Elon Musk’s Wild Week Raises Fears Over His Empire’s Future
- by The Daily Beast
- Jul 25, 2024
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It's been quite the week for Elon Musk.
It started with conflicting reports that he was - or was not - donating $47m a month to Donald Trump’s campaign. It continued with Tesla's disappointing second quarter earnings which revealed a 45 percent drop in profits compared to 2023—sending his net worth plummeting by $16bn. He then announced he was stalling investment in a Mexican plant until he sees if Trump, if elected, levies tariffs on Mexico.
On Tuesday he accused a ‘woke mind virus’ of killing his (estranged) transgender daughter. That same day Democrats accused him of restricting access to KamalaHQ on X, while a former Trump aide claimed his endorsement for Trump was a ‘kiss of death.’
By midweek the Wall Street Journal reported that Tesla’s profits crash would restrict Musk’s plans to pursue his AI dreams, and a former Clinton labor secretary called for consumers to boycott Musk companies in light of his (maybe) $47m campaign donation to Trump. And then he was spotted at Israeli Prime Minister Benjamin Netanyahu’s address to Congress, the two having previously shared conversations about antisemitism (a topic that has proved enormously contentious for Musk since his X takeover) in a face-to-face meeting last year. While at the Capitol for the serious occasion he took time out to say, “I’ll fight [Mark] Zuckerberg any place, anytime, anywhere.” Then he posted a crying-with-laughter emoji on X below the video.
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Musk combined an appearance on Capitol Hill where he applauded Israeli prime minister Benyamin Netanyahu’s address to a joint session of Congress with a challenge to Meta’s Mark Zuckerberg to fight.
Craig Hudson/Reuters With Musk, nothing is straightforward.
When he purchased Twitter he cast himself as a champion of free speech but earlier this year a PBS Frontline documentary revealed how he was happy to curtail speech in order to placate and woo advertisers back on to the platform—only to then abandon that position when they stayed away.
After being accused of promoting antisemitism on X, and of being an antisemite himself, Musk went to Poland earlier this year to visit the former Auschwitz-Birkenau death camp. A laudable attempt to school himself—or an empty “apology tour” designed to woo back advertisers who had exited in droves after he endorsed an antisemitic post on X?
In the immediate aftermath of the exodus Musk addressed a New York Times business summit, and declared, “I don't want them to advertise. If someone is going to blackmail me with advertising money, go fuck yourself. Go. Fuck. Yourself.” Then he added, in a reference to Disney CEO Bob Iger, “Hey Bob.”
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Among the examples of Musk getting in his own way are suggestions that sales of his Teslas, including Cybertrucks, are being hit by people reluctant to be associated with his views, especially the ones he promotes on his X platform.
Chesnot/Getty Images
But, money talks. And he did want them to advertise. Cue “penitence tour,” during which, Musk said, “it hits you much more in the heart when you see it in person.”
But only after it hits you in the pocket.
Musk has always got in his own way. It’s just happening with greater frequency. The problems this creates for someone worth billions are relative, but problems nonetheless. The New York Times reported this month that his politics may be pushing some buyers away from Tesla, quoting Ben Rose, president of Battle Road Research: “Musk is a true lightning rod. There are people who swear by him and people who swear at him. Some of his comments are a real turnoff for some people.”
At a time when America’s public discourse has rarely been this toxic, Musk’s forays into the public square—and how he manages X—will likely do nothing to defuse tensions. Zachary Elwood, author of Defusing American Anger, writing in The Hill, said, “Musk’s contemptuous behavior amplifies the toxicity of our divides. It’s not about the polarization of his beliefs, but about his affective polarization—his disdain for the ‘other side.’”
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Musk’s willingess to cause outrage may be getting in the way of his transformative vision more than ever before.
Mario Anzuoni/Reuters
America's caustic, violent—and often childish—public rhetoric is not on Musk alone, but his outsized voice, influence, and power means he could do more than most to help dial it down. Especially if it hits his vast pocket book.
But don’t hold your breath.
John Mulholland
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