SpaceX profitable: first quarter 2023
Documents reveal that SpaceX turned a small profit during the first quarter of 2023. After two annual losses, the company generated $55 million in profit on $1.5 billion in revenue. (First-quarter results are preliminary, though, while annual results are final.) SpaceX is also valued at roughly $150 billion at an employee stock sale, putting its valuation near those of Intel and Disney.
Musk: Twitter’s ad revenue down ~50%
Musk says Twitter has a “negative cash flow” and its advertising revenue has declined by about 50% amid a “heavy debt load” as competition between Twitter and Threads intensifies. This comes just as Twitter began paying content creators for posting advertisements. Some users are reporting payouts of over $100,000, and Musk himself says Twitter will pay creators $5 million through its first block of payments. It is unclear, though, which kinds of posts or which users are eligible for advertising payments, and some users have criticized the platform’s payout program.
We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.
We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.
— Elon Musk (@elonmusk) July 15, 2023
Fidelity: Twitter worth 33% of Musk’s purchase price
According to Fidelity, which helped finance Musk’s purchase of Twitter, its valuation of its equity stake in the company puts the total value of Twitter at $15 billion, around 33% of what Musk originally paid for it. Fidelity downgraded its holdings in the company by 56% a month after the acquisition, by 63% in February 2023, and now by 66%. Musk’s investment in Twitter is now worth $8.8 billion, according to the Bloomberg Billionaires Index, which uses Fidelity’s valuation to calculate the value of his holding. Musk spent more than $25 billion to acquire an estimated 79% stake in the company in 2022.
Tesla stock drops nearly 10% over continued price cuts
Tesla stock (TSLA) drops nearly 10%, nearly $50 billion in market capitalisation, after Musk says the electric vehicle manufacturer will keep cutting prices in a bid to drive up demand in a weak economy. Focusing on sales growth rather than immediate profit, Musk said:
We’ve taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and a higher margin.
With this drop, Tesla’s market capitalization ending below Meta Platforms’ for the first time since 2021.
Tesla lost $140m on Bitcoin in 2022
According to SEC filings, Tesla lost $140m on its Bitcoin investments in 2022, losing $204m overall, although it gained back $64m through trading. The company holds $184m in Bitcoin, having offloaded most of its initial £1.5 billion purchase a few weeks after it was purchased in early 2021.