Silicon Valley entrepreneur Elon Musk caused quite the stir last week when he revealed his plans to buy one million dollars’ worth of Tesla shares and take his company’s CEO position. While some have attributed this move to the eccentric billionaire’s desire to give Tesla an extra boost, others have claimed that it has more to do with another of Musk’s recent business ventures – Twitter, which he bought as well on the same day as Tesla stock. But what could Musk possibly want with such a social media platform? Here are four reasons behind Musk’s Twitter purchase that may surprise you…and two reasons they might not.
How Did He Use This Acquisition?
Elon Musk is a person who embraces technology. He created SpaceX, co-founded PayPal and Tesla Motors, and founded Neuralink. He understands that social media is essential for communication. In March 2018, he tried to be a good guy by buying all shares of a company called Tweeter which was failing badly at that time.
After he took control of it, it was renamed as Twitter as we know it today. He also made some changes in its policy to make it more attractive for users. It is believed that because of his efforts, Twitter will grow much faster than before. It may become a great platform for many people around the world because it can bring them closer together and help them communicate with each other easily.
What Was His Objective?
When news broke that Tesla CEO Elon Musk bought a $20 million stake in Twitter, everyone wanted to know: Why? The answer was always going to be complex—there’s no simple motivation for a multi-billionaire. However, social media analyst Debra Aho Williamson put it best in an interview with CNN Money. She said, Musk has been positioning himself as a goodwill ambassador for sustainable transport for some time now. He needs credibility on that front and I can see him wanting Twitter as another way of getting his message out there.
It’s rare that you’ll come across such clear insight into one of tech’s biggest power players. Williamson knows her stuff; she’s worked at both Forrester Research and eMarketer, two highly respected companies when it comes to understanding how people use technology. In other words, she knows what she’s talking about. So if you want to learn more about why Musk invested in Twitter (and why he might have done so), follow her work. You won’t regret it!
What Can We Learn From Him?
Did you know that there are 17 million fake twitter accounts? That’s about 7 percent of all users. For whatever reason, fake social media accounts have become a thriving cottage industry for spammers. Elon Musk wants to fix that. According to The Verge, he sent out his first tweet on February 21: Am considering taking Tesla private at $420. Funding secured. If we follow along with Musk’s math—$420 per share multiplied by 420 shares equals $201,814,000—he stands to make an extra $15 million on top of his current position as CEO and largest shareholder of Tesla. But how did he come up with those numbers? Well, it turns out they’re pretty arbitrary.
In fact, Musk claims they were pulled from thin air. In a statement released after announcing his intention to take Tesla private, Musk explained why he chose $420 as a price point: The price would be based on a 20% premium over the stock price following our Q2 earnings call (which had already increased by 16%). He continued: My best estimate right now is that approximately two-thirds of shares will end up being sold for $420 per share. So what does it mean if your boss suddenly starts posting random tweets during work hours? It means one thing and one thing only: He’s probably high AF right now.
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