If you ever get tired of posting your latest UFO theories or reaction to your sports team’s shambolic performance then Elon Musk’s social media platform X may soon have some new services to play with.
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Everything Goes
According to an article in the Financial Times, X is getting ready to start offering its users financial services such as investment and trading.
It is also reportedly exploring introducing an X credit and debit card – which could be launched some time this year – as part of Musk’s drive to build an ‘Everything App.’
“You’ll be able to transact your whole financial life on the platform,” X chief executive Linda Yaccarino told the FT. “That’s the future.”
It follows already announced plans from X to launch X Money, a digital wallet and peer-to-peer payment service, alongside partner Visa (V) later this year.
X Money will be launched in the U.S. first before being rolled out elsewhere and allow users to buy merchandise, store value or tip creators on the platform.
WeChat Model
She said that a whole commerce and financial ecosystem was being built on the platform which is music to Musk’s ears who has long held an ambition to create a mega app.
Indeed, he has been keen since buying the then Twitter in 2022 to follow the model of Chinese giant WeChat which is essentially a one-stop shop for messaging, shopping and finance.
What it will mean though is the need to comply with financial regulations such as money laundering and licensing.
There may also be caution from some users of X as to whether it is the right kind of platform to do their financial dealings and shopping on. There have been widespread concerns in recent years over a rising level of toxicity on X including sexist, racist and violent comments and imagery on the site.
Musk’s reputation has also been bashed by his close and then not so close relationship with President Trump and support for right wing politicans and commentators in the U.S., U.K. and elsewhere.
However, despite these concerns, X has recently been valued at $44billion – the same as Twitter back in 2022. Offering financial services could see that grow even higher.
How to Invest in X
Retail investors can’t take a stake in X, as Musk took it private in his 2022 purchase of the social media platform. Instead, they might consider a stake in Tesla (TSLA), which is the only one of Musk’s companies that trades publicly. The consensus rating for Tesla is Hold based on 14 Buy, 12 Hold and 9 Sell ratings. Its highest price target is $500. TSLA stock’s consensus price target is $286.14 implying an 11.15% downside.
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