Elon Musk is the richest man in the world for a reason. Intelligent, capable, hardworking, worldly wise etc. and of course smart.
He not only conceives daring things but implements them most systematically and logically.
He bought the social media company Twitter for US$ 44 Billion in Oct 2022. The investment bankers and the public thought that Elon was crazy. He then proceeded to cut costs, including the sacking of 80% of Twitter's staff.
At first, people speculated about Musk's insanity, they were convinced when the market value of the publicly traded company plunged to US$ 19 billion one year after Musk's purchase, causing him a paper loss in value of 55%.
He took the company private, sold the entire stock to another company with exact shareholders and changed the name from 'Twitter' to 'X' whilst booking a US$25 billion loss on his books.
But the group that produces numerous products including the famous Tesla car and Space X rockets that launch 80% of all satellites in the world has huge profits which attract taxes.
Musk purchased Twitter actually for US$ 19 billion only because the remaining US$ 25 billion came from tax savings, which is legally permitted, indeed an incredible deal.
Secondly, Musk had 80 million followers on Twitter last year, he now has 160 million followers. He makes intelligent and relevant statements but in a controversial manner that gives his Tesla brand great visibility. As a result, Tesla's advertising spend per car is just US$0.25 per car compared to US$1,750 per car for Hyundai.
If he did not control Twitter now 'X', and if the Social Media platform had banned him like they did American President Donald Trump his marketing spend would have to jump a thousandfold.
Demonstrating an amazing sleight of mind Elon Musk proves that in our modern world, 'Wealth is not only generated by working hard but also shrewdly'.
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ps. Elon Musk does not take a salary from his companies, he has like many of his kind found ways and means to finance his life in an extremely efficient way. That may be the subject of another article if readers express an interest to know more. preprocess
Interesting Links:
- Elon Musk Profile ~ Forbes
- Tesla ~ website
- Space X ~ website
- X Says It Is Worth $19 Billion, Down From $44 Billion Last Year ~ The New York Times
- Elon Musk lost $25 billion on purpose after buying Twitter ~ The Intelligent Investor
- How Musk saved massively on advertising costs by using Twitter and then obtained strategic positioning by buying Twitter ~ Pranjal Kamra (YouTube)
- American President Donald Trump
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