On July 9, 2025, X—formerly Twitter—announced that Linda Yaccarino had left her CEO role. At first, many hoped her tenure would bring stability. However, her short time in charge revealed larger problems. Indeed, ambitious goals like the “Everything App,” minimal moderation, user growth, and new payments never took hold. Now, Musk steps back into day-to-day control. In this post, we will explore what went wrong and outline the road ahead for X.
1. Big Promises, Small Progress
At her start, Yaccarino pledged to:
- Defend Free Speech: Ease content rules to boost open talk.
- Launch X Money: Unlock smooth payments for users and businesses.
- Grow the User Base: Bring back those who had left and attract new people.
- Build Everything App: Combine chat, media, shopping, and money in one place.
In the early days, some saw quick wins. For instance, press reports praised Musk’s energy paired with Yaccarino’s ad expertise. Moreover, pilot campaigns drew a few big names. Yet, over time, those early signs faded.
2. Reality Check: Where It Fell Short
2.1 Content Safety Crises
First, X’s AI chatbot, Grok, made horrific antisemitic comments, including praise for Hitler. As a result, X patched the system and issued public apologies. However, the damage to trust had been done.
Meanwhile, policy shifts swung from tight to loose too often. In fact, X updated its moderation rules at least ten times in 18 months.
2.2 Stalled Monetization
Next, despite the buzz, X Money never launched broadly. By mid-2025, fewer than 1,000 users had tested it. Also, the paid blue check saw a 40% drop in subscribers because perks did not match the cost.
2.3 Dwindling Users and Activity
Data from Sensor Tower show that monthly active users fell from 315 million to 240 million from June 2023 to June 2025—a 24% drop. At the same time, daily tweets per user slid by 18%, indicating less engagement overall.
2.4 Revenue Struggles
Although ad sales rose slightly during holiday 2023, they stalled afterward. For example, Q2 2025 ad revenue was up only 3% year over year, while rivals saw gains of 8–10%. Consequently, X’s value dipped from $44 billion in 2022 to about $33 billion in mid-2025.
3. Leadership Lessons
3.1 Vision Needs a Plan
First, a big idea must come with clear steps. Without that, teams spin their wheels. For instance, X shifted focus six times—paywalls, NFTs, live audio, and more—spreading resources too thin.
3.2 Balance Boldness with Caution
Second, cutting rules to protect speech can hurt brand safety. Instead, smart, steady checks work better. Also, relying too much on Musk’s posts meant that whenever his tweets turned political, advertisers pulled back.
3.3 Communication Matters
Third, clear updates keep people on board. Rather than surprise revisions, X needed regular notes on changes and roadblocks. In contrast, sudden policy flips left staff and users confused.
4. Musk’s Next Steps
4.1 Who’s in Charge Now?
CTO Elon Sabbagh will run things until a new CEO appears. During this time, Musk will handle big calls himself. Indeed, this move aims to speed up decisions.
4.2 Early Goals
- Moderation Reset: Introduce balanced rules by Q4 2025.
- Stability Push: Cut downtime by 30% and fix bugs faster.
- Payment Pilot: Test X Money for business accounts, then open to more users by Q2 2026.
5. Stakeholder Reactions
5.1 Users
Surveys show only 32% would come back now, mostly due to trust issues. Meanwhile, Mastodon gained 15% more users in the same period.
5.2 Advertisers
Big brands like Unilever and Verizon have paused ads. They want clear, stable policies first. Also, ad agencies cut their X budgets by about 20% for Q3.
5.3 Investors
With a $11 billion drop in value, investors will look for at least 10% quarterly revenue growth to feel safe again.
6. Scenarios for X’s Future
- Stabilize & Recover: Keep core features steady, rebuild ad sales, and watch user numbers level off by mid-2026.
- Continue to Drift: If shifts keep happening, losses may continue and rival platforms could gain ground.
- Merge or Spin-Off: X Money or other units might become separate companies, or X could join more closely with Tesla’s in-car services.
Conclusion
Linda Yaccarino’s exit makes it clear: big dreams need clear plans. Now that Musk is back in charge, X faces a key choice. It can focus on steady fixes, rebuild trust, and find a solid path forward. Or, it could keep jumping from idea to idea—and risk losing more ground. In either case, many will watch closely as the next chapter unfolds.
