Trump Suggests an Elon Deportation, Tesla Shakes up Management

Key takeaways

The feud between Elon Musk and Donald Trump has escalated, showcasing Trump's defensive reactions to Musk's criticisms.
Tesla is undergoing significant management changes amidst declining sales and mounting pressure on Musk to stabilize the company.
International disputes, such as the one between SpaceX and Mexico, add complexity to Musk's global business operations and highlight legal responsibilities regarding space debris.

Summary

Elon Musk vs. Donald Trump: A Renewed Feud

The ongoing feud between Elon Musk and Donald Trump reignited as Musk voiced strong criticisms of the GOP’s tax-and-spend bill, which he believed would adversely affect his companies by adding to the national debt and gutting incentives for electric vehicle purchases. Trump responded to Musk's provocations by threatening to withdraw government subsidies from Musk's businesses and even suggested the possibility of deportation. This dynamic illustrates Trump's fragility in the face of Musk’s criticisms, pushing him to retaliate as tensions escalate.

Tesla's Struggles and Management Changes

Tesla faces significant challenges, including recent management shake-ups that saw the departure of key executives. Analysts are bracing for dismal quarterly sales figures, reflecting ongoing issues in the EV market. Analysts speculate that Tesla could sell only 1.5 million units this year, far from the previously ambitious target of producing 20 million cars annually. The podcast discusses how Musk's political actions have contributed to the company's struggles and how he’s now stepping up involvement to address these sales challenges.

Feuds Beyond Trump: Mexico's Legal Actions Against SpaceX

The podcast also touches upon a brewing conflict between Mexican President Claudia Sheinbaum and SpaceX regarding rocket debris from recent explosions that drifted into Mexico. The legal implications of this situation are significant as international space law dictates that countries are responsible for debris that falls onto foreign territories. This highlights the potential for new complications in Musk's dealings with international leaders, particularly those who have previously shown a capacity for negotiation.

Show notes

The predictable second round of Elon Musk’s feud with Donald Trump began over the weekend as the Tesla CEO took aim at the GOP’s massive tax-and-spend bill. Specifically irking Musk (along with efforts to gut incentives to buy his cars) is the amount of money the bill would add to the $37 trillion national debt ($3.3 trillion over a decade, according to a new estimate from the nonpartisan Congressional Budget Office). Trump initially kept his replies to the richest man on Earth muted, but as the South Africa-native’s broadsides piled up, the notoriously thin-skinned Republican president could no longer help himself.

Trump blew up and not only threatened to withdraw government subsidies from Musk’s companies but said he would mull whether to try and “denaturalize” Musk and deport him. Meanwhile, Musk suggested he’d support primary challenges to any Republican lawmaker who supported the bill, and returned to the idea of starting a third party—called the America Party (of course).

To make sense of all the chaos, Bloomberg national correspondent Joshua Green joins David Papadopoulos on this week’s episode of Elon, Inc. Green argues that—despite Musk’s hundreds of billions of dollars and hundreds of millions of social media followers (and bots)—there isn’t a huge constituency out there for a third party. Green also outlines the roots of a mini-campaign within Trump’s ultra-right wing base to get Musk deported, discusses Musk’s chances of actually convincing any lawmakers in the House (now that the Senate has passed the bill) to change their vote on Trump’s tax bill and predicts how many more rounds are left between him and his (one-time) biggest campaign donor.

Papadopoulos also calls up Musk reporter Dana Hull to talk about about fresh challenges for Tesla. With several recent high-profile leadership exits, a flawed robotaxi rollout and sagging sales, things aren’t looking rosy for the electric carmaker ahead of tomorrow’s quarterly sales numbers. “They might only sell like a million and a half units this year; that’s like a far cry from the 20 million that they once talked about” Hull notes.

Finally, Trump wasn’t the only subject of a Musk feuds this week. Mexican president Claudia Sheinbaum recently threatened legal action against SpaceX due to debris from a rocket explosion sweeping in across the border from Texas. Is Musk’s space technology company ready for a spat with one of the few world leaders who has managed to tame Trump? Bloomberg Executive Editor Crayton Harrison joins for the full story.

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