Musk tweeted on Monday, “SpaceX Starlink bought a little, not-very-large, ad package to assess the efficacy of Twitter advertising in Australia & Spain. Did the same for FB/Insta/Google.”
Due to concerns that Musk will alter the company’s content moderation policies, advertisers have abandoned Twitter, which derived more than 90% of its second-quarter revenue from ad sales.
Following Musk’s purchase of the platform last month, businesses like General Motors Co., General Mills, Mondelez International, and Volkswagen AG halted their advertising on it.
Martin Sorrell of S4 Capital stated that “right now, most clients are stopping their activity (on Twitter) because they are concerned about extreme content and content moderation on the site.”
Last week, the CEO of Tesla Inc. and SpaceX told advertisers that he wanted to use social media to find the truth and eliminate phoney accounts.
A few days after revealing that the social media network had experienced a “massive” reduction in revenue, he also suggested that Twitter might go bankrupt and blamed activist groups for pressuring advertisers.
According to a Monday post by Platformer, who cited an internal email, Twitter has locked down its code base and suspended any production system updates till further notice.
Tesla shares dropped 4% after Musk stated he has “too much work” on his plate, raising investor concerns that he is overly focused on social media at a time when the most valuable automaker in the world is dealing with production issues and escalating competition.
