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Tesla shareholders should be concerned with Elon's bid for Twitter: The Verge's Patel - YouTube
Channel: CNBC Television
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interesting angle that we really hadn't
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gotten to yet uh today nilay and that is
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the ancillary effect on his other
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businesses
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yeah look twitter is a global platform i
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think we all remember the highs of 2010
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when we thought social media would bring
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democracy to every corner of the world
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that was very idealistic i really hope
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that would happen it didn't happen why
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didn't that happen countries around the
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world realize they have their own laws
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many of them do not have a first
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amendment like the united states has
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they have other kinds of speech
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restrictions and they made sure that
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social media companies followed their
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laws so if you think you can buy twitter
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and use it to export uh the american
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first amendment around the world in some
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way you're quickly going to discover
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that those companies the other countries
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have strong opinions about what you can
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say in those countries and the way the
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united states is prohibited from having
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and then you've got tesla and spacex
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trying to expand in those markets that's
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just an enormous risk for tesla
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shareholders in particular
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yeah it's a good point eli not everyone
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around the world believes in free speech
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the same way uh that america doesn't
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even hear it's very divided mark cuban
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brought up this idea of potential
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foreign ownership saying that why
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wouldn't foreign money come in and buy
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twitter for the influence that it brings
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now obviously
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that would have a tough time getting
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past the regulators but could that
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source potentially be obscured is that
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sort of a real fear that investors could
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be looking at right now
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i don't know investors should be afraid
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of that as much as the united states
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government and everybody in this country
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who cares about free speech the other
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thing i would say just very directly to
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the cnbc audience in particular is maybe
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you think there's a problem with free
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speech on social networks the answer is
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definitely not giving more power to one
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guy the answer is market competition and
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to say that he can just fix it he can
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unlock twitter's potential by doing
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things that no company can do on a
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global scale himself is just risky and
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that creates risk downstream from
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twitter to every other company that a
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lot of people bet on in particular tesla
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which has to expand in china and china
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is going to brook no dissent from its
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speech policies from anyone and they
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will retaliate against his country his
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companies so i just think that the
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amount of risk that has been created
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downstream from i think i should just by
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twitter is extraordinarily high and it's
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not just twitter shareholders that
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should be concerned i think it really is
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tesla's shareholders now we've talked
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about risk and the concerns when it
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comes to elon musk when it comes to
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tesla shareholders twitter shareholders
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there's one group we haven't talked much
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about and that's twitter employees i see
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massive risk for them right here if elon
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musk gets it it seems to me like he's
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going to cut
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the the head count there right like if
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he's if he's not going to rely on
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advertising there's a lot of people who
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he doesn't need there are a lot of costs
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that he's probably going to want to get
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rid of if he's getting rid of revenue
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but then if he doesn't get it right and
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the stock price tanks current management
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is going to be under pressure to cut as
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well um you know and so how are they
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going to run this company under either
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scenario isn't that tough in this tight
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labor market eli
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i absolutely think so i also think that
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if you take a company like twitter
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private and you take equity compensation
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off the table for employees there's a
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lot of money in the valley right now
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going to a lot of different things
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there's a lot of potentially easy upside
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in crypto startups for a lot of
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engineers who are very seasoned at
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building out a community product which
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is what crypto kind of prides itself on
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being so how do you even manage the
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brain drain if you no longer have kind
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of your best compensation tool available
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as a private company i don't know how
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you manage costs if you you're cutting
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but then you have to increase salaries
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to just match the upside of another
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public company it's offering equity
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as compensation that just seems
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extraordinarily challenging
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also fundamentally what is twitter's
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asset it is the network of people that
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use it right it's the network effect of
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twitter everyone uses it you buy it you
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take it public you start making dramatic
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changes to how it works you start
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charging for it suddenly you might lose
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that network that network is not
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necessarily durable so i think there's
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just a lot of risk there for employees
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like do you want to work on a thing that
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everyone uses or do you want to work on
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a paid service that is getting smaller
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and potentially lower compensation
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