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The Street
The Street
Luc Olinga

President Biden Chooses to Ease Tensions With Tesla's Musk

The president of the most powerful country in the world against the most influential CEO in the world. 

Joe Biden versus Elon Musk. 

For several months now, relations between the Democratic Party president and the tech tycoon have been at their worst. These tensions have escalated to the point that Musk in March actually fact-checked the State of the Union speech in real time.

The bone of contention: Tesla's chief executive blames the Biden administration for ignoring Tesla (TSLA) as it celebrates the auto industry's transformation to electric vehicles. 

Musk does not understand why Biden puts forward GM (GM), Ford (F) and others in this transformation and forgets Tesla, which is by far the world's leading EV manufacturer. 

Musk Says He Voted for Biden

Musk also can't stand that he was not invited to events bringing together auto-sector bosses. Nor does he accept that Biden does not celebrate the exploits of his SpaceX company, which has reignited dreams of conquering space.

Barack Obama, the last Democratic Party president before Biden, did so whenever the opportunity arose.

The dispute recently has escalated, with Musk going so far as to say Biden was nothing without his teleprompter. He also vehemently criticized the administration's proposals to try to fight inflation. 

Finally, the world's richest man has said he would vote Republican in the midterm elections in November.

"I support free speech, but not any one candidate," Musk recently wrote on Twitter. "In fact, I gave money to & voted for Hillary & then voted for Biden."

"However, given unprovoked attacks by leading Democrats against me & a very cold shoulder to Tesla & SpaceX, I intend to vote Republican in November."

According to Musk, the snubs by the White House stem from Tesla being anti-union. Biden is a great supporter of unions.

"Yeah, the public has no idea how much Tesla and SpaceX have been attacked/undermined, because we aren’t unionized (yet offer highest pay in industry!) and this administration would rather a company be dead than not unionized," Musk repeated on May 30.

Biden, who waited until Feb. 8, 2022, more than a year after his inauguration, to publicly utter the name Tesla, has just had an opportunity to respond to the billionaire's recent criticisms.

'Lots of Luck on His Trip to The Moon'

While journalists were reaching out to him to criticize Musk, the president carefully avoided it.

He was asked what he thinks of Musk's comments that he has a "super bad feeling about" the U.S. economy and wants to cut 10% of workforce.

"While Elon Musk is talking about that Ford is increasing its investments overwhelmingly," Biden said, referring to an announcement made on June 2 by the Dearborn, Mich., company. He also applauded Stellantis (STLA) and Intel (INTC).

But what is interesting is that the president not only avoided criticizing Musk, he took the opportunity to congratulate the executive and SpaceX. The space-tech company in April was selected by NASA to continue developing the first commercial lander that will carry the next two American astronauts to the moon.

"Lots of luck on his trip to the moon," Biden said on June 3, almost two months after NASA made the announcement.

Musk appreciated the president's soothing tone and the congratulations.

"Thanks Mr President!" the serial entrepreneur commented, with a link to the NASA press release.

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