News
Breitbart’s nod to Elon Musk is so, so scary
Breitbart News Network featured a story this week on its website called “Elon Musk’s Tesla Stock Up $2 Billion Since Joining Trump’s Team.” The story argues that, as a result of recent Tesla stock increases, Musk owes allegiance to Donald Trump. Attention from the far-right Breitbart website, which is the most viewed U.S. conservative news, opinion, and commentary source in the U.S., comes at a time in which Elon Musk’s reputation has been questioned by his once-loyal following.
Why is the Breitbart story such bad timing for Musk?
Breitbart is known as the most significant misinformation site on the Internet. Privileging one set of representations over another, discourses like those typical within the Breitbart publication tend to claim the status of truth. Their discourses, which work as truth statements, make it difficult for many readers to identify how reality is shaped. Breitbart’s executive chairman, Steve Bannon, aligned the site so specifically toward a Trump vision of the world during the 2016 Presidential election that employees began to raise concerns about it being little more than a “fan club” for Trump.
Moreover, the right-wing outlet has been accused by some as being a hate site. Breitbart engages in coordinated plans to bring their particular brand of intolerance to the political realm in because their style of propaganda works well. Linked to relations of power, the Breitbart stories tend to be constructed and reinforced by those in professional positions like Bannon who hold a particular authority and, thus, create knowledge about certain subjects like climate change, health care, and trade.
In the article about Elon Musk this week, Breitbart referred to individuals who seek equality for all as “the left’s social justice warriors” and described Twitter reactions to Musk’s collaboration with Trump as “vicious colorful language that cannot be reported.” The implication here is that Musk followers are immoral, disreputable people whose language is so coarse that it is would clearly offend the enlightened Breitbart readership.
Yes, this was a week in which the Tesla Motors, Inc. CEO found himself defending his position on Trump’s executive order that limits immigration from seven predominantly Muslim countries. Musk has become a target of malaise due to his role on Trump’s manufacturing council. Disgruntled fans tweeted about how Musk could design a Mars mission but fail to retract a “BS Muslim ban;” what ownership of the competitor’s Chevy Volt would be like; and, his position on AG Sally Yates’ dismissal over the immigration issue. Some tweets, on the other hand, also supported Musk and implored him “to make a positive impact.”
Breitbart recounted that Musk’s attendance on “an official White House committee” (i.e. the Strategic and Policy Forum) on January 27 generated controversy. Breitbart characterized the comments as “mournful,” which cast Musk as leader of a losing battle to limit anthropogenic climate change through decentralized energy, especially the remarkable Tesla electric vehicle line. Breitbart noted Musk’s reply, which included, “It’s getting me down. I’m just trying to make a positive contribution & hope good comes of it.” Interestingly, the publication allowed Musk’s empathy and altruism to shine through the otherwise negative narrative.
Breitbart also added in the article that, “when it comes to U.S. employment and manufacturing, Musk’s companies are near or at the top as the fastest-growing players.” It seems clear from this statement that the Trump administration recognizes the power that Elon Musk has to create U.S. jobs and further the country’s emergence from the biggest economic downturn since the Great Depression. Breitbart’s care in recognizing Musk’s wherewithal suggests that the Trump administration is looking down the GNP road and wants to keep Musk close by, regardless of Musk’s opposite political beliefs and progressive values, just in case.
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Musk’s use of Twitter to inform, educate, and empower
Twitter can be a site where democracy, messy as it can be, is at its best. Twitter’s multiple viewpoints allow for rich, if sometimes uncomfortable discourse. Musk understands this and engages in conversations with the public as a means of communication, education, and empowerment. For example, he wanted his followers to be intimately knowledgeable with the immigration order and to let him know “specific amendments,” which he would then bring to the advisory council to seek “consensus & present to President” Trump.
Please read immigration order. Lmk specific amendments. Will seek advisory council consensus & present to President. https://t.co/qLpbsP4lEk
— Elon Musk (@elonmusk) January 29, 2017
Indeed, Musk asked his followers to read “the source material” of the immigration ban; it is a way to infuse voices of reason and expertise rather than emotion and hyperbole into the conversation. That request, in turn, fostered a conversation about the importance of reading original documents and reports, rather than relying on tertiary sources for deconstruction and explanation. It was a lesson that many could have learned during the 2016 Presidential campaign, which was rife with fake news.
Yes, the order is still bad, but it is always important to read the source material
— Elon Musk (@elonmusk) January 30, 2017
Rather than the “Trump / Musk charm offensive” that Breitbart suggests is the reason for Tesla’s rising stock prices, perhaps we should look to the Trump effect as just one of multiple reasons why Tesla is on the rise. The acquisition of Solar/City, the announcement of solar roof tiles, the 2017 production of the new Model 3, production at the Nevada Gigafactory, SpaceX series of successes… the list of recent accomplishments is quite long. Investors like to back a winner, and, even if Musk must hold his nose as he negotiates with Donald Trump and his advisers, the value of Tesla will continue to be robust.
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It’s just not the White House that so many of us, Musk included, envisioned just a few months ago. And Breitbart’s entry to the field is scary enough for many of us to take notice. Be strong, Elon; you’re going to need tenacity to stay a step ahead. We know you’ll probably have to step up more than you originally anticipated when you agreed to serve. Thanks for taking on this huge responsibility on behalf of U.S. progressives.
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SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
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For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
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Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
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CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
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SpaceX is coming for wireless giants with Starlink Mobile
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
