In a shocking turn of events, President Joe Biden has made it clear that he’s taking aim at one of the most influential figures in Silicon Valley – Elon Musk. After months of seemingly ignoring the billionaire entrepreneur and Tesla CEO, Biden is now directly campaigning against Musk’s involvement with Donald Trump’s presidential campaign.
Musk’s Support for Trump: A New Era of Politics
In a surprise move, Elon Musk has officially endorsed and is reportedly financially backing Donald Trump in this year’s presidential campaign. This development has sent shockwaves through the tech industry, with many wondering what this means for the future of politics and business.
Biden Strikes Back: Embracing Anti-Musk Rhetoric
In response to Musk’s support for Trump, Biden is now directly campaigning on Musk – and other high-profile and wealthy Silicon Valley VCs – supporting Trump’s bid. The President took to Musk’s social media site X (formerly known as Twitter) to express his disapproval, writing: "I’m sick" after testing positive for COVID, before revealing a bait-and-switch in the next post: "of Elon Musk and his rich buddies trying to buy this election."
The Gamble of Campaigning Against Musk
Campaigning against Musk’s involvement is a gamble given the billionaire’s sway over Silicon Valley and the tech industry as a whole. Aswath of Silicon Valley’s richest are backing the super PAC Musk is reportedly contributing to, including Sequoia Capital partners Shaun Maguire and Doug Leone.
Musk’s Influence on Trump’s Campaign
Marc Andreessen and Ben Horowitz have announced they will financially support Trump’s campaign largely due to the presidential candidate’s support for crypto, stance on AI as well as Biden’s proposal to tax unrealized capital gains. Musk confidant David Sacks has been leading the charge to drum up even more support for Trump, not just on X but also in the real world.
The Downside of Ignoring Musk
While it may seem counterintuitive, Biden’s campaign is now under threat, and it’s possible he may not see much downside to putting a spotlight on Musk’s involvement. After all, Musk, Sacks, and other power players like Peter Thiel were already animated enough to push Trump to pick JD Vance as his vice presidential nominee before Biden made the Tesla CEO a focus of his campaigning.
Musk’s Financial Benefits Under Biden
Despite Biden’s disapproval of Musk, the billionaire entrepreneur has benefited materially from and during Biden’s presidency. The Inflation Reduction Act set Tesla (and its battery partner Panasonic) up to $41 billion in credits by 2032. Tesla hit its highest valuation ever in 2021 amid the broader wave of EV optimism (and after Hertz promised a large bulk purchase of Musk’s cars).
Government Contracts and Investigations
SpaceX and its satellite business Starlink has been a repeat winner of defense and other government contracts. However, his companies are also facing multiple federal investigations, some of which started during Biden’s presidency.
Musk’s Ideological Alignment with Trump
While it may seem surprising that Musk would support Trump, the two share similar views on issues like crypto and AI. This ideological alignment has led many to wonder what this means for the future of politics and business in Silicon Valley.
The Future of Politics and Business in Silicon Valley
As the battle between Biden and Musk continues to unfold, one thing is clear – the future of politics and business in Silicon Valley will be shaped by the outcome. Will Musk’s influence continue to grow, or will Biden’s campaign succeed in taking down his opponent? Only time will tell.
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