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Tesla Power Play: Why running a contested Elon Musk narrative is playing with fire

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Award-winning journalist Tim Higgins‘ book, “Power Play: Tesla, Elon Musk, and the Bet of the Century,” is among the most recent explorations into the fascinating character of Elon Musk. But unlike other works such as the still-definitive biography from writer Ashley Vance, Higgins’ book chronicled Tesla’s story during the Model X and Model 3 ramp (among others), periods that Musk himself admitted were among the most challenging times of his professional life. 

Filled with stories from numerous sources and spanning Tesla’s history from its early days to last year’s pandemic, Power Play painted a picture of how an incredibly determined Elon Musk practically willed Tesla into being, and how his ego and pettiness caused the company to pay the price more than once. This was a point that moderate Tesla critics would argue: Tesla is a success today not because of its CEO, but in spite of Elon Musk. 

After all, as the book noted in its Prologue, Musk may be a very public figure, but there is still a question surrounding him. “Is Elon Musk an underdog, an antihero, a con man, or some combination of the three?” Higgins noted in the book. 

A Strong Story with Strong Denials

A book written about Tesla’s most turbulent years is bound to have some controversial elements. And in Power Play, few excerpts would be as controversial as a supposed call between Tesla CEO Elon Musk and Apple CEO Tim Cook in 2016. At the time, Tesla was in dire financial straits as it attempted to produce the Model 3 and master the Model X’s production. According to the book, Tim Cook then had an idea: Perhaps it would be a good idea to buy Tesla. Musk reportedly proved interested, but on one condition: he stays on as CEO. 

Cook thought the condition was reasonable. After all, when Apple bought Beats in 2014, it decided to keep the company’s original founders. Musk, however, supposedly clarified his request, stating that he’d have to be the CEO of Apple. Gobsmacked at the request, Cook reportedly gave Musk a solid “F*ck you” before hanging up the phone. 

The anecdote was shocking enough, and it prompted quite a lot of coverage from the mainstream media, several of whom argued that the story was believable. This was despite the story being denied by both Musk and Cook. Last year, Musk remarked on Twitter that he did try to arrange a meeting with the Apple CEO during the Model 3’s most painful days, but Cook declined the meeting. Cook, on the other hand, clearly told The New York Times‘ Kara Swisher during an appearance at the Sway podcast that he’d never spoken to the Tesla CEO. 

Elon Musk and Tim Cook together in a room during the Trump administration in 2016. (Credit: @SaleemUsama/Twitter)

Power Play did mention that Cook denied the anecdote presented in the book, though it did not include Musk’s comments about him and the Apple CEO never speaking with each other. The book mentioned, however, that while the two executives claimed to have never spoken to each other, Musk and Cook have been photographed sitting close together at a meeting held by former US President Donald Trump in 2016. 

A Compelling Narrative for a Compelling Character

In a Twitter post, Higgins stated that the tale of Musk and Cook’s phone conversation was a story told inside Tesla, and its details were related by individuals who heard it. That being said, it is still quite interesting to see that the anecdote made it to Power Play despite solid denials from both Cook and Musk. The book was published August 2021, after all, and Cook’s comments in the Sway podcast were published on April 2021. Musk’s statements about never meeting Cook, despite relating to a different time in Tesla’s history, were made even earlier in December 2020. 

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It should be noted that Power Play is, at its core, a nonfiction book that aims to provide a nonfictional account of some of Tesla’s most challenging times. This is why, at least to some degree, a story denied by both participants like the supposed Musk-Cook conversation seems far too risky. A nonfiction writing coach contacted by Teslarati noted that an author would typically be hard-pressed to find a more reliable source than the actual participants of an event.

That being said, the anecdote does help establish the character of Elon Musk in the book as someone egoistic enough that he would make an obviously unreasonable demand on Tim Cook at a time when Tesla desperately needed Apple’s help. There is no doubt that the image of Tim Cook, who is known for always being soft-spoken and well-mannered, giving Elon Musk a sharp “F*ck you” on the phone definitely makes for a compelling narrative. 

Dr. John Cook, founder of Skeptical Science and a specialist on false news, noted in a statement to Teslarati that stories such as the two CEOs’ supposed conversation could easily become an inspiration for conspiracy theories, or at least confirm people’s preconceptions of individuals in power. The Skeptical Science founder noted that when people encounter new information that confirms their own preconceptions, there is simply a high likelihood that they would believe it, even if the anecdote’s turthfulness is contested.

“When you have powerful people involved in misinformation, that’s ground for conspiracy theories. So having people like Elon Musk and Tim Cook — inevitably, people get suspicious of people in positions of power, and that’s a very human and natural bias called intentionality bias. We tend to ascribe motives and intent behind what can even be random events. And that’s especially the case when you have powerful people,” Dr. Cook said.  

The Burden of Truth 

Nonfiction writers have a huge burden on their shoulders, as the stories they tell serve the purpose of relating a truthful recounting of real-life events. As such, it is pretty common practice for books in the genre not to include stories that don’t have corroborating evidence. Otherwise, a nonfiction author might end up countering the nonfiction values of truth and honesty. 

Emma Frances Bloomfield, Assistant Professor of Communication Studies at the University of Nevada, Las Vegas, told Teslarati that the burden of proof ultimately rests on the author in cases like the Musk-Cook phone call. And if an author does decide to push through with a story denied by the people involved, then the anecdote would be best presented as a contested account so that readers could decide for themselves. Power Play did this to a point for Cook’s side with its note about the Apple CEO’s denial, but the book did not mention Musk’s comments on Twitter at all.

Elon Musk giving YouTube tech reviewer Marques Brownlee a tour of the Fremont factory. (Credit: MKBHD/YouTube)

“If a story is presented as being truthful and accurate (such as in a nonfiction book), the storyteller has a burden of proof to verify the story or provide evidence of its truthfulness, which is hard to do when the people the story is about are denying it. If the author has some external reason to believe it still happened, then it could certainly be told, but with the caveat that the people in question dispute it.

“We don’t, of course, want to promote falsehoods and inaccuracies, so making it clear how much evidence there is for certain occurrences is crucial. Because this book is under ‘nonfiction’ as opposed to historical fiction, I would expect that there is a minimum truth quality to all of the work therein. In other words, the author must have a compelling reason to believe the conversation took place even though Musk and Cook dispute it,” she wrote. 

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Playing with Fire

There is some irony in the idea that by publishing the contested story of Musk and Cook’s supposed conversation, Higgins ended up playing with fire himself, much like the character depicting the Tesla CEO in Power Play. Pushing through with a contested narrative carries some risk, and not just in terms of social media clout. In a message to Teslarati, Jonathan Crafts, a partner at Fields & Dennis LLP, Wellesley, MA, stated that both the author and publisher of Power Play might be at risk of legal trouble, at least if either Musk or Cook seeks an injunction against them. 

Intellectual Property Litigation Law partner Craig R. Smith of Lando & Anastasi, LLP, Boston, MA, added more insights to the potential risks involved when an author runs with a contested story. Smith noted in a message to Teslarati that overall, authors and publishers of nonfiction are at an increased risk of being sued for defamation due to the nature of their work. “In this situation, either Musk or Cook could allege that the statements made in the book are false and that the false statements harmed his reputation,” Smith said. 

Every book has a narrative, regardless of whether it is fiction or nonfiction. Books such as Power Play are character-driven since it focuses on people’s struggles as they attempt what could very well be described as the impossible at the time. And central to the book’s narrative is the polarizing figure of Elon Musk, whose persona both online and offline could be the perfect bait for misinformation and conspiracy theories. And while tales with little truth are definitely questionable, Dr. Cook noted that it is easy to see why people tend to gravitate towards them. 

“Conspiracy theories can be compelling because they’re simple stories with compelling characters. A conspiracy theory doesn’t even have to have a relation to the truth at all. But if it’s a simple story with villains, with nefarious intent — that grabs people’s imaginations — and simple stories like that are easier to process and understand than more complicated truths,” Dr. John Cook remarked. 

Don’t hesitate to contact us with account tips. Just send a message to tips@teslarati.com to give us a heads up. 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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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.

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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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Investor's Corner

SpaceX reports beat in first earnings while minimizing losses

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Credit: SpaceX | X

SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.

After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.

Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.

SpaceX to report first-ever earnings today: here’s what to expect

Earnings Results

  • Revenues: $7.8 billion reported vs. $6.7 billion expected
  • Adjusted EBITDA: $3.5 billion vs. $2 billion expected
  • Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion

Additionally, CFO Bret Johnsen had these comments:

“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”

Space Business Highlights

SpaceX shared some of its biggest Space Business Highlights for Q2:

  • Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
  • Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
  • Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
  • Starship V3 development continued to advance towards full and rapid reusability:
    • Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
    • Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield

SpaceX will report its earnings today at 4:30 P.M. EDT.

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Elon Musk

Elon Musk sends second warning to SpaceX shorts ahead of first earnings

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Credit: Grok Imagine

Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …

The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.

This marks the second such message from Musk in under three weeks.

On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.

Elon Musk sends first warning to SpaceX short sellers

Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.

SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.

Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.

As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.

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