Twitter, Elon Musk’s Other Companies Will Stay Afloat Until 2023
Elon Musk, who owns five companies including Tesla and Twitter, said on Twitter on Friday that his companies will be in good shape in 2023 despite the possibility of a difficult economy.
Musk’s tweet comes a day after he hinted at the possibility of Twitter going bankrupt. Earlier in the day, in his first company email, Musk warned that Twitter would not be able to “survive the coming recession” if it failed to increase subscription revenue to offset advertising revenue, three people who saw the message said. Reuters.
Twitter currently has $13 billion (approx. Rs. 1,050 crore) in debt and faces interest payments of up to $1.2 billion (approx. Rs. 9,685 crore) over the next 12 months.
The payments exceed the company’s recently disclosed cash flow, which stood at $1.1 billion (roughly Rs. 8,880 crore) at the end of June.
Meanwhile, electric car maker Tesla added to its inventory in Shanghai, China, at its fastest pace ever in October.
Tesla, which counts China as an important market and production base, operates a factory in Shanghai that accounted for nearly half of its global deliveries last year.
In October, Tesla produced 87,706 Model 3s and Model Ys in Shanghai but delivered 71,704 vehicles, leaving a gap of 16,002 Chinese-made vehicles in its inventory, according to data from China Merchants Bank International ( CMBI).
In an effort to boost sales, Tesla lowered prices for its Model 3 and Model Y vehicles in China and offered an additional discount to buyers who take delivery in November and buy insurance from one of its partners.
Musk told analysts last month that demand was strong in the quarter and that he expected Tesla to “be able to weather the recession”.
Musk is also CEO of satellite internet company SpaceX, brain-chip startup Neuralink and towing business The Boring Company.
© Thomson Reuters 2022
