On Monday, Elon Musk said that his company, SpaceX has purchased an advertising package on Twitter for its satellite internet service, Starlink. Elon Musk, who owns the rocket company and the social media platform, is seeing a mass withdrawal of advertisers from Twitter.
Musk tweeted on Monday, “SpaceX Starlink bought a tiny – not large – ad package to test effectiveness of Twitter advertising in Australia & Spain. Did same for FB/Insta/Google.”
Twitter, which earned more than 90% of its second-quarter revenue from ad sales, has seen advertisers becoming wary and exiting on fears that Musk would change the company’s rules on content moderation.
Major companies such as General Motors Co., General Mills, Mondelez International and Volkswagen AG halted advertising on the platform after Musk’s acquisition of the social media platform last month.
S4 Capital’s Martin Sorrell said, “At the moment, most clients are suspending their activities (on Twitter) because they’re worried about extreme content and content moderation on the site,”
Elon Musk, the chief executive of Tesla Inc (TSLA.O), Twitter and SpaceX had last week told advertisers that he was looking forward to change the social media platform to pursue truth and banish fake accounts and false information.
Musk also determined the possibility of Twitter going bankrupt days after revealing that the social mafia site had seen a “massive” decrease in revenue and accused activist groups for putting pressure on advertisers.
On Monday, a Platformer reporter said, citing an internal email that Twitter has sealed down its code base, suspending all production changes to its systems until further notice.
In the meantime, Tesla shares dropped by 4% when Musk said he had “too much work” on his platter, making investors worry that he is too preoccupied with the newly bought social media platform while the world’s most valuable automaker, Tesla, is struggling to combat production hurdles and emerging competition.