Musk rages at GOP as he returns to an uncertain business empire

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What did Elon Musk say about the GOP tax bill?

Ximena Bustillo 0:34
But first, to Elon Musk, who's been using his newfound freedom from government to openly criticize Congress and the president's agenda. On Monday, he attacked Republicans' signature tax and spending bill as a, quote, outrageous, pork-filled abomination. Musk was, until recently, largely loyal and enthusiastic about the president's agenda. But in a recent interview with CBS, he alluded to some discontent.
Elon Musk 0:59
We have differences of opinion. There's things that I don't entirely agree with. But it's difficult for me to bring that up in an interview because then it creates a bone of contention. So then I'm a little stuck in a bind.
Ximena Bustillo 1:11
With this latest post, Musk appears to be stuck no more. The shift coincides with his return to his business empire, demanding more attention and less controversy. Musk's brief entry into politics appears to have had swift impact on his most famous brand, Tesla.
Tesla has really been through it over the last few months while Musk has been away in D.C.

How is Tesla performing under Musk's leadership?

Ximena Bustillo 1:33
That's The Wall Street Journal's Becky Peterson, who shared a Pulitzer Prize for her recent reporting on Musk.
One of the biggest things that we're seeing right now is a decline in sales, which is hurting its revenue. It's hurting its net profit.
Ximena Bustillo 1:46
She says the car company's decline in sales has been a pattern across the U.S., Europe and China, and that its stock remains volatile and prone to, as she puts it, vibe shifts. Peterson says Musk's political activity is at least partly responsible, especially in states where the once ubiquitous car is now the target of vandalism.

What challenges is Tesla facing in sales?

In the first few months of the year, it seemed that Tesla's reputation was declining among liberals and in liberal states like California, but it was improving in more Republican areas and with Republican buyers. That said, Republicans aren't necessarily more likely to buy EVs, so it's not translating into success for sales.
Ximena Bustillo 2:26
Now, ordinarily, investors might see having a CEO with the ear of the president as a positive sign for the company, but Peterson notes that the political winds haven't been blowing in Tesla's favor. Congress just blocked a California EV mandate, and the GOP's proposed bill will cut the EV tax credit. And in a sign of Musk's waning influence at the White House, Trump recently withdrew his nomination for close Musk ally Jared Isaacman to run NASA. If Musk has any regrets about how his political work has affected his business, he has so far kept them private. He's dismissed Europe as a weak market, criticized the decline in shares as a form of political pressure, and blamed faltering sales on a change in inventory releases. But he has conceded he needs to devote more time to his vision for Tesla's future.

How has Musk's political activity affected Tesla?

Elon's been trying to transition Tesla into being an AI and robotics company. He sees this optimist humanoid robot as being a product that people buy for their homes, that companies buy for their factories. He sees a future where we're living among robots.
Ximena Bustillo 3:34
Peterson also notes that when you take a step back and away from Tesla, Musk's other ventures are holding up well, even accounting for the occasional rocket malfunction.
For all of the potential damage to Tesla's bottom line and the concerns that people aren't going to want to buy his products anymore, Musk has actually seen his companies grow in value during his time in the administration. XAI is surging in value. And SpaceX, for all the pain that it suffered over the last few months, has returned to over a trillion dollar valuation. So Musk's wealth is secure.
Ximena Bustillo 4:24
Now to Gaza, where over the course of several days this week, dozens of desperate Palestinians have been killed near aid distribution sites, according to the Red Cross and Gaza Health Ministry. These aid sites are, as we've mentioned, run by the Gaza Humanitarian Foundation, GHF, a group backed by Israel and the U.S., And they're under full Israeli control.

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