Elon MuskThe foray into politics has put a target Teslashowing Warren Buffett was right to worry that the provision could harm its employees and shareholders.
Musk Throw his money and weight Behind the re -election campaign of President Donald Trump last year, perplexed for the Republican candidate during rallies, supporting him support on X and paying more than $ 290 million to return him to power.
The richest man in the world is now a eminent advisor To the American leader and the engine of the Ostensible Mission of Doge to reduce the fraud, waste and abuse of the government.
Musk’s central role in Trump administration has Stored some Americanssparkling boycotts and sales of Tesla vehicles, manifests outside the exhibition rooms – and even vandalism and the destruction of the company’s products and goods.
Tesla and SpaceX CEO said he shocked by violenceThe appellant “crazy and deeply bad” in a post X earlier this month. “Tesla just does electric cars and did nothing to deserve these bad attacks.”
In another article, Musk wrote: “Has there already been such a level of violence coordinated against a peaceful company? I understand Do not want to buy a productBut it is an extreme criminal fire and destruction! “”
Stay in difficulty
Buffett, CEO of Berkshire Hathaway, openly supported Democrats until a few years ago. He welcomed fundraising for Barack Obama in 2011 and went on stage during a rally of Hillary Clinton in 2016 to call the multiple failed Trump companies, refusal to publish his income declarations and a cruel treatment of others. He did not approve Kamala Harris or any other politician last year.
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The billionaire investor explained why During the annual meeting of Berkshire shareholders in 2022. His previous position was that he did not put his “citizenship in a blind trust as CEO”, but recognized that the expression of his political opinions could get angry and encourage them to “withdraw it on our businesses”.
“I decidedly fell. I do not mean anything who will be attributed, mainly to Berkshire, and that someone else has the consequences of what I am talking about,” said Buffett, stressing that he does not want his workers and his shareholders “paying the price” for his sound political comment.
However, Musk and Buffett have Very different objectives This shapes their political strategies, Sean Lux, associate professor of practice at the Rawls College of Business at Texas Tech University, told Business Insider.
The Berkshire chief focuses on Offer long -term coherent yields Whatever the party in charge, therefore avoiding politics or playing well with the two parties makes sense for him, said Lux.
Warren Buffett is CEO of Berkshire Hathaway. Reuters / Rick Wilking
As for Musk, its ultimate mission is to reach Mars and the US government could be a “huge catalyst or obstacle” to these efforts, said Lux.
“Donald Trump’s candidacy offered Elon an opportunity once in the history of influence American policy in support of its objectives, “Lux said.” Elon is probably the largest commercial strategist of his generation, and it was unlikely that this opportunity is missing, regardless of the public reaction. “”
The business guru underlined the recent decision of the Federal Communications Commission to allow SpacexThe Starlink unit is to offer a direct cell satellite service.
Lux said that “only Elon’s support for Trump’s campaign was worth.” This is a major step towards musk disruptive Not just telecommunications giants, but players such as Apple, Meta and Alphabet.
Express can be expensive
Steven Callander, professor of political economy at the Stanford Graduate School of Business, told Bi that the counterpoup against Musk for his political actions was “inevitable”. He said that “the real cost for Tesla will be lost sales and the damage to the brand“- Not vandalism.
New Tesla registrations in the United States Tumbled 11% In January – even if Ford electric vehicle sales climbed to 54% – and the image was worse in Europe as the sales plunged over 40% In February, according to industry reports. Tesla’s shares are down 45% compared to their December summit.
Callander said the public agreed with CEOs taking political positions because it was ” Be authentic“But the risk is that they become so tangled in politics that it” overwhelms their commercial identity “.
“This is Musk’s fate,” he said, adding that the advantages of Musk companies Government contracts “Will be overwhelmed by the damage it makes with millions of general public customers.”
Callander added that business leaders have not only to assess the risk of public reaction, but now the possibility of government reprisals. It is a “real concern for many CEOs,” he said. “They prefer stay in the pack And not be this targeted by Trump. “”