• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

1. He may be trying to cut ‘dead weight’

As one of the leading players in its field, Twitter makes big money, but it also has big expenses.

In Q2, the company brought in $1.18 billion in revenue. Its costs and expenses, however, totaled $1.52 billion. That resulted in an operating loss of $344 million for the quarter.

Therefore, it’s no surprise that cost-cutting is on Musk’s mind.

The move might even boost productivity, too.

One Twitter user labeled Musk's technique “whaling and culling,” with his perspective receiving more than 25,000 likes.

“Elon was looking for the whales at the company. The heavy hitting, actually producing and hard people who have been there for a while. When the whales don't have to carry dead weight, they perform like the equivalent of 10 people,” Oliver Campbell says in a Nov.18 tweet.

“Second is the ‘Culling.’ When you've got 90% of the people not performing, they're actually negatively impacting the 10% who ARE performing above and beyond. And that's why the layoffs happened.”

Trading Tips for All Levels: Avoid These 5 Expensive Mistakes

Don't let costly errors derail your trading success. Learn about the five most expensive mistakes in options trading and how to avoid them, whether you're just starting out or have years of experience. Enhance your trading strategy today and stay ahead of the game!

Learn More

2. He could be planning a huge payments play

Many observers wondered why Musk was willing to spend $44 billion to buy Twitter in the first place. A cry for attention? Revenge?

One potential explanation stands out: payments.

In 1999, Musk co-founded X.com — an online bank that later merged with Confinity to form PayPal.

We all know PayPal massively disrupted the payments industry. Would Musk want to do it again?

According to Caitlin Long, a former banker at Morgan Stanley, the answer is yes.

“He’s been trying to disintermediate ACH his whole career,” she told Fortune, referring to the ubiquitous bank-to-bank electronic money transfers processed through the Automated Clearing House network.

Also, an investor presentation obtained by The New York Times suggests that Musk has resurrected the name X — a mysterious new product at Twitter set to launch in 2023. Musk expects product X to amass 104 million subscribers by 2028.

3. He is the second richest man alive

Lastly, let’s not forget that Musk has quite an impressive track record at running businesses.

Other than Tesla and X.com, Musk is also the founder, CEO and chief engineer of SpaceX, a company that designs, manufactures and launches advanced rockets and spacecraft.

Musk also co-founded Neuralink, which develops implantable brain-machine interfaces, and OpenAI, an artificial intelligence research laboratory.

According to Forbes, Musk is the second richest person in the world with a net worth of $184 billion. Musk held the title since September 2021, but was recently overtaken by Bernard Arnault, who is worth an estimated $186 billion.

Sure, not everyone is a fan of his new strategy at Twitter. #RIPTwitter has been everywhere, with users saying their goodbyes and sharing their other social media accounts just in case Twitter collapses.

But Musk might have the last laugh, as discussions around the subject are actually boosting user engagement.

“we just hit another all-time high in Twitter usage lol,” Musk tweeted on Nov. 17. “Let that sink in …”

On Nov. 26, Musk shared slides from a company presentation on Twitter, showing that the platform averaged over two million new user signups per day in the week ended Nov. 16 — a new all-time high.

While we haven’t seen him boast about December numbers yet, there are efforts being made to entice advertisers back to the platform. This might be a smart move considering ad sales account for about 90% of Twitter's revenue.


This 2 Minute Move Could Knock $500/Year off Your Car Insurance in 2024

Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.

There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.

Jing Pan Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.


The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.