Musk Resembles Trump... Becomes an Obstacle to Smooth Business Progress

WSJ "Building a Fanbase with Extreme Remarks
Populist Moves Similar to Trump"
'X' Ad Revenue Estimated to Halve in One Year

Elon Musk

Elon Musk, CEO of Tesla, has been criticized for his extreme rhetoric on X (formerly Twitter), which is seen as reinforcing populist behavior similar to that of former President Donald Trump. Analysts note that while this style initially helped build a fan base and drive business growth, it has now become a hindrance.

The Wall Street Journal (WSJ) analyzed on the 13th (local time) that Musk is similar to Trump, who became a successful businessman by building an early base of populist supporters, but this approach has recently become a risk. WSJ stated, “Their provocative statements on social issues through X over the years may be politically incorrect and sometimes crude, but ultimately laid the foundation for their business success.”

However, it is pointed out that Musk’s “voice” could pose a risk to Tesla and SpaceX achieving greater success.

On the 9th, Musk claimed on X that the acronym “DEI,” representing corporate diversity, equity, and inclusion policies, threatens aviation safety. This implied a perception of “immigrants = potential terrorist groups.” He wrote, “This crazy policy will only change after a plane crashes and hundreds die.” He also questioned the integrity of the U.S. election system and claimed the government would seize homes to accommodate immigrants. This occurred less than a week after allegations of Musk’s drug use surfaced on the 7th.

WSJ also noted, “In recent days, Musk seemed to adopt Trump-style tactics.” He tends to show bravado even when a serious demeanor is required. For example, Musk denied the drug use allegations on X, writing, “Whatever I do, I have to keep doing this!” which appears to borrow from former President Trump’s 2016 campaign remark, “I could stand in the middle of Fifth Avenue and shoot somebody and I wouldn’t lose voters.”

This rhetoric initially served as an opportunity for Musk to grow his business like Trump, but now it is seen as limiting smooth progress as the business has grown larger. In November last year, Musk commented in agreement on an X user’s post containing anti-Semitic conspiracy theories. Additionally, a media watchdog report revealed that major advertisements were placed next to Nazi-related content on X, leading many large corporate advertisers to pull their ads from the platform.

The market estimates that X’s advertising revenue dropped by 50% in 2023 compared to 2022. Musk recently acknowledged that X could go bankrupt due to declining ad revenue. Tesla, Musk’s flagship business and the largest electric vehicle company in the U.S., has seen its stock price fall 12% this year amid intensified electric vehicle competition and weakening demand.