Despite the agreement between Elon musk and twitter for an entrepreneur to buy a social network for US$44 billion, the possibility, though little commented, of a South African dropping the idea remains off-screen. The reason has to do with his other company: Tesla.

Shares in the electric car maker plunged after the acquisition was completed, as the deal’s high cost meant that the CEO may have to sell some “pieces” of the organization to close it, Reuters analysts said.

If this is confirmed, it won’t be the first time Musk has canceled a deal if he confirms the exit. In 2018, he promised to create a biscuit company to compete with the already established See candyAmerican philanthropist Warren Buffettbut returned after a while.

An investment guaranteed by a financial company weighs in favor of the richest man in the world. Morgan Stanley. In addition, if either party withdraws from the agreement, it will have to pay a US$1 billion fee.

Tesla and China vs. Twitter

The obstacles are not only financial. Tesla has an important relationship with China, one of the main markets and supplier of batteries for its electric vehicles. The country has blocked Twitter on its territory and has already been at odds with the network over content related to the protests in hong kong.

Jeff BezosCEO Amazonquestioned the influence of the Asian nation on the social network and hinted that this will be a difficult case for Musk, who is very protective of freedom of expression, but believes in his ability to do so.

“My own answer to this question [se haverá interferência da China] probably not,” he tweeted. “The most likely outcome in this regard will be domestic difficulty for Tesla rather than Twitter censorship.”

“We will see. Musk handles this kind of complexity very well,” he added, quoting a report from a New York Times reporter on the subject at the beginning of the conversation.

The European Union is another organization looking after Twitter. She wants the company to keep an eye on any illegal or malicious content, as well as the spread of fake news. Earlier this week, the Old Continent’s Parliament finalized a package of laws that could penalize big technicians if they don’t follow the guidelines. Find out more here.

According to Reuters columnists Lauren Silva Laughlin and Gina Chong, the market is anticipating Musk’s possible departure due to the decrease in the offer price of the chain’s shares and some publications by the businessman, suggesting a loss of interest.

Elon Musk’s real interest in buying Twitter and changing the social network
The richest man in the world made a $43 billion purchase on Monday

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Source: Reuters.