The FT reported that the banks had sold the debt at par, which would seem to suggest that the company was doing OK.

It might also have been done to keep the relationship with Musk, given his apparent political power at the time.

Elon's participation in a project produces otherwise incomprehensible valuations across several businesses. So, yeah, either all those businesses are doing OK or Elon's funders are inflating a bubble.

Since I haven't heard a peep of a complaint from Elon's financial backers about having a declining social media site shoved into their AI investment, the investors are still thinking that they could unload on greater fools when the time comes.