Elon Musk

Subterms

    More stories

    • 163 Shares129 Views

      in US Politics

      Tesla investors brace for global sales data amid consumer backlash over Elon Musk

      by

      Tesla investors are bracing for evidence of declining global demand this week as the electric carmaker battles headwinds including a consumer backlash against its chief executive, Elon Musk.On 2 April, the US company will release data for first-quarter deliveries – a proxy for sales – that is expected to show a dip on the same period last year. The figures follow global protests on Saturday against Musk and Tesla, targeting the carmaker’s showrooms.Analysts have been lowering their forecasts amid evidence that Musk’s senior role in the Trump administration has damaged the Tesla brand.Dan Ives, managing director at the US financial firm Wedbush Securities and a self-avowed Tesla “core bull”, forecast deliveries to come in at between 355,000 and 360,000, a fall of 7% on the same period last year and down from initial predictions across Wall Street of 400,000.View image in fullscreenIves, who recently warned investors that Tesla was facing a “brand tornado crisis moment”, said 30% of the anticipated decline was due to brand damage associated with Musk and his involvement in the so-called department of government efficiency (Doge). The advisory body has targeted federal agencies with cost-cutting policies and redundancies.Other issues affecting Tesla’s figures during the first three months of the year include consumers waiting for an update to the top-selling Model Y. The US is Tesla’s biggest market.In a note to investors last week, Ives said that while “much of this softness is related to customers waiting for Model Y refreshes along with a lower-cost new model set to be launched by the summer … the anti-Musk and brand issues are clearly at play”.Matthias Schmidt, a Berlin-based electric car analyst, said Musk was “hitting his liberal consumer demographic exactly where it hurts”.“He has become the core toxic issue behind the disintegration of the brand and should step-aside before it explodes like one of his rockets,” added Schmidt, who is expecting first-quarter deliveries in western Europe to come in at just under 70,000 for the first time since the end of 2022.skip past newsletter promotionafter newsletter promotionView image in fullscreenAmong Tesla owners, the Democrat owner group has fallen from 40% during the Biden administration to 29% now, with the Republican group averaging about 30% since 2021, according to market research firm Strategic Vision.Last week, Donald Trump announced a 25% tariff on cars from overseas, with Tesla also expecting to be affected despite making its cars for the US market in America. The company imports some parts for its US-made cars. Last week, Musk wrote on X, his social media platform, that Tesla is “not unscathed” by tariffs. He added: “The tariff impact on Tesla is still significant.”The tariffs threaten to plunge the global auto industry into “pure chaos”, according to Ives. “Every auto maker in the world will have to raise prices in some form selling into the US and the supply chain logistics of this tariff announcement heard around the world is hard to even put our arms around at this moment,” he said in a note to investors last week.However, on Saturday, Trump said he “couldn’t care less” if carmakers raise prices in response to the tariffs on foreign-made vehicles. Indeed, the US president told NBC News that he hoped foreign carmakers raise prices as it means “people are gonna buy American-made cars. We have plenty.” More

    • 175 Shares189 Views

      in US Politics

      Elon Musk hands out $1m checks to voters amid Wisconsin supreme court election race

      by

      Elon Musk gave out $1m checks on Sunday to two Wisconsin voters, declaring them spokespeople for his political group, ahead of a Wisconsin supreme court election that the tech billionaire cast as critical to Donald Trump’s agenda and “the future of civilization”.“It’s a super big deal,” he told a roughly 2,000-person crowd in Green Bay on Sunday night, taking the stage in a yellow cheesehead hat. “I’m not phoning it in. I’m here in person.”Musk and groups he supports have spent more than $20m to help conservative favourite Brad Schimel in Tuesday’s race, which will determine the ideological makeup of a court likely to decide key issues in a perennial battleground state. Musk has increasingly become the center of the contest, with liberal favourite Susan Crawford and her allies protesting Musk and what they say is the influence he wants to have on the court.“I think this will be important for the future of civilization,” he said. “It’s that’s significant.”He noted that the state high court may well take up redistricting of congressional districts, which could ultimately affect which party controls the US House.“And if the [Wisconsin] supreme court is able to redraw the districts, they will gerrymander the district and deprive Wisconsin of two seats on the Republican side,” Musk claimed. “Then they will try to stop all the government reforms we are getting done for you, the American people.”A unanimous state supreme court on Sunday refused to hear a last-minute attempt by the state’s Democratic attorney general to stop Musk from handing over the checks to two voters, a ruling that came just minutes before the planned start of the rally.Two lower courts had already rejected the legal challenge by Democrat Josh Kaul, who argues that Musk’s offer violates a state law. “Wisconsin law prohibits offering anything of value to induce anyone to vote,” Kaul argued in his filing. “Yet, Elon Musk did just that.”But the state supreme court, which is now controlled four-to-three by liberal justices, declined to take the case as an original action. The court gave no rationale for its decision. All four liberal justices have endorsed Dane County Judge Susan Crawford, the Democratic-backed candidate.Kaul had no immediate comment on the court’s order.Musk’s attorneys argued in filings with the court that Musk was exercising his free speech rights with the giveaways and any attempt to restrict that would violate both the Wisconsin and US constitutions.The payments are “intended to generate a grassroots movement in opposition to activist judges, not to expressly advocate for or against any candidate,” Musk’s attorneys argued in court filings.Musk’s political action committee used a nearly identical tactic before the presidential election last year, offering to pay $1m a day to voters in Wisconsin and six other battleground states who signed a petition supporting the First and Second amendments. A judge in Pennsylvania said prosecutors failed to show the effort was an illegal lottery and allowed it to continue through Election Day.Musk’s attorneys, about four hours before the rally was to begin, asked that two liberal justices who have campaigned for Crawford – Jill Karofsky and Rebecca Dallet – recuse themselves from the case. His attorneys argued their work for Crawford creates “the spectre of inappropriate bias.” If they did recuse, that would leave the court with a three-two conservative majority.Both justices rejected the request and said they would spell out their reasons why at a later date.One of the court’s conservative justices has endorsed Schimel, who wore a “Make America Great Again” hat while campaigning Sunday.Schimel said in a national television interview that he does not control “any of the spending from any outside group, whether it’s Elon Musk or anyone else” and that all Trump asked was whether he would “reject activist judges” and follow the law.“That’s exactly what I’ve committed to anybody, whether it’s President Trump, Elon Musk or any donors and donors or supporters or voters in Wisconsin. That’s my commitment,” Schimel told Fox News Sunday.The contest has shattered national spending records for a judicial election, with more than $81m in spending.It comes as Wisconsin’s highest court is expected to rule on abortion rights, congressional redistricting, union power and voting rules that could affect the 2026 midterms and the 2028 presidential election in the state. More

    • 138 Shares169 Views

      in US Politics

      Most employees at US Institute of Peace mass-fired via late-night email

      by

      Most employees at the US Institute of Peace, a congressionally created and funded thinktank now taken over by Elon Musk’s unofficial “department of government efficiency”, received email notices of their mass firing late Friday, the latest step in the Trump administration’s government downsizing.The emails, sent to personal accounts because most staff members had lost access to the organization’s system, began going out about 9pm, according to people familiar with the matter who spoke on the condition of anonymity because of fear of reprisal.One former senior official at the institute said that among those spared were several in the human resources department and a handful of overseas staffers who had until 9 April to return to the United States. The organization employs about 300 people.Others retained for now are regional vice-presidents who will be working with the staff in their areas to return to the US, according to one employee who was affected.An executive order last month from Donald Trump targeted the institute, which seeks to prevent and resolve conflicts, and three other agencies for closure. Board members, who are nominated by the president and confirmed by the Senate, and the institute’s president were fired. Later, there was a standoff as employees blocked Doge members from entering . Doge staff gained access in part with the help of the Washington police.A lawsuit ensued, and the US district judge Beryl Howell chastised Doge representatives for their behavior but did not reinstate the board members or allow employees to return to the workspace.A White House spokesperson, Anna Kelly, said in an email Saturday that the institute “has failed to deliver peace” and that Trump “is carrying out his mandate to eliminate bloat and save taxpayer dollars”.The letter to employees said that as of Friday, “your employment with us will conclude”, according to one longtime employee who shared part of the communication. A second email, obtained by the AP, said the terminations were at the direction of the president.Workers were given until 7 April to clear out their desks.Mary Glantz, a former foreign service officer who was working as a senior adviser at the institute, said she was not surprised by the late-night firings, calling it part of Doge’s playbook.Glantz studied how Russia has fomented conflicts around the world and analyzed options for resolving them. She hoped her research could be continued and used elsewhere. She said the institute plays a unique role because of its narrow focus on conflict resolution.“We are the other tool in the tool box,” she said. ”We do this work so American soldiers don’t have to fight these wars.”George Foote, a former institute lawyer fired this month who is with one of the firms providing counsel in the current lawsuit, said lawyers were consulting Saturday to discuss possible next steps. He said employees are not part of the pending lawsuit, so they would have to file separate cases. More

    • 150 Shares129 Views

      in US Politics

      Protests hit Tesla dealerships across the world in challenge to Elon Musk

      by

      Thousands of people worldwide protested Elon Musk and his efforts with Donald Trump to dismantle the US federal government on Saturday, with rallies held in front of nearly every Tesla showroom in the US and many around the world – a concerted effort to go after the billionaire’s deep pockets as the CEO of the electric vehicle maker.Protest organizers asked people to do three things: don’t buy a Tesla, sell off Tesla stock and join the “Tesla Takedown” movement.“Hurting Tesla is stopping Musk,” reads one of the group’s taglines. “Stopping Musk will help save lives and our democracy.”On Saturday, with more than 200 events planned worldwide, protests kicked off midday in front of Tesla showrooms in Australia and New Zealand and then rippled across Europe in countries including Finland, Norway, Denmark, Germany, France, the Netherlands and the UK. Each rally was locally organized with original themes. In Ireland, it was “Smash the Fash”, and Switzerland had “Down with Doge”. Photos posted to Bluesky by Tesla Takedown showed demonstrators in San Jose, California, close to where Tesla was previously headquartered, and Austin, Texas, where its headquarters are now.Musk, the world’s richest person, heads the so-called “department of government efficiency” (Doge), which he’s tasked with slashing federal budgets in the US, including laying off thousands of workers, though he said in an interview Thursday: “Almost no one has gotten fired.” He’s gone after the Social Security Administration, the Department of Education, the National Park Service and several more departments and agencies, causing widespread backlash and criticism. Musk and Tesla did not return requests for comment.View image in fullscreenIn San Francisco, a crowd of around 200 people gathered in front of the Tesla showroom. Protesters spilled into the busy street and onto the median, confusing the self-driving Waymos trying to get around people darting back and forth.A boombox blasted We’re Not Gonna Take It by Twisted Sister and cars drove by honking enthusiastically. Even passing postal trucks, public buses and fire engines honked in support. People propped up signs with slogans like “Burn your swastikar before it burns you” and “No Doge bags”. Others flew massive American flags mounted upside down.The block-long Tesla showroom was emptied of all cars, and only a few security guards stood inside, with some San Francisco police outside. At one point, a group of four men wearing red Maga hats and black Doge shirts walked through the crowd, but everything remained calm.“I’m out here protesting because what I see is a hostile takeover of our country,” said Myra Levy, who was holding a sign that said “Pinche Ladrón” (“fucking thief”). “That is not OK for me. That is not OK for all of us.”Her friend, Karen Heisler, emphatically added: “We did not vote for this.”View image in fullscreenIn Berkeley, California, the Tesla showroom has shut down every Saturday for the last month because of the weekly protests, according to salespeople from neighboring retailers. Only security guards have stayed on to guard the building. It’s been the scene of lively demonstrations that have included a mariachi band and a 10-foot cardboard Cybertruck for people to spray-paint. Earlier this month, the showroom’s front door was splattered with red paint. The showroom manager declined to comment.In New York City, several hundred anti-Tesla protesters gathered outside the EV company’s Manhattan showroom on Saturday. Sophie Shepherd, 23, an organizer with Planet Over Profit, explained that the rally was not about protesting electric cars. “We’re here to protest Musk, who has essentially held a Tesla car show on the White House lawn,” she said. “We want to disrupt his business as much as possible, so that includes all Teslas, and not just the Cybertruck.”Marty, 82, said he was attending the New York City rally “because I’m worried about my country”. In the 1960s, he protested the Vietnam war. “Now, it’s the overthrow of our country by oligarchs,” he said. The rally, he went on, was a message to “this guy Elon who is buying our government”.On Friday, the New York police department said its officers were searching for two suspects who allegedly carved the word “Nazis” and a swastika on the doors of a Tesla Cybertruck in Brooklyn this week, part of an uptick in attacks on Tesla vehicles and facilities across the US since Trump took office.View image in fullscreenIn Washington DC, organizers planned a rally in front of a new Tesla showroom in Georgetown, making the theme “Tesla Takedown Dance Party”. “Dump the meme stock, join dance lines,” read the flyer. “The stakes couldn’t be higher but that doesn’t mean we can’t have fun!”“The hypocrisy is so deep,” said Manissa Maharawal, an assistant professor at American University who has studied anti-tech protests and points out that Tesla has received billions in government funding. “It’s this company that’s been subsidized in a lot of ways by the government, but now the CEO is trying to dismantle the government because he thinks he knows better than everyone, because he comes from the tech industry.”skip past newsletter promotionafter newsletter promotionView image in fullscreenIn the US, protests happened in nearly every state, across the north-east, south and midwest through to the west coast. States with the most planned rallies included Massachusetts, New York, Florida, Texas, Washington and California, totaling more than 100. Several protests also took place throughout Canada.In London, dozens of demonstrators gathered at a Tesla showroom along the three-lane A40 in West London.“Musk is hugely abhorrent. He is funding the far right, and meaning that any Republicans who speak out end up not being funded in their next election,” said gay rights campaigner Nigel Warner.“It’s too overwhelming to do nothing,” said Louise Cobbett-Witten, who has family in the US and was protesting at the Tesla dealership in west London. “There is real solace in coming together like this. Everyone has to do something. We haven’t got a big strategy besides just standing on the side of the street, holding signs and screaming.”Tesla Takedown organizers reiterated the need for people to continue to speak out and protest against Musk, Trump and Doge. The stakes are high and “no one is coming to save us”, they say on their website.Maharawal, from American University, said she was struck by that sentiment, saying: “For there to be a nationwide and global protest saying ‘no one’s coming to save us’ just speaks to the level of anger and desperation right now.”Organizers have also been careful to distance themselves from the violent vandalism that has been carried out against Tesla showrooms. Dozens of Tesla facilities have been attacked in the middle of the night with molotov cocktails, gunshots or graffiti saying things like “Fuck Elon” and “Tesla Is Fascist”.Trump has vowed to designate any violence against Tesla dealerships as domestic terrorism.Tesla Takedown organizers condemn the vandalism. “We are a non-violent grassroots protest movement,” the group says. “We oppose violence and destruction of property. Peaceful protest on public property is not domestic terrorism.”Harry Taylor contributed reporting More

    • 113 Shares199 Views

      in US Politics

      Protesters picket London Tesla showroom on global anti-Musk day

      by

      Blaring car horns on the three-lane A40 in west London are nothing new. However, on Saturday, they weren’t aimed at other drivers for a change; instead it was Tesla’s CEO, Elon Musk, who was the target of their anger as part of the “Takedown Tesla” movement, which has spread from the United States.“It’s too overwhelming to do nothing,” said Louise Cobbett-Witten, who has family in the US. “There is real solace in coming together like this, everyone has to do something. We haven’t got a big strategy besides just standing on the side of the street, holding signs and screaming.”The protest was part of a global day of protests planned under the umbrella of the Tesla Takedown movement. Organizers say the rallies will take place in front of more than 200 Tesla locations worldwide, including nearly 50 in California. Musk has not commented on the demonstrations.Cobbett-Witten has family in Washington DC, and is planning to move back to the US. The 39-year-old NHS worker, who lives in south London, said: “The checks and balances have just failed. As much as people are trying to not say these words, they are fascists, they are white supremacists, they’re xenophobes, they’re misogynists, and they’re coming for everyone. And what starts in America comes over here.”In the last fortnight, Tesla has responded to the protests outside its showroom and charging point in Park Royal by stationing a lone security guard at its gate, who said protesters had been friendly and peaceful. Dozens turned up on Saturday, their largest turnout since they began weeks ago.While Tesla sales have fallen in Europe, they rose in the UK by more than a fifth in February, according to new car registration figures from the Society of Motor Manufacturers and Traders.View image in fullscreenGay rights campaigner Nigel Warner MBE was attempting to hand out stickers to Tesla drivers entering or leaving the site in Park Royal. “This is the only thing you can do to make a difference,” the 77-year-old retired accountant from London said. “We are pretty helpless over here, the same as Europe, the only thing we can do is try to affect Tesla’s share prices and sales. It is something that has been done already with the Tesla sales dropping in many places. If he can’t sell his cars he is finished.”Documentary film-maker Jim Green, 56, who lived in New York and Los Angeles before moving back to the UK 18 months ago, had worked with Musk on a film a decade ago.Green said: “He was a different person, and he was very charismatic. He was talking when I was hanging out with him about the gigafactory where the batteries were being built, and he had a very compelling argument to make about the importance of batteries, an argument he made extraordinarily articulately. So I was very much leaning in to believing this guy wouldn’t turn into the fascist he has become.”He said Musk had attacked typical Tesla buyers, whom he described as wealthy liberals who care about the environment: “Musk has gone out of his way to insult that exact group of human beings. I lived in LA during the time when everyone who was wealthy and liberal traded their Toyota Prius in for their Tesla during 2014-2015.”Retiree Anne Kajava, 59, who is originally from Minnesota but lives in Cambridgeshire, said she was concerned about the United States’ change in policy on Europe and Ukraine.She said: “I am truly concerned about a world war three. I am concerned about a civil war within the United States. You could say those are extreme views but Trump is talking about war. You have JD Vance in Greenland; it’s not impossible.”Holding a banner attached to a Donald Trump toilet brush, she said: “I used to not hesitate to say I’m an American. Now actually I’m working with an acting coach, to fake a British accent so I can turn it on and off when I want to. I don’t want to be identified as American.” More

    • 113 Shares139 Views

      in US Politics

      Doge shutters federal workplace mediator agency after Trump order

      by

      The Elon Musk-run “department of government efficiency” (Doge) in effect shuttered a 79-year-old federal agency that mediates labor disputes on Wednesday – saving an estimated 0.0014% of the federal budget.The Federal Mediation and Conciliation Service (FMCS), an independent federal agency that works to prevent and resolve work stoppages and disputes in the public and private sector, has shut down most of its services and placed employees on administrative leave with firings to follow.“The administration released an executive order a week and a half ago naming FMCS as one of the agencies to be shuttered, but other than our agency denying it and making a few adjustments, we didn’t hear anything further,” said Jefferson Dedrick, a commissioner at FMCS. “Earlier today our mid-level managers informed each of the commissioners that effective at close of business, we would be put on admin leave with a RIF [reduction in force] letter to follow.”The agency provided mediation for several high-profile strikes, including the Boeing strike last fall.“Doge basically decided to eliminate all but a few people from the agency. We don’t know the final count but maybe a dozen left out of an agency that had almost 200 employees through last year,” said a FMCS employee who requested to remain anonymous for fear of retaliation. “It is shocking as the agency does not regulate and has always been non-controversial. Even Republicans have always seen the value of an agency that saves the economy far more money in reduced work stoppages in the private sector than the agency spends. It is also a blow to the use of more efficient dispute resolution by federal agencies who have used our services for non-labor disputes. That program has now been entirely abolished.”They noted the cuts were drastic to the point where the agency, in most cases, can no longer be effective and noted it will worsen and prolong labor strikes and lockouts.The FMCS was established by Congress in 1947. Its shuttering comes in the wake of Donald Trump’s executive order, signed on 14 March, to dismantle seven federal agencies, including FMCS.Dedrick added in a LinkedIn post on the dismantling of the agency: “Annually, FMCS saves the US Economy over $500 million by protecting household earnings, safeguarding company revenues and services, and ensuring the continuity of the robust commerce that promotes and underlines our national prosperity.”He noted this savings is achieved with fewer than 150 mediators around the US, accounting for less than 0.0014% of the federal budget.FMCS was contacted for comment. More

    • 188 Shares189 Views

      in US Politics

      ‘A capitalistic cowardice’: big law firms being threatened by Trump face pressure to speak out

      by

      Donald Trump’s executive orders targeting law firms and attorneys who challenge his priorities are roiling the legal community, with some capitulating to the administration’s demands amid mounting pressure on the US’s biggest firms to speak out.The president signed an executive order on Tuesday targeting the firm Jenner & Block over its previous employment of Andrew Weissmann, a prosecutor who worked on Robert Mueller’s investigation into Trump’s connections to Russia. The order came after Trump issued similar executive orders targeting three other firms – Covington and Burling, Perkins Coie, and Paul Weiss – over their representation of his political rivals.Those orders have threatened to cripple the firms by revoking the security clearances of their lawyers, ending access to government buildings and forcing clients who do business with the government to disclose if they are represented by the firm. Trump also issued a separate executive order on Friday directing US attorney general Pam Bondi to investigate lawyers taking actions to block the administration’s priorities.Scholars and experts say there is little doubt that Trump’s executive orders are a thinly-veiled effort to intimidate lawyers who might otherwise challenge the administration. The actions undermine a key element of the American democratic system by limiting the ability of potential adversaries to access the judicial system, one of the most powerful checks on executive power.Trump got a huge boost last week when the firm Paul Weiss accepted demands from Trump in exchange for withdrawing the executive order targeting the firm. The White House was gleeful at that result and the administration reportedly already has a list of other firms it may subject to similar treatment.“Paul Weiss’s deal emboldened him to ratchet up his attack on one of the strongest checks on his power: lawyers and the rule of law,” David Perez, a partner at Perkins Coie, wrote in a post on Sunday on LinkedIn. “Now more than ever law firms and lawyers across the political spectrum have to stand up for our timeless values.” Perkins Coie is suing the administration over the order and won a temporary restraining order blocking it.US district judge Beryl Howell said during a hearing in the Perkins Coie suit that the order “sends little chills down my spine” and wrote in her ruling “such a circumstance threatens the very foundation of our legal system”.Trump’s intimidation campaign may be working. There has been no unified response from the country’s biggest and most well-known law firms. “We waited for firms to support us in the wake of the President’s executive order targeting Paul Weiss,” Brad Karp, the firm’s chair, wrote in an email to employees on Sunday. “Disappointingly, far from support, we learned that certain other firms were seeking to exploit our vulnerabilities by aggressively soliciting our clients and recruiting our attorneys.”Former Biden administration officials are having trouble finding lawyers to represent them, the Washington Post reported. And civil rights and non-profit lawyers, who traditionally get pro bono assistance from major firms, say there is a general wariness from big law firms on challenging the administration. And when firms do help, they want to keep it quiet and don’t want their names on publicly filed court documents.Some firms also appear to be revising their web pages that detail their pro bono work. The firm Davis Polk, for example, appears to have recently removed references to racial justice and immigration from the pro bono page on its website, according to a Guardian review of an archived version of the page. As of 17 March, the firm’s pro-bono page included the statement: “We are proud to have a large team of full-time pro bono lawyers, with members focusing on litigation, corporate and transactional, racial justice, and humanitarian immigration matters.” Today, it no longer exists.Davis Polk did not immediately return a request for comment on the changes.The law firms’ fears are well founded. Elon Musk, a top Trump adviser, has already suggested targeting the firm Skadden, Arps, Slate, Meagher & Flom because of its pro bono work representing a Georgia man who was falsely accused of voter fraud in the film 2,000 Mules. The conservative filmmaker Dinesh D’Souza, who made the movie, apologized to Andrews last year, but nonetheless recommended targeting Skadden.“Skadden Arps is the firm engaged in systematic lawfare against ‘2000 Mules.’ They have an army of 17 attorneys working pro-bono against me. I have 2 lawyers. The Left’s game is to ruin us through protracted, costly litigation,” he wrote on Twitter/X. Musk reposted the comment and said “Skadden this needs to stop now.”The law firm Munger, Tolles & Olson is said to be organizing an amicus brief joined by several other firms in support of Perkins Coie. It is unclear, however, which firms will sign it and when it will be filed.Some firms are also beginning to speak out separately.“Our liberties depend on lawyers’ willingness to represent unpopular people and causes, including in matters adverse to the Federal Government,” Keker, Van Nest & Peters Partnership, a San Francisco-based firm, said in a statement on Saturday. “An attack on lawyers who perform this work is inexcusable and despicable. Our profession owes every client zealous legal representation without fear of retribution, regardless of their political affiliation or ability to pay.”skip past newsletter promotionafter newsletter promotionPaul Weiss has faced significant backlash after reaching an agreement with Trump to rescind the executive order. The agreement came days after Perkins Coie successfully got a court order blocking the executive order that targeted it.More than 140 alumni of Paul Weiss signed a letter to the law firm’s chair on Monday condemning the agreement the law firm reached with Trump last week and said it was complicit in “what is perhaps the gravest threat to the independence of the legal profession since at least the days of Senator Joseph McCarthy”.“The very independence of lawyers and the legal profession is at stake. We are therefore profoundly saddened, and deeply outraged, that the firm in which we heretofore took pride has cowardly allowed itself to become instead a poster child for the administration’s efforts to silence dissent and impose a loyalty test on attorneys,” they wrote in the letter.Rachel Cohen, an associate at Skadden, resigned after the Paul Weiss agreement became public. She had organized an open letter signed by hundreds of lawyers urging major law firms to do more. Her resignation letter calling out Skadden for not doing more went viral.“It’s a capitalistic cowardice,” she said. “It is fear for the bottom line of firms that already clear billions and billions of dollars a year in revenue.”Deepak Gupta, a Washington-based appellate lawyer noted that the settlement itself also threatened to harm the firm’s reputation. “Would you want to be represented by a law firm that can’t even stand up for itself? a law firm that might sell you out to the federal government to save its own skin?,” he wrote in a post on the social media platform Bluesky.In his email to employees on Sunday, Karp defended Paul Weiss’s decision to reach an agreement with the Trump administration. The firm faced an “existential crisis”, he wrote, and the executive order could have “destroyed our firm”. The firm, he said, was guided by two principles in reaching the settlement: the firms’s obligation to its client’s interests and its fiduciary responsibility to its employees.For a firm targeted by one of Trump’s executive orders, the economic consequences can be severe.“Clients perceived our firm as being persona non grata with the Administration. We could prevent the executive order from taking effect, but we couldn’t erase it,” Karp wrote in his email to employees on Sunday. “Clients had told us that they were not going to be able to stay with us, even though they wanted to. It was very likely that our firm would not be able to survive a protracted dispute with the Administration.”In its lawsuit challenging the executive order against it, Perkins Coie also detailed some of the financial toll the firm had taken. Nearly a quarter of the firm’s revenue was at risk – more than $343m in 2024 – because of the executive order, the lawyers wrote. Trump announced the executive order on 6 March and by the time Perkins Coie sued over it five days later, at half a dozen – some who had been with the firm for years – had left the firm.Marc Elias, a prominent Democratic election lawyer who has been targeted by Trump, issued a statement on Saturday that his firm would not negotiate with the White House over who it represented.“President Trump is attempting to dismantle the constitution and attack the rule of law in his obsessive pursuit of retribution against his political opponents. Today’s White House Memo targets not only me and my law firm, but every attorney and law firm who dares to challenge his assault on the rule of law,” his statement said. “President Trump’s goal is clear. He wants lawyers and law firms to capitulate and cower until there is no one left to oppose his Administration in court.” More