Why Twitter’s Rebranding to X Isn’t Quite Working—and What Entrepreneurs Can Learn

When Twitter announced its bold rebranding to “X,” it aimed to transform into an all-encompassing “everything app,” spearheaded by its high-profile owner, Elon Musk. But as the dust settles, it’s becoming increasingly clear that the rebrand is struggling to resonate with users, advertisers, and the public at large. Here’s why Musk’s vision for X isn’t quite taking off, and what entrepreneurs can learn from this misstep.

Does Anyone Actually Want an “Everything App”?

One reason for the rebrand is Musk’s stated desire to create an “everything app”.

One of the core issues with X is the disconnect between what Musk envisions and what users actually want. He may argue that he’s giving them what they “need,” but even when people need something, if they don’t also want it, they won’t use it. Trying to provide what you think someone needs, but isn’t what they desire, creates an uphill battle. First, you have to educate them on why they need it, and then convince them why they should want it—essentially doubling the effort and marketing work.

While the idea of an “everything app”—where you can handle banking, appointments, social media, and more—might sound innovative in theory, the reality is much different.

Do users really want to consolidate their entire digital lives into one platform? I sure as hell do not. I don’t know anyone who does.

Realistically, it raises significant privacy and security concerns. Data hacks happen regularly online, and when your entire life is tied into one app, the consequences of a breach become far more severe. It becomes the spot where the hackers can access your bank account, see that you went to the doctor for a private medical condition, learn that you’re planning a trip out of town next month, see that you purchased a brand new large screen smart TV … and so much more. Instead of the bad guys needing to breach multiple systems to learn all of that information, they would only need one. Not very appealing to me.

The fact is, people were extremely happy for decades (since 2006) with Twitter as a platform for short, real-time communication. They never asked for an app that does everything.

Sometimes, success lies in refining what users already love rather than trying to change into something that doesn’t fit their needs, even if it fits your own as CEO.

The Power of Twitter’s Original Branding

Before the rebrand, Twitter had established itself as an iconic name in digital culture. The word “tweet” became synonymous with the platform’s core functionality—a short burst of text-based information. The bird logo, too, was instantly recognizable, tied to a global cultural understanding of the platform’s purpose.

Tweet could be easily understood … when a bird tweets it is sharing a short burst of information, when a person tweets they are doing the same thing, so it makes sense. The name Twitter is close enough to the word tweet that it also makes sense with the functionality (and after two decades has become synonymous).

By switching to “X,” Musk essentially wiped out years of brand equity in one stroke. Unlike “Twitter,” which communicated exactly what users could expect, “X” is an ambiguous name that doesn’t tie to any specific function or service. What does “X” even mean? Is it X Men? Is it Dez Bryant doing his iconic X pose? Is it stop or do not enter? Is it X marks the spot (I tend to think that’s where he was trying to go, but has done a poor job communicating.)

And more importantly, what does it promise users? Without a clear, intuitive connection to its purpose, and a method to communicate that in a way that the users can easily understand, X is left floundering in the sea of abstract branding.

And branding can’t be abstract.

Musk’s Personal Brand vs. X: The Collision

Another critical issue is that X has become intrinsically tied to Musk’s personal brand rather than being allowed to develop its own identity.

Twitter had it’s own identity separate from its founder Jack Dorsey or any of the co-creators, but that’s not the case with X. In fact, when you think of X, the first thing you probably think of next is Musk, rather than what the platform is or does.

Every time Musk makes headlines—whether positive or negative—it reflects directly on X in a way that impacts the platform more than his other businesses. Tesla and SpaceX are tied to industries and products that people engage with in different ways, which means they also don’t feel as direct of an impact. But X is a platform where news and public conversations take place, so Musk’s controversies are amplified by the very nature of what X is (or at least what we think it is, what it has been.)

Speaking of Space X, that name directly and immediately connects you to what the company is about – space. Tesla also does so if you understand that Nikola Tesla contributed to our current use of electricity and Tesla is all about electric vehicles. This makes the apparent disconnect of the name X more apparent.

For entrepreneurs, this serves as an important lesson: while it’s tempting to make yourself the face of your business, it can become a liability when your personal brand overshadows the company’s.

X is struggling because it is Musk’s “project” more than it’s a platform for users—and that’s a problem when trying to cultivate a distinct brand identity. It’s also a problem for entrepreneurs when they are trying to cultivate a business.

For X to truly thrive, it needs to be able to step out from under Musk’s shadow and establish (re-establish) itself as a separate entity with a clear voice and vision of its own. But as of now, that entanglement is doing more harm than good.

The Real Problem Musk Has Created

Musk’s approach has been to move forward with a grand vision, assuming that users will follow along. But this isn’t a new car or an exciting space venture catering to an already interested audience who become the users for a product that did not really exist before; and not to mention much smaller audiences by the numbers; very niche audience that he could build from scratch.

In the case of X, Musk has alienated much of Twitter’s original user base—a large, diverse group that was once actively engaged—and now faces the challenge of attracting a completely new audience. In his attempt to flip the user base, he’s ended up appealing to no one in particular, failing to build a niche or capitalize on the existing community.

Changing an audience entirely, especially one as large as what X will need to continue to thrive and attract the advertising dollars it would need to remain competitive, is a slow and risky process, especially when the platform no longer aligns with its original appeal. While X may develop new appeal, that would mean attracting a completely different user base—a base that the company doesn’t seem to fully understand yet themselves.

The issue isn’t just about what Musk might do in the future; it’s about the damage that’s already been done. X is a platform in crisis because it no longer understands its own users—and it shows.

Musk can’t simply “rebrand” his way out of this one. Especially when the rebranding hasn’t found the right voice. He needs to recognize the fundamental shifts in user experience and community that the platform has undergone, many of which he caused by plowing ahead without considering the people – users – impacted.

The User Experience: Where It All Went Wrong

One of the clearest signs that the rebrand isn’t working is the user experience.

Despite the change in name and Musk’s vision, the core functionalities of Twitter currently remain the same. People still use the platform for real-time conversations and news updates.

However, the shift in branding, which so far appears to be nothing more than a new name and logo, hasn’t brought about the radical transformation Musk hinted at, and users aren’t buying into the concept of an “everything app.”

Worse, changes like the removal of content moderation have made the platform less welcoming for some. Many users left because the app no longer felt like a safe, friendly space, and this, in turn, has affected advertisers. A brand’s identity isn’t just in its name or logo—a brand’s identity is in how people feel when they interact with it.

For some, the new X is a less appealing place to spend their time or money.

Advertisers Are Leaving Too

The fallout from this user dissatisfaction has extended to advertisers, some of whom have distanced themselves from the platform.

Without a clear direction and with rising concerns over content moderation where brands are concerned their ads may appear next to messages that are contrary to their own brand, it’s become harder for X to attract and retain advertisers. For businesses, a platform that alienates its user base and garners negative publicity, even accidentally, doesn’t present an attractive proposition for ad spending.

The uncertainty surrounding X’s direction is not just driving users away—it’s making advertisers nervous too. After all, why invest in a platform that doesn’t seem to know where it’s headed?

Branding Isn’t Just About a Name—It’s About Vision

One of the biggest mistakes Musk made with X is failing to understand what users want. Branding isn’t just about slapping a new name on a company and calling it a day. It’s about communicating a vision in a way that resonates with people. If that vision only exists in the owner’s head, it’s not effective.

For entrepreneurs, this is a crucial lesson: your branding must clearly convey your business’s value and vision to the audience. It’s not enough to assume people will “get it.” You have to guide them there with thoughtful communication and alignment between your brand and user needs.

This is why when we provide branding services for entrepreneurs, we also create a brand messaging framework, to help the entrepreneur document their vision so that it can be shared with internal team and communicated to the proper audience.

Musk’s assumption that users would follow him blindly, without them fully understanding the new business model and brand, shows a disregard for the power of understanding your audience.

Download the Client Case Study on Corporate Rebranding

Final Thoughts: What Entrepreneurs Can Learn

The rebranding of Twitter to X offers a masterclass in some things not to do when evolving your business. Musk has a runway to be able to make potentially large mistakes, but most of us entrepreneurs aren’t billionaires who have capacity to continue putting funding into something that isn’t working right and just letting it keep running until it does.

It highlights the dangers of alienating a loyal user base, underestimating the importance of brand identity, and letting a founder’s personal brand dominate a company.

For entrepreneurs, the key takeaway is this: branding isn’t just about a name or a logo, which I keep saying. It’s about conveying a clear, user-centered vision and creating a brand identity that resonates with your audience.

Always consider what your customers want and need, not just what you envision, and consider how you need to relay that information to them.

When your brand aligns with your audience’s expectations, it becomes a powerful tool for growth. Fail to do that, and you risk becoming the next case study in a rebranding disaster.

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