Elon Won't Leave Mar-a-Lago but are Users Fleeing X?
Nov 19, 2024
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Dana Hull, a Bloomberg reporter specializing in Elon Musk and Tesla, joins Kurt Wagner, a social media expert, and Max Chafkin, a senior writer, to explore Musk's alliances with political figures like Donald Trump. They discuss the shifting user base from X to emerging platforms like Bluesky, highlighting user dissatisfaction and the implications for Musk's ventures. The dynamics of Musk's financial power amid political engagements are examined, as well as regulatory strategies that impact his businesses in the tech realm.
Elon Musk's financial success has surged following Trump’s electoral win, signaling strong investor confidence in his leadership and political ties.
X is facing a decline in user engagement as many migrate to Blue Sky, indicating potential risks for its long-term viability in social media.
Deep dives
Elon Musk's Wealth Surge
Elon Musk's financial standing has dramatically improved following the recent electoral success for Donald Trump, with his net worth climbing to approximately $326 billion. This increase is largely attributed to a significant rise in Tesla's stock prices, which soared about one-third after the election results were announced. Musk's strong political ties and active campaigning for Trump have raised concerns among critics about potential neglect of his companies; however, the soaring company valuations dispel that notion, signaling investor confidence in his leadership. The strategic political alignment has seemingly positioned Musk as a powerful figure in both business and political spheres, suggesting that proximity to power can yield substantial benefits.
Autonomous Vehicles and Regulatory Opportunities
The potential for legislation around autonomous vehicles under the Trump administration could provide Musk with a favorable regulatory environment, streamlining processes that currently hinder the industry. Elon Musk has shifted Tesla's focus from mass production of electric vehicles to prioritizing autonomy and artificial intelligence, indicating a strategy to dominate the robo-taxi market. Observations suggest that Musk is actively looking for easier regulations that could significantly accelerate the deployment of autonomous vehicles. Even though there are challenges ahead, including the need for substantial legislative support, the anticipation of favorable oversight remains a central theme for Tesla's future growth.
X Faces User Exodus
Despite its current relevance as a political tool, X is experiencing a concerning decline in user retention and engagement, as many users migrate to rival platforms like Blue Sky. After the recent election, a notable increase in users at Blue Sky highlights the discontent among former X users, many citing privacy concerns linked to changes in X's terms of service. This shift suggests that while X remains politically significant, it risks becoming an echo chamber if it loses more mainstream users critical for a balanced discourse. Additionally, the ongoing struggles with user engagement pose potential threats to X's long-term viability in the social media landscape.
The Impacts of Regulatory Decisions on Tesla's Rivals
Changes to federal tax credits for electric vehicle purchases may impact Tesla differently than its competitors, as the company is already positioned to remain profitable without them. The potential phase-out of these incentives could benefit Tesla by further creating a competitive moat against rivals like GM and Ford, who rely heavily on such credits for their EV sales. Musk's strategy has been to adjust pricing, which had previously shown flexibility, suggesting a willingness to adapt to market conditions favorably. This scenario underscores a broader trend where established players in the market may be better equipped to navigate regulatory changes, potentially squeezing out newer entrants in the evolving EV industry.
Does money speak? And if so, what is it saying about Elon Musk and Donald Trump? In this episode of Elon, Inc., the panel—host David Papadopoulos, Elon Musk reporter Dana Hull, social media reporter Kurt Wagner and Bloomberg Businessweek senior writer Max Chafkin—consider how Musk has benefited from his incredibly close relationship with the president-elect, even as some cracks emerge between them.
Also discussed: Bluesky, a new version of what Twitter was before Musk got a hold of it, has had a great few weeks, adding millions of users. It’s not clear how this will impact X, as its value—like all of the right-wing billionaire’s companies—is now tied to Trump. There might not be a good advertising business left for X, but it has other uses now, as the media arm of Musk’s political operation, and the Republican Party as a whole.
