Washington - Business leaders across America have been
navigating a new world of trade-offs since Donald Trump became president last
month. But perhaps no major chief executive has wrestled as directly or
frequently with his or her connections to Trump as Elon Musk, founder of Tesla
and Space X.
While Silicon Valley has generally approached Trump with
caution, Musk joined a business council advising the White House. As an
inventor who is trying to build up manufacturing in America, he had a natural
affinity with Trump. On Wednesday, he had a private phone conversation with
Vice President Mike Pence.
But the recent executive order that temporarily halted
immigration from seven majority-Muslim countries has exposed the Musk to
criticism. Like other executives, he has been forced into the difficult
position of defending the merits of engaging with the White House while trying
not to alienate key customers or employees.
Tech investor Fred Wilson told the business news site
Quartz that "the CEOs that have chosen to get involved with Trump in an
advisory way: When you lie down with the dog, you're going to come up with
fleas."
EBay co-founder Pierre Omidyar tweeted on February 4, in
response to a story about Musk meeting with Trump, that sitting down with
opponents is only effective "if it's in good faith. Trump camp uses you
for legitimacy."
On Twitter, users were pointed in their criticism.
"It is becoming clearer that it is time for you to stop working with
Trump," one wrote. "How many Tesla sales have you lost as of
now?"
Read also: Uber CEO quits Trump's business advisory group
Musk has maintained on social media that his role as an
adviser should not suggest he supports all of Trump's policies. Instead, he
says, his presence offers an opportunity to challenge the White House on issues
such as immigration and climate change and to raise more moderate points of
view that might otherwise be left out of the conversation.
"People should push to have as many moderates
advising the President as possible. Blind hate is never the right answer,"
Musk tweeted on February 5, after a Twitter user said his friends were
"disavowing" Musk because of his Trump connection.
Tesla declined to make Musk available for an interview.
Unlawful
After the immigration executive order was signed,
executives from Google, Facebook, Twitter and other major tech companies
expressed their dismay through internal memos and social media posts. Then last
weekend, many big-name tech firms took the rare step of filing a joint legal
brief calling the order "unlawful."
Tesla and SpaceX signed on to the brief a day after it
was filed.
Regarding the meeting at the White House: pic.twitter.com/8b1XH4oW6h
— Elon Musk (@elonmusk) February 3, 2017
A federal appeals court Thursday continued a freeze on
the executive order, allowing refugees and immigrants who were banned to enter
the United States.
The angry response to the executive order prompted
another Silicon Valley executive, Travis Kalanick of Uber, to resign from
Trump's advisory council.
But Kalanick and Musk run very different companies. While
Uber has built its business on positive public opinion and thumbing its nose at
regulators, Tesla and SpaceX operate in heavily regulated industries and rely
on the government for financial incentives.
"Advisory councils simply provide advice and
attending does not mean that I agree with actions by the Administration,"
Musk wrote on Febuary 2. "My goals are to accelerate the world's
transition to sustainable energy and to help make humanity a multi-planet
civilization, a consequence of which will be the creation of hundreds of
thousands of jobs and a more inspiring future for all."
Read also: SAP reassures staff on Trump travel ban
In his advisory role, Musk enjoys access to Trump and his
top administrators. It's possible this relationship could end up enriching Musk
and his shareholders.
Last month, a Morgan Stanley analyst suggested investors
should buy Tesla stock, in part because of his access to the new
administration. Musk's vision of putting humans on other planets, especially
Mars, and redefining ground transportation through cars that are autonomous and
free of fossil fuels will depend on government support.
Adam Jonas, the analyst, said that while there might be
some customers who disagree with Musk, "We would be surprised if that
would represent a significant impediment to his business . . . what he's
explained to investors over the years is there is a bigger mission going
on."
Realistically, most CEOs cannot afford to rebuff the
White House even if they disagree with Trump's policies, said John Mayo,
executive director of Georgetown University's Center for Business and Public
Policy.
Ultimately, the upheaval in governance and policymaking
that the administration has ushered in creates tremendous business opportunity
that executives would be remiss to pass up, Mayo said.
"There is simply nothing to be gained from sitting
on the sidelines," he said. "That leaves the fate of your business
and industry to others to decide."
Tech investor and former AOL executive Steve Case served
on various advisory committees under presidents Bill Clinton, George W. Bush
and Barack Obama. There is always partisanship to contend with, he said. But,
ultimately, policymaking benefits from having more voices, not fewer,
particularly when opinions on an issue are starkly divided.
"I understand why some people think the right way is
to protest, and that's a healthy part of our democracy," Case said.
"But business leaders need to be at the table, particularly people who
bring that tech and entrepreneurial perspective to the table."