Here's a story about a political breakup that feels almost personal. California Governor Gavin Newsom sat down for an interview and decided to get some things off his chest about his state's most famous, and now most frustrating, billionaire.
The subject was Tesla Inc. (TSLA) CEO Elon Musk, and Newsom didn't hold back. "One of the great disappointments," the Governor said when asked about the SpaceX founder. This is the kind of language you use for a star athlete who left for a rival team, not usually for a tech titan. The disappointment, Newsom made clear, stems from Musk's vocal support for and association with former President Donald Trump.
But here's the twist—and it's a classic "it's complicated" situation. In the very next breath, Newsom hailed Musk as "one of the great innovators of our time," drawing a direct parallel to Thomas Edison. "He's the Edison of our time. It breaks my heart," Newsom shared, adding a layer of genuine, almost wistful regret to his criticism. He reminded everyone that he was an early Tesla adopter, one of the first people to get a car off the line, and has been "one of their biggest proponent supporters."
Then came the reminder of who helped build the stage Musk performs on. Newsom pointed out that the favorable regulatory environment in California helped Musk become the "multi-billionaire, maybe trillionaire, that he's become." It's a not-so-subtle nod to the idea that success has many parents, including the state that provided the rules of the road.
The conversation quickly shifted from personal disappointment to global market anxiety. Newsom described what he sees as a massive strategic blunder by both Musk and Trump: letting Chinese electric vehicles (EVs) dominate the global stage. He called it the "greatest own goal."
"They have 70% of the global EV market. It's about statecraft with them. It's about supply chains. They're flooding the zone all around the globe," Newsom warned. He pointed to Canada's tariff agreement with China, which allows over 49,000 Chinese-made EVs into the country at a lower rate, with a potential extension to 70,000. "It's a national security play and I really fear what's going to happen to American legacy automobile manufacturers," the Governor added, framing the economic competition in stark, defensive terms.
This warning creates an interesting tension within Newsom's own administration. He noted that the California Air Resources Board (CARB) chair, Lauren Sanchez, had been "excited to see what unfolds in Canada" regarding the deal. It highlights the complex push-and-pull between climate goals, which benefit from more EVs anywhere, and economic protectionism.
Newsom's critique of Musk extended to Tesla's business strategy itself. He seemed to lament the company's apparent pivot. "He's put the brakes on his own innovation in that space [automobiles] and now shifted to robotics, humanoids," Newsom observed. For a Governor who championed Tesla's cars, watching the company's focus drift toward robots must feel like a betrayal of the original mission. Musk, for his part, has recently hinted at a possible new Tesla model, suggesting the automaker isn't entirely done with EVs after all.
The Governor's candid interview didn't stop at Tesla. He also shared his thoughts on Palantir Technologies Inc. (PLTR) co-founder Peter Thiel. Newsom acknowledged Thiel's "next-level intellect" but said the entrepreneur had become "nihilistic."
"He shouldn't be put purely in a political box, as I know my party often puts him into," Newsom said, suggesting Thiel belonged in "many different boxes." The comment comes with recent financial context: in January, Thiel donated over $3 million to a committee opposing a proposed California wealth tax targeting billionaires—a tax that Newsom himself had vowed to block.
According to market data, Tesla scores well on the Momentum metric and also offers a favorable price trend in the Long term.
Price Action: TSLA gained 0.76% to $385.95 at market close on Wednesday, but declined 0.16% to $385.35 during the after-hours session.
