Elon Musk’s divergence from President Biden and the Democratic Party
Elon Musk’s support for Donald Trump can be partially attributed to President Biden’s rejection. The Biden administration initiated preparations in early 2021 to fulfill its campaign commitments of enhancing the adoption of electric vehicles.
Currently, Tesla, led by Musk, manufactures around 66% of the electric vehicles (EVs) that are currently being driven on highways in the United States. However, Tesla stands out as the sole prominent American car manufacturer that does not employ factory workers who are part of a labor union. Furthermore, federal officials have been closely examining some of Tesla’s labor practices.
Following the inauguration, Tesla staff made repeated attempts to establish contact between President Biden and Elon Musk, as reported by individuals familiar with the situation. The Tesla CEO, who openly stated in a televised appearance that he cast his vote in favor of Biden—and had previously mentioned voting solely for Democrats until recently—consistently received a dismissive response.
The Biden administration refrained from engaging with Elon Musk due to concerns about upsetting the influential United Auto Workers union, as per those familiar with the situation. In August 2021, Biden arranged an electric vehicle (EV) event where he signed an executive order aiming to ensure that 50% of all new vehicles delivered in 2030 be zero-emissions vehicles.
Prior to the event, White House officials contacted Tesla to express their regret: Musk was not included in the invitation. Biden extended a warm reception to officials from three additional automobile companies, namely General Motors, Ford Motor, and Stellantis (parent company of Chrysler). These companies significantly lagged behind Tesla in terms of electric vehicle (EV) manufacturing. Those companies hire a large number of UAW members.
“We unequivocally communicated the current state of affairs to the administration,” stated a former union official. “There was no need for us to issue an ultimatum.” They comprehended. The situation deteriorated further thereafter. “Detroit is currently at the forefront of the global auto industry in terms of electric vehicles,” stated Biden during a November 2021 event where he was advocating for the new infrastructure package. Subsequently, he directed his attention on Mary Barra, the CEO of GM, and expressed admiration for her. “You revolutionized the entire automobile industry.” I am earnest. “You took the lead, and it is significant,” Biden stated.
Tesla’s leaders, including Musk, were deeply angered. In the fourth quarter of 2021, when Biden made these statements, Tesla sold over 115,000 electric vehicles in the United States, while GM manufactured only 26. Musk and his representatives did not provide any comments in response to the queries.
Musk’s estrangement from the Democratic Party is currently yielding significant consequences, as the wealthiest individual on the planet has openly endorsed Trump.
According to a recent article by The Wall Street Journal, Musk has expressed his intention to donate approximately $45 million per month to America PAC, a super political-action committee that he co-founded with other influential tech leaders, in support of former President Trump.
Musk has subsequently stated that he established the super PAC, although he clarified that the extent of his contribution was “significantly reduced.” Musk’s ideological transformation, to a certain degree, unfolded on the social media platform Twitter, which he now refers to as X since acquiring it. On this platform, he vehemently opposes what he refers to as the “woke mind virus” and has expressed disapproval of Biden’s strategies across various domains, including immigration and the economics.
According to individuals in his inner circle, as Musk’s fortune surged, he increasingly became a subject of criticism, primarily from the political left. This criticism also contributed to his distancing from the Democratic Party.
He engaged in frequent Twitter debates with Senator Elizabeth Warren of Massachusetts and Senator Bernie Sanders of Vermont on topics including the implementation of a wealth tax on billionaires and the oversight of large technology corporations.
“Being subjected to attacks is universally disliked,” stated Bradley Tusk, a venture entrepreneur who served as the campaign manager for Michael Bloomberg’s mayoral campaign in New York.” “When Democratic lawmakers persistently criticize someone, the response becomes ‘disregard you.'” Being a human, it is natural to react in a specific manner when individuals exploit you for political purposes.
The Biden administration has undertaken initiatives to mend relations with the entrepreneur. In 2022, following a separate occasion where Biden commended GM and Ford for their contributions to electric vehicles, a Twitter user pointed out the exclusion of Tesla.
Musk responded on Twitter, stating: “Biden is a weak and easily influenced individual.” Biden’s team was alerted to the criticism. Brian Deese, who was a senior assistant to Biden at the time, contacted Rohan Patel, who was then the vice president of global public policy and business development at Tesla, and expressed his view that the tweet was confrontational and unhelpful. Deese requested a meeting with Musk to discuss his worries.
During a telephone conversation with Deese and Biden’s chief of staff, Ron Klain, Musk expressed his dissatisfaction with Biden’s inaccurate statements regarding electric vehicles (EVs) and his failure to acknowledge Tesla’s prominent position in the market. The two individuals attentively listened to Musk’s statements and expressed their intention to communicate his thoughts to the president.
According to those familiar with the situation, Democrats like Rep. Ro Khanna, who represents a substantial portion of Silicon Valley, have made efforts to reintegrate Musk into their group.
“During the interview, Khanna argued that the Obama administration’s policies played a crucial role in supporting the success of Tesla and SpaceX, particularly with the assistance of former Secretary of Defense Ash Carter. Khanna also noted that the individual being discussed has frequently expressed his admiration and respect for President Obama.”
Elon Musk becomes more involved in politics. Over time, Musk started to have a sense of exclusion from the White House, as well as a feeling of being targeted by it.
Since Biden assumed the presidency, the Federal Trade Commission has investigated whether Twitter violated a consent decree when Musk granted journalists access to company records. The Justice Department has filed a lawsuit against SpaceX, accusing them of discriminatory hiring practices. Additionally, the Federal Communications Commission has rejected Starlink’s request for nearly $900 million in rural-broadband subsidies. Musk perceives these actions as politically motivated, based on conversations he had with individuals regarding these actions.
Musk and his firms have also been subjected to regulatory actions in prior years. A spokesperson for the FTC affirmed that the agency’s investigations are not influenced by political considerations, but a representative for the FCC stated that their conclusions are grounded in factual evidence rather than political factors.
A spokesperson from the Justice Department refrained from providing any comments. The complaint filed by the Department is rooted in an inquiry that commenced in May 2020, under the Trump administration. An counsel representing the department clarified in a letter to Rep. Jim Jordan (R., Ohio) that the lawsuit is not connected to Musk’s acquisition of Twitter in October 2022. A spokesperson from the White House stated that it does not have any involvement in the implementation of enforcement measures.
Critics of Musk argue that the level of scrutiny he faces is justified, considering the size of his enterprises and the significant impact they have on the economy. Furthermore, it is asserted that Musk frequently attracted attention to himself by his incendiary tweets and other remarks directed towards regulators and government officials.
Although Musk has expressed dissatisfaction with the administration, his personal wealth has significantly increased during Biden’s presidency. According to Forbes, Biden’s net worth was $184 billion on the day of his inauguration. Currently, his net worth amounts to $234 billion, positioning him as the wealthiest individual globally.
Aside from X, Musk also manages three additional companies: the Boring Co., a tunneling endeavor, Neuralink, a brain implant firm, and xAI, an artificial intelligence company.
Tesla is a recipient of the Inflation Reduction Act implemented by the Biden administration. This act offers substantial financial support, amounting to hundreds of billions of dollars, to encourage investments in renewable-energy initiatives.
SpaceX achieved significant successes during President Biden’s term, securing approximately $4 billion in NASA contracts to create a lunar lander for future manned transportation missions. Additionally, SpaceX collaborated with the Federal Aviation Administration to treble the number of allowed launches by the agency between 2021 and 2023.
Musk has also engaged in favorable exchanges with Democratic politicians, including a September 2023 meeting organized by Senate Majority Leader Chuck Schumer (D., N.Y.) concerning artificial intelligence.
Until just five years ago, Musk had limited involvement in politics, with former House Speaker Kevin McCarthy (R., Calif.) being one of his few notable pals, primarily because of their mutual fascination with space.
However, in recent years, Musk has developed stronger connections with Republican politicians, including as Jordan and Rep. Ken Calvert (R., Calif.), as reported by individuals familiar with the situation. Jordan, in his capacity as the chairman of the House Judiciary Committee, has initiated inquiries into the manner in which Musk has been dealt with by different regulatory bodies.
Musk frequently holds meetings with the current House Speaker Mike Johnson (R., La.) during his visits to Capitol Hill. Johnson and other Republican legislators extended an invitation to Musk for this year’s State of the Union address, but he declined to attend.
In a recent podcast, Musk stated that the new super PAC is not intended to be a highly politicized organization. He noted that although the Republican Party is not perfect, it now aligns more closely with his beliefs of meritocracy and personal freedom. The recently submitted federal campaign-finance filings for America PAC indicated that the organization was allocating expenditures towards canvassing and field efforts to endorse Trump.
Trump and Musk have a complex connection. Musk expressed disapproval of Trump’s presidency during Trump’s time in office. He has often criticized the country’s leadership, referring to it as a “gerontocracy,” which means a government controlled by elderly individuals.
In 2022, Trump stated on Truth Social that Musk attempted to influence him in favor of his enterprises while he was president. “I had the power to command him to kneel down and plead, and he would have obeyed,” Trump stated.
Musk’s change of attitude towards Trump was influenced by his close acquaintances in the technology industry, including David Sacks, who had previously collaborated with Musk at PayPal, and Joe Lonsdale, the co-founder of Palantir Technologies. They have been urging him to increase his participation in the electoral process, and Lonsdale is actively engaged in the super PAC.
According to individuals in close proximity to Musk, his changing perspectives are influenced by his ownership of X. Upon easing the limitations on speech imposed on the social-media platform, which had caused discontent among numerous conservatives, he started to garner commendation from them for eliminating what they perceived as repression.
“Elon Musk’s acquisition of Twitter subjected him to intense scrutiny, similar to the treatment experienced by Donald Trump and other conservative figures,” stated Trevor Traina, a technology entrepreneur who served as the U.S. ambassador to Austria during the Trump administration. “I believe that Elon Musk’s experience with severe backlash from left-wing individuals, combined with David Sacks’ coaxing and encouragement, has played a significant role in this situation. However, it is likely that the ultimate outcome is a result of both factors.”
Musk has expressed disapproval of gender-affirming care for youngsters and has attributed responsibility to progressives for permitting this procedure. During the podcast conversation, Musk revealed that he was deceived into signing legal papers for the purpose of facilitating medical treatment for one of his children.
“After that, Musk declared his determination to eradicate the woke mind virus,” Musk stated. “We are making significant advancements.” Trump has suddenly changed his attitude towards Musk. During a recent rally, Trump highlighted and praised Musk’s endorsement.
Trump added that Musk has not requested any modifications to the candidate’s position, which aims to reduce subsidies for electric vehicles (EVs). “By ‘other guys,’ I am referring to individuals who give you $2 and expect you to treat them to a meal.” “You must entertain and impress them with food and drinks,” Trump stated at the gathering. “However, he has never expressed to me his curiosity about why I am striking the electric cars, as he comprehends that I am not striking them.” “I have experienced them, I have operated them,” Trump continued. “They are remarkable.” However, they are not suitable for everyone.
