Tesla recently reported third quarter profits, and the story largely focused on demand because the carmaker fell short of estimates for vehicle deliveries. After all, according to the Wall Street Journal , “the corporation has handled production snags and ongoing supply-chain issues.”
Further investigation reveals, however, that “Mr. Musk’s on-again, off-again pursuit of Twitter Inc. also has weighed on the car maker’s stock,” according to WSJ. Indeed. Investors could be a little nervous about Musk juggling his time between Tesla, SpaceX, and (now) Twitter given the continuing Twitter soap opera, I suspect.
Let’s go right to the question at hand: Will Twitter eat into Musk’s time at Tesla? Remember that Elon is skillfully managing his time with Neuralink and The Boring Company. Investors regarding Elon and Twitter, I fear, may be “taking their eye off the ball.”
Yes, Twitter will further fragment Elon’s time. And it’s true that politics, polarization, and (sometimes) humorous memes are all too common on Twitter. Without a doubt, it continues to be a hot button issue. But disagreement draws attention. Everything is excellent material for the media. Elon’s (ahem) emotionally-charged business choice is reflected in countless headlines. But keep in mind that this is a business choice.
Instead, let’s look at Elon’s “relationship” on Twitter with the proper perspective. In other words, it’s just business and not personal. We’ll have to wait and see if Musk earns money with Twitter. But I see this a little differently than the normal Wall Street analyst because I’m a Tesla owner, TSLA investor, and businessman myself* right in the thick of the Tesla ecosystem (see below).
Dan Ives, a Wall Street analyst, is concerned that Twitter will harm Tesla. Does he not see the bigger picture? YouTube user Bloomberg Technology
When I view this only from a business perspective, Musk’s decision to purchase Twitter strikes me as both innovative and clever. Tesla doesn’t promote itself. Additionally, Tesla doesn’t even have a public relations team , a PR firm, or a single PR contact within the business. But Elon Musk has amassed more than 100 million Twitter followers. And Tesla owners (and those who plan to get a Tesla) frequently hang out on Twitter.
Elon Musk’s acquisition of Twitter will help Tesla grow. It serves as a crucial platform for astute journalists, powerful businesspeople, newsmakers, and attention-seeking politicians to express their viewpoints. If Elon Musk throws down and ultimately decides to purchase Twitter, the action should (ultimately) result in greater exposure for Tesla.
A prime example is the extensive Super Bowl advertising for new electric vehicles from traditional automakers. about 100 million people watched the Super Bowl this year. The leading manufacturer of electric vehicles in the world, Tesla, did not air a single TV ad throughout this time. Why? Perhaps as a result of Elon Musk’s excessive tweeting to his 100 million followers.
What’s this? These kinds of business transactions are rather typical. In retrospect, Jeff Bezos acquired the Washington Post, a significant media organization. Looking ahead, Elon Musk may decide to acquire Twitter, a significant social media site. The Twitter agreement makes some sense when seen in the proper context.
After all, why shouldn’t Elon Musk purchase Tesla’s most potent communication tool if Tesla refuses to use conventional advertising or public relations? Wouldn’t that aid in boosting the Tesla name? Wouldn’t that help the entire electric vehicle movement advance (and spread the word)?
*After all, I am the leader of EVANNEX , the pioneer and market leader in aftermarket Tesla parts and accessories.
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