From X to TikTok: Elon Musk's Social Media Strategy Explained

Elon Musk, the billionaire behind renowned companies like Tesla, SpaceX, Neuralink, and The Boring Company, has shaken up industries with groundbreaking technology. Yet, one of his compelling achievements lies in leveraging social media to build both his personal and professional brands. Musk not only acquires social media platforms but also transforms them as tools for open engagement.

Unlike traditional CEOs, the technocrat engages openly, sharing updates about innovations at his companies, and even indulging in playful banters with his followers. His unfiltered and candid communication style reflects transparency and fosters a sense of trust among users.

Interestingly, the billionaire proved that a brand can be successful without its sole dependence on traditional advertising because his marketing tactics are largely driven by social media. He keeps on creating buzz and excitement about his brands through social media platforms. From political views, Donald Trump’s election campaigns to updates about his own ventures, Musk has leveraged X to challenge conventional media and engage directly with the followers.

Musk’s social media game kicked-off with the acquisition of the microblogging platform Twitter, which is now renamed as 'X' globally; and the next populist platform could be Chinese video-sharing app TikTok. Though the discussions about ‘Musk may buy TikTok’ are speculative, the world’s wealthiest person has not responded to these reports. However, a spokesperson from Beijing’s social media company dismissed ‘Musk-TikTok’ rumours, calling it “pure fiction”.

Also Read | US TikTok Ban: Is Elon Musk the Key to Its Survival?

How ‘Musk-TikTok’ Deal Can Reshape X

Musk has emerged as a possible buyer for TikTok’s US business while the ownership of the video streaming app remains under the control of the parent company, ByteDance, Bloomberg reported. Chinese officials are reportedly considering a plan that could involve Musk acquiring TikTok’s US operations, in case the app faces a ban in America over national security concerns.

The deal, if takes place in future, can boost the microblogging site’s advertising efforts and complement his artificial intelligence company ‘xAI’ because it could get benefit from TikTok’s vast 170 million-strong US user base who spent 51 minutes per day on the app in 2024. The merger would make X a key player in digital marketing, enabling cross-platform promotion. With this, Musk’s tech empire will not only dominate social media but also AI and data sector spaces.

Tesla CEO has long said he hopes to create an “everything app”, and incorporating TikTok into X would take him a step toward that goal. However, it is pertinent to note that Musk’s TikTok acquisition could pose data privacy concerns as he is already facing regulatory scrutiny over his other businesses.

Also Read | US Court Upholds TikTok Ban Law, Company Likely to Face Loss of 170 Million Users

Under Musk’s leadership, the US government’s concern about Chinese tech companies accessing American data could become a bigger issue. His previous experiences with handling user data at Twitter might get examined again which will make the regulatory situation more complicated.

Any potential sale of TikTok’s US operations would require approval from the Chinese government as strict export laws on software algorithms are in place. The platform’s US business is valued between $40-50 billion, a considerable amount even for Musk who spent $44 billion acquiring Twitter in 2022. It remains unclear how Musk would fund this acquisition or whether US regulators would approve it.

Selling TikTok’s US operations would be a complicated process, requiring ByteDance to balance shareholder interests in both China and the US, comply with China’s export restrictions, and find a buyer who meets US government approval.

However, the new law states that the parent company will have to sell TikTok’s US operations to a domestic entity to continue running its operations in the States, as the app is considered a threat to US national security by the government. The new law was signed by the outgoing US President Joe Biden in April last year and will come into force on January 19, 2025.