Be Careful What You Bid For
Be Careful What You Bid For
By:Josh Fabian
Whether it’s a jump the shark moment or just another step in the evolutionary and disruptive process, there’s more to Elon Musk’s purchase of Twitter than just a discussion about the implications for free speech with respect to domestic politics. There’s a discussion to be had about the implications in foreign relations, foreign business and whether or not Elon may find himself having to choose between free speech and selling Teslas.
Check out the latest episode of Truth or Skepticism for more on this topic.
For better or worse, Twitter has become a global town hall and main source of news. In some respects that’s been a great advancement. The dissemination of news has never been more immediate. In other respects, it’s less wonderful. Lies are more easily and more quickly spread. Enforcement of rules appears unbalanced to some. Bots have been used to exploit social and partisanship divides. The real danger though, with respect to Elon’s ownership of Twitter, is at the intersection of the geopolitical and business world.
One of the biggest potential markets for Tesla is China. China, well, at least Chinese officials, have access to Twitter. As it just so happens, they aren’t big on being bashed in public forums. They recognize the influence of social media and how it can be used to create or skew opinions. Therefore, it is entirely reasonable to believe President Xi will not just ask, but demand, Elon clamp down on negative and derogatory stories about China. It is entirely reasonable to believe the future of Tesla in China will hinge upon more favorable treatment of China. It is entirely possible Elon will find himself in a situation where he is forced to pick between selling cars and free speech.
Don’t think that’s a concern for Tesla? Take a look at their stock price. On April 13th, one day before announcing his offer for Twitter, Tesla stock closed just over $1022. As of this writing, Tesla is trading $835. That’s a drop of 18% in two weeks.
Elon and Twitter isn’t a story about him being spread too thin. It isn’t a story about domestic politics. It isn’t even a story about the price he’s paying; this is pocket change for Elon. This is a much bigger story than any of that. It’s a story about the value of free speech vs. selling cars and we’re about to find out which one matters most to the world’s wealthiest man.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.