Since Twitter became X under Elon Musk’s aegis, legal troubles have been piling up. Now another lawsuit worth millions has been added to the mix.
Who buys hardware for 120 million euros? The Taiwanese company Wiwynn recently filed a lawsuit in the Southern District of California against X, formerly Twitter before Elon Musk bought the company. The company is currently still headquartered here, although there are plans to change that (via Handelsblatt). The case concerns server infrastructure that was ordered and partially delivered during Twitter’s time.
What is the lawsuit about? After the US billionaire, SpaceX and Tesla owner, took over Twitter, the company stopped all payments in November 2022, according to Wiwynn. After deducting all orders that could still be canceled, about $61 million in debt remained. This is the subject of the latest lawsuit against X, which Business Insider reports on.
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Just one of many complaints that damages the reputation
What does Elon Musk or X in general say about this? As of August 23, 2024, there is no statement from Elon Musk himself or any other representative of X.
But why should this lawsuit cost Elon Musk more than money? Ultimately, it’s not just about this one lawsuit, but about several more, which Business Insider also lists. X is being sued by various parties, such as former top managers who feel cheated out of their severance pay. But even if the amount at stake is more than 120 million US dollars, ultimately news like this is simply poor marketing for Elon Musk and X in the long run.
X has been under criticism for some time now when it comes to his dealings with advertising partners (via Zeit Online) and Musk’s communication style also repeatedly leads to doubts among investors about his companies, as we at MeinMMO have already presented to you.
That’s why reports like this are a piece of the puzzle of a bigger picture. Lawsuits like this may one day cost Musk dearly if X continues to lose value, as discussed here by the FAZ. According to estimates by financial experts, Twitter was worth more than twice as much as X currently is.
In the long term, X is about more than just money for Musk, it is also about his reputation as a businessman. And according to Futurezone, this is already having a negative impact on sales of Tesla electric vehicles.
By the way, Elon Musk is not at all in favor of working from home, although this formulation is almost an understatement. He has no understanding of it at all. In an interview, he once expressed himself so grumpily about the modern form of working for many professional groups that it is almost surprising: Elon Musk considers working from home not only unproductive, but also “morally reprehensible.”