Elon Musk, the prominent figure behind X, is facing substantial criticism following his public endorsement of an antisemitic post on the social media platform, causing concern among investors and prompting several companies to cease advertising on the platform.
Various advertisers, including Comcast, IBM, the European Commission, and the movie studio Lionsgate, have announced the suspension of their spending on X (formerly known as Twitter). This decision follows reports of increasing hate speech, including instances of ads appearing alongside Nazi-related content.
Lionsgate, in a statement to usmoneymatters.com, confirmed the suspension of their advertising on X due to Elon Musk’s recent antisemitic remarks.
In response to Musk’s comment, the White House issued a statement, describing it as “unacceptable.”
A White House spokesman emphasized, “We vehemently condemn this abhorrent promotion of antisemitic and racist hate. Such actions run counter to our core values as Americans,” underscoring the gravity of the situation.
This latest backlash adds to the existing turmoil faced by X, which has seen a decline in advertisers concerned about the association of their brands with the platform amid reports of escalating hate speech. Musk had previously appointed former NBC executive Linda Yaccarino to lure major brands back to the platform, a task that is now significantly challenged following Musk’s controversial comments.
According to a report by Bloomberg News journalist Aisha Counts to usmoneymatters.com, advertising on X plummeted by 60% in September, leading to a substantial decrease in revenue. Musk had earlier acknowledged a 50% plunge in ad revenue for the company in July, attributing it to the heavy debt burden carried by the platform.
Moreover, global web traffic to the site plummeted by 14% in September, as reported by Simiilarweb. The overall traffic on X has recorded a nearly 7% drop in the first nine months of 2023 compared to the same period the previous year. These statistics align with a broader decline in social media usage.
Elon Musk’s association with antisemitic sentiments, commonly linked with White supremacists, has also unsettled shareholders of Tesla, the electric car manufacturer he founded. Dan Ives, an analyst at Wedbush, conveyed to usmoneymatters.com that Tesla investors are deeply “frustrated and dismayed” by this recent controversy.
“This X post heard around the world marked a somber day for Musk and Tesla,” Ives remarked in an email. “[L]ongtime shareholders are left wondering about the future. While we anticipate no changes in Musk’s leadership, this incident has left a lasting negative impact.” Yaccarino attempted to mitigate the fallout from Musk’s comments by emphasizing X’s commitment to combat antisemitism and discrimination, stating emphatically that there is “no place for it anywhere in the world — it’s ugly and wrong. Full stop.”
However, Facebook co-founder Dustin Moskovitz, in a post on Threads, suggested that Yaccarino should consider requesting Musk’s resignation from X. He stated, “She faces her biggest test yet as she decides whether to terminate her antisemitic CTO or risk losing even more advertisers,” referring to Musk’s role as the Chief Technology Officer at X.
Musk’s Endorsement of “Actual Truth”
Elon Musk, widely recognized as the world’s wealthiest individual, sparked outrage by publicly displaying support for an antisemitic post, heralding it as “the actual truth.”
The original X user’s post made claims about Jews perpetuating dialectical hatred against white individuals, which Musk endorsed by stating, “You have said the actual truth.” Furthermore, Musk criticized the Anti-Defamation League, an organization dedicated to combating hate against Jewish people, alleging that the group unfairly targets the majority of the West despite the majority’s support for the Jewish people and Israel. Musk’s actions drew parallels with antisemitic conspiracy theories that suggest a nefarious agenda by Jewish people to weaken and supplant White majorities.
Notably, convicted murderer Robert Bowers had similarly espoused such ideas before carrying out the tragic shooting at the Tree of Life synagogue in Pittsburgh in 2018.
Meanwhile, tensions stemming from the Israel-Hamas war have led to incidents of alleged antisemitic and anti-Muslim behavior on U.S. college campuses. Data released by the Anti-Defamation League has documented a significant surge in antisemitic incidents across the U.S. since the commencement of the conflict.
Ad Placement Adjacent to Nazi Content
In a damaging revelation, major advertisers such as IBM, Apple, Oracle, and Comcast’s Xfinity discovered their ads appearing alongside Nazi-themed content on X, as reported by Media Matters. In response, IBM announced the suspension of its advertising on the platform.
Conversely, Musk criticized Media Matters on X, labeling it as an “evil organization.” This further fueled the escalating situation.
The European Commission also announced the suspension of advertising on X and other social media networks, citing a recent surge in disinformation and hate speech. While clarifying that the decision was not specifically linked to their presence on X, a spokesman emphasized the continuous evaluation of the media environment for their advertising campaigns in alignment with their communication objectives.
