I wasn’t able to read the whole thing but stiffing Google (and Amazon?) doesn’t seem like a good idea;
Musk won't pay his Google Cloud bill — and the company's trust and safety systems are hanging in the balance
www.platformer.news
Yeah, probably not the two companies you want to piss off and possibly get blacklisted from if your sole product is online. As an aside, it’s pretty startling how much money a company like twitter pays for web services.
From what I’ve read, Twitter is complaining of service reliability and such. That’s may be true but issue at heart seems to be Twitter is been transitioning to their own systems and apparently is no longer utilizing all of what they’re paying for in these massive multi year contracts with Google and AWS.
Musk seems to be using this hardball tactic of refusing to pay to persuade companies to renegotiate contracts. When Twitter stopped paying rent on their office space in CA, the media narrative was to imply Twitter had no cash. In reality, I suspect the reality was Twitter had a bunch of office space they weren’t using at all between people working from home and 1/2+ the company quitting, or getting fired. COVID tanked the demand and value of office space considerably. And the goal is to get the landlord back to the negotiating table on pre-existing contracts knowing the landlord will want to avoid the tremendous cost and energy involved taking it to court. It’s a crappy way of doing business but it can be effective.
The thing about companies like Google and Amazon is that they are probably not very dependent on revenue from Twitter to keep their own company afloat the same way a small company or property owner would be. The incentives to renegotiate aren’t nearly as strong and they can afford to hash things out in court.
Not paying bills appropriately is nothing new for Musk though. Take a look at Tesla circa 2018. The difference there was the lack of payment had less to do with renegotiation and more to do with the fact the company was operating on financial fumes. When a car company resorts to building cars in tents that should be a red flag they may be having some problems.
It’s astonishing to think that today Tesla is valued at $780B+. That’s 3x more than the next most valuable company, Toyota at $250B. GM and Ford are around $50-55B. Tesla is losing their marketshare in the EV space as competitors release their own EVs. Tesla’s true full self driving fully autonomous system is nowhere to be found after years of promises and it looks unlikely to come to fruition anytime soon.
Tesla has its battery production resources and its charging network. That’s about it in my opinion. Their cars themselves are nothing special, not well built, and stale at this point. I’m not sure Tesla’s FSD/autopilot has capabilities that no other mfg could match, rather is Tesla much more willing to use software that has not been thoroughly vetted for safety (or accept a wider margin of error) than legacy automakers who are going to be very risk adverse.
I’ve always thought Tesla would have a much better business if they just stuck with battery production, drive motors, autonomous driving software, and their charging network- and just sold it to other car companies rather than build their own.