Johannesburg, November 2022: To the average person the actions of Elon Musk can sometimes seem strange and unpredictable. Given the impact he is capable of having on the world, Fred Razak, Chief Trading Strategist at CMTrading, offers insight into how we can understand this seemingly erratic billionaire.
Did Musk waste $44-billion on Twitter?
“I think Elon Musk isn’t someone who is too concerned with the day-to-day realities of his bank account. In order for him to do what he does, and concentrate on what he does, there are a lot of things he needs to disconnect from entirely in order to achieve some of the things he has achieved in his life and I think his move on Twitter is entirely reflective of who he is.”
“I think his move on Twitter is a brave one. We are looking at the United States getting increasingly bifurcated between the Democrats and the Republicans. We are seeing a lot more anger between these groups. It seems on the surface to be crumbling in front of our eyes. We are looking at a capitalist society that is falling apart. Into this comes a lot of bias in the news across the spectrum with media organisations taking either a left or right position. This leaves Musk with an opportunity to grab the middle ground with his “free speech is free speech” approach and perhaps start controlling the media that both sides can trust.”
“I do generally think he wants truly free speech to be at the centre of the American media. I do believe he wants a nonbiased outlet for people to voice their opinions and get the conversation going between the two sides. I think he just wants a raw outlet, that’s available to the public, but I suspect he has more challenges than he perhaps could handle. While America is desperate for a measured, free and unbiased media platform, there still can’t be an avenue for hate speech, racism and indoctrination.”
“I don’t think Musk’s purchase of Twitter is a cynical one, or that he intends to use it in pump and dump schemes. I think it’s genuine.”
What is the future of Musk Twitter?
“I think he is going to do a few things with Twitter. He is going to look at it like a business model, and I think he is going to make it profitable. There is going to be a painful transition, but I think we will see him successfully move Twitter to a subscription model. It’s such a strong brand name, that I really don’t think it’s just going to collapse and go away. In the end, I expect him to do what it takes to make it successful, and ultimately to make himself billions on it.”
“I don’t expect whatever Musk does to Twitter will have any impact whatsoever on Tesla. Tesla is pointed in a direction, and while it may need a new captain, it will continue to move in that direction, while Musk is focused elsewhere.”
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