Unfiltered Insights: White House Shenanigans and Tesla's Controversial Shift
Sales leader encourages U.S. residents to huddle up
Welcome to another thrilling week in the world of politics and business! It's a wild ride as we delve into the strange relationship between President Trump, Tesla, and cryptocurrency, and the backlash that accompanies it.
The Tesla-White House Tango
Elon Musk found himself in a pickle this week, with Tesla's stock prices plummeting. What did he do? Pump up the jams, and roll into the White House driveway! This wasn't just a regular car show, but a Tesla-only extravaganza meant to boost Tesla's morale and give the company a little push. But why did Musk need the President's help? Well, it's not a secret that he's been quite generous with his checkbook to help get Trump elected, sinking over a quarter of a billion dollars, if reports are to be believed. Musk is not just a Tesla man anymore, he's a pro-Trump guy now, ditching his climate change advocacy for a focus on hydrocarbons and "drill, baby drill."
The shift in Musk's political allegiance is leaving a bitter taste in the mouths of many Tesla owners on the left, who are now boycotting their very own electric cars. They see this as a betrayal, and it's clear that the relationship between Musk and Trump is tainting Tesla in the eyes of the American public. Not to forget, the Trump administration has given Musk and his cronies free reign across the federal government, with little transparency on what they are up to.
Bitcoin Bonanza: Crypto in the Spotlight
The cryptocurrency world is eagerly waiting for a crypto "summit" scheduled this Friday, during which crypto executives who backed Trump's campaign will make an appearance. Since his recent promise to build a strategic reserve of bitcoin and other currencies, some have interpreted it as a "bitcoin bailout" for assets that have lost value after the post-election surge. With Trump's finger on the button, crypto enthusiasts are holding their breath, waiting for the president to make his move.
Washington Post: Dark Days Ahead?
Washington Post subscribers, who flocked to the paper to support democracy, are now canceling their subscriptions in droves. They fear that the Post, which changed its motto to "Democracy dies in Darkness" during the first Trump administration, has turned into a shadow of its former self. Jeff Bezos, the paper's owner, scrapped a planned endorsement of Kamala Harris and is reportedly planning to shift the opinion section's focus to "personal liberties and free markets." Some see this as a bid to appease Trump, as he seeks to stifle dissent.
Amazon, too, has paid homage to Trump, acquiring streaming rights to the first seven seasons of "The Apprentice" and shelling out millions for a Melania Trump-produced documentary about her life. It's unclear whether Trump's cozying up to Amazon will have any impact on the weeklong anti-corporate and relatively unorganized "economic blackout" movement targeting major corporations like Amazon, but frustration at corporate America is festering.
Target: Diversity Denied
There's a campaign afoot to boycott Target over the retailer's decision to backpedal on its programs to promote diversity in its hiring practices. Target is one of the dozens of Fortune 500 companies that have retracted their DEI efforts due to pressure from right-wing legal groups, activists, and conservative court decisions. The companies are caught between the desire to promote diversity and avoiding a conservative legal crackdown. But Target is facing the brunt of the backlash.
Investing in MAGA: The Parallel Economy
Donald Trump Jr., is part of an investment firm made up of MAGA conservatives looking to monetize their politics in a sort of "parallel economy." The firm, 1789 Capital, has managed to secure investments in Musk-owned companies, according to a Bloomberg profile. Trump Jr. indicated that he's turned down deals when the ethos doesn't align with his politics, stating that there are people who have becoming MAGA only recently and he is unsure if they truly believe. Since Inauguration Day, the firm has raised $500 million and plans to market itself to public pension plans in red states.
While this investment firm claims to advocate an EIG investment strategy, it's a play on ESG investing, which prioritizes investing in companies that care about the environment, social justice, and open corporate governance. A conservative judge in Texas recently ruled in favor of a Biden-era rule that allowed public pension plans to choose a socially conscious investing strategy.
Musk's shift from being a California liberal concerned about climate change to a Texas libertarian has tracks with a change in Tesla's brand. A Columbia Business School study found that Tesla was more associated with people who followed Democrats on social media in 2017, before Musk's transformation, but by 2022, the situation reversed, and Tesla became more associated with people who followed Republicans. It stands to reason that the transformation of Musk's X to an echo chamber for conservatives has further impacted the Tesla brand.
Meeting of the Minds, but Not in the Middle
Americans on both sides of the aisle are showing frustration with the access and power of people like Musk and the perception that their politics influence their business interests. In a new CNN Poll, Musk is less popular than Trump, with only 35% of Americans expressing a positive view of Musk, while 53% rate him negatively. There is uneasiness about Musk even among Trump supporters, with doubts about his experience and judgment in affecting government changes.
California's Gov. Newsom recently sat down with right-wing provocateur Steve Bannon, discussing Tesla's use of carbon credits and subsidies to help its bottom line. It's clear that the relationship between politics and business is a complex and contentious beast, and it's being played out right before our very eyes. Buckle up, folks! This ride is far from over.
- Maybe Elon Musk, while advocating for Tesla during his White House visit, has tainted the company's image in the eyes of left-wing Tesla owners.
- Tesla's stock prices have plummeted, and Elon Musk announced a Tesla-only extravaganza at the White House, which many view as an attempt to sustain the company's growth, a move possibly influenced by his past donations to support Trump's election.
- Elon Musk's shift in political allegiance, from a California liberal to a Texas libertarian, has reportedly influenced Tesla's brand, with a study showing that Tesla is now more associated with people who follow Republicans on social media.
