This year, Elon Musk is losing 2,500 crores every day as a result of Twitter issues.
Elon Musk, the richest man in the world, suffered a decrease in his net worth of more than $100 billion this year as the price of Tesla Inc. stock fell to a two-year low. After reaching a peak of $340 billion a little more than a year ago, the billionaire’s fortune decreased the most, in comparison to everyone else on the Bloomberg wealth index.
Elon Musk, the CEO of Tesla, lost more than 2,500 crores each day between 2017 and 2022, and his net worth has decreased by approximately 37%, or $101 billion, according to the Bloomberg Billionaires Index.
By November 22, 2022, he will have accumulated $170 billion in wealth. The Bloomberg Billionaires Index updates daily with the richest people in the world. After each trading day in New York, the data are updated.
Currently, more than 321,000 Tesla vehicles are being recalled in the US due to a potential intermittent failure of the taillights to illuminate. The business on Friday recalled nearly 30,000 Model X vehicles in the US due to a potential problem that could result in the front passenger airbag triggering improperly.
As a result, its shares decreased by about 3%, hitting a low point that was more than two years old. Tesla lost more than half of its market value as a result of erasing all of its gains from the previous 17 months. The market trend toward lower risk has caused Tesla to struggle for the majority of this year.
Tesla is a firm that sells electric vehicles and residential solar batteries, and its CEO is Elon Musk. Musk also holds shares in Twitter and performs as the CEO of SpaceX, a rocket company that NASA hired to supply the space station.
He owns almost 15% of Tesla, according to a regulatory filing from August 2022. Musk put up a $44 billion bid to purchase Twitter Inc. in April 2022. In October 2022, the agreement was completed. In May 2022, information from outside investors was supplied, and it is expected that he owns around 79% of the company.
More than half of Twitter’s more than 7,000 employees and the vast bulk of its executive leadership have been fired since Musk bought the business. The company has vacated about 60% of its workforce since Musk became CEO, with the most recent round of layoffs occurring on Sunday.
Twitter has nearly been destroyed by Elon Musk.
A common trend on Twitter is “RIP Twitter.” The platform was originally derided as a horrible website, but now the same people are raving about the joy it showed them and how much they will miss it. That is all there is to Twitter. Twitter won’t disappear today or tomorrow, thankfully. However, some people are concerned that it may soon grow dark.
The real cause is that Twitter has such a small staff at present. After being given quite stringent termination terms only two weeks prior, hundreds more employees departed the institution last week.
Elon Musk gave the remaining staff three months’ worth of severance money or a deadline to leave the company. The actual number of Twitter’s 7,500 employees who stayed on council after Musk was chosen CEO is unknown.
Although The Verge reports that about 2,900 of the original staff members are still working, a Fortune writer declared that 75% of the remaining 3,700 employees have quit. The actual value may be somewhere in the middle.
Many Twitter employees voiced worry that the platform would soon fail due to a shortage of key engineers in their farewell emoji salutes. Twitter’s temporary ban on badge access to any of its office buildings, which banned anyone from entering its grounds, is not helpful.
Musk has, unsurprisingly, allayed these concerns. “Because the best people are still around, I’m not too concerned”, the previous Thursday, he tweeted. Musk values his following supporters, and he especially adores the one on Twitter who mainly shows him nice comments.
Those who protest him by standing up are led away. Several engineers were sacked for openly opposing the millionaire with thin skin. It makes sense that many of Twitter’s most skilled employees have already left the firm, despite Musk’s protestations to the contrary.
It is debatable if it is viable to manage a powerful internet platform with a small workforce. Assume Twitter has between 1,000 and 2,000 staff members. Even though WhatsApp had only 55 engineers when it was bought by Facebook in 2014 and was running a messaging service with more than 450 million monthly active users at the time, that is still a large number of engineers.
In contrast, Twitter is said to have more than 300 million active users per month. Another argument is that extreme circumstances necessitate extreme solutions.
A corporation that was bloated and unprofitable in its most recent quarter has been given ownership to Musk. He must drastically reduce his staff to a core group of “hardcore” engineers who can work quickly and intensely.
But neither of these points really matters if Twitter hopes to be successful in the long run. Despite the fact that Meta-owned WhatsApp only required a small number of employees to function properly, its developers were primarily concerned with maintaining its infrastructure and were notoriously careful when introducing new features.
Musk has other goals outside of just maintaining the servers. In order to emulate more established web services, such as China’s WeChat, the everything app, he intends to develop Twitter “With a number of other capabilities, like payments.
For Twitter, that goal is too difficult. It still has a number of issues with its systems after 16 years of operation due to numerous updates and revisions. Its systems are spread across various grids and are incredibly complicated. They will need time and knowledge to be reorganized, but Musk is pressed for time and has let go of many of these systems experts.
Musk plans to reintroduce his $8 Twitter Blue service by the end of the month “to make sure it’s rock solid.” “after an extended period of insanity around it. But by then, Twitter’s power is not as dependable.
It’s unclear why Musk took such a drastic stance. He can be frantically trying to get his money back and settle his debts. But he didn’t have to act so sternly.
When Musk took over, Twitter was not in danger of failing. It has had a good track record over the last five years and ran a strong advertising business that, prior to Musk’s acquisition, generated close to 90% of its revenues. As marketers steer clear of the company’s instability, the sector’s future appears to be becoming more and more uncertain.
Musk can be compared to a mechanic who fixes a car by replacing the engine, timing belt, chassis, and frame after a deflated tire strikes it. It is excessive and almost certainly going to backfire.
Edited by Prakriti Arora
