Elon Musk is either going to save Twitter or utterly destroy it.
There’s no in between here.
As of this writing, former staffers are leaking to reporters, Musk himself is tweeting away one bombshell after another, and someone has even set up a projector to beam insults onto Twitter’s HQ.
I’d list some here but this is a family publication.
There’s an atmosphere of total chaos – and no one, not even Musk, seems to have a plan.
Of course, investors were told about this. Musk himself warned that he would be experimenting and making mistakes.
But one has to remember that Musk’s main job is supposed to be Tesla…
Not to mention SpaceX.
(Besides, somehow Starlink can provide Internet to Ukraine but it doesn’t cover my area yet.)
Investors may occasionally fall for a charismatic, superhero type of corporate leader. (The Cult of Steve Jobs would be a famous example).
But most of the time, we want someone who stays out of the headlines. We focus on the earnings, not on the personalities.
However, with a case like Musk, there’s a personal factor that sometimes the numbers can’t catch.
Don’t miss Mr. X today on the political problems that Musk is facing – and where investors should draw the line.
Let’s close out strong.
WORD ON THE STREET
End of One Era in DC, Beginning of New One at GM
- Democrats Switch It Up – Speaker of the House Nancy Pelosi will not be the Democratic leader when the new Republican Congress assembles. She is stepping down from party leadership. Hakeem Jeffries is the Democratic favorite to be the new House leader.
GM Slams The Gas – General Motors (GM) raised its full-year profit guidance by about two to three billion dollars. It also gave investors a highly ambitious plan for growth and said it expects electric vehicle revenue to surpass $50 billion by 2025, fundamentally reshaping the company.
FTX Victims Looking For Help – Unlike a bank, crypto exchanges are not covered by the FDIC. As the investigation into the failed FTX exchange continues, stunned victims are realizing that their money may be completely gone. Some have set up GoFundMe appeals to plead their case.
Fed Dampens Expectations – Just when we thought we were getting some optimism, the Fed tamps it all down again. James Bullard, President of the St. Louis Federal Reserve, said the central bank’s policies have had only a “limited” effect and that future hikes are needed. Neel Kashkari of the Federal Reserve Bank of Minneapolis added that the Fed is “not there yet” when it comes to stopping rate increases. It wasn’t what investors wanted to hear.
HOT SPOTS: What’s Going on in Geopolitics
- Russia Tries To Cut The Power – The first snow is falling in Ukraine as Russia launches a new wave of missiles and airstrikes. The Kremlin is focusing on power plants and other strategic targets, aiming to cut the power before the depths of winter. Some have suggested that Kyiv might need to be evacuated if the city loses all power.
FBI Speaks Out On Chinese “Police Stations” In USA – The Chinese government may be setting up unauthorized “police stations” in American cities to keep track of its nationals. FBI Director Christopher Wray told Congress he was “very concerned” about this, calling the actions of the Chinese police “outrageous.”
Israel Accuses Iran Of Drone Attack – While protests continue against the Iranian government within the country, its leaders still want to project strength. Iran reportedly launched a drone attack on an oil tanker this week. Israel called the attack an “Iranian provocation” designed to disrupt the World Cup. Iran’s government has enough people angry at them – they want to pick a fight with soccer fans too?
CUTTING EDGE: What‘s Happening In Tech
- Two Hours Was All It Took – Crypto exchange Binance toyed with buying FTX not long ago – but it rejected the idea after just two hours of looking at FTX’s sloppy accounting. A blistering report from FTX’s new CEO accused Sam Bankman-Fried and other former leaders of a “complete failure of corporate controls and such a complete absence of trustworthy financial information.
Amazon Will Be Firing People Until NEXT YEAR – CEO Andy Jay announced that Amazon will be laying off 10,000 people and the effort will extend into 2023. “We haven’t concluded yet exactly how many other roles will be impacted,” he wrote. Employees now have to worry about whether they survived this round of layoffs only to face another in just a few months.
- You Can’t Fire Me, I QUIT – Elon Musk reportedly told Twitter staff to decide by last night whether they were going to be hardcore enough to stick around. Not surprisingly, many employees quit. Musk was the primary target of invective on his own platform last night, but he laughed it off. “We just hit another all-time high in Twitter usage lol,” he tweeted.
FOR YOUR CONSIDERATION
“As of this writing, chaos reigns.”
And with that, Mr. X introduces the current situation facing Elon Musk. While Twitter is going private, Tesla (TSLA) can’t help but be caught in the TecnoKing’s antics.
Mr. X talks about TSLA’s short-term troubles… and where to draw the line.
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