The billionaire resisted for over five months against what he termed "censorship" in a dispute with a judge in one of X's largest and most sought-after markets. The court restricted access to the platform for Brazilian users in late August.
While a ruling on X's reinstatement is still awaited, sources close to Musk in Brazil are optimistic that access could be restored within days.
On Thursday evening, X emphasized that access to its platform in Brazil "is essential for a thriving democracy" and affirmed its respect for the sovereignty of the nations in which it operates.
The company's global affairs team further stated in a post on the platform that they will continue to advocate for freedom of expression and due process through legal channels.
Justice Alexandre de Moraes, who has led a local initiative against perceived threats to democracy and the misuse of disinformation, imposed the ban on the platform, previously known as Twitter, after Musk closed X's offices in Brazil.
This legal conflict also impacted another of Musk's ventures, the satellite internet service Starlink, as de Moraes froze its accounts, prompting Musk to label him a "dictator."
The situation in Brazil is part of a broader series of confrontations involving Musk, who positions himself as a defender of free speech, and various governments, including those of Australia and the UK, that are working to combat online misinformation.
Brazil ranks as X's sixth-largest market globally, boasting approximately 21.5 million users.
"Musk was concerned about losing market share and came to realize that this was an illogical conflict, as Brazilians were not siding with Justice Alexandre de Moraes as he had anticipated," noted Thiago de Aragao, a senior researcher at the Center for Strategic and International Studies in Washington.
In a last-ditch effort to bypass Moraes' ban, X utilized third-party cloud services, enabling Brazilian users to access its platform despite the restrictions. However, this strategy was short-lived, particularly after Moraes warned of significant fines against the company.
Late last week, X adopted a more conciliatory stance by appointing a local legal representative, as required by Moraes.
In a submission to the Brazilian Supreme Court, Musk's company indicated that it had suspended nine accounts linked to an investigation concerning hate speech and misinformation.
Rubens Barbosa, a former Brazilian ambassador to the United States, remarked to Reuters, "His reversal is very encouraging. Regardless of personal opinions, the law must be upheld, not challenged."
Sources close to Musk revealed that the billionaire plans to adopt a markedly different strategy upon X's return to Brazil. While he may still exhibit a combative attitude, he is expected to prioritize legal compliance. "From this point forward, he will engage in legal battles," one insider noted.
X did not respond to a request for comment.