In the face of ongoing backlash from major advertisers, Elon Musk’s X is struggling to regain the support it once enjoyed. Companies such as Disney, IBM, and Apple have maintained their decision to withhold ad dollars following Musk's endorsement of an antisemitic tweet. Additionally, marketing agencies have also pulled back from advertising on the platform. In response to these challenges, X has announced plans to attract smaller and medium-sized businesses to bolster its income.

In a statement given to the Financial Times on Friday, X acknowledged the significance of small and medium businesses as an untapped market. The company stated, "Small and medium businesses are a very significant engine that we have definitely underplayed for a long time. It [was] always part of the plan - now we will go even further with it."

Last month, several renowned brands halted their spending on X, citing concerns over Musk's controversial endorsement. In a recent outburst during the New York Times' DealBook event, Musk lashed out at these boycotting companies, accusing them of "blackmail" and telling them to "go fuck" themselves. He vowed not to pander to big advertisers and warned that they would bear responsibility if X were to face any collapse.

Leaked documents reported by the New York Times have raised concerns about X's financial health. The company estimates a fall in ad revenue between $10 million and $12 million, while the Times suggested that X could potentially lose up to $75 million this quarter. Consequently, half a dozen marketing agencies have expressed their reservations about returning to X.

The comments made by Musk during the event have caused further uncertainty for advertisers and business experts. Steve Boehler, the founder of marketing management consultancy Mercer Island Group, expressed concern about Musk's stance and his disregard for advertisers' opinions. Boehler noted, "This is also personal. Businesses are simply full of people, and people like to be treated well, respected, and dealt with with dignity."

Despite the mounting criticism, Musk has found an unlikely supporter in billionaire hedge fund manager Bill Ackman, the founder of Pershing Square Capital Management. Ackman, who threatened to blacklist Harvard students who blamed solely Israel for an attack by Hamas, praised Musk's recent interview, calling it "one of the great interviews ever."

Acknowledging Musk's commitment to free speech, Ackman argued that other platforms, including TikTok, Instagram, and Facebook, also harbor problematic content but don't face the same level of boycott from advertisers. He suggested that Musk and X are being targeted by media organizations due to their competition and the desire for clickbait headlines.

Regarding the antisemitic tweet, Ackman stated that after examining the facts, he believed Musk did not have any antisemitic intent. Pershing Square has an investment in X, but Ackman emphasized that his support for companies advertising on the platform stems from his appreciation of their commitment to free speech.

In response to Ackman's post, Musk expressed his gratitude with a succinct "Thank you."

As X continues to grapple with the boycott from major advertisers, these recent developments highlight the polarizing reactions and challenges the platform faces in its quest for financial stability and maintaining its user base.