It’s Fun To Scold A Billionaire, But Here Are 3 Reasons Why Elon Musk Might Know What He’s Doing With Twitter — And Might Get The Last Laugh

It's Fun To Scold A Billionaire, But Here Are 3 Reasons Why Elon Musk Might Know What He's Doing With Twitter — And Might Get The Last Laugh

It’s Fun To Scold A Billionaire, But Here Are 3 Reasons Why Elon Musk Might Know What He’s Doing With Twitter — And Might Get The Last Laugh

Elon Musk hasn’t been getting much love lately.

In the months since the Tesla co-founder and CEO took control of Twitter, he has lost his top spot as the richest person in the world. To make matters worse, Musk was booed off stage by the crowd at Dave Chappelle’s stadium show in San Francisco this week.

“Sounds like some of those people you fired are in the audience,” Chappelle joked as the jeers continued.

The billionaire entrepreneur cut thousands of jobs at the social media giant, removed the company’s “rest days” — monthly days off for employees to rest and recharge — and ended the company’s remote work policy.

Reports emerged of even more Twitter employees quitting en masse after Musk ordered them to commit to “long, high-intensity hours” or leave. This resulted in the temporary closure of Twitter offices in November. Numerous advertisers have also fled, bringing their much-needed revenue with them.

Twitter has launched plans to charge users for access to Twitter Blue, which includes verification with a blue check mark. The program was short-lived, after some used the subscription service to impersonate big brands, celebs, and even Musk himself. The company has since relaunched Twitter Blue with a more robust verification process.

It doesn’t look good, and many critics are calling Musk inept or crazy for burning down his $44 billion acquisition.

But the truth is that Twitter is a business and Musk is a very successful businessman. Here are three reasons why Musk might know what he’s doing.

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1. He may be trying to reduce “dead weight.”

As one of the leading players in its field, Twitter makes a lot of money, but it also has big expenses.

In the second quarter, the company posted $1.18 billion in revenue. However, costs and expenses amounted to $1.52 billion. That resulted in an operating loss of $344 million for the quarter.

That’s why it’s no surprise that cost cutting is what Musk has in mind.

The move may even increase productivity.

One Twitter user labeled Musk’s technique as “whaling and culling,” with his perspective gaining more than 25,000 likes.

“Elon was looking for the whales at the company. The hard hitting, actually producing and hard people who have been around for a while. When the whales don’t have to carry dead weight, they perform like the equivalent of 10 humans,” Oliver Campbell said in a Nov. 18 tweet.

“Secondly, it’s ‘clearing’. If 90% of people are not performing, they are actually negatively impacting the 10% that DO perform. And that is why there have been layoffs.”

2. He could plan a payment game

Many observers wondered why Musk was willing to spend $44 billion to buy Twitter in the first place. A cry for attention? Revenge?

One possible explanation stands out: payments.

In 1999, Musk co-founded X.com, an online bank that later merged with Confinity to form PayPal.

We all know that PayPal has disrupted the payments industry immensely. Would Musk want to do it again?

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According to Caitlin Long, a former banker at Morgan Stanley, the answer is yes.

“He’s spent his entire career trying to get rid of ACH,” she told Fortune, referring to the ubiquitous bank-to-bank electronic money transfers processed through the Automated Clearing House network.

Also obtained an investor presentation by The New York Times suggests that Musk has revived the name X – a mysterious new product on Twitter due to launch in 2023. Musk expects Product X to garner 104 million subscribers by 2028.

3. He is the second richest man in the world

Finally, let’s not forget that Musk has a pretty impressive track record of running businesses.

In addition to Tesla and X.com, Musk is also the founder, CEO and chief engineer of SpaceX, a company that designs, manufactures and launches advanced rockets and spacecraft.

Musk also co-founded Neuralink, which develops implantable brain-machine interfaces, and OpenAI, an artificial intelligence research lab.

According to Forbes, Musk is the second richest person in the world with a net worth of $184 billion. Musk had held the title since September 2021, but was recently overtaken by Bernard Arnault, who is worth an estimated $186 billion.

Sure, not everyone is a fan of his new strategy on Twitter. #RIPTwitter has been all over the place, with users saying goodbye and sharing their other social media accounts in case Twitter collapses.

But Musk may have the last laugh, as discussions on the topic actually increase user engagement.

“We just hit another all-time high in Twitter usage lol,” Musk tweeted on Nov. 17. “Let that sink in…”

On Nov. 26, Musk shared slides from a company presentation on Twitter, which revealed that the platform was averaging more than two million new users per day in the week ending Nov. 16 — a new all-time high.

While we haven’t seen him brag about December numbers yet, efforts are being made to lure advertisers back to the platform. This may be a smart move, as ad sales account for about 90% of Twitter’s revenue.

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This article provides information only and should not be taken as advice. It comes without any kind of warranty.

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