Tesla CEO Elon Musk said on Twitter today that despite the difficult economic situation, several of his companies will be in a favorable position in 2023 status. In addition to serving as Tesla CEO, Musk is CEO of Twitter, space exploration technology company SpaceX, brain-computer interface company Neuralink, and tunneling company The Boring Company.
And just a day ago, Musk just said that he does not rule out the possibility of Twitter going bankrupt in the future. Yesterday, Musk said in his first email to Twitter employees, if Twitter cannot offset the impact of declining advertising revenue by increasing subscription revenue, the company likely will not survive the coming recession.
About 90% of Twitter's revenue comes from advertising, and Musk said the flight of advertisers has caused Twitter to lose more than $4 million a day. He believes that Twitter is too reliant on advertising revenue, vulnerable to a pullback in brand spending, and needs to increase subscription revenue.
Currently, Twitter has about $13 billion in debt and faces interest payments totaling nearly $1.2 billion over the next 12 months. The sum exceeds the company's most recently disclosed cash flow, which stood at about $1.1 billion at the end of June.
At the same time, inventories at electric car maker Tesla are also growing rapidly. To boost sales, Tesla has also lowered the price of the Model 3 and Model Y in individual markets and offered additional rebates for buyers of insurance. But Musk said last month that demand was strong in the fourth quarter and Tesla was expected to be recession-resistant.