The US government won't quit Elon Musk

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The US is stuck in a needy relationship with the billionaire.

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11.20.23

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by Zachary B. Wolf

: The latest

OpenAI. There's drama at the transformative tech company. Employees threatened to follow the founder to Microsoft. Third CEO in three days. More.

Big Tech. CEOs of X and Discord got subpoenas from federal marshals. Ahead of congressional hearing on child safety.

Trump. Judges in DC heard oral arguments in the former president's appeal of the gag order in the federal election subversion case. Seemed skeptical of Trump's argument. Takeaways.

$50 bills. Why did the government ramp up production of a bill few people use? Watch:

Video: The US government printed more than 750 million $50 bills in 2022. People were hoarding cash.

Climate. Scientists sound the alarm as the world briefly smashed through the 2-degree warming limit for the first time. Details.

Thanksgiving. The price of a classic meal has fallen since last year. Here's the math.

Fact check. No, Trump has not been indicted more than Al Capone. Not even close.

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: The US government won't quit Elon Musk

Condemning Elon Musk is easy. Quitting him would be very hard, especially for the US government, which is stuck in a needy relationship with the billionaire who went from endorsing crackpot conspiracy theories to endorsing antisemitic tropes.

NASA needs his rockets. The Pentagon needs his satellites. The government needs for electric vehicles to access his network of chargers. Officials need his social media platform – Twitter, now called X – to communicate with people.

On Friday, the White House joined the uproar over Musk’s endorsement of an antisemitic conspiracy theory on X. “We condemn this abhorrent promotion of Antisemitic and racist hate in the strongest terms, which runs against our core values as Americans,” spokesman Andrew Bates said Friday. If you want to read the entire statement, Bates posted it on X.

The statement is in line with the uproar over Musk’s forwarding of the antisemitic trope. A large number of companies, including CNN’s parent company Warner Bros. Discovery, have said they will suspend advertising on X.

There have been calls for Musk to be suspended from the publicly traded company, which he bought for $44 billion last year and then gutted of its safeguards against misinformation and hate speech.

On Monday, the White House announced it would be joining X rival Threads, which is owned by Meta, as backlash to Musk intensifies.

Musk is more than just the company formerly known as Twitter

The New York Times smartly points out that while the views Musk shared are abhorrent to the White House, the government’s national security apparatus and space programs are essentially “addicted” to Musk’s SpaceX.

“Rarely has the U.S. government so depended on the technology provided by a single, if petulant, technologist with views that it has so publicly declared repugnant,” wrote David Sanger and Eric Lipton. “And yet, by the account of administration officials, they have no choice — and will not for a while. Because there are, right now, few viable alternatives.”

John Kirby, the National Security Council coordinator for strategic communications, acknowledged the importance of what SpaceX offers when he was asked about the government’s reliance on Musk during a White House press briefing on Monday.

“There’s innovation out there in the private sector that we’d be foolish to walk away from,” Kirby said, adding there are no plans “to address our concerns over his rhetoric through the way that his companies provide support to our national security establishment.”

And then Kirby added: “But that doesn’t mean that we accept or agree with or condone in any way that antisemitic rhetoric that he pushed.”

Reliant on SpaceX

The Times reporters argued there is no alternative company NASA could turn to for the rockets SpaceX launches.

The Pentagon just recently agreed to a deal with SpaceX to pay $70 million for Starshield, a communication system based on the Starlink system of thousands of satellites. Ukraine’s military is completely reliant on Starlink for internet and battlefield communications.

Musk faced backlash a year ago when he had complained about the cost of that service. In June, the Pentagon announced it would pay for Starlink in Ukraine.

In a statement on Monday to CNN’s Kristin Fisher about Musk and the Pentagon’s reliance on his companies, a defense official said simply, “The department condemns all forms of antisemitism.”

The government has paid SpaceX many billions of dollars over the years, but how much it is paying for Starlink in Ukraine, as one specific example, is not clear.

Pentagon spokesman Gen. Pat Ryder told reporters back in September that the military has been transparent in that it acknowledges it pays Starlink for services in Ukraine, but “for operations security reasons due to the critical nature of these systems, we’re just not going to be able to provide additional information regarding the specific capabilities or the operational details of these services.”

Defense Secretary Lloyd Austin is actually in Ukraine meeting with officials there about US assistance to the country. He’s been posting pictures and statements about the trip on X.

CNN’s Chris Isidore has written about how much of Musk’s own fortune has benefited from business with the government, certainly through SpaceX, which was once saved by a loan from NASA.

Tesla, Musk’s electric car company, was subsidized by taxpayers in multiple ways, including with loans and tax credits to encourage people to buy electric vehicles. Much of its revenue comes from selling regulatory carbon credits to other car companies so they can be in compliance with emissions rules in some states.

Tesla’s nationwide charging infrastructure is an important part of the national infrastructure for electric vehicles. The White House bragged early this year that after months of negotiations, Tesla would open up part of its charging network to non-Tesla EVs.

It all means that while Musk’s words are rightly being condemned and companies are making the point of suspending advertising on X, he is very much woven into the fabric of the country.

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<p style="margin:0;font-size:14px;text-align:center;mso-line-height-alt:21px">11.20.23</p>
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<span style="font-size:15px;">by <strong><a style="text-decoration: none; color: #cc0000;" href="https://www.cnn.com/profiles/z-byron-wolf" target="_blank" rel="noopener" data-location="t7">Zachary B. Wolf</a></strong></span></p>
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<span style="color:#cc0000"><span style="font-size:38px"><span style="font-family:georgia,times,times new roman,serif"><strong>:</strong></span></span></span><span style="font-family:helvetica neue,helvetica,arial,verdana,sans-serif"><span style="font-size:24px"><strong>


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<p style="margin:0;font-size:14px;text-align:left;mso-line-height-alt:24px">
<span style="font-size:16px;"><strong>OpenAI. </strong>There's<strong> </strong>drama at the transformative tech company. Employees threatened to follow the founder to Microsoft. Third CEO in three days. <a href="https://www.cnn.com/2023/11/20/tech/openai-employees-quit-mira-murati-sam-altman" target="_blank" style="text-decoration: underline; color: #cc0000;" rel="noopener" data-location="t8">More</a>.</span></p>
<p style="margin:0;font-size:14px;text-align:left;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:14px;text-align:left;mso-line-height-alt:24px"><span style="font-size:16px;"><strong>Big Tech. </strong>CEOs of X and Discord got subpoenas from federal marshals. <a href="https://www.cnn.com/2023/11/20/tech/senate-judiciary-tech-ceos-child-safety-hearing/index.html" target="_blank" style="text-decoration: underline; color: #cc0000;" rel="noopener" data-location="t9">Ahead of congressional hearing on child safety</a>.</span></p>
<p style="margin:0;font-size:14px;text-align:left;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:14px;text-align:left;mso-line-height-alt:24px"><span style="font-size:16px;"><strong>Trump.</strong> Judges in DC heard oral arguments in the former president's appeal of the gag order in the federal election subversion case. Seemed skeptical of Trump's argument. <a href="https://www.cnn.com/2023/11/20/politics/takeaways-appeals-hearing-trump-gag-order/index.html" target="_blank" style="text-decoration: underline; color: #cc0000;" rel="noopener" data-location="t10">Takeaways</a>.</span></p>
<p style="margin:0;font-size:14px;text-align:left;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:14px;text-align:left;mso-line-height-alt:24px"><span style="font-size:16px;"><strong>$50 bills. </strong>Why did the government ramp up production of a bill few people use? Watch:</span></p>
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<span style="font-size:16px;"><strong>Climate.</strong> Scientists sound the alarm as the world briefly smashed through the 2-degree warming limit for the first time. <a href="https://www.cnn.com/2023/11/20/climate/2-degree-warming-limit-record-copernicus-climate-int/index.html" target="_blank" style="text-decoration: underline; color: #cc0000;" rel="noopener" data-location="t12">Details</a>.</span></p>
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<span style="font-size:16px;"><strong>Thanksgiving. </strong>The price of a classic meal has fallen since last year. <a href="https://www.cnn.com/2023/11/20/politics/white-house-thanksgiving-prices/index.html" target="_blank" style="text-decoration: underline; color: #cc0000;" rel="noopener" data-location="t13">Here's the math</a>.</span></p>
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<span style="font-size:16px;"><strong>Fact check.</strong> No, Trump has not been indicted more than Al Capone. <a href="https://www.cnn.com/2023/11/20/politics/fact-check-trump-al-capone-indicted-once/index.html" target="_blank" style="text-decoration: underline; color: #cc0000;" rel="noopener" data-location="t14">Not even close</a>.</span></p>
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<span style="font-size:16px;"><strong><span class="tinyMce-placeholder" style>Get a $700 travel sign-up bonus (or Even more) with this card</span></strong></span></p>
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<span style="font-size:16px;">Discover a <a href="https://creditcards.lendingtree.com/guide/discover-it-miles" target="_blank" style="text-decoration: none; color: #cc0000;" rel="noopener" data-location="t16">flexible travel rewards card with a doubled first-year bonus,</a> no annual fee, and the convenience of 0% intro APR on both purchases and balance transfers.</span></p>
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<span style="color:#cc0000"><span style="font-size:38px"><span style="font-family:georgia,times,times new roman,serif"><strong>:</strong></span></span></span><span style="font-family:helvetica neue,helvetica,arial,verdana,sans-serif"><span style="font-size:24px"><strong>


The US government won't quit Elon Musk


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<p style="margin:0;font-size:16px;mso-line-height-alt:24px"><span style="font-size:16px;">Condemning Elon Musk is easy. Quitting him would be very hard, especially for the US government, which is stuck in a needy relationship with the billionaire who went from endorsing crackpot conspiracy theories to endorsing antisemitic tropes.</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
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<span style="font-size:16px;">NASA needs his rockets. The Pentagon needs his satellites. The government needs for electric vehicles to access his network<strong> </strong>of chargers. Officials need his social media platform – Twitter, now called X – to communicate with people.</span></p>
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<span style="font-size:16px;">On Friday, the White House joined the uproar over <a href="https://www.cnn.com/2023/11/15/media/elon-musk-antisemitism-white-people/index.html" style="text-decoration: underline; color: #cc0000;" data-location="t17">Musk’s endorsement of an antisemitic conspiracy theory</a> on X. “We condemn this abhorrent promotion of Antisemitic and racist hate in the strongest terms, which runs against our core values as Americans,” spokesman Andrew Bates said Friday. If you want to read the entire statement, <a href="https://twitter.com/AndrewJBates46/status/1725542182432481745" style="text-decoration: underline; color: #cc0000;" data-location="t18">Bates posted it on X</a>.</span>
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<span style="font-size:16px;">The statement is in line with the uproar over Musk’s forwarding of the antisemitic trope. A large number of companies, including CNN’s parent company Warner Bros. Discovery, have said they will <a href="https://www.cnn.com/2023/11/17/tech/lionsgate-suspends-advertising-x-musk/index.html" style="text-decoration: underline; color: #cc0000;" data-location="t19">suspend advertising on X</a>.</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px"><span style="font-size:16px;">There have been <a href="https://www.cnn.com/2023/11/20/tech/tesla-elon-musk-suspension/index.html" style="text-decoration: underline; color: #cc0000;" data-location="t20">calls for Musk to be suspended</a> from the publicly traded company, which he bought for $44 billion last year and then gutted of its safeguards against misinformation and hate speech.</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px"><span style="font-size:16px;">On Monday, the White House announced it would be <a href="https://www.cnn.com/2023/11/20/tech/white-house-threads-social-media/index.html" style="text-decoration: underline; color: #cc0000;" data-location="t21">joining X rival Threads</a>, which is owned by Meta, as backlash to Musk intensifies.</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;text-align:left;mso-line-height-alt:24px">
<span style="font-size:16px;"><strong>Musk is more than just the company formerly known as Twitter</strong></span></p>
<p style="margin:0;font-size:16px;text-align:left;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px">
<span style="font-size:16px;">The New York Times smartly points out that while the views Musk shared are abhorrent to the White House, the government’s national security apparatus and space programs are essentially <a href="https://www.nytimes.com/2023/11/19/us/politics/elon-musk-white-house-pentagon.html" style="text-decoration: underline; color: #cc0000;" data-location="t22">“addicted” to Musk’s SpaceX</a>.</span></p>
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<p style="margin:0;font-size:16px;mso-line-height-alt:24px"><span style="font-size:16px;">“Rarely has the U.S. government so depended on the technology provided by a single, if petulant, technologist with views that it has so publicly declared repugnant,” wrote David Sanger and Eric Lipton. “And yet, by the account of administration officials, they have no choice — and will not for a while. Because there are, right now, few viable alternatives.”</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px"><span style="font-size:16px;">John Kirby, the National Security Council coordinator for strategic communications, acknowledged the importance of what SpaceX offers when he was asked about the government’s reliance on Musk during a White House press briefing on Monday.</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px"><span style="font-size:16px;">“There’s innovation out there in the private sector that we’d be foolish to walk away from,” Kirby said, adding there are no plans “to address our concerns over his rhetoric through the way that his companies provide support to our national security establishment.”</span></p>
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<span style="font-size:16px;">And then Kirby added: “But that doesn’t mean that we accept or agree with or condone in any way that antisemitic rhetoric that he pushed.”</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;text-align:left;mso-line-height-alt:24px"><span style="font-size:16px;"><strong>Reliant on SpaceX</strong></span></p>
<p style="margin:0;font-size:16px;text-align:left;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px"><span style="font-size:16px;">The Times reporters argued there is no alternative company NASA could turn to for the rockets SpaceX launches.</span></p>
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<p style="margin:0;font-size:16px;mso-line-height-alt:24px">
<span style="font-size:16px;">The Pentagon just recently agreed to a deal with SpaceX to pay $70 million for Starshield, a communication system based on the Starlink system of thousands of satellites. Ukraine’s military is <a href="https://www.cnn.com/2022/11/04/politics/spacex-ukraine-elon-musk-starlink-internet-outage/index.html" style="text-decoration: underline; color: #cc0000;" data-location="t23">completely reliant</a> on Starlink for internet and battlefield communications.</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px"><span style="font-size:16px;">Musk faced backlash a year ago when he had complained about the cost of that service. In June, the Pentagon announced it would pay for Starlink in Ukraine.</span></p>
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<p style="margin:0;font-size:16px;mso-line-height-alt:24px">
<span style="font-size:16px;">In a statement on Monday to CNN’s Kristin Fisher about Musk and the Pentagon’s reliance on his companies, a defense official said simply, “The department condemns all forms of antisemitism.”</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px">
<span style="font-size:16px;">The government has paid SpaceX many billions of dollars over the years, but how much it is paying for Starlink in Ukraine, as one specific example, is not clear.</span></p>
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<p style="margin:0;font-size:16px;mso-line-height-alt:24px">
<span style="font-size:16px;">Pentagon spokesman Gen. Pat Ryder <a href="https://www.defense.gov/News/Transcripts/Transcript/Article/3534413/pentagon-press-secretary-air-force-gen-pat-ryder-holds-an-on-camera-press-brief/" style="text-decoration: underline; color: #cc0000;" data-location="t24">told reporters</a> back in September that the military has been transparent in that it acknowledges it pays Starlink for services in Ukraine, but “for operations security reasons due to the critical nature of these systems, we’re just not going to be able to provide additional information regarding the specific capabilities or the operational details of these services.”</span>
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<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px"><span style="font-size:16px;">Defense Secretary Lloyd Austin is actually in Ukraine meeting with officials there about US assistance to the country. He’s been <a href="https://twitter.com/SecDef/status/1726702130491195697" style="text-decoration: underline; color: #cc0000;" data-location="t25">posting pictures and statements about the trip</a> on X.</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px"><span style="font-size:16px;">CNN’s Chris Isidore <a href="https://www.cnn.com/2021/11/14/investing/elon-musk-wealth-taxpayer-support/index.html" style="text-decoration: underline; color: #cc0000;" data-location="t26">has written</a> about how much of Musk’s own fortune has benefited from business with the government, certainly through SpaceX, which was once saved by a loan from NASA.</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px">
<span style="font-size:16px;">Tesla, Musk’s electric car company, was subsidized by taxpayers in multiple ways, including with loans and tax credits to encourage people to buy electric vehicles. Much of its revenue comes from <a href="https://www.cnn.com/2021/01/31/investing/tesla-profitability/index.html" style="text-decoration: underline; color: #cc0000;" data-location="t27">selling regulatory carbon credits</a> to other car companies so they can be in compliance with emissions rules in some states.</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px">
<span style="font-size:16px;">Tesla’s nationwide charging infrastructure is an important part of the national infrastructure for electric vehicles. The White House bragged early this year<strong><em> </em></strong>that after months of negotiations, Tesla would <a href="https://www.cnn.com/2023/02/15/politics/white-house-tesla-charging-network/index.html" style="text-decoration: underline; color: #cc0000;" data-location="t28">open up part of its charging network</a> to non-Tesla EVs.</span></p>
<p style="margin:0;font-size:16px;mso-line-height-alt:18px"> </p>
<p style="margin:0;font-size:16px;mso-line-height-alt:24px"><span style="font-size:16px;">It all means that while Musk’s words are rightly being condemned and companies are making the point of suspending advertising on X, he is very much woven into the fabric of the country.</span></p>
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<span style="color:#cc0000"><span style="font-size:38px"><span style="font-family:georgia,times,times new roman,serif"><strong>:</strong></span></span></span><span style="font-family:helvetica neue,helvetica,arial,verdana,sans-serif"><span style="font-size:24px"><strong>


What did you think of today's newsletter?


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