Donald Trump’s endorsement of Elon Musk’s automotive venture demonstrates his willingness to support his allies to extreme lengths.
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In 2023, Donald Trump declared that those who support electric cars should “ROT IN HELL.” But now he is endorsing Teslas on the White House lawn. Just yesterday, he stood alongside Elon Musk, admiring a fleet of electric vehicles, remarking that he hoped his purchase would uplift the carmaker’s stock, which had significantly declined due to consumer discontent and broader economic issues. (Notably, the stock has rallied by 7.6 percent since yesterday.)
Currently, Trump does not appear to have any shares in Tesla. He has stated that his support for the automaker comes from his belief that protesters are “endangering a great American company” and even suggested that those who damage Tesla vehicles or protest against it should be labeled domestic terrorists. However, this seems to also be linked to his desire to assist his friend Elon Musk in retaining his position as the wealthiest individual globally. As my colleague Charlie Warzel observed, yesterday’s White House display was “a contrived, corrupt endeavor to boost a friend’s stock, falling well short of the presidential office’s dignity.”
Had another official promoted a friend’s product in such a manner (especially on the grounds of the historic White House), it would have constituted a clear breach of regulations that prohibit executive branch employees from using their position to endorse commercial services or products. This was pointed out by Kathleen Clark, a law professor at Washington University in St. Louis. Yet, the president and vice president are exempt from these rules, as well as from certain other ethics guidelines that apply to federal officials. In this context, norms are essentially the main avenue for keeping the commander-in-chief answerable.
Trump has persistently showcased his penchant for disregarding norms and testing ethical boundaries; thus, his latest stunt as a promoter for Tesla is not particularly surprising. When he realized in 2016 that U.S. presidents are exempt from the rules against conflicts of interest applicable to other officials, he expressed evident glee. He told The New York Times, “The president can’t have a conflict of interest. I thought you’d have to establish some kind of trust or whatever.”
Despite the absence of legal constraints, modern presidents typically transfer their assets into blind trusts managed by independent entities to mitigate any perception that they’re benefiting from their office or making policy choices to favor their investment portfolios. Since taking office, Trump has shuffled his assets around but generally appointed his family to manage them. Recently, he announced that he had moved his shares of Truth Social into a trust overseen by his son, Donald Trump Jr., a gesture that is deemed “irrelevant from an ethics standpoint” since the funds could still potentially benefit him, according to Clark. Moreover, with his family controlling the trust, Trump is likely aware of the state of his finances and can take actions that might appreciate the value of his investments.
Presidential conflicts of interest, or even the mere appearance of them, can erode public trust (recent research by Pew indicates that nearly two-thirds of Americans believe most elected officials pursue office primarily for monetary gain). While Trump may not directly profit from Tesla, the implications of his promoting their vehicles echo other potential conflicts of interest: What benefits his private endeavors may not be in the nation’s best interest, and Trump has yet to instill public confidence that he will place the latter above former.
Musk has equally failed to alleviate fears regarding the separation between his commercial pursuits and his involvement in the Trump administration: his corporate entities depend heavily on government contracts. Additionally, the federal personnel changes he’s overseeing through his DOGE initiative are already altering agencies that regulate his businesses.
After expressing his admiration for the Teslas in front of cameras yesterday, Trump informed the media that he will purchase one of the cars and pay using a personal check. This relatively modest financial commitment conveys a significant message about the president’s priorities: supporting his billionaire friend.
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Today’s News
- In retaliation for tariffs imposed by the Trump administration, the European Union has declared it will enforce tariffs on $28 billion in American exports, and Canada has introduced a 25 percent tariff on around $20.7 billion worth of U.S. goods.
- The Palestinian activist Mahmoud Khalil, a lawful permanent resident, is still in ICE custody after his procedural hearing. He was apprehended earlier this week in an effort to deport him due to his involvement in protests against the conflict in Gaza.
- The Department of Education dismissed more than 1,300 employees yesterday, reducing the department’s workforce to around half of what it was prior to Donald Trump’s presidency.
Evening Read
The Individual Who Owned 181 Renoirs
By Susan Tallman
Among the myriad ways that contemporary billionaires allocate their vast fortunes, establishing an art museum ranks as one of the less harmful methods, somewhere behind efforts to eliminate malaria but ahead of actions that undermine democracy. The artworks in these museums often skew contemporary, reflecting both the scarcity of available masterpieces from prior eras and a prevailing consensus among the global intelligentsia that modern art carries social, intellectual, and cultural significance. However, few of these tycoons are likely to experience stakes as excruciatingly high as Albert C. Barnes did.
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Read. “While I adore [science-fiction], I always find myself wanting to subvert it as well,” Bong Joon Ho, director of Mickey 17, conveyed in discussion with David Sims.
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Stephanie Bai contributed to the compilation of this newsletter.
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