Elon Musk is buying Twitter in the name of free speech. Beijing will lean on him to un-ban its troll army, then push him to comply with its extra-territorial sedition law. Tesla's key Shanghai outfit risks being a pawn in the fight, says petesweeneypro
Since the Hong Kong demonstration movement prompted a massive counterattack by Chinese state actors on foreign social media, Twitter hasand slapped labels on state media tweets. It stopped taking advertising from government mouthpieces like Xinhua and declined to cooperate with Chinese government requests. Twitter also gives critics a global platform from which they lambast Beijing. The recently passed National Security Law explicitly targets seditious speech including on overseas websites.
produces half of its automobiles in Shanghai, where it enjoys tax breaks, and depends on local suppliers for critical components. The domestic market generates 25% of sales: $4.7 billion in the quarter ending in March, as Party tabloid The Global Times unsubtly pointed out on Twitter after the deal was announced.It seems likely that Twitter, under its new owner, will relax bans on political speech. Former President Donald Trump may get his account back.
Unlike Twitter, which lost money in the last two fiscal years, Tesla is nicely profitable with an adjusted EBITDA margin of 27% last quarter. Free speech is a public good worth defending, but Tesla shareholders may pay a lot of rent for this patch of moral high ground.- Twitter said on April 25 that it had agreed to sell itself to an entity wholly owned by Elon Musk for $54.20 a share in a transaction valued at $44 billion.
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