Technology
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Technology
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What Musk’s third party push means for his money
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Elon Musk’s push to create a third political party is putting his business empire at risk once again, raising questions about how his political ambitions align with the interests of his companies.
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© Evan Vucci, The Associated Press
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After the tech billionaire launched his new America Party over the weekend, Tesla saw its shares tumble Monday — the latest occasion in recent months in which the electric vehicle maker has taken a hit over its CEO’s actions in the political sphere.
And President Trump has renewed his suggestion that the administration could take aim at Musk’s various contracts and subsidies, leaving the vast sums of government money that SpaceX receives vulnerable.
“This turn is probably one of the biggest strategic errors I’ve ever seen,” Ross Gerber, a longtime Tesla investor and CEO of Gerber Kawasaki Wealth and Investment Management, told The Hill.
“This now puts them [Musk and Trump] in direct combat in a way that will only hurt Tesla even more,” he added.
Tesla’s stock fell a sharp 7 percent Monday morning when markets opened and investors took stock of Musk’s decision to launch his America Party.
The Tesla CEO has repeatedly floated the idea of creating a third party since his falling out with the president last month. As the two men reignited their feud last week over Trump’s sweeping tax and spending bill, Musk reiterated his proposal.
After polling his followers on his social platform X, Musk announced Saturday that he was moving forward with plans for the America Party.
“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” he wrote. “Today, the America Party is formed to give you back your freedom.”
Musk’s decision to delve further into politics isn’t sitting well with many investors, who appeared relieved by the tech mogul’s earlier decision to step away from the Trump White House.
James Fishback, CEO and founder of investment firm Azoria, said Saturday that his company was postponing the public listing of a Tesla exchange traded fund as a result of Musk’s announcement.
“In May, when Elon stepped back from his work at DOGE and returned his attention to Tesla, we were encouraged,” Fishback wrote on X. “With Elon fully engaged, he gave shareholders renewed confidence in Tesla’s future.”
“Elon’s announcement today undermines that confidence,” he continued.
Read the full report at TheHill.com tomorrow morning.
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Welcome to The Hill’s Technology newsletter, I’m Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley.
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How policy will be impacting the tech sector now and in the future:
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Tech billionaire Elon Musk once again slammed President Trump over the Jeffrey Epstein case, confirming that his new political party, which he has dubbed the “America Party,” will make it a priority to expose the files. Musk first questioned how people can be expected to have faith in the president if he doesn’t release the files regarding the convicted sex offender and financier. “How can …
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Someone has been trying to impersonate Secretary of State Marco Rubio by using artificial intelligence (AI) to contact foreign leaders and U.S. lawmakers, according to multiple reports Tuesday. A memo from the State Department dated Thursday, which was obtained by The Associated Press, The Washington Post and other outlets this week, warned that an imposter posing as Rubio had reached out to at least three unidentified foreign …
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DENVER (KDVR) – Two attorneys who were representing MyPillow CEO Mike Lindell in a defamation case in Denver are facing thousands of dollars in fines for submitting an inaccurate, AI-generated brief to the court in April. The McSweeny Synkar and Kachouroff PLLC law firm and attorney Christopher Kachouroff are facing “jointly and severally” a sanction of $3,000. Attorney Jennifer DeMaster is also facing a $3,000 …
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Former Trump White House deputy press secretary Hogan Gidley said Monday that tech billionaire Elon Musk’s new “America Party” will struggle to maintain its base without ties to traditional political parties. “Musk has enough money to keep it going for a long time, and he may have a good candidate here or there, but for the most part, you know — remember Jesse Ventura when he won governor of Minnesota?” Gidley, …
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News we’ve flagged from the intersection of tech and other topics:
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Apple loses top AI models executive to Meta’s hiring spree (Bloomberg)
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OpenAI and Microsoft bankroll new AI training for teachers (New York Times)
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Coinbase launches market structure ad campaign
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© Richard Drew, Associated Press
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Welcome to Crypto Corner, a daily feature focused on digital currency and its outlook in Washington.
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Coinbase is launching a six-figure ad campaign urging Congress to pass legislation that would establish rules for regulation of the crypto market as the House prepares to take up several crypto bills next week.
The crypto exchange is placing print ads in the Washington Post and Wall Street Journal, as well as paid video ads on X and Facebook, calling on lawmakers to act on crypto legislation and pass the Digital Asset Market Clarity Act.
“1 in 3 small businesses use crypto. That number doubled in the last year. Still think this is just a phase?” one of the Coinbase ads says. “America voted pro-crypto. It’s time for Congress to act.”
Coinbase is also placing ads at bus stops and billboards across Washington and will have a digital billboard truck driving throughout the city.
It is trying to activate users in its app as well, providing them with a tool to reach out to their lawmakers.
“Consumer protections are sacred at Coinbase – that’s what this campaign is about,” said Kara Calvert, Coinbase vice president of U.S. policy, in a statement.
“The CLARITY Act would enshrine a regulatory framework to protect crypto consumers into law, so that American customers, businesses and innovators alike can build and trade safely,” she added. “Now is the time, and crypto voters are watching.”
The House is poised to take up several crypto bills next week, in what leadership is calling “crypto week.”
This includes the Clarity Act, in addition to the GENIUS Act and an anti-central bank digital currency bill. The GENIUS Act, which seeks to create a regulatory framework for stablecoins, passed the Senate last month.
Plus: President Trump’s social media platform, Truth Social, has filed to launch a third crypto-related asset.
The Truth Social Crypto Blue Chip ETF is expected to hold an array of crypto tokens, including Bitcoin, Ether, Solana, Cronos and XRP, according to a securities filing Tuesday.
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Branch out with other reads on The Hill:
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Yang says he’s been ‘in touch’ with Musk on America Party
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Andrew Yang, a former Democratic presidential candidate and cofounder of the independent Forward Party, recently said he’s been in touch with Elon Musk about the tech billionaire’s formation of his own third party, the America Party. “I’m excited for anyone who wants to move on from the duopoly, and I’m happy to help give someone a sense of what the path looks like,” Yang told Politico in …
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Two key stories on The Hill right now:
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Attorney General Pam Bondi on Tuesday sought to tamp down outrage on the right over the Justice Department’s recent memo on disgraced financier Jeffrey … Read more
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Republican senators aren’t happy about how President Trump treated Sen. Thom Tillis (R-N.C.), whom the president blasted last week on social … Read more
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Opinions related to tech submitted to The Hill:
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You’re all caught up. See you tomorrow!
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