What Do Elon Musk’s Twitter Antics Mean For Investors?

The “will he, won’t he” between Elon Musk and Twitter has gone on long enough, so our Head Analyst is diving into the fray with his thoughts.

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Morning folks, 

As I’m sure you’re all aware by now, Elon Musk has become Twitter’s largest shareholder. The news broke last Monday that the Tesla CEO had amassed a 9.2% stake in the company, worth approximately $2.9 billion — sending the stock up 27%. 

It was about 24 hours before that news broke that Musk took to Twitter to complain that he had been refused entry to Berghain, a famous nightclub in Berlin. 

“Why”, one might ask, “would a nightclub refuse entry to the richest man in the world?” Surely nightclubs thrive on the hype that follows a major celebrity attending their venue. That was the whole plot of ‘A Night at the Roxbury’ after allWhile that might be true for 99.9% of clubs, it’s simply not true for Berghain.

Berghain is notoriously hard to get into. The famous head bouncer, Sven, has maintained an iron grip on the door policy for decades now, intent on protecting the unique experience and club culture that the venue is known for. There are countless articles online that provide club-goers with tips on how to impress him, ranging from “only wear black clothes” to “look miserable”. 

Now, it’s possible, I suppose, that the door staff simply didn’t know who Elon was, but I’m going to bet that they knew exactly who he was and knew that rejecting him was going to cement their legendary status. We all understand incentives, but different things motivate different people, and sometimes that can be hard to understand. 

That brings us to Elon and trying to understand his incentives…