Elon Musk reveals plans for a new social media platform.

• The billionaire made the remark after stating that Twitter restricts free speech.
• If Twitter is the public town square, not adhering to free speech principles weakens democracy. What action should be taken?
• Often, the innovations that Musk has announced in the past haven't been realized within the projected timeline.

Elon Musk expressed that he is considering creating a new social media platform, but he did not provide any details on its features or functionality.

The billionaire made the remark after claiming that Twitter restricts free speech.

On Friday, Musk tweeted that Twitter's failure to uphold free speech principles threatens democracy and he wondered if a new platform was necessary.

In a previous tweet, Musk stated that "free speech is crucial to a functioning democracy" and wondered if Twitter strictly follows this principle.

CNBC reached out to Twitter for comment on its commitment to freedom of expression, but the company did not respond promptly.

Regulator scrutiny

Regulators closely examine the tweets of the Tesla CEO, which he dislikes.

In November, the U.S. Securities and Exchange Commission issued a subpoena to Musk following his request on Twitter for feedback on selling 10% of his Tesla stock, which resulted in a decline in share prices.

In February, Musk accused the SEC of "harassment" and making a deliberate attempt to "restrain" his freedom of expression.

Last week, the SEC declared that Musk's attempt to suppress the subpoena was both procedurally flawed and devoid of any substance.

The regulator stated that Musk's tweets about Tesla will still be subject to government investigation, even if the court overturns the 2018 agreement with the SEC that requires Musk to obtain pre-approval from other Tesla executives before tweeting about the company.

Following in Trump’s footsteps?

Musk is not the first to abandon established social media platforms and create his own.

In February, the Trump Media and Technology Group launched Truth Social, a platform created by former U.S. President Donald Trump after being banned from Twitter since January 2021.

Wealthy individuals with a polarizing presence on social media who frequently get into trouble are increasingly seeking to create their own platforms, according to Matt Navarra, a social media consultant, who shared this with CNBC Monday. The assumption is that by building their own social network, they can establish the content moderation rules they often violate on Twitter and Facebook.

In addition to Facebook, Instagram, Twitter, and TikTok, other platforms such as Rumble, Parler, and Gettr have emerged in an attempt to lure users away.

The app Parler was taken off the App Store following accusations that it incited violence during the January 6th riots. It was later reinstated in April after Apple made changes to improve its ability to detect and regulate hate speech.

Building a social network

"Building a successful social network is not an easy task," Navarra stated.

To create a successful and widely used social network, Musk must have a large financial backing, skilled product managers, and engineers, as well as a user base that is attractive to others.

Navarra stated that many alternative social networks are designed to be platforms for free speech, which often results in them hosting users with the most extreme or politicized views.

He stated that these alternative platforms frequently face challenges in attracting advertisers and investors due to the unique nature of their content.

Often, the innovations that Musk has announced in the past as being scheduled for release in the future have not been realized within the projected timeline.

In April 2019, at a Tesla "Autonomy Day" event, Musk stated that the company would have 1 million autonomous "robotaxis" on the road by 2020. However, these robotaxis have not yet been developed.