Is Elon succumbing to avarice, or does his genius continue to shine through?
If you haven’t heard already, or if you happen to live under a rock, the inventor of Tesla, Elon Musk, has purchased all of Twitter in a deal for $44 billion. Even worse than that ridiculous sum is the fact that experts have valued Twitter at a far lower amount, namely $25 billion. So that begs the question: why on earth would he pay more than it’s really worth? I would be willing to bet that he recognizes the potential of what it might be and how the previous “administration” of Twitter was unable to live up to the promise of the platform.
I know what you’re thinking, and it’s probably something along the lines of, “Damn that dude has money!” Indeed, he does, and a significant amount of it; but, I highly doubt that he paid for it with his own cash. Elon Musk may be many things, but an idiot he is not by any stretch of the imagination. It seems inconceivable that Musk would make the acquisition on his own, given that Twitter was not in the greatest possible financial situation when he first made the offer.
Elon paid for the purchase by selling his Tesla shares, borrowing more than $12 billion from several banks, and getting help from a number of other investors. After the deal was done, he wanted to speed up the process of change inside the company. In fact, as one of his first moves as the new owner of the social media behemoth, and in an attempt to assist in the reduction of business expenditures, he pushed the idea to investors that Twitter’s personnel may be reduced by up to 75% of the existing employee roster.
Elon had effectively decreased the employment scale from about 7,500 to 2,000 personnel, leaving just a select few to operate their respective sections of the corporation. Senior executives, such as the chief financial officer (CFO), chief executive officer (CEO), and top attorneys, were among the staff members who were let go as a result of the layoffs.
The employees were notified by email sent to their personal accounts if they were among those who were terminated, and they were notified via email sent to their corporate accounts if their positions were retained.
Elon has made it quite obvious that the health of the company’s finances is his first concern, and he is well aware of this fact if he wants his investment to be successful. However, doing so would only scratch the surface of what has to be altered and achieved in the economy of today. To what extent and at what expense would he go to ensure that he is successful?
Existing management posed a challenge to the workforce: reduce annual spending by roughly half a billion dollars while improving operational efficiencies and reducing associated costs. Employees were placed in a tough ethical position as a result of this since they were aware that the impact would include cutbacks to data centers, website infrastructure, and content moderation.
These are all factors that impede the capacity to keep the platform operational. Employees have been outspoken about their lack of faith in the platform’s ability to continue to run according to the standards imposed by budget cuts, which is understandable. The fact that laid-off workers continued to contribute to the concern despite the fact that they were no longer employed by the firm demonstrates how much they cared about the work they did. Many others have come forward to say that everything took place in a very short amount of time and left them in a state of terror.
Because some workers were already unable to access their workplace accounts before the warning was sent out on Thursday, they started to tweet and post blue hearts before the message was sent out.
Elon has shown no reluctance whatsoever in terminating the employment of Twitter staff members; on the other hand, he has been quite enthusiastic about recruiting Tesla engineers to assist in aiding the company, particularly with the software code. I have a sneaking suspicion that this is not going to be the last time Elon Musk seeks assistance from Tesla employees for one of his other company endeavors those who have previous experience in the field.
SpaceX, a space exploration business that has made major breakthroughs in space travel over the course of the previous several years, is one of the most visible investments in his portfolio. Tesla and SpaceX engage in regular commercial activity, which results in SpaceX accumulating a large number of outstanding bills.
A portion of the costs was incurred as a result of Elon Musk’s decision to temporarily recruit personnel from SpaceX to work at Tesla. Does this ring a bell? These costs by themselves are expected to be somewhere about $100,000, but taken together they amount to $3.54 million. Among the other costs are the acquisition of solar panels, vehicle components, and remanufactured power supply.
I’m sorry, but are you telling me that Elon’s firm made a payment to his other company in the amount of $3.54 million? That is completely accurate, and even more surprisingly, that is not even the most exciting aspect. Even worse is the fact that SpaceX paid Tesla something in the neighborhood of $500,000 for the use of a private jet! Woah.
Want to know what else is so fishy about this entire situation? The fact that everything is completely legal. Elon puts all of his own money into himself as an investment. Take it into consideration for a moment. His income and earnings are collected in a stream of recycled money that never runs dry! (with the exception of a reasonable yearly tax)
As I have said, he is not an ignorant guy, and his reign will not end with Twitter if that is the direction that it takes. And with Elon at the head of it all, I really doubt that is the direction that the platform will go. If you don’t trust me, just consider how successful Tesla and SpaceX have been in recent years. It also did not take place in an instant.
He just purchased the business, so it is possible that it may be some time before we see any real effects. In the meanwhile, despite the numerous errors and potential transgressions that may come out of his lips and Twitter account, let’s show some love and support for one another. There is already an excessive amount of hatred in the world, and the very last thing we need is for there to be even more of it. We must get through this together!