Bits: Elon Musk’s Unlikely Bond With Donald Trump

View in [Browser] | Add [nytdirect@nytimes.com] to your address book. Friday, January 27, 2017 [The New York Times] [For the latest updates, go to nytimes.com/bits »] [The New York Times] Friday, January 27, 2017 [The entrepreneur Elon Musk has joined a presidential advisory council.] The entrepreneur Elon Musk has joined a presidential advisory council. Sasha Maslov for The New York Times [Daily Report] It’s O.K. to feel a little confused about the direction the new administration in Washington is taking. And that is before you consider the case of Elon Musk and Tesla. [As James Stewart writes], Mr. Musk, a brainy South African immigrant who has criticized Donald Trump and built Tesla Motors and SolarCity — which benefit from government subsidies — might seem the wrong fit in Washington these days. And yet shares of the carmaker Tesla, which has absorbed solar power company SolarCity, are going up. Analysts are even raising their estimates of how high they could go. Moreover, Mr. Musk has been a guest at two meetings of business leaders with Mr. Trump. What gives? Maybe these strange bedfellows aren’t so strange. Primarily, Tesla is both futuristic in its technology and traditional as an operation. Unlike big software outfits, it employs a lot of people with a relatively normal range of skills inside its factories. Tesla has 25,000 workers, our article notes, and could double that if it increases production in its battery factory. The factory is in Nevada, one of Mr. Trump’s battleground states in the last election. Mr. Musk, who likes big and bold visions, has discussed ways to rebuild the United States energy grid, too. That would be another huge project requiring traditional workers. And while Mr. Musk has taken $2 billion in subsidies, he needs them less now. Tesla will soon make 200,000 vehicles, which will trigger an end to his federal subsidies. And the subsidies paid out to the alternative energy industry appear to have enabled enough research and market power to make its offerings [increasingly price competitive] with fossil fuels. That means Mr. Trump could take credit for ending subsidies out of favor with his constituents, and Mr. Musk could prosper. Then, too, Mr. Musk is himself a brash and successful billionaire, something attractive to the president. At a recent business meeting, he pressed Mr. Trump for a tax on carbon fuels, something the president did not dismiss out of hand. That is almost a mark of a big business coming into its own: when you stop asking the government for handouts, and instead press it to hurt your competitor. — Quentin Hardy  Read More Common Sense [Elon Musk Has Trump’s Ear, and Wall Street Takes Note] By JAMES B. STEWART The political tide might seem unfavorable for electric cars and solar panels, but the new president may see them as part of a job-producing future.  ADVERTISEMENT  More From The Times [President Barack Obama participating in a Google Portal virtual event in June. Over the last eight years, Google was closely associated with the former president.] [Google, in Post-Obama Era, Aggressively Woos Republicans] By CECILIA KANG The tech company had many close links to the Obama administration. Now it’s scrambling to forge ties with President Trump and a Republican-dominated Congress. [Attendees of the Google I/O 2016 developers conference in Mountain View, California, last year.] [Alphabet’s Profits Stay Predictably Good in a Volatile Industry] By DAISUKE WAKABAYASHI While other tech companies rise and fall with consumer tastes, Google’s parent has been consistent in generating huge earnings. [Toshiba headquarters in Tokyo. 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BIERSDORFER Apple has many adapters for charging the laptop’s battery, so be sure to get the one designed for your model.  LIKE THIS EMAIL? Forward it to your friends, and let them know they can sign up [here].  FOLLOW Bits [Twitter] [@nytimesbits] ABOUT THIS EMAIL You received this message because you signed up for NYTimes.com's Bits newsletter. [Unsubscribe] | [Manage Subscriptions] | [Change Your Email] | [Privacy Policy] | [Contact] | [Advertise] Copyright 2017 The New York Times Company | 620 Eighth Avenue New York, NY 10018