Fallout for Musk DealBook

Investment Analysis Clubs Macro Economic Trends and Risks
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List of fallout for Musk

NYT
DealBook by Andrew Ross Sorkin

  • Tesla’s stock price plunged 14 percent yesterday, wiping out over $150 billion from its market cap, its worst-ever one-day performance. Beyond the loss of the E.V. subsidies the Republican bill would eliminate, investors feared that Trump regulators could crack down on Tesla’s robotaxi efforts.
  • The prospect of SpaceX losing even some of its government contracts would hurt. (That possibility likely delighted rocket rivals including Jeff Bezos of Blue Origin and Kelly Ortberg of Boeing.) Meanwhile, what if Musk followed through on the decommissioning of the Dragon spacecraft — or even disabled the U.S. government’s access to the Starlink internet service?
  • Could a drawn-out fight mean that Trump would somehow hamstring xAI even as he champions other American artificial intelligence companies? Sam Altman of OpenAI was probably feeling relieved that Musk wouldn’t be able to interfere in his ambitious initiatives.
  • Republican leaders may also be hoping that a détente might lead to Musk dialing down his attacks on their budget bill. That said, the billionaire still appears dead set against the legislation: “If America goes broke, nothing else matters,” he wrote on X today.
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Seems that would almost certainly result in government seizure of the system/prosecution of Musk on “national security” grounds.

Steve

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We are in self destruct mode.

Who cares after all?

The senile from 2023 to 2024 had a better grip on reality.

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So: he’s tanked Tesla, Twitter growth has flatlined and advertising cratered, SpaceX is hostage to his petty fight with Trump, Starlink now a negotiating chip, and his reputation is in tatters with both liberals AND conservatives.

Note to investors in his various businesses: This is what happens when you have an unstable narcissist in charge of things.

Note to Republicans and other Americans: same thing

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Just to remind everyone, Trump’s truth social competes directly with XAI. What better way for a President to get rid of the competition to one of his companies.

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I’m convinced this is a staged wrestling match. And I watch with popcorn, hoping elung accidentally spouts out how he stole the election for t-rump. Nothing would happen, but it would be fun to see. I guess.

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