What's up guys and welcome back to wall street millennial on this channel, we cover everything related to stocks and investing over the past decade. Elon musk has become perhaps the most influential man in the world of technology and business. Most people give him credit for revolutionizing the electric vehicle industry and helping to steer the world to a sustainable energy future. He has also revolutionized the commercial space industry with spacex and may be responsible for putting humans on mars within our lifetimes.

In the past, politicians have largely been supportive of musk as a pioneer for american innovation and when joe biden took office last year, many thought that this would be a great thing for musk biden has long been a proponent of electric vehicles and his infrastructure bill allocated 5 billion to support the development of a nationwide network of charging stations in 2021, he met with the ceos of ford and gm to discuss their plans for electrification hosting both of them. At a white house meeting he even gave gm a free photo op by taking a ride in their electric hummer, notably absent from the white house meeting, was tesla ceo elon musk, who biden has never met in person. That might seem odd. Tesla is the largest electric vehicle maker in the us by far accounting for four out of five evs sold in 2020..

How can you have an ev meeting without tesla that would be like having a soft drink industry meeting without inviting coca-cola in response? Elon musk called biden a damn sock puppet on twitter, so, what's going on, shouldn't biden must be on the same page. They both want to create jobs in america and accelerate the transition to renewable energy. Why is biden ignoring musk in musk launching twitter wars? This video is brought to you by privacy.com privacy lets. You buy things online using virtual cards instead of having to use your real ones, protecting your identity and bank information on the internet.

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A grand total of zero of them were fully. Electric tesla only makes electric vehicles and more than three out of every four evs sold in america were teslas. So why wasn't musk invited the exclusion of tesla from the event was no accident. It was a carefully calculated political move by the biden administration shortly before the event white house, press secretary, jem saki.

Let slip why they gave musk the cold shoulder and the founder of tesla elon musk expressed surprise that he was not invited to this ceremony, because his company is obviously such a large manufacturer of electric vehicles. Can you give us any insight into why uh tesla wasn't included in this event today, it's the three largest employers of the united auto workers and the uaw president, who will stand with president biden as he announces his ambitious new target. It all has to do with unions, specifically the united, auto workers or uaw, which is the largest and most powerful private sector union in the us. The workforces of all three major detroit automakers are members of the uaw biden has long been a supporter of labor unions and he made empowering unions a key component of his presidential campaign.

The idea of a union is simple: the workers organize together and appoint representatives to negotiate with the automaker on their behalf. They try to get higher wages, safer working conditions and more job stability. If the automaker refuses to meet the union's conditions, they go on strike and refuse to work for a lot of factories. The majority of the able-bodied residents in the local communities are workers if all of them strike there's nobody else to replace them.

This gives the uaw a significant amount of bargaining power, because the automaker has no other options. They basically create a local labor monopoly to extract higher wages from the employers. The idea of unions is to equalize the balance of power and prevent the automakers from exploiting their workers. Unlike the big three detroit automakers tesla's workforce is not unionized.

Each tesla worker has to negotiate for their compensation and benefits directly with tesla, with no help from a union in the eyes of joe biden and other union supporters. When a big company like tesla, employs his workers directly, they will end up exploiting them with low wages and unsafe working conditions. So, as a result, we should expect to pay at tesla factories to be far inferior than ford or gm right. According to glassdoor, the average hourly production worker at ford gets paid 18 an hour plus another two dollars an hour in bonuses and profit sharing for a grand total of twenty dollars per hour.

The average total compensation for an equivalent tesla worker is 24 or 20 percent higher. Additionally, ford and gm workers automatically have 1.4 of their monthly salary deducted as a fee to the uaw and in most states, they're required to pay these dues, whether they want to be a member of the union or not. But how is that possible, even with all the power of collective bargaining, the uaw can't even give ford workers the same pay as tesla. The uaw is a non-profit organization, but it functions a lot like a company in that it generates tens of millions of dollars in revenue and its senior executives are paid handsomely in 2019 uaw president gary jones, as well as his predecessor, dennis williams, were arrested after a Wide-Ranging government investigation, as it turned out the uaw, has a long-standing culture of greeting corruption at the highest levels.

In 2019, fbi agents raided president gary jones mansion in detroit and found evidence of brazen embezzlement and corruption which had been going on for almost 10 years jones and over a dozen other high-ranking uaw officials had stolen millions of dollars from the union dues and spent it On their own consumption, including golf trips condos and over fifteen thousand dollars worth of luxury cigars - and this wasn't just an isolated incident - jones's predecessor, dennis williams - was also in on the corruption lining his own pockets, with hundreds of thousands of dollars. Authorities also uncovered a multi-year bribery probe where fiat chrysler paid over three million dollars in bribes to multiple uaw executives. The uaw is supposed to negotiate on behalf of the workers against fiat chrysler. If you were uaw executive and chrysler paid you three million dollars.

Do you think you'd be able to negotiate fairly with so much corruption? The uaw has not even been able to benefit the workers beyond what they would earn at a non-unionized company. Despite all the problems with uaw biden is still a big supporter of them. Under his proposed build back, better bill biden would give electric vehicles an additional 4 500 tax credit if it was made by union labor. This would clearly benefit gm ford and stalantis at the expense of non-unionized companies like tesla and toyota.

It's a classic example of using public policy to pick winners and losers in the private sector. But why is biden so obsessed with helping the uaw during the 2020 election campaign? The uaw officially endorsed joe biden effectively recommending their 400 000 members to vote for him. This support may have been crucial for biden's victory in michigan the state where the uiw has the biggest presence, there's a good chance. That biden kept this favor in mind when crafting his build back better bill shortly after the details of the bill were announced, elon musk put out a tweet calling biden, a sock puppet of the uaw.

Fortunately, for tesla and toyota, the buildback better bill was never passed. The detroit automakers will have to compete with tesla on equal terms, given how far ahead tesla already is. This will be very difficult for them. In the early days when tesla was a small startup, musk was largely supported by politicians, but now tesla is an 800 billion behemoth and musk has become the world's richest man with a net worth over 200 billion dollars.

This has built a new perception of him as a capitalist, fat cat and drawn the ire of some politicians in 2021 time magazine named elon musk as person of the year, but not everyone was happy about it. Senator elizabeth warren, who has long been a proponent of taxing the rich, put out a tweet saying the time person should have to at least pay some taxes. Warren has long been critical of billionaires like elon, musk and jeff bezos, who gain their wealth from share price appreciation until they sell their stock. The gains are unrealized and they owe zero federal taxes.

What warren failed to consider was that musk sold 10 of his tesla stock in 2021, which incurred an 11 billion tax bill. That's the highest tax bill from an individual in american history with wealth and success comes scrutiny. Elon is in the big leagues now, if he wants to fulfill his mission of transitioning the world to evs, he will have to fight not only the legacy automakers, but also their government supporters, alright, guys that wraps it up for this video. What do you think about? Musk's feud with biden: do you think biden should acknowledge tesla's role in starting the ev revolution.

Let us know in the comments section below as always. Thank you so much for watching and we'll see you in the next one wall, street millennial signing out.