Will we soon see Elon Musk in the White House?
Though the whimsical CEO of Tesla (TSLA) and SpaceX and the Biden administration have had a cold relationship, one marked by snubs and mockery via social media since the Democratic president took office, there are now signs a thaw is in the offing.
The bone of contention revolves around Tesla, the maker of high-end electric vehicles, which dominates a lucrative market head and shoulders above its competitors, and which has growth prospects looking rosier by the day.
Biden ran on and has since pushed a green agenda, advocating an acceleration of the electrification of the automotive sector.
But he waited until this Feb. 8, more than a year after his inauguration, to officially pronounce the name Tesla.
As the largest manufacturer of electric vehicles in the country, Tesla believes that logically the firm should be seen and presented as an example by the new administration.
But it was quite the opposite. Not only did Biden seek advice and guidance from GM CEOs Mary Barra and Ford CEO Jim Farley, he showcased the two legacy automakers as key players in the electric transition at public events.
Getty Images/TheStreet
Tesla Who?
Tesla produced and delivered over 300,000 vehicles globally in the fourth quarter, the company said. But GM reported U.S. sales of 26 electric vehicles during the fourth quarter.
Musk, who is quick to attack his critics, has previously speculated that this cold shoulder from the Biden administration is due to the fact that Tesla is not unionized.
The standoff between Musk and the Biden administration escalated on Jan. 26, when Biden posted on Twitter a video of him standing next to GM CEO Mary Barra.
"I meant it when I said the future was going to be made right here in America," the president wrote. "Companies like GM and Ford are building more electric vehicles here at home than ever before."
Musk responded on Twitter: "Starts with a T Ends with an A ESL in the middle."
Musk told CNBC on February that it feud had escalated internally in the administration as well.
“It got to the point, hilariously, where no one in the administration was even allowed to say the word ‘Tesla’!" he said. "The public outrage and media pressure about that statement forced him to admit that Tesla does in fact lead the EV industry. I wouldn’t exactly call that ‘praise.'”
In the same CNBC interview, Musk hinted that he would visit the White House if invited and would not do or say anything embarrassing during such a visit.
For its part, the administration has begun to make some gestures towards Tesla and its charismatic CEO.
Biden finally did extend an olive branch to Musk in early February, publicly mentioning Tesla.
“Since 2021, companies have announced investments totaling more than $200 billion in domestic manufacturing here in America," Biden said in a speech about U.S. auto manufacturing.
"From iconic companies like GM and Ford building out new electric vehicle production to Tesla — our nation’s largest electric vehicle manufacturer ... "We’re seeing the beginning of an American manufacturing comeback," Biden said on Feb. 8.
A Surprise Visit in Austin Gigafactory
Early March saw a clear sign that relations between Musk and the White House were warming up.
Musk, who is anti-union, has challenged unions, inviting the United Autoworkers (UAW) to organize his company in an attempt to goad the labor union.
Musk said that he's able to maintain the Tesla workforce because the company compensates and treats its employees well. Because of this, Musk claimed, he's not worried about union organizing at his company.
"I’d like hereby to invite UAW to hold a union vote at their convenience. Tesla will do nothing to stop them," Musk wrote on March 3 on Twitter.
The reconciliation seems to be on the right track. Labor Secretary Marty Walsh has just visited Tesla's Gigafactory in Austin, one of his spokespersons told TheStreet.
The visit took place on March 13. And it was Elon Musk himself who showed Walsh around, the spokesperson said. The two men then discussed together for 75 minutes on various topics, ranging from job creation in Austin, innovation, inflation.
Elon Musk, who posed in photos with Walsh, said he wanted to continue the conversation.
The spokesperson, however, refused to say whether Labor Secretary was carrying an invitation from Biden to Musk.
Axios was the first media to report on this surprise visit.
