The Picture Says It All
Elon Musk basically made one halfway-smart political call, and that was when he donated rouughy $277 million to the 2024 Republican campaigns. He then briefly recognized that he wasn't cut out for politics:
Wisconsin could go down as billionaire Elon Musk’s last big spend on a political campaign.
And it was a flop.
Musk, the richest person in the world, said May 20 that he would be spending less on political campaigns. The announcement came as Musk is stepping back from his role in the Trump administration, saying he will spend more time focused on his businesses, and just seven weeks after the candidate he backed in Wisconsin’s Supreme Court race lost by 10 percentage points.
. . . Musk was all-in on the Wisconsin Supreme Court race, even making a personal appearance in Green Bay the weekend before the election wearing a cheesehead hat — popular with fans of the NFL’s Green Bay Packers — and personally handing out checks for $1 million to supporters. It was an extension of Musk’s high-profile role in the presidential race, where he campaigned alongside Trump and headlined some of his own rallies.
. . . But his appearance — and money — didn’t work.
The candidate Musk backed lost Brown County, the home of Green Bay, by 3 percentage points, going on to lose statewide by more than three times that margin.
After the defeat, Musk has said little publicly about the race and his involvement in it. His popularity has also plummeted.
An Associated Press-NORC Center for Public Affairs poll taken two weeks after the Wisconsin court election found that just 33% of adults had a favorable view of the Tesla CEO, down from 41% in December.
Subsequent disagreements with Trump have hurt him in the pocketbook:
Tesla (TSLA) shares have risen this week as investors may be moving past the fiery public spat between CEO Elon Musk and President Donald Trump.
The electric vehicle maker’s shares are up 10% this week, recouping more than half of the ground lost last week in the wake of Trump and Musk’s social media shots at one another. The back and forth started as an argument over Trump’s “Big Beautiful” taxation-and-spending bill but spiraled into a now-deleted post in which Musk accused Trump of being in the "Epstein files," referencing the late convicted sex trafficker. The public fight ended up costing Tesla a spot in the illustrious $1 trillion market capitalization club with a one-day drop of more than $150 billion.
. . . Tesla's stock has been on a roller coaster ride this year. Shares shed more than 35% of their value in the first quarter as sales slumped, tariffs hit the stock market, and controversy swirled around Musk. They staged a comeback in April and May after Musk said he would step back from Washington.
But like a guy with a gambling habit who can't stay out of the casino, Musk is back:
Elon Musk, the richest man with visions of grandeur, has announced the creation of a new political party, “The America Party”.
With President Donald Trump capturing the overwhelming majority of middle-America within the new MAGA movement; essentially taking over the Republican party apparatus, I would consider that Musk’s assembly will likely be a collection of never-trumpers, alligator emojis and disgruntled former Republicans.
At this point, I see a partial, but definitely not complete, similarity with Ross Perot, who ran an independent campaign for president in 1992.
Ross Perot had never been elected to public office, but he ran several successful corporations and was involved in public affairs for decades. . . . Perot joined IBM as a salesman. He surpassed his one-year sales quota in just two weeks. After the company ignored his idea for electronic storage, he founded Electronic Data Systems in 1962, which was then contracted by the United States government to store Medicare records. Perot earned a fortune with the company, and by 1968 was named by Fortune as the "fastest, richest Texan". . . . Perot eventually sold his company to General Motors in 1984 for $2.55 billion, and founded Perot Systems in 1988. By 1992, his fortune was judged to be $3 billion (~$5.85 billion in 2023).
The similarities are that both Musk and Perot were political novices, both had become rich beyond the dreams of avarice in tech -- largely with government money -- neither had much personal charisma, and both proved unstable under the pressures of public life. Perot's poll numbers began to slip in July 1992, and senior advisers were resigning. On July 16,
Perot announced on Larry King Live that he would not seek the presidency. . . . He asked his supporters to look for other candidates to nominate for the race, and formed United We Stand to "influence the debate". At this point, Perot had spent $12 million of his own money on the race. Bill Hillsman, who produced a few unaired advertisements for the campaign, wrote that Perot's withdrawal was a tactic to find temporary relief from the press.
. . . On October 1, Perot re-entered the presidential race, with a desire to further explain his economic plans to the American people. The New York Times commented that Perot's "chances of winning are much less than when he quit in July. His only dim practical hope is to confuse and destabilize the contest."
There's one key difference between Perot and Musk: Perot, a native-born US citizen, was eligible to become president, and he was the figurehead of his own third party. Musk isn't a native-born US citizen and can't run for president, but even if he were, his public persona is even more eccentric and unstable than Perot's. But as w3ith Perot, the more people see of him and learn about him, the less they like him.But an additional problem is that Trump had already claimed whatever political legacy Perot had left.
The populist Tea Party movement and supporters of President Donald Trump have both been compared to Perot advocates. Upon Perot's death from leukemia in 2019, Politico editor-in-chief John F. Harris reflected upon Perot's 1992 campaign and referred to him as the "father of Trump" due to Trump's 2016 presidential victory as, like Perot, a populist businessman without traditional political experience.
Trump, unlike Musk or Perot, has personal charisma and the ability to inspire trust in the electorate. His political instincts are far better. And if people were never quite sure what Perot wanted to accomplish, it's even less certain with Musk, whose plans for the future include terraforming Mars and impregnating hundreds, if not thousands, of women with his own DNA -- but the one thing that's certain is he can never be president, which in my view is all to the good.The real question is how much longer the Tesla and SpaceX boards will put up with him.