Analysis: SEC to mass layoffs, Twitter has changed a lot under Elon Musk

By:
on May 17, 2024
Listen
  • "All core systems are now on x.com," Musk tweeted, also sharing the platform's new logo.
  • New CEO Linda Yaccarino emphasized X's commitment to free expression within legal bounds.
  • Reports suggest that the platform's engagement metrics have declined, with website visits down 14%.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Tesla Inc. and SpaceX CEO and X Corp. Chairman Elon Musk announced on Friday the complete transformation of Twitter into X, with the domain officially becoming x.com.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

“All core systems are now on x.com,” Musk tweeted, also sharing the platform’s new logo.

What has changed since Musk’s acquisition?

Copy link to section

It has been over one year since Musk completed his $44 billion purchase of Twitter, initiating a series of drastic changes that have left the company almost unrecognizable.

Beyond the rebranding, Musk’s leadership has seen Twitter evolve from a leading source for breaking news and political commentary into a platform struggling with debt, managing spam and disinformation, and trying to retain users and advertisers.

Challenges and restructuring

Copy link to section

Musk’s tenure has been marked by relentless layoffs, resignations, and policy reversals. The company faces numerous legal challenges from former employees, contractors, and landlords, as well as regulatory investigations by the US Federal Trade Commission, Securities and Exchange Commission, and EU officials.

A federal court ordered on Tuesday that Elon Musk must testify again in the U.S. Securities and Exchange Commission’s investigation into his $44 billion takeover of Twitter.

SEC lawsuit and Musk’s response

Copy link to section

The SEC sued Musk in October to compel the CEO of Tesla and SpaceX to testify after he refused to attend a September interview for the investigation. The billionaire claimed the SEC was trying to “harass” him with numerous subpoenas.

These issues complicate the company’s efforts to regain stability and profitability.

New features and future vision

Copy link to section

Despite the turmoil, new CEO Linda Yaccarino expressed pride in the team’s efforts, highlighting new features like job listings, longer posts, and audio and video calls for Premium users.

She emphasized X’s commitment to free expression within legal bounds and improving safety on the platform.

Addressing misinformation and public trust

Copy link to section

X faces significant tests, particularly amid the Israel-Hamas conflict and upcoming elections, which have raised concerns about the spread of misinformation.

Reports suggest that the platform’s engagement metrics have declined, with website visits down 14% compared to last September.

Impact of Musk’s leadership style

Copy link to section

Musk’s approach has led to a polarized environment, with the platform’s focus shifting towards his presence and decisions.

His controversial actions, such as reinstating banned accounts and altering content moderation policies, have driven away some users and advertisers.

As X moves forward, the challenge will be balancing Musk’s vision with the need to restore user trust and platform integrity.

Elon Musk Twitter USA Social Media Stock Market