Elon Musk recently admitted that his social media activity may have adversely affected the financial performance of X, the platform he acquired in 2022. During a deposition for a lawsuit against him, Musk conceded that his posts on X might have harmed the company’s bottom line more than they helped it. He clarified that his posts are guided not by financial motives but by what he finds interesting, important, or entertaining for the public.
Musk’s Acknowledgment of Self-Inflicted Wounds
Musk’s comments came in response to questions from an attorney about his social media usage and a quote from Walter Isaacson’s biography of the Tesla CEO, where Musk humorously remarked, “I’ve shot myself in the foot so often, I ought to buy some Kevlar boots.” Musk acknowledged being “guilty of many self-inflicted wounds.”
Challenges Faced by X under Musk’s Ownership
Since Musk’s acquisition of X, the platform has faced challenges, including losing significant advertisers and criticism over Musk’s posts. Some of his controversial posts, including one promoting the “great replacement” conspiracy theory, have drawn backlash. The platform also witnessed a surge in hate speech and antisemitism post-Musk’s takeover, leading to the reinstatement of previously banned accounts.
Decline in X’s Perceived Value
Moreover, there are indications that investors perceive a decline in X’s value following Musk’s ownership. Fidelity reduced the value of its stake in X by 73% since Musk’s acquisition, signaling a diminished valuation of the platform.
Musk’s Reflections on Social Media Behavior
This isn’t the first time Musk has reflected on his social media behavior. Last year, he admitted to the possibility of making regrettable posts, suggesting he should refrain from tweeting controversial content late at night. He advised saving potentially controversial tweets as drafts and revisiting them the next day before deciding to post.
Lawsuit Allegations and Response
Musk’s deposition occurred in the context of a lawsuit filed by Ben Brody, a 22-year-old who alleges that Musk promoted false claims linking him to a neo-Nazi group. Brody filed the lawsuit seeking $1 million in damages, citing reputational harm and harassment resulting from Musk’s posts on X. Musk has yet to respond to the lawsuit publicly.
