Home Artificial Intelligence Elon Musk Drops Twitter

Elon Musk Drops Twitter

by S. Jack Heffernan Ph.D

Tech billionaire Elon Musk said Tuesday he was taking a break from Twitter “for a while”.

Musk overtook Amazon boss Jeff Bezos to become the world’s wealthiest person last month, with a fortune estimated at $185 billion following a nine-fold surge in Tesla’s share price over the past year.

“Off Twitter for a while,” the Tesla and SpaceX founder told his 44.5 million followers on the platform, not giving a reason for his decision.

He tweeted last week in support of a group of retail investors on website Reddit who had coordinated to buy shares in Gamestop, a struggling games company, pushing the chain’s share price up by more than 680%, according to CNN.

A post hours later about his love for the retail website Etsy, too, pushed the company’s share price up by as much as 8%, CNBC reported.

The tweets were not the only time Musk moved markets on the platform in recent weeks. When he changed his Twitter profile to read simply “#bitcoin” last Friday, the cryptocurrency’s price temporarily skyrocketed by around 20 percent.

His presence on the website has caused him legal issues in the past, however.

Musk was forced to step down as chairman of the Tesla’s board in 2018 after a serious run-in with the US Securities and Exchange Commission, which accused him of misleading investors by tweeting about a possible withdrawal of Tesla from the stock exchange.

With social media prognostications about Bitcoin or GameStop, Elon Musk has ventured further away from his own businesses and become more like a Wall Street heavyweight who can move markets with just a few words.

In his latest foray, the Tesla and SpaceX founder appeared on Clubhouse — a social network accessible only by invitation — to interview the head of online broker Robinhood, in the hot seat for his management of the GameStop affair, a chain of video game stores whose share price recently rocketed and is shaking hedge funds.

After discussing his ambitions for the colonization of Mars, as well as cryptocurrencies and artificial intelligence, Musk spoke with Vlad Tenev for 14 minutes, offering him the opportunity to respond to his detractors.

Robinhood has been limiting transactions on GameStop shares for several days.

But the gaming company, in fragile financial health, is being propped up by an army of small traders in a crusade against giant Wall Street hedge funds betting on its demise.

“Spill the beans, man,” Musk said. “What happened last week? Why can’t people buy the GameStop shares? People demand an answer and want to know the details and the truth.”

– Contempt –

Musk, who last month became the richest man in the world on paper thanks to a Tesla stock market boom, has nearly 45 million followers on Twitter.

Swept on by the success of his companies Tesla and SpaceX, as well as by interest in the electric cars and rockets they manufacture, he is considered by many fans to be a visionary, his slightest word enough to sway some investors.

When he changed his Twitter profile to read simply “#bitcoin” on Friday, the cryptocurrency’s price temporarily skyrocketed by around 20 percent.

And the mere mention of the Polish publisher of video game CD Projekt, or the e-commerce platform Shopify or the craft market Etsy — which apparently delighted Musk with a hand-knitted hat for his dog — caused their stocks to soar.

The business giant, who has expressed his contempt for investors betting on a decline in a company’s shares, waded in on the GameStop affair by tweeting a link to the Reddit group WallStreetBets, which helped stock of the video game specialist take off.

Influential figures jostling the fate of companies is nothing new, said Aswath Damodaran, a professor of finance at New York University.

Comments by banker John Pierpont Morgan more than 100 years ago, or Chrysler boss Lee Iacocca in the 1980s, could move markets. And the pronouncements of investment guru Warren Buffett are still scrutinized by many traders, earning Buffett the nickname “the Oracle of Omaha,” the city where he lives.

– ‘Outsider persona’ –

“The fact that Twitter and Clubhouse have replaced traditional media is more a reflection of media than it is of markets,” said Damodaran.

But Musk has been “very intentional about creating kind of an outlaw, outsider persona,” said Christopher Smith, professor of communications at the University of Southern California.

“And that resonates with the tech bro culture,” he said.

In a highly fragmented media landscape, Musk has mastered the art of using new technologies “to really stoke excitement,” he said.

Other giants like Amazon founder Jeff Bezos rely on their business portfolio to do the talking, “but Elon Musk is probably more of an attention-seeking narcissist, he’s much more of a showman,” added Smith.

Musk often uses his personal Twitter account to impart news about his various companies.

But his presence on the website has caused him some headaches, too. Musk had a serious run-in with the US Securities and Exchange Commission, which accused him in 2018 of misleading investors by tweeting about a possible withdrawal of Tesla from the stock exchange.

The tweet forced him to step down as chairman of the automaker’s board.

Perhaps aware of his Twitter account’s continued power to move markets — and the legal issues that might follow — the billionaire on Tuesday announced he was taking a break from the platform.

“Off Twitter for a while,” Musk said — on Twitter, naturally.

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.