Twitter account 'peng' sets new record with 36,717 vehicle sales in July
In a significant shift, X (NYSE: XPEV), the social media platform previously known as Twitter, has announced a transformation under Elon Musk's ownership. The company is now focusing on becoming an AI-powered service integrated with Musk's AI startup, xAI. This strategic move aims to leverage AI capabilities as the main growth and value driver, marking a departure from the original vision of an "everything app."
As part of this transition, X has been repositioned as a subsidiary of xAI. The platform now serves as a key source of human-generated text data and user interaction that feeds xAI's AI models, particularly its Grok chatbot.
Record-Breaking Deliveries
In the realm of sales and deliveries, X has made a remarkable comeback. As of the end of July, the company has delivered a total of 824,285 vehicles since its inception. This month alone, X delivered 36,717 vehicles, surpassing the previous record of 36,695 set in December 2024. This marks the ninth consecutive month that X's monthly deliveries have exceeded 30,000 units since November 2024.
The company's deliveries for the whole of 2024 were 190,068 vehicles, and in the first half of 2025, deliveries reached 197,189 vehicles, representing a year-on-year increase of 279.01 percent.
Global Expansion
X's global expansion strategy is also bearing fruit. As of now, the company has expanded its presence to 46 countries and regions worldwide. In mid-July, X launched the 2025 G6 and G9 SUVs in the European market, further extending its reach.
Challenges Ahead
However, X's advertising business has faced significant challenges since Musk’s acquisition in late 2022. Ad revenue fell sharply from $4.1 billion in 2022 to around $2 billion in 2023, a 51.7% decrease. This decline continued slightly into 2024 with revenue around $1.94 billion. However, there is some recovery expected, with projected ad revenue rising to approximately $2.26 billion in 2025, marking a 16.5% increase—the first growth since Musk bought the company—though still only about half the level seen before his acquisition.
User base metrics also show challenges, with a projected decline of 3.8% in users this year, indicating that audience growth is not robust despite the ongoing AI integration strategy.
Operationally, under CEO Linda Yaccarino (departing as of mid-2025), X made strides to stabilize its ad business, achieving partial advertiser return after an earlier exodus of over 500 advertisers and steep drops in ad revenue in early 2023. However, the platform still faces an uphill battle in regaining its former scale and ad market confidence.
Financial Backing
As a private company fully integrated into xAI, X's individual financials are no longer public. However, xAI as a whole is aggressively raising capital to fund its AI ambitions, having secured over $17 billion to date and seeking an additional $12 billion from private investors to fuel expansion and compete with AI rivals like Meta, Google, and OpenAI. X’s value is increasingly tied to its role supporting xAI’s AI development rather than standalone social media ad sales.
In conclusion, X is transitioning from a social media platform to an AI-powered service hub, breaking delivery records along the way. While the company faces challenges in its advertising business and user base, it is making strides to stabilize its ad business and is backed by significant financial investment in its AI ambitions.
- X, the AI-powered service subsidiary of xAI, has delivered a record-breaking 36,717 vehicles in July, surpassing its previous record set in December 2024.
- With the global expansion, X is now operative in 46 countries and regions worldwide, and it recently launched the 2025 G6 and G9 SUVs in the European market.
- Despite this success in the EV market, X's advertising business has experienced a significant decline since Elon Musk’s acquisition in late 2022, with ad revenue dropping by 51.7% in 2023 and only showing a slight recovery in 2025.
- As X's individual financials are no longer public due to its integration into xAI, the overall company is actively raising capital to fund its AI ambitions, having secured over $17 billion so far and seeking an additional $12 billion from private investors.
- Operational challenges remain for X, as its projected user base is expected to decline by 3.8% this year, despite ongoing integration of AI capabilities.
- The transportation industry is witnessing intense competition in the AI sector, with X, Meta, Google, and OpenAI vying for market dominance.
