I don't think it's a question of competence. Musk bought a company that was already losing billions, and saddled it with debt and billions of interest payments per year. His recent actions also cost near-term ad-revenue loss, thereby further amplifying losses.
As bad as those things are, in-and-of themselves, they don't represent an existential crisis.
The problem is that he actually cannot afford to float Twitter until such time that the company becomes profitable (if ever). Hence the drastic cost-cutting measures.
