Friday, August 10, 2018

Tesla shareholders deserve more than a 50-character tweet from Musk

Speaking of Twitter and inappropriateness - and I was - there was a good example recently of the inappropriate use of Twitter in the sphere of business and commerce.
Elon Musk, CEO and largest shareholder of electric car-maker Tesla and undeniable genius as an innovator (even if something of a maverick), dropped a simple little 50-character tweet that has thrown his $70-$80 billion company into chaos: "Am considering taking Tesla private at $420. Funding secured." Basically, Musk is frustrated at the red tape and constant market accountability and oversight involved with running a public company, and wants to go back to operating it as a private company. As a multi-billionaire, he probably has the wherewithal to do just that, although exactly what "funding secured" means is far from clear. The other shareholders are still waiting for some more information.
The audacity of using a short tweet like that for something so major is staggering. One parody tweet neatly put it in perspective: "Am considering going to Chipotle. Funding secured." Surely, the other shareholder deserve a little more than 50 characters.

UPDATE
Just kidding! Musk has changed his mind, after a board meeting in which pretty much everyone warned him against it, and will now no longer be taking his Tesla company private. And this time, he didn't just drop a tweet: he made it much more official and made the announcement in a blog entry on the company's website!
In the meantime, the company's shares have lost about 20% of their value. And all because of an ill-advised tweet!

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