Hey everybody. Welcome back to the Elon Musk
Podcast. This is a show where we discuss
the critical crossroads, the Shape, SpaceX, Tesla X, The
Boring Company and Neurolink. I'm your host, Will Walden.
In the wake of the shocking assassination of United
Healthcare CEO Brian Thompson, an apparent threat has now been
made against Elon Musk. Now the threat emerged over the
weekend on Blue Sky, a social media platform.
A user with the handle smiling, nodding dot Blue Sky dot Social
posted an image that appeared to depict Musk standing on a
sidewalk while an unseen assailant aims a gunnahim.
The post was accompanied by the caption #manifesting now.
Musk, who serves as the CEO of both Tesla and SpaceX in
addition to owning X, has faced heightened security concerns in
recent years as his prominence has grown.
According to New York Times report from September, Musk
travels with a security detail of up to 20 professionals, some
of whom are armed and dangerous and accompanied by medical
personnel. At the same time, however, the
latest threat shows that the increased vulnerability of top
corporate executives exists, even those with substantial
security resources at their disposal.
The killing of Thompson, who was shot dead on December 4th as he
arrived at a company event in New York City, has prompted a
broader reexamination of executive protection measures
across multiple industries, Charlie Carroll, who's the CEO
of Aset Aset Corporation, said. As you can imagine, people are
scrambling, Companies are scrambling.
Which ASET provides security services for individuals,
corporations and also for government agencies.
Now, Glenn Kusira, who's the president of Allies Universal
Enhanced Protection Services, reported that his firm has been
inundated with calls from executives in the 24 hours after
Thompson's shooting. Now, Allies Universal provide
security to about 80% of all Fortune 500 companies.
The apparent threat against Musk adds a troubling new dimension
to the evolving security landscape for high profile
business leaders. Musk's rise to global
prominence, coupled with his House spoken political views and
high profile feuds have made him an increasingly visible target.
And Musk's role in the upcoming Trump administration has further
heightened his profile. The world's richest man has been
tapped along with entrepreneur Vivek Ramaswamy to lead
President-elect Donald Trump's Department of Government
Efficiency, a non governmental task force assigned to find ways
to fire federal workers, cut programs and slash federal
regulations. A disappointment combined with
Musk's well documented clashes with government regulators and
critics has thrust him into the political spotlight in a way
that could make him a more attractive target for those
harboring grievances now. The Blue Sky post encouraging an
attack on Musk was apparently removed by the platform's
moderators, though the user behind the account claimed the
post was taken down because a bunch of cry babies complained.
Now neither Musk nor the user has responded for our request of
comment. Elon Musk and other billionaire
CE OS have full time security details, but the top executives
and many smaller companies don't.
That can leave them vulnerable. And the shooting of Thompson,
who was just walking alone on a New York City sidewalk when a
masked gunman ambushed and killed him, has sent shock waves
through the business world. Surveillance footage show the
assailant approaching Thompson from behind and firing multiple
shots before fleeing the scene. They caught the guy.
But back on Monday, the killer was at large, and police hadn't
determined the motive for the shooter's identity.
He was out there. The brazen nature of the attack,
carried out in broad daylight in a crowded urban setting,
highlights the concerns about the safety of corporate leaders.
Right now, people are really worried about this.
They're worried that it could happen to them, but looking at
their security plans and trying to figure out what more they can
do to protect themselves and their employees.
Now. For Elon Musk, the latest threat
is just the latest in a string of security challenges he has
faced as his influence in public profile have grown.
The New York Times report noted that Musk's security apparatus
has expanded significantly in recent years, with a billionaire
often traveling with armed guards, numerous armed guards,
medical personnel, personal assistants and family at times.
Now this level of protection and no more autonomy for Elon shows
there's unique risks faced by such a high profile person.
He's outspoken. His persona is controversial.
His business decisions are also controversial Has made him a
target for criticism, harassment, and even violence.
From his battles with government regulators to his high profile
feuds with other tech leaders, Musk has cultivated a combative
public image that has drawn the ire of both supporters and
detractors. I want to take a step back for a
second and let you all remember. Remember when Elon was just this
tech guy with these broad ambitions to send people to Mars
to make electric cars, to do all the fun things?
And now he's a competitive public figure that's working
with the government to shut down a lot of people's businesses and
a lot of people's jobs. So of course people are going to
be upset. And this public outrage against
Elon has been culminating for years.
And the apparent threat against Musk on Blue Sky is just the
latest in a series of incidents that shows that he needs
heightened security measures right now.
All corporate executives are looking into this.
So back in 2022, Musk was the target of a foiled kidnapping
plot which a group of individuals was arrested for
allegedly planning to abduct him.
Such incidents have prompted Musk and other high profile
business leaders to invest heavily in their own personal
security, with many relying on teams of trained pros to protect
them both at work and at home. In their personal lives.
When they go out shopping or whatever, they have armed guards
with them. However, the killing of Thompson
has highlighted the vulnerabilities that even the
most well protected executives may face.
Now, it remains to be seen whether SpaceX or any other
commercial launch companies are ready for such a major
commitment for this. Can they sustain the security
detail of Elon Musk over at X Is?
Are they going to be around all the time?
Can he walk in public anymore? We're not 100% sure.
And as this investigation of Thompson's killing continues and
the threat against Musk remains under scrutiny.
And it's a real thing. The business community is
grappling with the unsettling reality that even the most
powerful and well connected executives are not immune to the
risks of violence. Now, the implications of this
new security landscape extend far beyond the personal safety
of individual leaders, though, raising broader questions about
the stability and resilience of the corporate world when they
face such drastic and incredibly increasing threats.
Elon Musk, an entrepreneur, politician Vivek Ramaswamy
presented their proposal to shrink federal spending and
reduce government inefficiencies in Washington this week.
Dubbed the Department of Government Efficiency, their
initiative proposes saving $2 trillion in federal spending.
Those specifics were notably scarce at this point, and the
pair met with members of Congress, primarily Republicans,
to gauge support and discuss the viability of their plan.
Among those in attendance was Representative Tom Cole, a
seasoned Republican from Oklahoma and the incoming House
Appropriations Committee chair, who offered measured skepticism.
Cole, who reflected on his conversations with Musk and
Ramswami, noted their effort to understand, quote, the full
scope of their proposal in the extent of executive authority
they may wield. His remarks hinted at the
constitutional limitations that Duo could face, he said.
How much would be done by executive action, he asked.
And perspirations remain at the heart of federal spending
requiring Congress's active involvement and legislation.
Attempts to bypass this process, such as impoundment, often
encounter resistance from the judiciary and from Congress
itself. So in 1974, the Budget Control
and Impoundment Act, a legislative response to
President Nixon's unilateral actions during his impeachment
crisis, fortified Congress's role in spending decisions.
Now. Musk and Ramaswamy's DOGE
initiative must therefore navigate not just political but
also legal constraints for their actions.
Now, history suggests that lofty goals to overhaul federal
spending have faced immense challenges to propose $2
trillion in savings, which is very ambitious.
But the absence of specific strategies raises doubts about
its feasibility. How to understand the hurdles
facing doge? It's crucial to examine the
lessons Past efforts to reform government spending.
No Efforts to reform federal spending have long been central
to Republican policy agendas. During his 1980 presidential
campaign, President Reagan criticized the ballooning
federal debt, which was nearing a trillion dollars at the time,
a figure that seemed unthinkable then.
And Reagan entrusted his first Office of Management and Budget
director, David Stockman, with implementing steep budget cuts.
Now Stockman targeted social programs with fervor, equating
budget excesses to moral failings.
Yet Stockman's efforts quickly ran into opposition from
Democrats and even some Republicans.
Now. Reagan's broader fiscal policy,
which included large tax cuts and increased military spending,
further undermined his administration's deficit
reduction goals. By the end of his first term,
the national debt had doubled, and by the time Reagan left
office, it had tripled. Stockman, disillusioned, exited
the administration and later published a memoir, The Triumph
of Politics While the Reagan Revolution Failed, chronicling
his frustrations now. Reagan's later attempts to
streamline government included putting J Peter Grace to lead a
Commission on government efficiency.
Though the Commission unearthed useful recommendations, its
impact was marred by revelations about Grace's company, WR Grace
and Company, having paid minimal taxes.
These optics undermine public confidence in the commission's
efforts now. Reagan's successor, George HW
Bush, took a more pragmatic approach, negotiating a
bipartisan deal in 1990 that combined spending cuts with tax
increases. The agreement helped stabilize
the budget, but at a steep political cost.
For Bush, breaking his campaign pledge of no new taxes alienated
his conservative base, emboldening primary challenger
Pat Buchanan and contributing to Bush's defeat in the 1992
election. And the fallout from Bush's tax
compromise cemented an anti tax orthodoxy within the Republican
Party. And since then, even modest tax
increases have become political and a FEMA, limiting avenues for
meaningful fiscal reform. Now, in 1992, billionaire H Ross
Perot emerged as a third party candidate, framing himself as a
plain spoken businessman who could tackle Washington's
dysfunction. His proposals to run government
like a business resonated with voters, and at one point, Perot
LED both major party candidates in national polls.
Though his campaign in 1992 and 1996 ultimately failed.
Perot's populist rhetoric influenced both parties, pushing
deficits and spending to the forefront of public discourse.
You know, Other figures, such as audio executive Lee Iacocca,
similarly championed the idea that private sector efficiency
could transform public sector governance.
While some proposals often gained initial traction, they
rarely translated into substantial reforms.
The President Bill Clinton and Vice President Gore sought to
streamline federal operations through the National Performance
Review, often referred to as Reinventing Government, or REGO.
Borrowing from earlier initiatives like the Grace
Commission, REGO aimed to reduce bureaucracy, cut spending, and
modernize federal agencies. Now, Gore touted 6 figure
reductions in the federal workforce as proof of the
initiative's success. Yet these measures barely made a
dent in overall spending, which continued to climb due to major
outlays on military conflicts and economic crises.
Now, Clinton's 1996 declaration that the era of big government
is over prove more radical than substantive.
Federal spending surged during the subsequent decades, driven
by the War on Terror, the Great Recession, and most recently,
COVID-19. Of the National Commission of
Fiscal Responsibility and Reform, established by Obama in
2010 and Co, chaired by Alan Simpson and Erskine Bowles,
exemplified a bipartisan approach to budget reform.
The Commission proposed cuts to entitlement programs, reductions
in defense spending, and modest tax increases.
Despite widespread praise for its balance recommendations,
political gridlock stymied their implementation.
A super majority of the Commission failed to endorse the
package, leaving its proposals unfulfilled.
Now, Doge's emphasis on reducing waste and inefficiency echoes
past efforts like the Grace Commission and REGO.
While such initiatives can yield incremental savings, they seldom
address the fundamental drivers of federal spending.
Without bipartisan cooperation or public support for
significant changes to entitlement budgets, large scale
fiscal reform remains very elusive.
Now. Whether DOGE can succeed where
similar efforts have faulted remains uncertain.
Right now, Musk and Ramaswamy's ability to build political
consensus will be crucial. History suggests, however, that
their ambitions will face formidable resistance not only
from entrenched interests, but also from voters reluctant to
sacrifice popular programs. General Motors announced Tuesday
a fundamental restructuring of its autonomous vehicle strategy,
abandoning its robo taxi ambitions to concentrate on
developing self driving tech for personal vehicles.
Now this pivot marks the end of GM's high profile bet on Cruise
LLC, its majority owned subsidiary that aim to
revolutionize urban transportation through
driverless taxis. Now the decision sends ripples
through the auto industry as GM, America's largest automaker,
moved to consolidate its autonomous driving efforts under
a unified structure. The company plans to merge
Cruise's technical teams with GM's existing autonomous vehicle
division, creating a single, focused unit dedicated to
advancing driver assistance systems and autonomous
capabilities for consumer vehicles.
Now, Mae Berra, who is GM's chair and chief executive
officer, framed the decision within the company's broader
strategic vision, she said. GM is committed to delivering
the best driving experiences to our customers in a disciplined
and capital efficient manner now.
This shows that the company's determination is to maintain its
position in the evolving automotive landscape while
managing resources more effectively.
Now, The financial implications of the strategic shift are
substantial. The GM projecting annual sales
exceeding a billion dollars once the restructuring concludes in
the first half of 2025. The cost reduction comes at a
crucial time for the automotive giant, which has invested
heavily in autonomous technology development over the past
decade. Now Cruise employees learned of
this shift during a hastily arranged all hands meeting
Tuesday morning. Our senior leadership, including
the CEO Mark Witten, delivered the news.
The announcement left many workers surprised and uncertain
about their future roles, particularly those in non
engineering positions related to robotaxi operations.
The restructuring arrives after a series of setbacks for Cruise,
most notably an October 2023 incident where one of the
autonomous vehicles dragged an injured pedestrian in San
Francisco. Now this event triggered intense
regulatory scrutiny and LED to the suspension of Cruises
operating permits in California, forcing the company to crowd its
entire US fleet. Now G Ms. ownership stake in
Cruise will increase from approximately 90% to more than
97% through arrangements with other shareholders pending the
completion of share repurchases and Cruise Board approval.
The consolidation of ownership strengthens GM's control over
the direction of its autonomous driving development and David
Richardson, who is a senior vice President of Software and
Services Engineering and GM so that the company's ongoing
dedication to autonomous driving technology is real, he said.
We are fully committed to autonomous driving and excited
to bring GM customers its benefits.
Things like enhanced safety, improve traffic flow, increased
accessibility and reduced driver stress.
Now, the company's renewed focus on personal vehicles builds upon
the success of Supercruise, GM's Hands off Eyes on Driving
feature. This technology currently
operates on more than 20 GM vehicle models and logs over 10
million miles monthly, demonstrating strong consumer
adoption of advanced driver assistance technologies.
And this strategic pivot occurs against the backdrop of
intensifying Commission in the autonomous vehicle sector.
Alphabets Waymo continues its expansion into additional
cities, while Tesla announces plans to launch its own robo
taxi by 2026, creating pressure on traditional automakers to
adapt their autonomous driving strategies.
Now the decision represents a significant departure from GM's
earlier ambitions. 2021, the company projected that Cruise
would deploy 10s of thousands of custom built origin taxis,
potentially generating 80 billion dollars in annual
revenue by decade's end. Now these targets now give way
to more immediate consumer focused objectives.
The transformation of Cruise's operations will likely result in
workforce changes, particularly affecting teams involved in
government affairs, communications, ground
operations and remote assistance in cities where Cruise had
resumed testing such as Phoenix, Houston and Dallas.
And prior to this announcement, Cruise had received an 80 or
$850 million investment from GM in June of 2023 intended to
support the relaunch of robotaxi testing in select markets.
The company has been established a with a partnership with Uber
to introduce robotaxis on the ride handling platform by 2025.
Now plans now rendered obsolete by this new shift and the
restructuring effects numerous partnerships and agreements,
including the recently announced collaboration with Uber.
These relationships must now be re evaluated within the context
of GM's new focus on personal vehicle autonomy.
Now market reaction to the announcement was positive, but
GM stock price raising 2.7% in after hours trading, suggesting
investors support the company's decision to streamline operation
and reduce expenses in its autonomous vehicle program.
And G Ms. decision to refocus on personal vehicles aligns with
current market dynamics and consumer preferences, while
potentially offering a more direct path to commercialization
of autonomous driving tech. Now this approach leverages the
company score strengths in vehicle manufacturing and
distributing and the transformation of G Ms.
autonomous driving strategy is. Best for the broader industry as
challenges in developing and deploying self driving
technology are huge. Technical hurdles, regulatory
requirements and market dynamics continue to shape the evolution
of autonomous vehicles. What does Tesla's rumored Model
Q mean for the electric vehicle market?
And could this sub $30,000 model redefine affordability for EV
buyers? And how does the potential
launch of a China specific three row Model Y factor into Tesla's
strategy? How?
These questions take center stage as Tesla's latest investor
meeting reveals significant updates about his product road
map. Now, Tesla is reportedly gearing
up to launch a new affordable vehicle, tentatively referred to
as the Model Q, in the first half of 2025.
Now Deutsche Bank analyst following a recent meeting with
Tesla's head of investor relations Travis Axelrod
disclosed the vehicles projected price less than $30,000 when
including subsidies Without USEV tax credits, the price could
rise to $37,499. Analyst Edison Yu characterized
this move as part of Tesla's strategy to expand its total
addressable market, or the T AM, with the Model Q joining a
lineup potentially augmented by other innovations such as a
longer wheelbase Model Y variant for China.
Now, the announcement aligns with Tesla's long term goals of
broadening its appeal by diversifying its lineup and
targeting underserved market segments.
The Model Q would be smaller and lighter than the current Model 3
by approximately 15% and 30%, respectively.
Analysts speculate it will serve as an entry level model with
streamlined features to keep costs down while maintaining
Tesla's reputation for cutting edge technology.
Now, in addition to the Model Q, Tesla appears poised to target
the Chinese market with a new variation of its Model Y Rumors
suggest this vehicle will feature a three row
configuration and a longer wheelbase, aiming to appeal to
families and compete with domestic automakers like BYD.
While Tesla China has declined to confirm specifics, the move
could address growing competition in a market where
affordability and versatility Dr. consumer preferences.
Now. This potential Model Y variant
reflects Tesla strategy of tailoring its offerings to
regional needs. By focusing on China, a crucial
EV market, Tesla could enhance its competitiveness while
reinforcing its global growth objectives.
Now, according to Deutsche Bank, this diversification in product
design could be instrumental in boosting Tesla's production and
delivery numbers in the coming years.
Now, the revelations from the investor meeting have already
influenced financial projections.
Deutsche Bank raised Tesla's stock price target from 295 to
370, setting optimism about the Model Q and other forthcoming
products. Now, Bank of America also
adjusted its outlook after a recent visit to Tesla's Giga
Austin factory, reiterating confidence that a sub $30,000 EV
could significantly expand Tesla's T AM.
Investors appear encouraged by Tesla's continued innovation
despite concerns about fluctuating demand and potential
economic headwinds. And Tesla's stock climbed 3%
during midday trading following the news, extending its recent
winning streak to five days. Now, analysts predict that a
more affordable vehicle could attract a new demographic
buyers, further solidifying Tesla's dominance in the EV
sector. Now, while Tesla's product
announcements have generated excitement, challenges still
remain. Goldman Sachs recently revised
its quarter four delivery estimates downward, setting
potential hurdles in achieving year over year growth in 2024.
Now, concerns about demand have also been amplified by reports
of temporary worker furloughs at Tesla's cyber truck production
line. Now, despite these issues, Tesla
remains a confident outlook. During the investor meeting, the
company projected value growth of 25% to 30% for next year,
emphasizing its ability to maximize production capacity at
existing factories. Such growth could hinge on a
successful roll out of the Model Q and other new vehicles, which
aimed to attract a broader customer base without
compromising profitability. Now, Tesla's ambitions extend
beyond traditional EVs, though the company is making strides in
autonomous driving technology, which is a topic that dominated
much of the investor meeting discussion.
Tesla's Full Self driving software is undergoing
significant updates, with version 13 reportedly
demonstrating A3 to 5X performance improvement compared
to its predecessor. Analysts expect this iteration
to reduce human interventions to just over one per 10,000 miles.
Tesla's Robotaxi initiative is also a focal point.
The company plans to launch testing in California and Texas
next year, using teleoperators for added safety.
During the initial phase, this fleet will consist of company
owned vehicles, reflecting Tesla's cautious approach to
scaling autonomous services. Now, regulatory hurdles are a
thing. One potential barrier to Tesla's
autonomous ambitions is the regulatory environment.
However, you noted that Tesla anticipates changes under the
incoming US administration, which could streamline federal
guidelines for self driving technology through the National
Hwy. Traffic Safety Administration or
the NHTSA. As such, regulatory shifts could
pave the way for a faster deployment of robo taxi services
both domestically and internationally.
The company's optimism contrasts with its history of setting
ambitious goals that have sometimes fallen short.
Yet analysts believe Tesla's current plans, backed by
advancements in FSD technology in anticipated regulatory
support, stand a strong chance of fruition now.
The Model Q's projected affordability signals Tesla's
intent to dominate the budget friendly sector of the EV
market. Competing directly with models
like the BYD Dolphin and Volkswagen ID 3.
This vehicle could redefine customer expectations for cost
effective electric mobility, and by leveraging economics of scale
and simplifying features, Tesla aims to make EV ownership
accessible to a much broader audience.
At the same time, Tesla's exploration of specialized
models like the Three Row Model Y for China shows that they're
building for certain environments.
The adaptability may prove crucial as the global EV market
becomes increasingly competitive.
Hey, thank you so much for listening today.
I really do appreciate your support.
If you could take a second and hit this subscribe or the follow
button on whatever podcast platform that you're listening
on right now, I greatly appreciate it.
It helps out the show tremendously and you'll never
miss an episode. And each episode is about 10
minutes or less to get you caught up quickly.
And please, if you want to support the show even more, go
to patreon.com/stagezero and please take care of yourselves
and each other and I'll see you tomorrow.