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Musk is pivoting from DC and Doge’s failures – and wants investors to know

by Evelyn Reynolds 28 May 2025, 21:09

Elon Musk really wants the public – and investors – to know that he’s leaving Washington DC behind.In a series of interviews and social media posts this week, Musk has criticized Donald Trump’s marquee tax bill and emphasized his recommitment to leading SpaceX, Tesla and the artificial intelligence company xAI. The world’s richest person claimed that he was back to working around the clock at his companies – to the point of sleeping in conference rooms and factory offices once again.Musk has been telegraphing a pivot back to his businesses for months, but in recent appearances, he has repeatedly distanced himself from his unpopular stint in Washington while proclaiming that his new sole focus is his tech empire. It is a drastic turnaround for Musk, who spent most of the last year constantly at Trump’s side promoting far-right ideology online, appearing on stage at political rallies and pouring hundreds of millions of dollars into the Republican party.The shift, which comes amid public and investor backlash against Musk’s political ambitions, was apparent this week as SpaceX launched and lost control of its Starship prototype rocket. Musk gave a round of media appearances to the Washington Post, Ars Technica, CBS News Sunday Morning and a YouTube aerospace influencer, all of which featured him emphasizing his dedication to his companies or attempting to explain away the shortcomings of his heavily criticized “department of government efficiency”.“The federal bureaucracy situation is much worse than I realized,” Musk told the Washington Post on Tuesday. “I thought there were problems, but it sure is an uphill battle trying to improve things in DC, to say the least.”Musk additionally told the Post that Doge had been turned into a “whipping boy” that was criticized for anything that went wrong under the Trump administration. In Ars Technica, Musk admitted: “I think I probably did spend a bit too much time on politics.”Bashing Trump’s tax billThe turn from Trump’s self-appointed “first buddy” back to the familiar territory of space travel and tech has taken place as Doge faces numerous legal challenges and remains widely unpopular.Although Musk successfully seeded the government with his allies and helped gut regulators that would oversee his companies, Doge’s central promise to slash $2tn worth of fraud and waste has been an obvious failure. Doge’s cuts, while devastating to government services, humanitarian aid and the federal workforce, have amounted to little in terms of actual budget savings. Much of the savings it has claimed on its “wall of receipts” have also turned out to be false, including the cancellation of an $8bn contract that in reality was an $8m contract.Musk’s answer for Doge’s shortcomings appears to be casting the blame on some of his familiar foes: politicians and bureaucrats. In doing so, however, he has increasingly split with the Republican party – though notably stopped short of any criticism of Trump himself.Musk’s split with Congressional Republicans has been starkest on X, the social media platform that he owns. Musk’s posts have fully leaned into the narrative that Doge’s actions were successfully reducing waste, but that Congress hamstrung its operations through actions like approving Trump’s tax bill, which is expected to add $2.3tn to the deficit.Musk told CBS that he was “disappointed to see the massive spending bill, which increases the budget deficit … and undermines the work that the Doge team is doing”.Now, Musk claims, he will focus on saving humanity through technologies like self-driving cars, interplanetary rockets and humanoid robots – exactly the products his companies need investors to believe in.“I have come to the perhaps obvious conclusion that accelerating GDP growth is essential,” Musk posted on Friday in response to a thread calling the GOP bill “disastrous” and demanding term limits on Congress. “Doge has and will do great work to postpone the day of bankruptcy of America, but the profligacy of government means that only radical improvements in productivity can save our country.”In a separate exchange, he replied to a conversation between two users with large followings who routinely praise his leadership and business acumen.“I think Elon is realizing that, despite the promises made by the new administration and a Republican-controlled Congress – and all the campaign platforms they ran on – the current incentive structures and entrenched special interests in government make it nearly impossible to enact any meaningful, long-term changes to address the many big issues we face,” one pro-Musk account posted.skip past newsletter promotionafter newsletter promotion“DOGE has done incredible work, but the GOP has failed to actually implement any of the cuts,” another prominent Musk-booster replied.“Yeah (Sigh),” Musk responded to the thread.Musk goes back to selling the futureWhat became clear throughout Musk’s time in Washington was that the public did not enjoy seeing him and many in the Trump administration did not like working with him. Numerous polls showed his overall popularity declining even as people supported the premise of reducing government inefficiencies. Musk’s prominent involvement in a Wisconsin supreme court election intensified opposition to his influence, while international demonstrations made him the face of the administration. Musk also found few friends within the Trump administration, with report after report of heated clashes with senior officials and some Republican political operatives warning his brand had become too toxic for the party.The pushback against Musk affected his businesses, causing Tesla sales to plummet to the point that the company’s board reportedly began considering replacing him as CEO. While Musk denied those claims, in recent weeks he has very loudly reaffirmed his dedication to leading his businesses.“Back to spending 24/7 at work and sleeping in conference/server/factory rooms,” he posted on Saturday. “I must be super focused on 𝕏/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.”While only a few weeks ago Musk’s posts on X were a nonstop stream of invectives against Democrats, fringe theories about immigration and demands to gut the judicial system, his online output has also changed. His posts this week have been heavily focused on SpaceX’s ambitions to go to Mars and Tesla’s self-driving car program, stopping only occasionally to promote attacks against “the woke mind virus” or feud with the government of his native South Africa.As Musk moves away from full-time politics and tries to win back investor confidence, he has also doubled down on his habit of making grandiose predictions of how his technologies will transform the world. Echoing a long list of previous claims that have missed deadlines and so far failed to come to fruition, he has promoted new endeavors like Tesla’s humanoid robots as crucial to the future of civilization.“Once you have humanoid robots, the actual economic output potential is tremendous. It’s really unlimited,” Musk said on stage at the Saudi-US Investment Forum on 13 May. “Potentially, we could have an economy 10 times the size of the global economy, where no one wants for anything.”Rather than dwell on a year of missed targets and intense backlash, Musk is back to selling a future where anything is possible. More

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Elon Musk shows he still has the White House’s ear on Trump’s Middle East trip
by Evelyn Reynolds 14 May 2025, 21:24
Over the course of an eight-minute interview, Elon Musk touted his numerous businesses and vision of a “Star Trek future” while telling the crowd that his Tesla Optimus robots had performed a dance for Donald Trump and the crown prince of Saudi Arabia, Mohammed bin Salman, to the tune of YMCA. He also announced that Starlink, his satellite internet company, had struck a deal for use in Saudi Arabia for maritime and aviation usage; looking to the near future, he expressed his desire to bring Tesla’s self-driving robotaxis to the country.“We could not be more appreciative of having a lifetime partner and a friend like you, Elon, to the Kingdom,” Saudi Arabia’s minister of communications and IT, Abdullah Alswaha, told Musk.Although Musk has pivoted away from his role as de facto leader of the so-called “department of government efficiency” and moved out of the White House, the Saudi summit showed how he is still retaining his proximity to the US president and international influence. As Musk returns to his businesses as his primary focus, he is still primed to reap the rewards of his connections and political sway over Trump.skip past newsletter promotionafter newsletter promotionStarlink diplomacyMusk’s Starlink announcement comes after a spate of countries have agreed to allow the satellite communications service to operate within their borders. Several countries that have approved Starlink did so after US state department officials mentioned the company by name or pushed for increased satellite services in negotiations over Trump’s sweeping tariffs, according to internal memos obtained by the Washington Post.Concerns over whether Musk and the Trump administration are leveraging their power to force countries into adopting Starlink has prompted calls for a state department inspector general investigation into whether there is undue influence at play in these agreements. On Wednesday, a group of Democratic senators issued a letter requesting a broad review of the state department’s alleged efforts to assist Starlink.“These reports indicate that Mr Musk may be using his official role and his proximity to the President as leverage for his own personal financial benefit – even if it comes at the expense of American consumers and the nation’s foreign policy interests,” the senators wrote.Musk’s empire expands in Saudi ArabiaThe Saudi-US Investment Forum summit was held in Riyadh and featured top ministers from the kingdom’s government as well as US cabinet secretaries Scott Bessent and Howard Lutnick. Saudi Arabia has been sinking billions into tech and artificial intelligence in recent years as it expands its portfolio of investments, in addition to its already extensive deals in industries such as defense and energy. The White House and Saudi government announced an arms deal worth $142bn following the event.Musk was one of a long list of Silicon Valley moguls and top executives of major US companies to attend the summit. The CEO of Palantir and Musk ally, Alex Karp, took part, as did the OpenAI CEO and Musk rival, Sam Altman. Amazon’s chief executive, Andy Jassy, and Nvidia’s CEO, Jensen Huang, were some of the other tech leaders present. The list also included CEOs from a range of boldface names such as Boeing, Coca-Cola and Halliburton.Earlier on Tuesday, Musk talked with Trump and Prince Mohammed inside the Saudi Royal Court and warmly greeted both leaders. Weeks before Musk’s arrival in Riyadh, his Twitter/X social media platform had managed to refinance some of its billions in debt with help from a Saudi fund. Tesla also launched in Saudi Arabia last month, opening a new showroom in the capital. More
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Republicans propose prohibiting US states from regulating AI for 10 years
by Evelyn Reynolds 14 May 2025, 20:44
Republicans in US Congress are trying to bar states from being able to introduce or enforce laws that would create guardrails for artificial intelligence or automated decision-making systems for 10 years.A provision in the proposed budgetary bill now before the House of Representatives would prohibit any state or local governing body from pursuing “any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems” unless the purpose of the law is to “remove legal impediments to, or facilitate the deployment or operation of” these systems.The provision was a last-minute addition by House Republicans to the bill just two nights before it was due to be marked up on Tuesday. The House energy and commerce committee voted to advance the reconciliation package on Wednesday morning.The bill defines AI systems and models broadly, with anything from facial recognition systems to generative AI qualifying. The proposed law would also apply to systems that use algorithms or AI to make decisions including for hiring, housing and whether someone qualifies for public benefits.Many of these automated decision-making systems have recently come under fire. The deregulatory proposal comes on the heels of a lawsuit filed by several state attorneys general against the property management software RealPage, which the lawsuit alleges colluded with landlords to raise rents based on the company’s algorithmic recommendations. Another company, SafeRent, recently settled a class-action lawsuit filed by Black and Hispanic renters who say they were denied apartments based on an opaque score the company gave them.Some states have already inked laws that would attempt to establish safeguards around these systems. New York, for instance, passed a law that required automated hiring systems to undergo bias assessments. California has passed several laws regulating automated decision-making, including one that requires healthcare providers to notify patients when they send communications using generative AI. These laws may become unenforceable if the reconciliation bill passes.“This bill is a sweeping and reckless attempt to shield some of the largest and most powerful corporations in the world – from big tech monopolies to RealPage, UnitedHealth Group and others – from any sort of accountability,” said Lee Hepner, senior legal counsel at the American Economic Liberties Project. The new language is in line with Trump administration actions that aim to remove any perceived impediments to AI development. Upon taking office, Donald Trump immediately revoked a Biden administration executive order that created safety guardrails for the deployment and development of AI. Silicon Valley has long held that any regulation stifles innovation, and several prominent members of the tech industry either joined or backed the US president’s campaign, leading the administration to echo the same sentiment.skip past newsletter promotionafter newsletter promotion“State lawmakers across the country are stepping up with real solutions to real harms – this bill is a pre-emptive strike to shut those down before they gain more ground,” Hepner said. More
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The Cybertruck was supposed to be apocalypse-proof. Can it even survive a trip to the grocery store?
by Evelyn Reynolds 14 May 2025, 11:00
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View image in fullscreenThe Cybertruck answers a question no one in the auto industry even thought to ask: what if there was a truck that a Chechen warlord couldn’t possibly pass up – a bulletproof, bioweapons-resistant, road rage-inducing street tank that’s illegal to drive in most of the world?Few had seen anything quite like the Cybertruck when it was unveiled in 2019. Wrapped in an “ultra-hard, 30X, cold-rolled stainless steel exoskeleton”, the Cybertruck was touted as the ultimate doomsday chariot – a virtually indestructible, obtuse-angled, electrically powered behemoth that can repel handgun fire and outrun a Porsche while towing a Porsche, with enough juice leftover to power your house in the event of a blackout. At the launch, Tesla’s CEO, Elon Musk, said the truck could tackle any terrain on Earth and possibly also on Mars – and all for the low, low base price of $40,000. “Sometimes you get these late-civilization vibes [that the] apocalypse could come along at any moment,” Musk said. “Here at Tesla, we have the best in apocalypse technology.”Six years on, Covid and Musk’s political alignment with Donald Trump have kicked up the apocalypse vibes, and Tesla’s good sense has only become more questionable as the Cybertruck has been reduced to an object of universal scorn and derision further raising a host of questions: is the Cybertruck even a decent doomsday chariot? Could it really survive end times? Will it survive Musk himself? “There’s no doubt it’s a heavy-duty vehicle that can take some punishment, even from small arms fire,” says Arthur Bradley, a prepping expert who oversees the building of satellite systems at Nasa’s Langley research center in Virginia. “But you can’t weigh the pros without also asking: ‘Are people shooting at me because they think I’m an idiot or a bad guy, or they don’t support my political views – or they don’t support me supporting this company?’”View image in fullscreenPost-armageddon transport has a simple but specific brief: be tough, durable and drive through anything – and no vehicle ticks those boxes more reliably than trucks. Fictional concepts such as Mad Max’s tanker-based War Rig are often the inspiration for real-world creations like Ford’s custom-built F650 Supertruck, a tractor-trailer sized monstrosity that can carry 120 gallons of fuel, tow 30,000lb, and be reinforced with bulletproof armor. The truck is how insurgent fighters get around war zones and what storm chasers use to run down tornadoes. “They’re certainly pretty good for prepping purposes,” says Sean Gold, a former air force emergency manager who has worked in the prepping industry for nearly a decade. “They’re large, off-road-capable, able to get off roads that might be congested – that sort of thing.”The Cybertruck, however, broke from a century’s worth of truck-building orthodoxy, eschewing the typical three-box layout for a wedge-shaped silhouette that took inspiration from the movie Blade Runner and cyberpunk motifs. It mocked the F-150, the US’s top-selling vehicle for the last 47 years, as prehistoric tech. On its website, Tesla featured imaginative images of the Cybertruck crawling around Mars. Few knew what to make of it. Simone Giertz, a DIY robotics inventor who built a Tesla truck on her popular YouTube channel, was among a select group invited to Tesla’s Hawthorne, California, studio for the Cybertruck unveiling. “I have never physically felt the air leave a room in the way that it did when the Cybertruck rolled out on stage,” she recalls. “People were so confused.”Since Musk’s hard-right turn, however, the Cybertruck’s design has gone from aesthetically polarizing to politically so. A recent Slate article nods at the truck’s uncanny resemblance to the Casspir, the apartheid-era military transport that patrolled South African townships in Musk’s boyhood. “As violence and flames engulfed the streets of the nation, Black South African children drew and wrote about the apartheid security forces and its tools – dogs and Casspirs – chasing and shooting at them in their schools, streets, and homes,” the article says. “By the 1990s, the Casspir had become an iconic global symbol of apartheid oppression.”View image in fullscreenIt’s no surprise then that the Cybertruck would become a status symbol for security forces. One California police department spent $153,000 on a Cybertruck for “community outreach efforts” (though it didn’t rule out using it to “respond to emergencies” as needed), and a Chechen warlord showed off a machine-gun mounted Cybertruck he claimed was purpose-built to help his army fight alongside Russia in the Ukraine war. “I am sure that this ‘beast’ will bring a lot of benefit to our fighters,” Ramzan Kadyrov said while heaping praise on “the respected Elon Musk”, who has denied making the vehicle for Kadyrov. Ultimately, the Cybertruck had to be towed from the battlefield after randomly shutting down on Chechen forces, and Kadyrov accused Musk of switching it off remotely – a nagging concern among Tesla owners.In Tesla’s early days, the catastrophe thinking was small – a “bioweapon defense mode” button on each vehicle’s climate control, something Musk reckoned might come in handy “if there’s ever an apocalyptic scenario of some kind”. But even as Musk’s winking references to the apocalypse manifested into a bulletproof rig made of stainless steel, there was no denying that he may have been right to think the Cybertruck could be a hit with consumers. After the 2019 unveiling, Tesla received about 2m preorders from customers plonking down $100 each. But in the end the enthusiasm wouldn’t last because Musk couldn’t keep his promises.The Cybertruck came to market two years too late, which was time that allowed Tesla’s rivals to get in the game; more Cybertruck reservation holders might have hung in there if Musk hadn’t marked the truck’s base price up to $99,000. Perhaps most detrimental for Tesla: the Cybertruck’s purported utility appeared to be worse than advertised. The average truck is undergirded with a steel frame to handle the rigors of hauling and towing – but the Cybertruck’s underbody is made of aluminum, much lighter metal that can bend and even break under heavy strain. Stainless steel is also susceptible to rust – which is to say the Cybertruck is an iffy proposition to survive regular winter, let alone nuclear winter.The internet teems with video of the Cybertruck spinning its wheels in a snowy parking space, on the beach and farther off the beaten path; meanwhile the Rivian R1T, a legitimately capable electric vehicle rival to the Cybertruck, was apparently no worse for wear after being tossed around during Hurricane Helene. (“What a dream marketing opportunity for Rivian,” Giertz says. “Your truck actually survived a natural disaster.”)Dan Neil, the Wall Street Journal’s Pulitzer prize-winning car critic, slid off a hill while test-driving the Cybertruck with his teenage daughter. “We took it on class three and class four trails, which it is technically capable of,” he says. “But it’s also 2ft wider than any trail at any national park could generally accommodate. That’s the part I don’t get. It’s definitely an on-road car.”View image in fullscreenThat makes the Cybertruck an even tougher sell to doomsday preppers – many of whom already had their doubts about the viability of EV technology during and after a major disaster, says Gold, the former air force manager. The Cybertruck’s 300ish-mile range in particular becomes a much riskier proposition when plugs stop working. “The beauty of EVs is you don’t have to hunt for fuel,” says Bradley, the Virginia-based prepping expert. “But the drawback is most people don’t have a large solar power generation system. If you get a little too far out, or run into a situation that causes you to use up your energy, you might not get back home.”Daisy Luther, a former automotive service manager who went into the prepping business after the 2008 financial collapse, wonders how anyone in the post-apocalypse would go about fixing a Cybertruck (which has already been recalled eighttimes) – especially in the event of an electromagnetic pulse or similar event. “I generally recommend that if someone is getting a vehicle to last them through some kind of apocalyptic situation that it have as few computer chips and electronics as possible,” says Luther, who drives an old Jeep. “I can do small repairs on something mechanical, but I can’t do anything that requires a computer flash or a satellite upgrade because I don’t have the equipment.”Last month I rented a Tesla Cybertruck to get a feel for it as a family vehicle and found it to be ill-equipped for these times, let alone the end times. (And I say that as the owner of a Model Y, an exceedingly versatile family hauler that’s also massively fun to drive.) At over 6ft wide, 18ft long and 3.5 tons, the Cybertruck was a bear to maneuver around Atlanta’s narrow streets; its obtuse-angled shape made identifying traffic hazards through the car’s windows and mirrors a virtual impossibility. Even when I find myself considering the Cybertruck just for its potential as a standby home generator, I was soon reminded that Hyundai and Kia EVs offer similar capability for a fraction of the cost.For my toddler boys the Cybertruck is what the Lamborghini Countach was to me in my youth, the apogee of poster cars – but the truck isn’t what I would call kid-friendly. Mostly, it kept me worried about them gouging out an eye, losing a finger or getting static shock from touching the steel doors as they explored.“You’re driving a meme car!” Ezra Dyer, the Car and Driver columnist, helpfully reminds me. “You have to buy into the idea that it’s kind of funny, wink-wink.” When my wife asked if the children would be safe inside, I hesitated to tell her that Alijah Arenas – the highly regarded USC basketball recruit and son of former NBA All-Star Gilbert Arenas – had to be put into a coma after losing control of his Cybertruck and crashing into a fire hydrant in Los Angeles. Suffice to say, had Alijah Arenas been driving a Rivian (the safest pickup on the road full stop) or Tiger Woods’s 2009 Escalade, he would have been able to walk away from the accident; but somehow, bystanders managed to pry open the Cybertruck’s doors, which don’t have exterior handles (!), and pull him away from a fiery scene made scarier by the truck’s tough to extinguish high-voltage battery – the last thing you’d want to deal with when the world’s already burning.View image in fullscreenUnlike modern cars, the Cybertruck was expressly not designed to deform on impact – further ratcheting up the safety risks during and after a cataclysmic disaster. (This is also why Cybertrucks are banned in the UK, EU and China, the world’s largest EV market.) Gold, who drives a Model 3, could envision a bad actor hacking into the truck remotely or even Musk himself shutting them down out of spite as may or may not have been the case with the Chechen warlord. “I know it doesn’t really make sense [for him to do that],” Gold says, “but the possibility is concerning”.Then there’s Gold’s point: the Cybertruck is such a ripe target, it sticks out so much. Early on the Ford CEO, Jim Farley, dismissed it as the kind of status mobile you might find “parked in front of a hotel”. In its relatively short life, the Cybertruck has gone from being a status mobile for Kim Kardashian, Pharrell Williams and other tastemakers to the ultimate meme-mobile – a Maga hat on wheels. (SNL’s Colin Jost called it the answer to the question: “What if Kanye was a car?”) When the truck isn’t being flipped off in traffic (although that wasn’t my experience driving it in Atlanta, a saturated Tesla market), it’s being used as a slate canvas for political protests against Musk. “I mean, I wouldn’t want to drive one around town today,” Bradley says.Read more from The Armageddon complex series
Why apocalypse-minded shoppers go to Costco
Lefty preppers are taking a different approach to doomsday
The rise of end times fascism
The irony of Tesla’s apocalypse machine is it couldn’t even overcome Musk’s worst nature, or even live up to the Earth-saving principles that Tesla used to espouse. “Maybe this explains it: he’s working really hard on bringing down civil society; maybe that was just to increase the market?” Giertz jokes. “It’s interesting because when the environmentalists turned on Elon, he immediately pivoted to another target group: the preppers who want to be self-sufficient. But at this point when civility is out the window and we are even more pissed at the guy who brought the apocalypse in, I’d rather be in a Toyota Prius than a Cybertruck.”On the company’s earnings call last month Musk vowed to step back from running the so-called “department of government efficiency” (Doge) to devote more time to Tesla amid speculation that he could be replaced as CEO – but the catastrophe may be unsalvageable. “I don’t think that [Doge] is the issue,” Ross Gerber, a major Tesla investor, told CNN. “Actually, it’s that people despise Elon Musk even more than they hate Trump. And that’s not something that he can solve at this point.”Despite being the world’s top selling EV pickup, Cybertruck sales are still so poor that the company doesn’t even bother reporting them – but record high inventory and steep depreciation curves give the game away. Quietly, Tesla shifted marketing strategies for the Cybertruck, pivoting away from the Martian imagery to more classic pickup truck iconography – but it’s too little, too late, and now just gaslighting the public. In recent months Tesla’s board chair made $198m unloading the company’s stock amid falling profits. Ford, Rivian and other competitors are fast gaining ground in the market. “It’s really interesting to see how far Tesla has fallen,” says Benoit. “At this point it’s beyond political.”If anything, the Cybertruck becoming the Titanic of cars is the fate we actually should’ve prepared for. History tells us anytime a vehicle is touted as future-proof, it’s all but doomed to become a monument to unchecked hubris. “My guess is this incarnation of the Cybertruck has a very limited life,” Bradley says. “I think there will be another Cybertruck, but it will probably be more modern-looking – like a regular pickup truck.” More
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Why are the Democrats greenlighting Trump’s crypto plans? | Corey Frayer
by Evelyn Reynolds 7 May 2025, 09:30
When Elon Musk’s “department of government efficiency” (Doge) gained access to treasury payment systems in February, Democratic party leadership pledged to protect government payments from Donald Trump’s influence. Chuck Schumer and Hakeem Jeffries held a press conference announcing the Stop the Steal act that would prevent the takeover of critical government payment infrastructure. On that very same day, high-profile Democrats joined with Republicans to introduce legislation allowing for payments to be made in cryptocurrencies called stablecoins. The bill paves the way for the US president to require that all payments to and from the government are made with cryptocurrencies, which could include the one he has a business interest in.After making millions off a “memecoin”, the crypto-opportunist-in-chief recently entered the burgeoning crypto-payments market by launching a stablecoin. For the uninitiated, stablecoins are crypto products that allege to hold the value of a currency like the US dollar and are intended to be used as digital payments. In fact, stablecoins constantly fail to hold their value, aren’t subject to federal consumer protections, and aren’t backed by the full faith and credit of the government. If a consumer’s stablecoins are hacked, fraudulently or accidentally spent, or lost due to a misplaced password, stablecoin companies will not reverse or reimburse those payments like a credit card company would. If a stablecoin company fails, consumers are not protected by anything like federal deposit insurance. Stablecoins have also become the preferred cryptocurrency for illicit finance.In an awkwardly playful nod to Trump’s crypto interests, bipartisan stablecoin bills have been introduced in the House and Senate entitled “Stable” and “Genius”, respectively, following Trump’s 2018 assertion that he is a “stable genius”. Sponsors of legislation claim their bills protect consumers, guarantee stability and curb their use in illicit finance. Many academics and experts disagree with those assertions. As they point out, the bills give crypto businesses such as the president’s access to the same payment system that banks and credit card providers use while subjecting them to far weaker standards than their traditional counterparts.Almost unbelievably, gutting consumer protections and privatizing the dollar may be the least concerning outcomes of stablecoin legislation. On 25 March, Trump issued an executive order mandating adoption of digital payments to and from the US government. That may sound innocuous, but the government already makes 95% of its disbursements electronically. The order doesn’t intend to modernize an already-modernized system. Musk exposed the order’s true intent when his Doge team took over the payment system, to the aforementioned alarm of congressional Democrats. He endorsed putting those payments “on the blockchain” – and in so doing, make public payments with private stablecoins.It’s not a hypothetical. The administration has already floated issuing $3.3bn in the housing department’s community development block grants via stablecoins. USAID has been instructed to make disbursements in stablecoins. And the treasury payments Musk was referring to? That’s $5.45tn in government payments from social security to veterans’ pay and pensions, federal employee salaries and income tax refunds. Americans might be forced to adopt cryptocurrencies whether they like it or not.The president has demonstrated his willingness to use the power of his office to enrich his family and friends and to provide favors to crypto business partners. Under Trump, SEC lawsuits against his crypto business partners Justin Sun and Binance have been halted. Just last week, Trump’s World Liberty Financial announced an opaque $2bn deal with a firm in the United Arab Emirates that is chaired by the UAE’s national security adviser, who is the brother of the country’s president. It’s naive to think Trump would shy away from using his power to shovel profits to the politically influential crypto industry, and his own crypto venture in particular.Crypto’s ascendant political influence may explain Democrats’ confusing pledge to stop Trump profiting from the presidency with one hand while pushing stablecoin legislation with the other. Conflicts of interest or not, the Democrats’ campaign arm continues courting crypto, though it doesn’t accept donations in cryptocurrencies. The Democratic Senatorial Campaign Committee chair, Kirsten Gillibrand, is a lead sponsor of the Genius bill. During the Senate banking committee consideration of Genius, news broke that Trump’s company was speaking with Binance about the launch of a stablecoin. It was as if the committee had called a recess for a word from its sponsor. Five Democrats still voted in support. House Democrats have sought amendments that would bar government officials from having a financial interest in such assets, but they’ve gotten little traction. This weekend, nine former Democratic supporters of the bill threatened to block further consideration unless concerns over issues ranging from money laundering to national security were addressed. But they said they remained “eager to continue working with our colleagues to address these issues”.The Democratic party has rightly pointed out that a sitting president’s conflicts of interest undermine the firmament of our democracy. Anyone, especially the president, who would use an office of public trust for personal benefit must be held accountable. Astoundingly, Democrats are poised to bless Trump’s crypto grift with the Genius act. If they do, it will be clear that, at least when it comes to crypto, they would rather endorse the president’s abuses than fight them.
Corey Frayer is the director of investor protection at the Consumer Federation of America and a senior adviser on crypto markets to the former SEC chair Gary Gensler More
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TeleMessage app used by Mike Waltz suspends service over suspected hack
by Evelyn Reynolds 5 May 2025, 19:59
The communications app used by Mike Waltz, Donald Trump’s former national security adviser, says it is temporarily suspending services following a reported hack that exposed some of its potentially sensitive messages.Oregon-based Smarsh, which runs the TeleMessage app, said in an email to Reuters that it was “investigating a potential security incident” and was suspending all its services “out of an abundance of caution”.A Reuters photograph showed Waltz using TeleMessage, an unofficial version of the popular encrypted messaging app Signal, on his phone during a cabinet meeting on Wednesday.Waltz was ousted the following day and Trump named his secretary of state, Marco Rubio, to take on Waltz’s job on an interim basis. At the same time, Trump said he would nominate Waltz to be the US ambassador to the United Nations.The move capped weeks of controversy over Waltz’s creation of a Signal group to share real-time updates on US military action in Yemen. That chat drew particular attention because Waltz, or someone using his account, accidentally added a prominent US journalist to the group.Concerns over the security of Waltz’s communications were further heightened, when it was reported on Sunday that a hacker had broken into TeleMessage’s back-end infrastructure and intercepted some of its users’ messages.Tech news site 404 Media said the hacker provided them with stolen material, some of which the news site was able to independently verify.Smarsh did not immediately respond to a request by Reuters for more detail about the breach.Reuters contributed to this report More
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Apple quarterly earnings beat Wall Street expectations amid Trump trade policy chaos
by Evelyn Reynolds 1 May 2025, 21:10
Apple’s second-quarter financials came in slightly higher than Wall Street’s expectations on Thursday.The tech giant reported revenue of $95.4bn, up more than 4% over last year, and earnings-per-share of $1.65 per share, up more than 7%. Analysts had predicted revenue of $94.5bn and earnings of $1.62. The company, worth $3.2tn, has beaten Wall Street’s expectations for the previous four quarters.Investors have been keeping their eyes on Apple as it prepared to report its financial results . The tech giant has been working to calm nervous analysts after Donald Trump levied sweeping tariffs on countries around the world that are likely to complicate supply chains for consumer electronics. Since the beginning of the year, Apple’s stock has slumped 16%.In early after-hours trading, the company’s stock dropped by more than 5%, likely due to its services division reporting revenue that missed Wall Street’s expectations, despite growth over last year. The division covers iCloud subscriptions and revenue from various licensing deals. Sales in China also missed estimates.Apple’s CEO, Tim Cook, remained positive, however, saying that the company was reporting “strong quarterly results, including double-digit growth in Services”.The iPhone maker is heavily reliant on Chinese manufacturing for its phones, tablets and laptops. Days after Trump instituted soaring tariffs on China, at one point as high as 245%, the president said he would make an exception for consumer electronics.Cook spoke to senior White House officials around this time, according to the Washington Post. It was after these conversations that Trump announced his exception for consumer electronics. Apple’s stock rose 7% in the days after the announcement.However, it is unclear how lasting the reprieve may be. Howard Lutnick, the US commerce secretary, has called the exemption “temporary”, and even Trump later said on social media that there’s been no “exception”.The president has repeatedly said he wants to see more manufacturing in the US. In February, he met with Cook to discuss investing in US manufacturing. “He’s going to start building,” Trump said after the meeting. “Very big numbers – you have to speak to him. I assume they’re going to announce it at some point.”JP Morgan estimates costs would skyrocket for Apple if it moves production to the US, saying in a note this week that it could “drive a 30% price increase in the near-term, assuming a 20% tariff on China”. JP Morgan and other analysts have said Apple could continue to move more of its manufacturing to India, which only faces a 10% tariff.skip past newsletter promotionafter newsletter promotionApple chartered jets to airlift some $2bn worth of iPhones from India to the US earlier this month to boost inventory in anticipation of price hikes from Trump’s tariffs and panic-buying by worried consumers. This comes as investors have expressed concerned about decreasing iPhone sales in China, the world’s biggest smartphone market. During its last earnings in January, Apple reported that iPhone sales fell by 11.1% in China in the first quarter and missed Wall Street’s expectations for iPhone revenue.In the short term, however, analysts say the tariff confusion could benefit Apple with people panic-buying its products in fear that prices will rise. “What remains to be seen in the longer term is how much of any increased cost will be passed on to consumers,” said Dipanjan Chatterjee, principal analyst for Forrester. “And if [consumers] will absorb these price increases without pulling back on demand for Apple products.” More
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Move fast and destroy things: 100 chaotic days of Elon Musk in the White House
by Evelyn Reynolds 1 May 2025, 09:00
One hundred days after Elon Musk entered the White House as Donald Trump’s senior adviser and the de facto leader of the so-called “department of government efficiency” (Doge), the Tesla CEO has left little of the federal government unscathed. Over the course of just a few months, he has gutted agencies and public services that took decades to build while accumulating immense political power.Musk’s role in the Trump administration is without modern precedent. Never before has the world’s richest person been deputized by the US president to cull the very agencies that oversee his businesses. Musk’s attempts to radically dismantle government bureaus have won him sprawling influence. His team has embedded its members in key roles across federal agencies, gained access to personal data on millions of Americans and fired tens of thousands of workers. SpaceX, where he is CEO, is now poised to take over potential government contracts worth billions. He has left a trail of chaos while seeding the government with his allies, who will likely help him profit and preserve his newfound power.The billionaire’s newfound sway has not come without pushback and a cost. Doge’s blitz through the government has sparked furious nationwide backlash, as well as dozens of lawsuits challenging Musk’s mass firings and accusing his task force of violating numerous laws. Musk’s personal popularity has sunk to record lows, and Tesla’s profits have tanked.A look back at the first 100 days of the Trump administration shows the extent to which Musk’s efforts have changed the US government. It also shows that what Musk framed as a cost-cutting task initiative is failing to meet its ostensible goal of finding $1tn in fraud or waste, but it is succeeding in reshaping federal agencies along ideological grounds, paving the way for private companies to fill the resulting vacuum of public services.Musk has recently stopped physically working from the White House and stated he plans to pivot away from his government position soon, but has entrenched himself as one of the world’s most divisive political figures and gives no sign he is willing to fully give up his influence. Instead, the first 100 days of Doge shows that the scope of Musk’s ambition extends to remaking how the government deals with everything from humanitarian aid to the rule of law.Doge sweeps through agenciesOn the same day Trump was sworn into office, the president issued an executive order that created Musk’s “department of government efficiency” by renaming the US Digital Service agency, which previously handled governmental tech issues. Trump’s order included only a vague mandate to modernize government technology and increase efficiency, but within days it would become clear that Musk and his team had far more expansive aims.In the months leading up to the executive order, Musk had been hiring a team of staffers that included a mix of young engineers, tech world executives and longtime lieutenants from his private companies. Running the day-to-day operations was Steve Davis, who had worked with Musk at various companies, including SpaceX and the Boring Company, for more than 20 years. Davis was known as an exacting boss – Musk once compared him to chemotherapy. Others had far less experience, including 19-year-old Edward Coristine, who had worked for several months at Musk’s Neuralink company. The teenager had been fired from a previous internship for leaking information and went by the username “big balls” in online profiles.Doge’s early days made headlines for targeting masses of government workers with layoffs and pushing others to resign, with more than 2 million employees receiving an email on 28 January titled “Fork in the road” that encouraged staffers to take a buyout. The emails, which asked: “What did you accomplish this week?” would become a signature of Musk and his new bureau, sent again and again whenever staff began to prey on a new herd of government employees.Shortly after Trump’s executive order created Doge, Musk’s team quickly began popping up in the offices of numerous agencies. One of the first was the General Services Administration, which oversees digital technology and government buildings. Doge staffers appeared on Zoom calls with no introduction and hidden last names, questioning federal employees about what they did for work and refusing to answer questions. They also began to show up in person, taking over conference rooms and moving Ikea beds on to the sixth floor of the GSA to sleep overnight. Perplexed government workers at numerous agencies described Doge’s actions as a hostile takeover, where a goon squad would appear and demand rapid changes to systems they knew little about.“They’ve only fired people and turned things off,” said a current federal employee, who agreed to speak anonymously for fear of retribution.Simultaneously, Doge staffers were aggressively gaining access to key data systems that controlled the flow of payments to federal workers and funding for government contracts. In one striking incident, Doge team members clashed with the highest ranking career official at the treasury department over access to a payment system that controls $6tn in annual funds. The fight ended with the official, David Lebryk, being put on administrative leave before he ultimately resigned. Doge staff obtained the access they wanted.Pushback against Doge from other officials resulted in similar punishments. As Doge staffers stormed into the United States Agency for International Development (USAID) in early February, they found themselves in a heated standoff with security officials who tried to bar them from accessing a secure room which held sensitive and confidential data. The confrontation ended with USAID’s top security official being put on administrative leave, while Doge gained access to its systems. With no one to stop them, Doge staffers then began the process of hollowing out the agency that had once been the world’s largest single supplier of humanitarian aid. More than 5,600 USAID workers around the world would be fired in the ensuing weeks.“We spent the weekend feeding USAID into the wood chipper,” Musk boasted days later on X, his social media platform.Musk moves to gut the governmentDoge’s targeting of USAID turned out to be a blueprint for how Musk and company would go after other parts of the government. In early February, Musk’s team had established a presence across federal agencies and placed itself at the fulcrum of government employment systems. The next step was mass layoffs.“We do need to delete entire agencies,” Musk told attendees at a World Governments Summit in Dubai on 13 February. “If we don’t remove the roots of the weed, then it’s easy for the weed to grow back.”The same day as Musk’s remarks, the Trump administration ordered agencies to fire thousands of probationary workers – a designation that applies to employees who have been at their jobs for less than a year, including those who may have been recently promoted. Other workers soon received an email from Doge that demanded they list five things that they did last week or face termination, a chaotic request that also turned out to be an empty threat. Cabinet officials privately deemed it nonsensical.Amid the widespread cuts, Musk began reveling in his new powers both on X and in public appearances. At the Conservative Political Action Conference (CPAC) on 23 February he stood on stage in a black Maga hat, sunglasses and gold chain, gleefully wielding a chainsaw that was gifted to him by Javier Milei, the rightwing populist Argentinian president.“This chainsaw is for bureaucracy!” he said. “I am become meme.”While Musk celebrated his first cuts, Doge began going after entire offices and agencies it viewed as politically progressive or opposed to its goals. The GSA’s 18F office, which helped build software projects such as the IRS’s free tax filing service, was one of the first targets. On 3 February, Musk told a rightwing influencer on X that the office was “deleted” in response to an inaccurate post accusing the group of being radical leftists. Employees at the 18F office asked their new Musk-allied leadership what “deleted” meant, former workers said, but received no further clarification. The employees continued working for weeks under a cloud of confusion and tension with their new leaders, until the middle of the night on Saturday 1 March, when they received an email saying they were going to be laid off en masse.“We were living proof that the talking points of this administration were false. Government services can be efficient,” Lindsay Young, the former executive director of 18F, said in a post on LinkedIn. “This made us a target.”Doge’s influence soon extended beyond government tech offices into major agencies such as the Department of Health and Human Services, which announced in March that it was cutting 10,000 jobs to align with Trump’s executive order on Doge. In a display of the chaos that Doge had inspired, US health secretary Robert F Kennedy Jr weeks later admitted that around 2,000 of those workers were fired in error and would need to be reinstated.Musk fights the judicial systemAs soon as Trump issued the executive order to create Doge, watchdog and labor groups filed lawsuits challenging its legality. More lawsuits piled on as Doge accessed sensitive data systems, fired workers and refused to respond to public records requests. Altogether, there have now been more than two dozen cases targeting the agency.At first, Doge and Musk seemed to move faster than the judicial system could respond as they slashed and burned government agencies. Around the start of March, however, many of the court cases began to produce rulings that curtailed Doge’s layoffs and temporarily blocked its staff’s access to data. Judges ruled that the Trump administration needed to reinstate probationary workers that they fired, limited some Doge access to databases at agencies such as the Social Security Administration and ordered Musk’s team to turn over internal records it had been seeking to keep private.Musk’s reaction was a constant stream of attacks against the judicial system on X, which included demands that lawmakers “impeach the judges” and claims that there was a “judicial coup” under way against Trump. Musk repeatedly amplified far-right influencers saying that the US should emulate El Salvador’s strongman president, Nayib Bukele, whose party ousted supreme court judges in 2021 in a slide toward authoritarianism.skip past newsletter promotionafter newsletter promotionWhile Musk campaigned against federal judges that were increasing oversight and forcing more transparency on Doge, he also began plowing money into a Wisconsin supreme court race that would have tipped the state’s judicial body conservative. The billionaire and the groups he funded put more than $20m toward electing a conservative judge, which he claimed was crucial to “the future of civilization”.The attempt to influence the Wisconsin vote followed his blueprint from the presidential race. His Super Pac offered $100 to voters willing to sign a petition stating their opposition to “activist judges”, and he held a campaign rally where he gave out $1m dollar checks on stage. Musk’s effort failed to convince voters, with his preferred candidate losing by 10 percentage points.The outcome of the Wisconsin supreme court race proved to be the first in a series of setbacks that tested the limits of Musk’s political influence and the toxicity of his personal brand. As the billionaire embraced his new role as a Republican mega-donor and placed himself often literally at center stage, it became clear that his routine did not always play well outside of the insulated bubbles of Maga rallies and Tesla product launches. While people saw more and more of Musk, polls showed that the public liked him less and less.Protests boom against Musk and TeslaAs Musk’s association with Trump and the international far right became too prominent to ignore over the past year, there has been a rising social stigma against associating with his products. The most tangible symbol of Musk’s empire, Tesla, has become the focus of an international protest movement since the creation of Doge. SpaceX, the second-largest source of Musk’s wealth, has seemed insulated from the vicissitudes of consumer sentiment and increased its role in US space operations.Protests at Tesla dealerships, as well as vandalism against individual cars, started small in the weeks after inauguration, with gatherings of a few dozen people in cities including New York City and San Francisco. Some Tesla owners sold their cars due to the association with Musk or placed “I bought this before we knew Elon was crazy” bumper stickers on their vehicles. The demonstrations quickly escalated to more cities, though, organizing under the banner of “Tesla Takedown” protests that targeted showrooms around the country.By mid-March, a fully fledged international protest movement against Tesla and Musk had formed and brought about mass protests. Thousands of people gathered at showrooms from Sydney to San Francisco on 30 March in a day of action, with organizers stating that “hurting Tesla is stopping Musk”. Vandalism against Tesla dealerships, charging stations and cars also intensified around the world, including multiple molotov cocktail attacks and incidents of arson. Trump and Musk called the attacks domestic terrorism, while Pam Bondi, the attorney general, vowed to crack down on anyone targeting Tesla.The pressure on Tesla represented a real threat to the company, which was already dealing with an overall sluggish market for electric vehicles and increased competition from Chinese automakers. As protests spread, Musk leaned on his status in Maga world to attempt to revitalize the brand. Trump appeared on the White House driveway in front of several parked Teslas, telling reporters that he was going to buy one of them and praising Musk as a “patriot”. Others in Trump’s orbit, including Fox News host Sean Hannity, also posted sales pitches for the automaker.Despite praise from Trump and Musk’s assurances to workers and investors that they should not sell Tesla stock, analysts reported that the protests along with other economic issues were nevertheless taking a toll. A stock selloff has resulted in Tesla’s share price falling around 25% since the start of the year, wiping billions of dollars from Musk’s net worth. A first-quarter earnings call on 22 April revealed Tesla’s performance was even worse than expectations, with a 71% drop in profits and 9% drop in revenue year over year.Musk announced on the call that he would spend significantly less time working on Doge starting sometime in May.Musk eyes an exit, but Doge remainsMusk’s declaration that he would pare back his time with Doge to one or two days a week gave a more definitive sense of his exit after weeks of speculation about when and how he would leave the White House. Although Trump has remained adamant that Musk is doing a good job and remains welcome in the administration, a growing chorus of top officials have either openly feuded with him or privately griped about his presence throughout his first 100 days.Musk has had intense clashes with secretary of state Marco Rubio, transportation secretary Sean Duffy and several other top Trump staffers. He reportedly got into a near-physical shouting match with treasury secretary Scott Bessent in recent weeks, and has publicly called chief trade adviser Peter Navarro, the architect of Trump’s tariff policies, “dumber than a sack of bricks”.The power struggles between Musk and administration officials leave it unclear how much say Doge will have without Musk constantly placed at the right hand of the president, but his allies are still spread throughout the government and actively working on carrying out his mission. Doge has continued to target agencies throughout April, gutting smaller groups such as an agency that coordinates government policy on homelessness, and eyeing others including the Peace Corps for mass layoffs.Some of Doge’s cuts have directly targeted agencies that oversee Musk’s companies, including at the National Highway Traffic Safety Administration that regulates and investigates the risks of self-driving cars. Shifts in priorities and leadership at agencies such as Nasa and the Pentagon also put SpaceX in a position to potentially make billions off of new contracts, while former government employees say it is likely Doge already has access to confidential business data on SpaceX’s competitors.While part of the Doge team is still finding workers to fire, other members have begun accessing even more data systems and are starting to put them to work. One target has been immigration, where Doge staff have accessed personal information that includes therapy records for unaccompanied migrant children, housing information and biometric data. The goal, multiple outlets have reported, is to create a master database that could be used to enforce the Trump administration’s deportations and other anti-immigration maneuvers.Mission accomplished?As Doge’s purpose has become more amorphous over its first three months, its initially advertised goal of cutting $1-2tn from the budget has moved further from view. Musk has instead shifted the goal posts, saying that he expects to find $150bn in savings this year – a fraction of his original goal and a small dent in the overall federal budget. That number may also be an illusion, as Doge’s tally of its savings has been filled with constant errors and miscalculations. Much of Doge’s savings could also be erased by the costs of defending itself in court and losses associated with its mass layoffs.The real effects of Doge’s first 100 days are still playing out. Dismantling USAID is projected to cause around 176,000 excess deaths, more than half of them children, according to a Boston University tracking project. Cuts to agencies such as the National Oceanic and Atmospheric Association and Federal Emergency Management Agency could imperil natural disaster forecasting and relief. Agencies such as Veterans Affairs that provide public services may deteriorate, while cuts to research and education programs may be felt for decades to come.“The amazing thing is that they haven’t actually done anything constructive whatsoever. Literally all they’ve done is destroy things,” a current federal employee said of Doge. “People are going to miss the federal government that they had.” More
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Musk’s companies got billions from the government. Now he’s pulling up the ladder behind him | Christopher Marquis
by Evelyn Reynolds 29 April 2025, 14:00
“Pulling up the ladder after you’ve climbed it” refers to a familiar social pattern: achieving success thanks to certain advantages – then working to dismantle those very structures, denying others the same opportunities. Many have cited immigrant Trump voters as an example; some who have benefited from relatively open immigration policies now advocate for stricter border controls and cuts to legal immigration. The American upper middle class have been dubbed “dream hoarders” who, after achieving success, work to keep the bottom 80% down with a variety of subtle barriers, such as legacy college admissions and exclusionary zoning. Few individuals embody ladder-pulling more starkly than Elon Musk. Though he has been lauded as a self-made innovator and visionary entrepreneur, Musk’s empire only exists thanks to the support of massive public investment. Yet as leader of the “department of government efficiency” (Doge), he has directed and overseen the dismantling of the very government programs, regulations and subsidies that enabled his rise. Musk’s companies, particularly Tesla, SpaceX and SolarCity, have benefited from an estimated $38bn in public support, including government loans, tax credits and federal contracts. In 2010, Tesla received a $465m low-interest loan from the Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) program. That funding was critical to keeping Tesla alive – without it, insiders later told the Washington Post, the company would have gone under. The success of Tesla’s flagship Model S, the expansion of its manufacturing base, and even the illusion of its early profitability were all bolstered by public money.Zero-emission vehicle credits and the $7,500 federal EV tax credit were equally pivotal. Tesla earned billions by selling regulatory credits to legacy automakers struggling to meet emissions standards. In the first nine months of 2024 alone, 43% of Tesla’s net income came from these credits. The company also profited from California’s emissions credit system through a scheme involving phantom battery-swapping infrastructure – credits that provided hundreds of millions in additional income.Despite this, Musk now derides subsidies and regulations as government overreach and has used Doge to slash many of the same types of programs – such as renewable energy incentives and federal climate investments – that once saved his own companies from bankruptcy. These were essential to Tesla’s success, and now he wants to limit other entrepreneurs and businesses from the same opportunities. While Musk claims he aims to eliminate “waste”, his companies continue to benefit from government contracts. SpaceX has received more than $17bn in federal awards since 2015, including lucrative Nasa contracts and taxpayer-funded Starlink deployments in Ukraine. The irony could not be more profound: Musk attacks the legitimacy of public spending even as his empire remains one of its top beneficiaries.The craven self-interest that drives this behavior is particularly on display when considering Musk’s newfound advocacy for policy built on climate denial. Tesla was conceived in the shadow of climate change – and succeeded largely because US federal and state governments treated climate as an emergency. Regulatory frameworks created demand for EVs. Emissions credit markets made Tesla profitable. Yet Musk has now aligned himself with climate deniers like Vivek Ramaswamy and Donald Trump, dismissed environmental, social and governance (ESG) concerns as “the devil”, and supported deregulation plans that could allow polluting industries to ignore environmental rules altogether and make it harder for other EV companies to grow. This is not just hypocrisy – it’s a calculated repositioning: he made his fortune as a climate-focused entrepreneur, and now he aims to protect his personal and political power through climate skepticism. Elon Musk did not succeed in a vacuum. In America, we are inclined to celebrate the heroic individual entrepreneur while ignoring – and even downplaying – that massive public support was the foundation of their success. Consider the iPhone: nearly all of its core technologies, from GPS and touchscreen displays to the internet itself, were publicly funded. Covid vaccines and the pharmaceutical industry, too, have relied heavily on NIH-funded research. And yet, Musk, Steve Jobs and other tech titans are cast as heroic innovators, while the state is derided as inefficient or meddlesome – even as it continues to underwrite the very innovations that fuel the economy. Further, while the risks of developing these innovations are mitigated by public funding, the profits they create are almost entirely privatized. If American taxpayers had taken equity in Tesla for their $465m investment, it is estimated such a stake would be worth over $300bn today. Instead, it is Musk alone who has enjoyed such wealth.To deny that is to erase the role of taxpayers, government scientists and policy architects who built the foundation upon which Tesla, SpaceX and many innovative industries rest. But Musk’s recent efforts – whether gutting climate policy, leading anti-regulatory initiatives, or supporting anti-democratic actors – represent not just a betrayal of that legacy, but a systemic effort to pull up the ladder and rewrite the rules to benefit only himself.Ultimately Musk’s story is a warning: those who climb the ladder with public help are inclined to later destroy the mechanisms that led to their success. For Musk to admit that he had substantial help to become the world’s richest man would undermine the lone genius narrative that has granted him astonishing power with impunity. By pulling up the ladder, “lone geniuses” don’t just block others from the same opportunities, but also undermine the very idea of collective progress and investment in the public good. The outcome will be the erosion of future innovation and, ultimately, a well-functioning society.
Christopher Marquis is the Sinyi professor of management at the University of Cambridge and author of The Profiteers: How Business Privatizes Profits and Socializes Costs. More

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