☢️ Axios AM: Musk's danger zone

Plus: Jaw-dropping graph | Monday, December 05, 2022

Open in app View in browser   Presented By Solutions for Pollution   Axios AM By Mike Allen · Dec 05, 2022 Good Monday morning. Smart Brevity™ count: 1,176 words ... 4½ minutes. Edited by Noah Bressner.     1 big thing: GOP rips McCarthy "saboteurs" Photo illustration: Aïda Amer/Axios. Photo: Chip Somodevilla/Getty Images   Key hard-right influencers are backing Kevin McCarthy for House speaker, despite a rebellion by some right-wing members. Why it matters: In a leadership fight, it's rare for the party's rabble-rousers to back an incumbent, Axios' Sophia Cai reports. Between the lines: McCarthy's longtime strategy of courting the right is paying off. Given McCarthy's establishment bona fides, there's zero chance he'd have this right-wing defense without his years of patient overtures. That doesn't guarantee he'll overcome the opposition. But it improves his chances. What's happening: These influential supporters include immigration hardliner Stephen Miller + Reps. Jim Jordan of Ohio and Marjorie Taylor Greene of Georgia. But we're really seeing it with a chorus of conservative media powerhouses, including radio host Mark Levin, Mike Cernovich (1 million Twitter followers) and Breitbart's Matt Boyle. Zoom in: Levin drove headlines by calling anti-McCarthy Republicans a "gang of 5 saboteurs." Breitbart warned of a "doomsday scenario." Human Events senior editor Jack Posobiec asked: "Are there seriously people saying it's ok to hand veto power over subpoenas to the Democrats in attempt to stop Kevin McCarthy?" 🧮 The math: McCarthy can't afford more than four defections for the floor vote on Jan. 3. Speakers are elected by members from both parties; the House speaker needs 218 votes to ascend. Five House Republicans have indicated they oppose giving McCarthy the gavel: Reps. Andy Biggs (Ariz.), Matt Gaetz (Fla.), Bob Good (Va.), Ralph Norman (N.C.) and Matt Rosendale (Mont.). 🥊 Reality check: There's no clear McCarthy alternative. Jordan and House Republican Whip Steve Scalise (La.), the two viable alternative candidates, both support McCarthy. Share this story.     2. 🔮 CEO optimism fading Data: Business Roundtable. Chart: Axios Visuals The chief executives of America's biggest companies have downgraded their view of the economy — though not to recessionary gloom, Axios' Courtenay Brown and Neil Irwin report. Why it matters: CEO plans for hiring and capital spending are more consistent with a slowdown than outright contraction. 🧮 By the numbers: The new Business Roundtable CEO Economic Outlook, shared first with Axios, declined 11 points — continuing the steady slide that's happened every quarter this year. When 142 CEOs of major U.S. companies were surveyed in late November, they reported relatively healthy plans for sales growth, hiring and capital spending. But those expectations had notably cooled from last year's nosebleed levels. 40% of CEOs expect to increase employment at their firms within the next six months. This time last year, 77% planned to do so. GM CEO Mary Barra, who chairs the Business Roundtable, said: "With continued supply chain challenges and inflation uncertainty, many CEOs remain cautious about domestic plans and expectations for the next six months." Share this story ... More later today in our midday newsletter, Axios Macro.     3. ☢️ Musk's danger zone Via Twitter   Much of Elon Musk's wealth is tied up in Tesla stock, which is down roughly 50% from the start of the year. He's also believed to hold lots of crypto, which had a lousy year. Why it matters: It's symbolic of a year when Musk soared in mindshare — as his array of businesses weathered stalls and setbacks, writes Scott Rosenberg, Axios managing editor for tech. 🔋 State of play: Tesla shareholders fret that Musk has spread himself too thin as the owner-manager of a half dozen major enterprises. As Musk obsesses over Twitter, Tesla faces tons of new competition — and its market share has begun declining. Tesla finally shipped the first of its Semi trucks last week. In 2017 Musk promised the electric big rig would "blow your mind clear out of your skull." But many doubts remain. 🐦 At Twitter, Musk needs to boost revenue while operating with one-third the staff. A much-touted subscription overhaul is on pause after a rush-job launch led to a train wreck of impersonation and fraud. Many advertisers, the company's main source of income, paused their buys as Musk took control. The company's payroll costs are down. But it has to pay roughly $1 billion in annual interest on the $13 billion debt the company took on as part of Musk's buyout. 🚀 Touring Musk's other enterprises: At SpaceX, the good outweighed the bad. His rockets set a launch record, and Falcon Heavy returned to the skies. But the company saw an unusual rise in dissent and workplace complaints. The Boring Company, a Musk startup that aims to build tunnels under U.S. cities to speed traffic, has completed just one project — a loop under the Vegas convention center. Boring has teased projects in L.A., Chicago, Maryland and Fort Lauderdale — but hasn't followed through with actual bids, The Wall Street Journal reported in a story headlined, "Musk's Boring Company Ghosts Cities Across America." Musk's Neuralink is developing technology for human-computer interfaces directly implanted in human skulls. As is often the case for Musk projects, Neuralink has presented video demos — most recently last week — touting breakthroughs just around the corner. 🥊 Reality check: Musk's net worth of nearly $200 billion still places him at the pinnacle of the global plutocracy. Even if he had to zero out his Twitter investment, he'd be fine. Share this story.     A message from Solutions for Pollution Polluters have been put on notice     President Biden's landmark law helps cut climate pollution by 40%. Looking ahead: We must keep cutting carbon pollution and toxic soot and smog. So watch out, polluters. Learn how President Biden is fighting for our health and a clean energy future.     4. 📷 1,000 words Photo: Saul Loeb/AFP via Getty Images Paul Pelosi, wearing a hat and glove as he recovers, joined Speaker Pelosi in the presidential box last night at the 45th Kennedy Center Honors. Photo: Sarah Silbiger/Reuters Also in the box were President Biden, Vice President Harris and Second Gentleman Doug Emhoff. See the honorees ... Biden's remarks.     5. 👀 Zero words Data: CoinGecko. Chart: Axios Visuals Hat tip: Axios Markets     6. 🗳️ Dems' new path Data: DNC. Map: Kavya Beheraj/Axios Here's the new DNC primary plan for 2024, which scuttles Iowa after 44 years at the center of presidential campaigning. Screenshot: CNN     7. ⚾ Scoop: Dominican Republic's baseball power The San Diego Padres' (from left) Manny Machado, Juan Soto and Luis Garcia hold the flag of the Dominican Republic before a home game in October, in a salute to National Hispanic Heritage Month. Photo: Denis Poroy/Getty Images The Dominican Republic will host the first international office for the Major League Baseball Players Association, Axios' Keldy Ortiz has learned. Why it matters: The new office — to be announced today in the country's capital, Santo Domingo — comes as the league and union work to enhance their presence in the Caribbean and Latin America. Context: The Dominican Republic is the leading birthplace for MLB players from outside the U.S., according to the 2022 opening-day rosters. The MLBPA — which handles grievances, and already has an office in New York — says the new office will be a hub for players throughout the Caribbean and Latin America. Share this story.     8. 🏈 College football final 4 Axios Visuals   The College Football Playoff matchups for New Year's Eve: Fiesta Bowl: No. 2 Michigan vs. No. 3 Texas Christian University (TCU). Peach Bowl: No. 1 Georgia vs. No. 4 Ohio State. Axios Sports editor Kendall Baker tells us Georgia is a 6.5-point favorite over Ohio State in Caesars Sportsbook. Michigan is a 9.5-point favorite over TCU. The bottom line: Georgia is the odds-on favorite to win the national title at -135, followed by Michigan (+290), Ohio State (+350) and TCU (+1600). Go deeper: All 43 bowls ... 17 on ESPN. 🧀 P.S. The Green Bay Packers yesterday clinched the bragging rights we previewed for you Friday: Graphic: Green Bay Packers See the Top 10.     A message from Solutions for Pollution Americans are ready for more climate action     The U.S. is on a path to cut climate pollution in half by 2030. We can reach President Biden's ambitious goal with strong solutions for pollution — such as federal protections for our health, our air and our environment from carbon, soot, smog and other toxic pollution. Learn more.   📬 Thanks for starting your week with us. Please invite your friends to sign up to get their daily essentials — Axios AM, PM and Finish Line. Are you a fan of this email format? Your essential communications — to staff, clients and other stakeholders — can have the same style. Axios HQ, a powerful platform, will help you do it.   Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here. Sponsorship has no influence on editorial content. Axios, 3100 Clarendon B‌lvd, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. Change your preferences or unsubscribe here.   Was this email forwarded to you? Sign up now to get Axios in your inbox. And make sure you subscribe to Mike's afternoon wrap up, Axios PM.   Follow Axios on social media: