Twitter: intriguing deal sparks Elon Musk alert
The 9.2% stake in Twitter has potential to be ‘a serious distraction’ from Musk’s day job
Tesla founder, Elon Musk, loves to set the cat among the pigeons. In that respect, his decision to spend $2.9bn on a 9.2% stake in Twitter – making him the company’s largest shareholder – was a textbook move, said Martin Peers on The Information; and to add to the fun, “the world’s most talkative CEO” suddenly came over all “coy” about his motivations. “Oh hi lol,” he tweeted to his 80 million followers as shares in the platform jumped by 27.1%. Musk recently indicated that he was interested in shaking up social media to advance “free speech”. It had been thought he was thinking about starting his own platform, noted The Times, but he has now joined the Twitter board. Conveniently, founder Jack Dorsey – a friend of Musk – is “due to vacate his seat next month”.
There was speculation that Musk’s investment was simply “a canny value play” for a stock that has fallen by 40% in the past year, said Lex in the Financial Times. His move onto the board suggests he could look to create a “meme stock”. Either way, given his online pull and the tendency of past tweets to land him in “regulatory hot water”, Washington should “set a Twitter alert” if the world’s richest man puts more capital into this deal.
“The hearts of Tesla shareholders must sink every time Elon Musk takes on a new project,” said Nils Pratley in The Guardian. At least this deal (unlike his huge bitcoin investment through Tesla) is “with his own money”. Still, the Twitter stake has the potential to be “a serious distraction from the day job”. Musk’s high profile has saved Tesla a fortune in advertising; but there’s little upside to him getting “sucked into toxic battles” about the role social media plays in the US’s politics. “Leading the electric vehicle revolution is hard enough without unnecessary detours.”
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Who actually needs life insurance?
The Explainer If you have kids or are worried about passing on debt, the added security may be worth it
By Becca Stanek, The Week US Published
-
Sexual wellness trends to know, from products and therapies to retreats and hotels
The Week Recommends Talking about pleasure and sexual health is becoming less taboo
By Theara Coleman, The Week US Published
-
Is the AI bubble deflating?
Today's Big Question Growing skepticism and high costs prompt reconsideration
By Joel Mathis, The Week US Published
-
Why is Tesla stumbling?
In the Spotlight More competition, confusion about the future and a giant pay package for Elon Musk
By Joel Mathis, The Week US Published
-
Tesla cuts prices in 'intensifying' EV war
Speed Read Electric vehicle giant has struggled in the face of weakening demand, competition from China and technical setbacks
By Arion McNicoll, The Week UK Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
What Elon Musk has to fear from China's 'Tesla killer'
Talking Points BYD is now the world's biggest seller of electric vehicles
By Joel Mathis, The Week US Published
-
Shein: could the year’s mega-IPO fall apart at the seams?
Talking Point Latest hitch is a pre-float 'security review' that could deter potential investors
By The Week UK Published
-
Labor market strong as inflation sinks
Feature And more of the week's best financial insight
By The Week US Published
-
Midair blowout: another black mark for Boeing
Feature This isn't the first production issue Boeing has encountered
By The Week US Published
-
Behemoths of the seas
The Explainer Cruise liners keep getting bigger, with the world’s largest 'megaship' ever built set to make its maiden voyage this month.
By The Week Staff Published