Elon Musk's recent aggressive remarks aimed at advertisers boycotting X, previously known as Twitter, have left industry experts puzzled. As these advertisers continue to exit the platform, the

looming question arises: Can X sustain itself?

In an interview earlier this year, Musk hinted at the reliability of Twitter as an advertising platform, citing Disney and Apple's advertising presence as a positive indicator. However, seven months down the line, both companies have ceased advertising on X, with Musk's recent expletive-laden comments directed at departing advertisers adding fuel to the fire.

The departure of these advertisers followed an investigation by Media Matters for America, raising concerns about ads being displayed next to pro-Nazi content. Despite X challenging the report and initiating legal action against the organization, the fallout from the ad boycott has severely impacted the company's financial health, as Musk hinted at the possibility of bankruptcy.

X heavily relies on advertising revenue, constituting approximately 90% of its income. Mark Gay, chief client officer at marketing consultancy Ebiquity, notes a lack of indications regarding advertisers' return, exacerbating the financial strain.

Moreover, Musk's confrontational stance toward corporate leaders, exemplified by his targeted remarks at Disney's CEO, Bob Iger, has added to advertiser hesitancy about re-engaging with X. Industry experts caution against such public clashes, foreseeing detrimental effects on business relationships and revenue streams.

With advertisers seemingly departing for good, Musk's options become limited. Although he acknowledged earlier that subscription-based revenue couldn't replace advertising income, the projected drop in advertising revenue from $4 billion to $1.9 billion further intensifies the company's financial woes.

The company faces significant financial obligations, including loan repayments totaling around $13 billion, coupled with staffing expenses despite prior extensive layoffs. If X fails to meet these financial commitments, bankruptcy becomes a genuine concern.

Yet, bankruptcy remains a highly undesirable scenario for Musk, likely tarnishing his business reputation and impacting future borrowing capabilities. Potential remedies include Musk infusing additional funds or renegotiating loan terms, although the latter might be challenging.

In response to the crisis, Musk is exploring alternative revenue streams, including a new audio and video call service and plans to expand X's capabilities to encompass various functionalities. However, these initiatives may not immediately offset the loss incurred from departed advertisers.

Despite the company's potential in leveraging its data trove and diversifying its offerings, the short-term financial vacuum left by departing advertisers poses a critical challenge. Musk's recent confrontational approach has left industry experts perplexed, leaving many questioning the viability of his revenue strategies moving forward. Photo by JD Lasica from Pleasanton, CA, US, Wikimedia commons.