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.
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