Elon Musk's Twitter board reversal just latest lack of follow through
Add Axios as your preferred source to
see more of our stories on Google.
When Elon Musk says something, don’t assume he'll follow through — at least not right away.
Why it matters: As the richest person in the world and CEO of a company valued at over $1 trillion, Musk's words carry weight. They move markets and set expectations. But he seems to think out loud — typically on Twitter — unlike the usual buttoned-up, calculated approach taken by most CEOs.
- Driving the news: The Tesla and SpaceX CEO on Sunday backed out of a deal to join Twitter’s board after buying 9.2% of the company, thus preserving his ability to acquire a controlling stake, push for changes, or both.
Threat level: If Musk loses people’s trust, it could undercut his reputation as a Midas of sorts.
- On Tuesday he was joining Twitter’s board, and now he’s not.
- He infamously said in 2018 that he had “funding secured” to take Tesla private, but he had not — and the company remained publicly traded.
- He’s repeatedly promised that Tesla’s “full self-driving” feature was about to roll out, but its cars remain only partially automated.
What they're saying: “He’s building a say-anything-do-something-different brand identity,” Georgetown University business professor Peter Jaworski, an ethics expert, tells Axios. “In the long run, that’s almost always bad for the leader.”
Yes, but: Musk’s cult-like appeal is predicated in part on the fact that he isn’t hewing to anything resembling a company line. And thus he comes across as authentic to his fans.
- Who else would apparently smoke marijuana on Joe Rogan’s podcast?
The other side: Musk's defenders admit that he's often late in delivering the products he's promised — but, they say, he comes through in the end.
Our thought bubble: Authenticity is worth a lot in the social media age. But Musk is venturing into boy-who-cried-wolf territory.
- “If he keeps on going back and forth like this, that’s going to shatter trust,” Jaworski says.
