Elon Musk informed employees at X, formerly Twitter, that the company is “barely breaking even,”, citing stagnant user growth and disappointing revenue.

This follows reports that banks are preparing to sell parts of the US$13 billion debt from Musk’s acquisition of Twitter in 2022.

Major lenders such as Bank of America, Barclays, and Morgan Stanley have delayed selling this debt to avoid losses due to changing economic conditions and legal issue from Musk’s attempts to withdraw from the deal.

Musk acknowledged X’s impact on national discussions but recognized the company’s ongoing financial struggles.

Despite aiming for cash-flow positivity, this goal has not been reached, and X still faces over US$1 billion in annual loan interest.