Elon Musk's Controversial Move: Investing in Truth Social
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Chapter 1: Musk's Discontent with X/Twitter
Elon Musk, a staunch advocate for unrestricted speech, has grown increasingly frustrated with X/Twitter. The platform, which he acquired to champion free expression, has inexplicably banned multiple accounts, including those of reputable journalists. It's hard to ignore the irony that these accounts were often critical of Musk himself. In a bid to address this issue, Musk has reportedly invested in Donald Trump's Truth Social. Recent leaks suggest he has embarked on a spending spree that inflated the company's valuation to $10 billion shortly after its public debut, only to see it plummet to $7.8 billion by day’s end. Together, Trump and Musk appear poised to lose even more money while promoting what they claim is "free speech," which many might argue is simply a defense for hate speech.
This strategic financial maneuver aligns perfectly with Musk's business philosophy. Similar to X/Twitter, Truth Social is vastly overvalued and lacks profitability. The platform generated a mere $3.5 million in revenue in 2023, while its expenses exceeded $30 million. Unsurprisingly, advertisers are hesitant to associate with either platform, given the rampant extremism, hate speech, and violent rhetoric present. Musk has pointed to this as further proof that a "woke mind virus" is permeating American society. After all, the American public seems to favor brands linked to nationalist and bigoted rhetoric, with companies like Volkswagen and Ford as examples. However, stock analysts remain skeptical, asserting that Truth Social's current valuation is detached from reality—much like Musk and Trump themselves.
The first video titled "Terrible Timing" discusses the potential implications of Musk's involvement with Trump's Truth Social and raises questions about the future of free speech online.
Chapter 2: Legal Implications and Financial Strategies
Musk's investment also proves beneficial for Trump. Contrary to their assertions, the First Amendment does not safeguard speech that is "integral to illegal conduct or speech that incites imminent lawless action." This legal distinction is what allowed Twitter to remove Trump following the January 6th insurrection. Additionally, individuals harmed by the unregulated discourse on Truth Social may have grounds to sue the platform for damages or neglect. Given Trump's legal woes, access to Musk's team of aggressive attorneys, known for their ability to maneuver through complex legal challenges, could be invaluable—if Truth Social can amass a sufficient user base to incite significant activity.
Unfortunately for Trump, he cannot currently liquidate his shares or use them as collateral to address his mounting legal fees due to existing lock-up rules that prevent him from touching his 69% stake for at least six months. However, this does not mean he will be forced to resort to desperate measures to avoid financial ruin. The board at Truth Social could potentially provide Trump with a waiver, enabling him to sell his $5.3 billion stake. This has raised alarms among seasoned investors, who fear it could lead to a "Pump & Dump" scenario—an ironic twist given Trump's history of financially motivated behavior.
The second video titled "Elon Musk talks Twitter, Tesla and how his brain works — live at TED2022" explores Musk's thoughts on technology and free speech, providing insights into his motivations.
In conclusion, while this partnership between Musk and Trump may appear advantageous, the underlying legal complexities and financial realities could pose significant challenges.
Disclaimer: All articles published by Beyond The Bull are satire. Some aspects of this story have been embellished. Take this piece seriously at your peril.