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After just lately shedding half of Twitter’s workers and on the identical day that three of the corporate’s prime safety executives give up, the world’s wealthiest man reportedly advised Twitter’s remaining product staff members that the corporate he simply purchased might see “internet unfavorable money movement of a number of billion {dollars}” in 2023 and “chapter is just not out of the query” if that occurs.
“We will’t scale to a billion customers and take huge losses alongside the way in which, that’s not possible,” Elon Musk mentioned at a product staff all fingers as we speak based on a number of stories. Nevertheless, he continued, “you probably have a compelling product, folks will purchase it. That has been my expertise at SpaceX and Tesla.”
Whereas evaluating Twitter — a media know-how platform — to auto manufacturing or creating spacecraft for presidency and enormous company initiatives is just not precisely apples to apples, Musk specified that his concept of “compelling” for the social media firm contains including video content material and bolstering compensation for content material creators.
Musk additionally said plainly that the corporate must “usher in more money than we spend.”
His $44 billion buy of Twitter final month included $13 billion in debt which is able to reportedly incur curiosity funds of over $1 billion within the subsequent yr. In accordance with Reuters, these funds “exceed Twitter’s most just lately disclosed money movement, which amounted to $1.1 billion” as of June.
Musk has mentioned that he completed promoting roughly the $7 billion in Tesla he wanted to fund the sale in August. However SEC filings indicated that he has offered almost $4 billion extra in Tesla inventory within the two weeks for the reason that Twitter deal closed.
Talking of federal companies, Tesla has a report due tomorrow to the FTC to stay in compliance with a 2011 settlement concerning its privateness practices. It’s unclear how the resignation of Twitter’s three prime safety officers as we speak will affect that submitting.
“We’re monitoring latest developments at Twitter with deep concern,” F.T.C. spokesman Douglas Farrar mentioned in an announcement. “No C.E.O. or firm is above the regulation, and corporations should comply with our consent decrees. Our revised consent order provides us new instruments to make sure compliance, and we’re ready to make use of them.”
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