logo
Elon Musk, Twitter, and the billionaire balancing act – Is it really a crisis?

Elon Musk, Twitter, and the billionaire balancing act – Is it really a crisis?

UNITED STATES: Still recall the sensational, buzz-worthy moment when Elon Musk bought Twitter for US$44 billion? It was Oct 27, 2022, a day that redesigned social media and changed the world's perception of how billionaires play.
In a post on Facebook, one user tried to analyse the financial position of Musk amid speculations that he is in 'hot water' money-wise. Initially, the poster refuted what many perceived after Musk bought Twitter. According to him, the world presumed at the time that Musk had an extra US$44 billion in the bank. However, in truth, just like most excessively wealthy individuals, his net value was (and is) mainly locked in assets, mainly Tesla stock.
To fund the transaction, Musk did what many magnates do — he tapped into his current assets. Tesla shares were a chunk of the equation, either directly or indirectly. However, to fix the narrative, Tesla stock wasn't dropping when he did the acquisition. According to a commenter to the post, 'on the day he clinched the Twitter contract, Tesla stock floated at around US$220 to US$230, fast-forward to June 2025, and Tesla stock sits at almost US$301, even higher than it was back then.' Likewise, some commenters have pointed out it 'has even soared to US$376' on recent peaks.
So, no, the description that he's under pressure from banks, like how some overhyped headlines speculate, is not accurate. His warranty has more value now than when he made the transaction, and, contrary to the view that he received a huge credit, some contend that much of the cash came from equity holders, such as Saudi Prince Al-Waleed bin Talal, allegedly obtained with a single phone call. But there's more to the story than just numbers
It's not just about money. Musk has constantly stimulated 'storms,' and his recent acts have fanned the flames of obsessive reactions. Detractors cite his collaboration with contentious figures and his positioning with prickly views, particularly about matters associated with South Africa and international politics. One commenter said blatantly, 'I hope he doesn't bounce back.' Others went further: 'Bounce back where? May he lose everything.' These views mirror huge disapproval with what some see as the treacherous combination of affluence, clout, and ideology. See also S'pore ambassador named in Brazilian court in graft probe
On the business side, the surge of Chinese EV builders is real—they're quickly seizing global market share with viable pricing and remarkable quality. Tesla, while still a driving force, no longer remains uncontested. The rich don't always have it easy – just different
One common fallacy is that tycoons like Musk have billions of dollars in cash at their command. Not so. They may be oozing with assets, but not necessarily oozing with cash. Many people often equate him with Jeff Bezos, who had sufficient cash flow to provide his former wife with more than US$100 billion in a divorce agreement; however, much of that 'cash' came from selling stocks, not withdrawing money from a bank account.
Then there's the provocative matter of taxation and debt acquisition. Musk exploited a technicality: he can borrow against his assets without activating capital gains duties. One annoyed commenter put it this way: 'If it's not a gain, why can it be used as collateral? Let us play the same game, too.' It's a legitimate question, and one that's prompting demands for tax restructuring at the highest levels. See also Why did Musk do a livestream of migrant crisis from the border? So, what's really going on?
Notwithstanding the drama and headlines, Elon Musk is not at present in a perilous financial abyss. His resources are up and about, not down. His Twitter purchase is obviously still being discussed in terms of value and significance, but whether you like or fume over him, his story is a window where the world can peep into how affluence, power, and clout operate in the 21st century.
Being rich doesn't make one invulnerable to pressure; it just changes how pressure appears or what it looks like. Whether it's navigating regulatory inspections, steering investor expectations, or shaping public opinion, the risks at the top are high.
Also, as one commenter mockingly said: 'Why don't they just print money—they are the presidents after all.' For sure, that is said in jest, but it realistically captures the cynicism many people feel about how power operates in contemporary times.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

GameStop's first-quarter revenue declines as online gaming demand rises
GameStop's first-quarter revenue declines as online gaming demand rises

CNA

timean hour ago

  • CNA

GameStop's first-quarter revenue declines as online gaming demand rises

Videogame retailer GameStop reported a decline in first-quarter revenue on Tuesday as customers increasingly opted for digital downloads over purchases at its brick-and-mortar stores, sending its shares down 4.6 per cent in after-hours trading. The Grapevine, Texas-based company, known for its rollercoaster stock performance and Reddit-fueled rally in 2021, has long struggled to adapt to the rapidly changing gaming industry as consumer preferences shift away from physical game purchases towards digital downloads, game streaming and online shopping. Despite expanding its ecommerce platform to include digital downloads and online merchandise, GameStop is yet to fully capitalize on the shift. Revenue from its hardware and accessories unit, which includes sales from new and pre-owned video games, dropped about 32 per cent in the reported quarter. Following the closure of nearly 600 U.S. stores in 2024, the company also announced the closing of a "significant number" of additional stores this year, signaling that its retail business continued to flounder in spite of turnaround attempts. The company's efforts to reduce costs helped it report a net profit of $44.8 million for the first quarter, compared with a net loss of $32.3 million a year ago. Early in May, GameStop sold its Canadian subsidiary, Electronics Boutique Canada, which operated its Canadian stores and e-commerce business. GameStop expects the sale of its operations in France to close during fiscal year 2025. It reported an operating loss of $10.8 million in the quarter, which includes $35.5 million of impairment charges related to international restructuring efforts. GameStop revealed that it purchased 4,710 bitcoins between May 3 and June 10 for cash. It had said in March that the board had approved the addition of bitcoin as a treasury reserve asset.

JERA close to signing deal for 1 MTPA of LNG from Commonwealth, sources say
JERA close to signing deal for 1 MTPA of LNG from Commonwealth, sources say

CNA

timean hour ago

  • CNA

JERA close to signing deal for 1 MTPA of LNG from Commonwealth, sources say

HOUSTON :U.S. liquefied natural gas developer Commonwealth LNG is close to signing a deal with Japan's biggest power generator, JERA, to supply it with 1 million metric tons per annum (mtpa) of LNG from its proposed export facility in Louisiana, two sources told Reuters. The deal would run for 20 years and bring Commonwealth LNG to 8 mtpa committed under long-term contracts. The company has said publicly that it wants to get contracts for at least 8 mtpa of its 9.5 mtpa LNG export terminal capacity to give the project the financial go ahead. The U.S. is the largest exporter of LNG in the world and based on projects under construction and those expected to get the financial go ahead this year, the country could triple its export capacity by 2030. "They have agreed to terms on the deal and should be signing it soon," one of the sources familiar with the negotiations told Reuters. Commonwealth LNG did not respond to a request for comment. JERA declined to comment. Commonwealth was one of the projects impacted by a pause on new LNG export licenses imposed by former President Joe Biden pending a study on the economic and environmental impact of further U.S. LNG expansion. That freeze was lifted by the Trump administration, which has promised to unleash American energy. In February Commonwealth received a conditional non-free trade agreement (non-FTA) export authorization from the Department of Energy. Commonwealth said it expects to reach a final investment decision in September 2025 for the project, with first LNG production expected in the first quarter of 2029. In May JERA announced that it had signed an agreement with NextDecade to purchase 2 mtpa of LNG from its Rio Grande project's fifth liquefaction facility.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store