In attending President Trump’s first business advisory council meeting, the South African-born, self-made billionaire who is bent on saving the world from global warming will have become counselor to a New York real estate mogul and U.S. president who is eager to bring back the age of coal.
The move has many Musk-watchers scratching their heads. He had not supported candidate Trump.
“Elon has always been very opportunistic,” says Ashlee Vance, whose Elon Musk: Tesla, SpaceX and the Quest for a Fantastic Future chronicles the entrepreneur’s driven path from Africa to Canada to the U.S. “But still, this is weird.”
The opportunities are many, as are the risks.
As chief executive officer of companies that compete in the heavily regulated arenas of aerospace (SpaceX), automotive (Tesla) and energy (SolarCity), Musk, 45, can try and parlay his Trump connection into smoothing regulatory bumps and accessing federal funding as he expands his ventures
In particular, Musk would appear to be on the brink of bringing sleek electric cars to the masses with his entry-level Model 3 sedan, whose success is key to Tesla becoming profitable and justifying the steep run in its shares (TSLA).
He's also hoping to start an alt-energy revolution with a SolarCity acquisition that could find him peddling affordable solar panels and electricity storage devices, an ambition that would benefit from policies like a carbon tax that penalizes fossil fuel generation.
Trump, in turn, gets to associate himself with an industry maverick — a disruptor like the political outsider the president has styled himself — who is opening factories and expanding U.S.-based jobs. Musk's SolarCity and Tesla efforts are slated to employs tens of thousands in factories on both coasts.
Make or break time for Musk and his companies
But plenty of pitfalls exist for Musk as he tries to navigate these political waters.
While Trump may personally find himself drawn to a CEO who likes to speak and tweet in declarative statements — Musk once blasted Apple as a “graveyard” for failed Tesla engineers — the president is surrounded by powerful counselors who may have the final word.
Last week’s seven nation majority-Muslim immigration ban, which extended even to green card holders and prompted protests nationwide, was the work of advisors Steve Bannon and Stephen Miller, according to Newsweek. That suggests they or others could steer Trump clear of pro-Tesla or SpaceX decisions should they determine them to be not in the best interests of Trump's base.
Musk may appeal to Trump’s professed love of American ingenuity, but Tesla and SolarCity have an elitist sheen that could spell disaster. Trump appears to be clearing the way for less regulation in the oil and gas industries, which wouldn’t be a boon to an electricity enthusiast.
What’s more, if anything happened to today’s federal tax incentives on electric cars, Musk could find that his wares cost $7,500 more overnight, no small matter on the $35,000 Model 3.
And another potential pothole looms for Musk, one that’s already dinged another tech company in talks with the White House.
Uber's lesson
THIS NEW REPORT BY ME (SURAJ)
No comments:
Post a Comment