet also upset many Tesla shareholders after it became mainstream news. People have spoken out against Elon Musk. Some even said that Elon should be suspended from using the X account.
The hate rate is never tolerable when it comes to maintaining the American people’s dignity. Thus, the community fought back when Elon commented on the white people.
Elon Musk’s other company, SpaceX, works with the government and NASA on various space exploration projects. Such comments from the company’s CEO would backfire on the company’s reputation and trust.
IBM also stated that they will stop the ads on the X platform until the issue is resolved. European Commission also said they would pull the ads from the X until the government and Elon Musk sort out the issues.
Paramount Global also announced that they are suspending all the advertising on the X platform. There will be no longer any ads that will be telecast on the platform. CNBC, a top news channel worldwide, reported that Warner Bros and Discovery Inc. have also pause ad campaigns.
If this continues and Elon doesn’t understand the seriousness of the issues, there will be a time when all the major companies of the US will pull the ads from the platform and pump the money somewhere else.
Also, the X platform may lose its American users, who contribute to the platform by actively sharing their opinions. If this happens, Elon Musk will put the company in serious trouble.
X social media platform can only sustain itself with advertisement money. If Elon Musk keeps producing trouble for the company, it may significantly impact the platform’s reliability. Top companies may stop promoting their products on X platform and decide to move their advertising spend to some other platforms.
Apple is the biggest advertiser on the X. Taking a pause will block the money flow to the platform. Revenue will drop significantly. Also, the reputation of the X will be affected when top brands like Apple do not participate in the advertisement.
Elon must have been vigilant when he drafted his opinion and shared it publicly. His mistakes could get all his companies into trouble. Instead of focusing on innovation, Musk should avoid putting himself into the political or social drama experts suggest.
Elon may have released his counter-opinion on the post that has gone viral. However, Elon should avoid situations where his opinion hurts people’s sentiments.
