Musk should worry about his companies, not politics, says Bessent
On Saturday, the South African-born Musk -- an ally-turned-critic of President Donald Trump -- said he was founding the "America Party" to challenge what he called the country's "one-party system."
When asked by CNN if Musk's plan bothered the Trump administration, Bessent offered a thinly veiled criticism of the world's richest person.
"I believe that the boards of directors at his various companies wanted him to come back and run those companies, which he is better at than anyone," Bessent said.
"So I imagine that those board of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities."
Bessent said the principles of the so-called Department of Government Efficiency, which Musk ran for several months as part of Trump's drive to slash government spending and jobs, were "very popular."
But he added: "I think, if you looked at the polling, Elon was not."
Musk and Trump were once very close, and Musk was the top donor to the Republican's 2024 presidential campaign.
But the pair had a bitter falling out over the president's massive domestic spending plan, with Musk saying it would explode the US debt.
The billionaire, who has held US citizenship since 2002, has vowed to do everything in his power to defeat lawmakers who voted for it.
Musk left DOGE in May to focus full-time on his corporate responsibilities, with Tesla's sales and image especially suffering from his brief venture into Trump's inner circle.
Wedbush Securities analyst Dan Ives, a longtime backer of Tesla who had encouraged Musk to step back from DOGE, said creating a political party was the wrong move.
"Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story," Ives said.
"While the core Musk supporters will back Musk at every turn no matter what, there is a broader sense of exhaustion from many Tesla investors that Musk keeps heading down the political track," he added.
"Initial relief" among Tesla shareholders over Musk's DOGE departure has "taken a turn for the worst," Ives said.
In after-hours electronic trading, Tesla shares were down 0.85 percent at midday Sunday. - AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
an hour ago
- The Sun
Trump threatens extra 10% tariffs on BRICS as leaders meet in Brazil
RIO DE JANEIRO: President Donald Trump said the U.S. will impose an additional 10% tariff on any countries aligning themselves with the 'Anti-American policies' of the BRICS group of developing nations, whose leaders kicked off a major summit in Brazil on Sunday. With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive 'America First' approach of the U.S. president, BRICS is presenting itself as a haven for multilateral diplomacy amid violent conflicts and trade wars. In opening remarks to the BRICS summit in Rio de Janeiro, Brazil's President Luiz Inacio Lula da Silva drew a parallel with the Cold War's Non-Aligned Movement, a group of developing nations that resisted joining either side of a polarized global order. 'BRICS is the heir to the Non-Aligned Movement,' Lula told leaders. 'With multilateralism under attack, our autonomy is in check once again.' In a joint statement released on Sunday afternoon, the group warned the rise in tariffs threatens global trade, continuing the group's veiled criticism of Trump's U.S. tariff policies. Hours later, Trump warned he would punish countries seeking to join with the grouping. 'Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!' Trump said in a post on Truth Social. Trump did not clarify or expand on the 'Anti-American policies' reference in his post. Trump's administration is seeking to finalize dozens of trade deals with a wide range of countries before his July 9 deadline for the imposition of significant 'retaliatory tariffs'. BRICS nations now represent more than half the world's population and 40% of its economic output, Lula noted in remarks on Saturday to business leaders, warning of rising protectionism. The original BRICS group gathered leaders from Brazil, Russia, India and China at its first summit in 2009. The bloc later added South Africa and last year included Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates as members. This is the first summit of leaders to include Indonesia. More than 30 nations have expressed interest in participating in the BRICS, either as full members or partners. GROWING CLOUT, COMPLEXITY Expansion of the BRICS has added diplomatic weight to the gathering, which aspires to speak for developing nations across the Global South, strengthening calls for reforming global institutions such as the United Nations Security Council and the International Monetary Fund. 'If international governance does not reflect the new multipolar reality of the 21st century, it is up to BRICS to help bring it up to date,' Lula said in his remarks, which highlighted the failure of U.S.-led wars in the Middle East. Urging the BRICS to take the lead on reforms, Lula reflected on the G20 summit hosted in the same locale last November: 'In a short period of time, the international scene has deteriorated to the point that some of the initiatives we approved then would no longer be possible now.' Stealing some thunder from this year's summit, Chinese President Xi Jinping chose to send his premier in his place. Russian President Vladimir Putin is attending online due to an arrest warrant from the International Criminal Court. Still, several heads of state were gathered for discussions at Rio's Museum of Modern Art on Sunday and Monday, including Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa. However, there are questions about the shared goals of an increasingly heterogeneous BRICS group, which has grown to include regional rivals along with major emerging economies. In the joint statement, the leaders called attacks against Iran's 'civilian infrastructure and peaceful nuclear facilities' a 'violation of international law.' The group expressed 'grave concern' for the Palestinian people over Israeli attacks on Gaza, and condemned what the joint statement called a 'terrorist attack' in India-administered Kashmir. The group voiced its support for Ethiopia and Iran to join the World Trade Organization, while calling to urgently restore its ability to resolve trade disputes. The leaders' joint statement backed plans to pilot a BRICS Multilateral Guarantees initiative within the group's New Development Bank to lower financing costs and boost investment in member states, as first reported by Reuters last week. In a separate statement following a discussion of artificial intelligence, the leaders called for protections against unauthorized use of AI to avoid excessive data collection and allow mechanisms for fair payment. Brazil, which also hosts the United Nations climate summit in November, has seized on both gatherings to highlight how seriously developing nations are tackling climate change, while Trump has slammed the brakes on U.S. climate initiatives. China and the UAE signaled in meetings with Brazilian Finance Minister Fernando Haddad in Rio that they plan to invest in a proposed Tropical Forests Forever Facility, according to two sources with knowledge of the discussions about funding conservation of endangered forests around the world.
New Straits Times
2 hours ago
- New Straits Times
Trump to send first tariff letters on Monday
WASHINGTON: US President Donald Trump announced he would send the first tariff letters to various countries on Monday, days before his deadline for trading partners to reach a deal expires. Trump said on Sunday that he will send a first batch of up to 15 letters, warning that US levies on imports will snap back to the high levels he set in April if countries fail to make agreements. But Treasury Secretary Scott Bessent said that the tariffs would not "boomerang" back until Aug 1 – giving some extra breathing space for dealmaking on a subject that has injected uncertainty into global markets. "I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th," Trump said on his Truth Social network. In a later post, he threatened a further 10 per cent tariff on countries aligning themselves with the emerging BRICS nations, accusing them of "anti-Americanism" after they slammed his tariffs at a summit on Sunday. Trump had announced sweeping tariffs on April 2 – which he called "Liberation Day" – imposing a 10 per cent duty on imports from almost all trading partners. Some countries, including some within the European Union, were slated to have far higher rates as well. As markets plunged Trump paused the tariffs for 90 days to allow for talks – a deadline which expires on Wednesday. But so far there have been limited results, with Washington unveiling deals only with Britain and Vietnam, while agreeing with China to temporarily lower staggeringly high levies on each other's products. Trump told reporters as he boarded Air Force One on Sunday that it "could be 12, could be 15" letters that he would send on Monday. "I think we'll have most countries done by July 9, either a letter or a deal," Trump said, adding that some deals had been made already. Standing at his side, US Commerce Secretary Howard Lutnick confirmed tariffs would kick in on Aug 1 but denied that it was a way of delaying the deadline. "The President is setting the rates and the deals right now." Bessent also denied that Trump was setting a new deadline with the Aug 1 date. "It's not a new deadline. We are saying, this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice," he said. Bessent added that the playbook was to apply "maximum pressure" and cited the European Union as an example, saying they are "making very good progress" after a slow start. Earlier he hinted at "several big announcements" on deals in the coming days but would not say with which countries. EU and US negotiators are holding talks over the weekend, and France's finance minister said Saturday he hoped they could strike a deal as well. Other countries were still expressing unease, however. Japan's Prime Minister Shigeru Ishiba said Sunday he "won't easily compromise" in trade talks with Washington. BRICS leaders of fast-growing economies meeting in Rio de Janeiro raised "serious concerns" that the "indiscriminate" import tariffs were illegal and risked hurting global trade. Trump lashed out at the group – which comprises 11 nations including Brazil, Russia, India and China – in response. "Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy," Trump wrote. bur-dk/dhc
New Straits Times
2 hours ago
- New Straits Times
Trump says to send first tariff letters on Monday
WASHINGTON: US President Donald Trump announced he would send the first tariff letters to various countries on Monday, days before his deadline for trading partners to reach a deal expires. Trump said on Sunday that he will send a first batch of up to 15 letters, warning that US levies on imports will snap back to the high levels he set in April if countries fail to make agreements. But Treasury Secretary Scott Bessent said that the tariffs would not "boomerang" back until Aug 1 – giving some extra breathing space for dealmaking on a subject that has injected uncertainty into global markets. "I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th," Trump said on his Truth Social network. In a later post, he threatened a further 10 per cent tariff on countries aligning themselves with the emerging BRICS nations, accusing them of "anti-Americanism" after they slammed his tariffs at a summit on Sunday. Trump had announced sweeping tariffs on April 2 – which he called "Liberation Day" – imposing a 10 per cent duty on imports from almost all trading partners. Some countries, including some within the European Union, were slated to have far higher rates as well. As markets plunged Trump paused the tariffs for 90 days to allow for talks – a deadline which expires on Wednesday. But so far there have been limited results, with Washington unveiling deals only with Britain and Vietnam, while agreeing with China to temporarily lower staggeringly high levies on each other's products. Trump told reporters as he boarded Air Force One on Sunday that it "could be 12, could be 15" letters that he would send on Monday. "I think we'll have most countries done by July 9, either a letter or a deal," Trump said, adding that some deals had been made already. Standing at his side, US Commerce Secretary Howard Lutnick confirmed tariffs would kick in on Aug 1 but denied that it was a way of delaying the deadline. "The President is setting the rates and the deals right now." Bessent also denied that Trump was setting a new deadline with the Aug 1 date. "It's not a new deadline. We are saying, this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice," he said. Bessent added that the playbook was to apply "maximum pressure" and cited the European Union as an example, saying they are "making very good progress" after a slow start. Earlier he hinted at "several big announcements" on deals in the coming days but would not say with which countries. EU and US negotiators are holding talks over the weekend, and France's finance minister said Saturday he hoped they could strike a deal as well. Other countries were still expressing unease, however. Japan's Prime Minister Shigeru Ishiba said Sunday he "won't easily compromise" in trade talks with Washington. BRICS leaders of fast-growing economies meeting in Rio de Janeiro raised "serious concerns" that the "indiscriminate" import tariffs were illegal and risked hurting global trade. Trump lashed out at the group – which comprises 11 nations including Brazil, Russia, India and China – in response. "Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy," Trump wrote. bur-dk/dhc
