Super app or Wild West? The future of Twitter under Elon Musk

Published

3 years ago

October 28, 2022

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Elon Musk is finally buying Twitter, promising – or to some, threatening – sweeping changes for one of the world’s biggest social media platforms.

With a self-proclaimed remit to ensure everyone’s timeline becomes the ultimate home of free speech, and a vague long-term goal to transform it into “X, the everything app”, the billionaire is taking a hands-on approach.

Sky News takes a look at what it might mean for the future of the platform, and whether users should be hopeful or concerned about what is to come.

The first step to ‘the everything app’

Musk has spoken repeatedly about a “super app”, which he has tentatively dubbed “X”.

Whether that is what Twitter becomes, or a larger platform his new purchase forms part of, is uncertain – but it has drawn comparisons with China’s WeChat, which combines familiar features like messaging, a marketplace, and public Twitter-style posts into one place.

“He has that kind of thinking,” Michael Vlismas, author of Musk biography Risking It All, told Sky News.

“While most people would get bogged down with the details and start their plan there, Elon Musk tends to go straight past all of that and start with the big idea and deal with the issues coming down the line.

“In my mind, it would be the first step on another two, three or four-point plan for where it fits into the next thing he wants to do.”

For Musk’s critics, the vagueness of “the everything app” speaks to a man who does not have a real plan.

Jason Goldman, a member of Twitter’s founding team and ex-board member, believes that lack of clear strategy is exactly why he tried to pull out of the deal.

“He hasn’t put forward a serious plan about what he wants to do with the platform,” he told Sky News.

“He wants to defeat the bots, it’s about free speech, it’s all very hand-wavey.”

A ‘Wild West’ for free speech

Musk has described himself as a “free speech absolutist”.

He views Twitter’s content moderation as too heavy-handed and has criticised the decision to ban prominent but controversial individuals like Donald Trump.

Experts have warned that the world’s richest man’s loose stance on moderation could be a route for the service’s “very worst” trolls to thrive, turning Twitter into a “Wild West” where anything goes.

Mr Goldman, who was the White House’s first chief digital officer under former president Barack Obama, said: “Free speech is a tremendously important principle, anyone running an internet platform should start by embracing that principle.

“The issue is that Elon doesn’t really care about that – he wants there to be more voices on the platform that cohere with his particular political views.”

Musk – who has been criticised for recent tweets regarding Ukraine and Taiwan – says Twitter’s free speech approach will be based on the laws of individual countries, which experts warn will empower authoritarian regimes.

“In the UK, we have rights that protect our opinions,” said Amelia Sordell, founder of brand agency Klowt.

“What about the countries whose laws prevent free speech? If Twitter abides by country law, those people will have fewer rights, not more.”

Potential returns for controversial voices

Mr Trump fell foul of Twitter’s rules when deemed to have used his account to incite the US Capitol riots.

It was a high-profile intervention, matched on other platforms like Facebook, which came after years of social media companies being criticised for not doing enough to crack down on dangerous content.

Musk’s approach to free speech and reports of job cuts at Twitter have driven concerns about moderation moving forward.

“Elon clearly doesn’t value that work,” warned Mr Goldman.

“What that means is that there is going to be a real glut of people at the company who know how those protections are enforced and how they work, and that exposes everyone to more danger.

“And not just from ‘mean tweets’, but leaks of user privacy, the exposure of dissidents in authoritarian countries, things with real-world consequences.”

Since Mr Trump’s ban, he has since launched his own platform, Truth Social, promising a safe space for users to “share your unique opinion”.

What about Kanye West? He made a brief return to Twitter earlier this month to complain about being banned from Instagram for an allegedly antisemitic post.

“Welcome back to Twitter, my friend,” Musk said to West, before the rapper was promptly banned from there too.

West has since bought Parler, which pitches itself as being “dedicated to freedom of expression”.

Sound familiar?

New ways to pay

Twitter is extremely reliant on advertising – it partly blamed a slowdown in the industry for its poor financial results earlier this summer.

A solution, Musk believes, is to come up with a premium experience that some users will pay for – like a new verification marker.

Mr Goldman believes there is space for more premium features for Twitter’s “power users”, but warns Musk’s moderation stance risks alienating those most likely to pay up.

“The problem is those power users aren’t going to want to be on a platform, nor are advertisers, where discourse is looking more hostile […] and all of these user safety issues become more foregrounded,” he says.

“The real issue that surfaces with subscriptions is access,” adds Aaron Green, director of media and connections at R/GA London.

“Many users may not be able to afford a paid model, risking a loss of its current user base.”

Already it is clear that by buying Twitter, Elon Musk is putting an awful lot on his own plate.

Should his ambitions for Twitter match those he has for his other firms (from humanoid robots to life in space), the potential for change – for better or for worse – is certainly sizeable.

“SpaceX started with the grand idea of Mars and let’s colonise Mars – the impossible idea, but it produced this groundswell of support and interest and enthusiasm around space again,” says Musk biographer Mr Vlismas.

“Mars might never be the realisation, but it was the catalyst to form a very effective SpaceX.

“I think Twitter will be a very different space, but will it be a better place as a platform for humanity in the way Elon Musk wants? I think that’s the social media Mars at the moment.

“But on the way to maybe getting to that, I certainly think he will come up with some novel ideas.”

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Tesla approves $29bn share award to Elon Musk

Published

19 hours ago

August 4, 2025

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Tesla approves bn share award to Elon Musk

Tesla’s board has signed off a $29bn (£21.8bn) share award to Elon Musk after a court blocked an earlier package worth almost double that sum.

The new award, which amounts to 96 million new shares, is not just about keeping the electric vehicle (EV) firm’s founder in the driving seat as chief executive.

The new stock will also bolster his voting power from a current level of 13%.

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He and other shareholders have long argued that boosting his interest in the company is key to maintaining his focus after a foray into the trappings of political power at Donald Trump‘s side – a relationship that has now turned sour.

Musk is angry at the president’s tax cut and spending plans, known as the big beautiful bill. Tesla has also suffered a sales backlash as a result of Musk’s past association with Mr Trump and role in cutting federal government spending.

The company is currently focused on the roll out of a new cheaper model in a bid to boost flagging sales and challenge steep competition, particularly from China.

The headwinds have been made stronger as the Trump administration has cut support for EVs, with Musk admitting last month that it could lead to a “few rough quarters” for the company.

Tesla is currently running trials of its self-driving software and revenues are not set to reflect the anticipated rollout until late next year.

Musk had been in line for a share award worth over $50bn back in 2018 – the biggest compensation package ever seen globally.

But the board’s decision was voided by a judge in Delaware following a protracted legal fight. There is still a continuing appeal process.

Earlier this year, Tesla said its board had formed a special committee to consider some compensation matters involving Musk, without disclosing details.

The special committee said in the filing on Monday: “While we recognize Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging… we are confident that this award will incentivize Elon to remain at Tesla”.

It added that if the Delaware courts fully reinstate the 2018 “performance award”, the new interim grant would either be forfeited or offset to ensure no “double dip”.

The new compensation package is subject to shareholder approval.

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Motor finance operators can breathe big sigh of relief

Published

19 hours ago

August 4, 2025

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Motor finance operators can breathe big sigh of relief

Bank stocks have enjoyed a boost as traders digest the Supreme Court’s ruling on the car finance scandal.

Some of the country’s most exposed lenders, including Lloyds and Close Brothers, saw their share prices jump by 7.55% and 21.62% respectively.

It came after the court delivered a reprieve from a possible £44bn compensation bill.

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Banks will still most likely have to fork out over discretionary commissions – a type of commission for dealers that was linked to how high an interest rate they could get from customers.

The FCA, which banned the practice in 2021, is currently consulting on a redress scheme but the final bill is unlikely to exceed £18bn. Overall, the result has been better than expected for the banks.

Lloyds, which owns the country’s largest car finance provider Black Horse, had set aside £1.2bn to cover compensation payouts.

Following the judgment, the bank said it “currently believes that if there is any change to the provision, it is unlikely to be material in the context of the group”.

The judgment released some of the anxiety that has been weighing over the Bank’s share price.

Jonathan Pierce, banking analyst at Jefferies, said the FCA’s prediction was “consistent with our estimates, and most importantly, we think it largely de-risks Lloyds’ shares from the ‘motor issue'”.

Bank stocks have responded robustly to each twist and turn in this tale, sinking after the Court of Appeal turned against them and jumping (as much as 8% in the case of Close Brothers) when the Supreme Court allowed the appeal hearing.

Concerns about this volatility motivated the Supreme Court to deliver its judgment late in the afternoon so that traders would have time to absorb the news.

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FCA considering compensation scheme over car finance scandal – raising hopes of payouts for motorists

Published

2 days ago

August 3, 2025

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FCA considering compensation scheme over car finance scandal - raising hopes of payouts for motorists

Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.

In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.

The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.

It is unclear how many people could be eligible for a pay-out. The authority estimates most individuals will probably receive less than £950 in compensation.

The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.

What motorists should do next

The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.

Anyone who has already complained does not need to do anything.

The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”

Its website advises drivers to complain to their finance provider first.

If you’re unhappy with the response, you can then contact the Financial Ombudsman.

The FCA has said any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.

It has warned motorists that doing so could end up costing you 30% of any compensation in fees.

The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

The court overturned a ruling that would have meant millions of motorists could have been due compensation over “secret” commission payments made to car dealers as part of finance arrangements.

The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.

Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.

In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.

This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.

It was previously estimated that about 40% of car finance deals included DCAs while 99% involved a commission payment to a broker.

Nikhil Rathi, chief executive of the FCA, said: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated.

“We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”