Tesla’s Elon Musk and Hip-Hop Legend Kanye West are two industry leaders. Elon Musk is the CEO of Tesla, SpaceX, and the Boring Company, while Kanye has spent many years of his career as one of the best artists that the Hip-Hop/Rap genre has to offer. Both looked at as legends in their respective fields; the two men teamed up last week in a notorious picture that amassed hundreds of thousands of Retweets and Likes on Twitter.
Musk and West have a history as well. In December, Musk attended a party with Kanye and wife Kim Kardashian, accompanied by other rap superstars like Travis Scott and Quavo of “Migos.” Musk and Kanye, along with the other two artists, took pictures and celebrated the Holiday together.
The recent photograph, however, seemed to be a statement against the current Presidential Administration, as just a few days later, Kanye announced his intentions to run for the Office of President of the United States of America. The man who recorded some of rap’s most powerful songs would run as a representative of the “Birthday Party,” and the man who just led the first privatized company to put people into space would be the head of the West Administration’s Space Program.
You have my full support!
— Elon Musk (@elonmusk) July 5, 2020
West would continue a trend of U.S. Citizens electing celebrities with no “real” political experience into the White House. But, in all honesty, anything is worth a shot, right?
The partnership between Musk and West would be indicative of an administration comprised of two people who are Google’d more often than many people. West and Musk share a few similarities that have to deal with their fan bases. A cult-like following for both men follows their every move, justifying and supporting whatever the most recent choices of their respective idol are.
-
This is a preview from our weekly newsletter. Each week I go ‘Beyond the News’ and handcraft a special edition that includes my thoughts on the biggest stories, why it matters, and how it could impact the future.
A big thanks to our long-time supporters and new subscribers! Thank you.
As a fan of both individuals, I have called Elon Musk my favorite “businessperson” for several years, while Kanye has been my favorite “musical artist” since 2010. Both men, outspoken and passionate in their own rights, have attracted a type of attention that seems to be either love or hate, and there are very few people who are stuck in the middle.
Musk is a visionary. A man who sees a future past planet Earth and will do anything it takes to stop the destruction of the planet, along with the extinction of the human race. Developing sustainable transportation, backed up with a plan to escape the planet and head to Mars if things don’t go according to the Master Plan. Personally, I’ll never understand how someone can dislike the guy, but I have encountered people over the years who have refused to give Musk a chance to prove himself. Immediately writing him off, until they get an opportunity to ride in one of his cars, Musk is a man who speaks his mind, which is something of a dying breed. The CEO is one of the few examples of a “real” person that is left in this world, and to me, that is certainly respectable.
West is virtually no different, just more controversial. He has always been a man who has put his personal anecdotes into his music, lyrically. I remember when West confronted a paparazzi by taking his camera, which in turn became a lyric in the song “New Slaves,” where he described taking “recorders” from the paparazzo. The subjects of his music have been controversial, but they have described events in his life in a passionate way. After President Trump was elected, West showed up at the Trump Tower on Fifth Avenue in New York City to have a conversation. After dawning the red “Make America Great Again” hat, West made his support of the newly elected President clear.
“So go and grab the reporters
So I can smash their recorders”
-Kanye West, “New Slaves,” 2013
Since then, “Ye” has halted his support for the President. In an interview with Forbes, West stated that he was “taking the red hat off with this interview.” It may have been an indication that West was fed up with Trump’s response to any of the recent conflicts that have plagued our country. More than likely, however, it was a nod of seriousness that he would be running to take the Presidency from Trump.
-
The two men’s photograph together captured the essence of a stance against a man who has gone against what both men have stood for since the beginning of their journeys. Musk has aimed toward a sustainable future for transportation and energy. On the contrary, Trump has taken put both issues on hold in favor of coal and natural gas supply because of employment measures. However, Trump implemented tariffs of solar energy, which sent 62,000 jobs to other countries, something he promised not to do while campaigning for office.
Kanye, although vocally supportive of Trump for the past few years, has decided to officially retire his duties as a supporter of the President. However, he didn’t speak badly about Trump to Forbes, but did have quite a few things to say about Democratic candidate Joe Biden.
The essence of Kanye’s presidential campaign is backed by religious beliefs, which has been the main focus of the West family for a few years. Kanye has started a “Sunday Service,” which hosts a gospel Church service on most Sundays in the Los Angeles area. The events are aimed toward spreading love, equality, and the word of God, and his campaign seems to be no different.
Many of the questions based on his campaign techniques were answered with responses that would come from someone who is religious. But, nonetheless, West’s political campaign is young and untested, and he only has a few months to prepare before November.
Most recently, developments between Musk and West may have taken a turn. After West posted, and quickly deleted, an anti-abortion Tweet and claimed he was anti-vaccine, Musk claimed, “We may have more differences of opinion than I anticipated.”
The question is: Is West’s run toward the U.S. Presidency real? If he wins, will Musk be the Head of the Space Force? Can the two men find common ground on their differences if West wins the election?
Only time will tell.
-
Please consider Subscribing and joining me next week as I go ‘Beyond the News’
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
-
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
-
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
-
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
-
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
