Is Elon Musk in Trouble?

[rareboy]

Elon Musk tweeting at 1:03am, “Only the AfD can save Germany.”

The AfD is Germany’s neo-Nazi party.

 

[rareboy]

Musk, off-roading this week.

 

[KaraBulut]

Democrats are on the offensive. Finally. They're pointing out that American's richest man and apparent President, Elon Musk, got a bailout from Obama to keep his companies out of bankruptcy.

https://www.politico.com/newsletters/west-wing-playbook/2024/10/08/the-trouble-with-elon-00182921

Musk is currently one of the Pentagon’s largest contractors. Two of his companies, Tesla and SpaceX, have received more than $15 billion in federal contracts as of last year, a number that has likely only grown. Tesla, a fledgling EV company when Musk bought it in 2002, took off after receiving $465 million in subsidies from the Obama administration in 2010. In recent years, the government has effectively outsourced its space program to Musk’s SpaceX, which also provides the Starlink satellite internet service that’s been utilized both to aid Ukraine’s defense and hurricane recovery efforts in remote areas.

In addition, SpaceX has been feeding at the government teat for a decade- with NASA and DoD contracts that send billions in taxpayer funds to Musk's companies:

In 2021, SpaceX entered into a $1.8 billion classified contract with the government. In August 2023, the Pentagon entered into a $70 million contract with Starshield, a SpaceX subsidiary. And Musk has continually worked closely with NASA, which awarded SpaceX a $2.9 billion contract for Starship in 2021.

Musk's companies have benefited greatly from Biden's "green" legislation which offers tax credits to Americans who buy electric cars, solar panels and storage batteries that are manufactured by Musk's companies.

Elon Musk's growing empire is fueled by $4.9 billion in government subsidies

Los Angeles entrepreneur Elon Musk has built a multibillion-dollar fortune running companies that make electric cars, sell solar panels and launch rockets into space.

www.latimes.com

May 30, 2015
Los Angeles entrepreneur Elon Musk has built a multibillion-dollar fortune running companies that make electric cars, sell solar panels and launch rockets into space.

And he’s built those companies with the help of billions in government subsidies.

Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, together have benefited from an estimated $4.9 billion in government support, according to data compiled by The Times. The figure underscores a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups.

So, why now did Musk get so interested in trying to kill the Continuing Resolution? Turns out that there was a provision in the bill that would have punished companies that outsource to China... like Musk's companies. After Musk's 100 tweet temper tantrum, Republicans tried to pass another bill that had the China provisions removed. That bill, without the China provisions, did not get enough votes to pass and failed on a House floor vote.

Republican spending bill proposal is amazing for China, and for Musk

Musk, who is the world's richest man, has significant business interests in China.

www.newsweek.com

Provisions aimed at limiting American investments in certain Chinese industries were scrapped from a temporary spending bill negotiated to avert a government shutdown.

The original bill, which was renegotiated after Donald Trump and Elon Musk came out against it, would have prohibited or required notification of overseas transactions involving China in sectors like semiconductors, quantum technology and artificial intelligence...

Musk, who is the world's richest man, has significant business interests in China. His company Tesla opened a "gigafactory" in Shanghai in 2019, building cars for the Chinese domestic market as well as Australasia. By 2022, China accounted for about 22.5 percent of Tesla's total revenue.

And in 2023, he said he wanted to expand his business in China as he met Foreign Minister Qin Gang in Beijing. Musk has also said he wants to build a second factory in China, which is the world's biggest electric vehicle market.

 

[opinterph]

Musk's companies have benefited greatly from Biden's "green" legislation

Musk is calling for elimination of the tax credits.

Why Musk supports Trump getting rid of EV tax credits (Business Insider; November 14, 2024)

 

[KaraBulut]

Musk is calling for elimination of the tax credits.

Why Musk supports Trump getting rid of EV tax credits (Business Insider; November 14, 2024)

He seems to think that those tax credits would benefit Detroit carmakers in the future and shrink Tesla's market.

I think what he may be missing is that EV vehicles aren't as popular as hybrids. A decade ago, a lot of people I know were interested in going to EVs. A lot of those same people have traded in for hybrids because of the better performance on the highway and the advantage of not being dependent upon charging stations when traveling long distances, especially in more rural areas. For qualifying hybrids, that tax credit is very popular and has a big advantage for upper middle class earners who need tax credits to offset their income.

And going back to a key piece of what happened this week: Musk cut a big chunk of his Tesla workforce in the US- something like 20,000+ employees. At the same time, he's increasing his workforce in China. Because of EV competition from Detroit, he's cutting the price of Tesla's to remain competitive. Lowered price means he's going to have to either take a loss on each car or start moving to cheaper labor markets... like the one in China. And guess what the Republicans dropped out of the bill they just passed through the House? Those China offshoring penalties.

 

[KaraBulut]

And the stockholders are starting to get restless:

"He hasn't left Mar-A-Lago since the election".

https://www.cnn.com/2024/12/20/business/video/tesla-investor-ross-gerber-elon-musk-ebof-bts-digvid

 

[Alistair]

 

[rareboy]

It is naked oligarchy.

But what else would we expect?

 

[rareboy]

Andy Borowitz:

Elon Musk’s presidency will be the Cybertruck of presidencies

 

[rareboy]

Meanwhile on X, where Elon Musk REINSTATED the account of the Saudi-born far-right terrorist, AfD supporter and Musk fan, who attacked the Christmas market in Germany yesterday.

 

[rareboy]

 

[rareboy]

 

[rareboy]

By now, Trump must realize that he will never be Caesar, or Kaiser, or Czar.

That has been seized by a south african racist who actually sees himself as king of the world.

 

[rareboy]

His grandparents were actual NAZIs. What do you expect?

 

[rareboy]

 

[rareboy]

 

[rareboy]

 

[Alistair]

 

[rareboy]

Ahh fun times....eh Vice President Trump?

 

[rareboy]