Musk damaged Tesla’s brand in just a few months. Fixing it will likely take longer
Musk damaged Tesla’s brand in just a few months. Fixing it will likely take longer/node/2598221/world
Musk damaged Tesla’s brand in just a few months. Fixing it will likely take longer
US President Donald Trump and Tesla CEO Elon Musk speak to the press as they stand next to a Tesla Cybertruck on the South Portico of the White House on March 11, 2025 in Washington, DC. (AFP)
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Updated 24 April 2025
AP
Musk damaged Tesla’s brand in just a few months. Fixing it will likely take longer
Sales have plunged for Tesla amid protests and boycotts over Musk’s embrace of far right-wing views
Profits have been sliced by two-thirds so far this year, and rivals from China, Europe and the US are pouncing
Updated 24 April 2025
AP
NEW YORK: Elon Musk has been called a Moonshot Master, the Edison of Our Age and the Architect of the Future, but he’s got a big problem at his car company and it’s not clear he can fix it: damage to its brand.
Sales have plunged for Tesla amid protests and boycotts over Musk’s embrace of far right-wing views. Profits have been sliced by two-thirds so far this year, and rivals from China, Europe and the US are pouncing.
On Tuesday came some relief as Musk announced in an earnings call with investors that he would be scaling back his government cost-cutting job in Washington to a “day or two per week” to focus more on his old job as Tesla’s boss.
Investors pushed up Tesla’s stock 5 percent Wednesday, though there are plenty of challenges ahead. Who wants a Tesla?
Musk seemed to downplay the role that brand damage played in the drop in first-quarter sales on the investor call. Instead, he emphasized something more fleeting — an upgrade to Tesla’s best-selling Model Y that forced a shutdown of factories and pinched both supply and demand.
While financial analysts following the company have noted that potential buyers probably held back while waiting for the upgrade, hurting results, even the most bullish among them say the brand damage is real, and more worrisome.
“This is a full blown crisis,” said Wedbush Securities’ normally upbeat Dan Ives earlier this month. In a note to its clients, JP Morgan warned of “unprecedented brand damage.” Musk’s take on the protests
Musk dismissed the protests against Tesla on the call as the work of people angry at his leadership of the Department of Government Efficiency because “those who are receiving the waste and fraud wish it to continue.”
But the protests in Europe, thousands of miles from Washington, came after Musk supported far-right politicians there. Angry Europeans hung Musk in effigy in Milan, projected an image of him doing a straight-arm salute on a Tesla factory in Berlin and put up posters in London urging people not to buy “Swasticars” from him.
Sales in Europe have gone into a free fall in the first three months of this year — down 39 percent. In Germany, sales plunged 62 percent.
Another worrying sign: On Tuesday, Tesla backed off its earlier promise that sales would recover this year after dropping in 2024 for the first time a dozen years. Tesla said the global trade situation was too uncertain and declined to repeat the forecast. Here come the rivals
Meanwhile, Tesla’s competition is stealing its customers.
Among its fiercest rivals now is Chinese giant BYD. Earlier this year, the EV maker announced it had developed an electric battery that can charge within minutes. And Tesla’s European rivals have begun offering new models with advanced technology that is making them real Tesla alternatives just as popular opinion has turned against Musk.
Tesla’s share of the EV market in the US has dropped from two-thirds to less than half, according to Cox Automotive. Pinning hopes on cybercabs
Another rival, Google parent Alphabet, is already ahead of Tesla in an area that Musk has promised will help remake his company: Cybercabs.
One of the highlights of Tesla’s call Tuesday was Musk sticking with his previous prediction that it will l aunch driverless cabs without steering wheels and pedals in Austin, Texas, in June, and in other cities soon after.
But Google’s service, called Waymo, already has logged millions of driverless cybercab trips in San Francisco, Phoenix, Los Angeles, and Austin as part of a partnership with ride-hailing leader Uber. A driverless future for Tesla owners?
Musk also told analysts that this driverless capability will be available on the Tesla vehicles already on the road through software updates over the air, and put a timeline on it: “There will be millions of Teslas operating autonomously in the second half of the year.”
But he has made similar promises before, only to miss his deadlines, such as in April 2019 when he vowed full automation by the end of the next year. He repeated the prediction, moving up the date, several more times, in following years.
A big problem is federal investigators have not given the all-clear that Tesla vehicles can drive completely on their own safely. Among other probes, safety regulators are looking into Tesla’s so-called Full Self-Driving, which is only partial self-driving, for its tie to accidents in low-visibility conditions like when there is sun glare. On the positive side
In competition with rivals in the US, Tesla currently has one clear advantage: It will get hurt by less by tariffs because most of its vehicles are built in the countries where they are sold, including those in its biggest market, the US
“Tariffs are still tough on a company where margins are still low, but we do have localized supply chains,” Musk said Tuesday. “That puts us in a strong position.”
The company also reconfirmed that a cheaper version of its best-selling vehicle, the Model Y sport utility vehicle, will be ready for customers in the first half of this year. That could help boost sales.
Another plus: The company had a blow out first quarter in its energy storage business. And Musk has promised to be producing 5,000 Optimus robots, another Tesla business, by the end of the year. Pricey stock
Even after falling nearly 50 percent from its December highs, Tesla’s stock is still very richly valued based on the one yardstick that really matters in the long run: its earnings.
At 110 times its expected per share earnings this year, the stock is valued more than 25 times higher than General Motors. The average stock on in the S&P 500 index trades at less than 20 times earnings.
That leaves Tesla little margin for error if something goes wrong.
Trump administration considers allowing tariffs of up to 15 percent for 150 days, WSJ reports
Updated 59 min 47 sec ago
Reuters
President Donald Trump’s administration is considering a stopgap effort to impose tariffs on large parts of the global economy under an existing law that includes language allowing for tariffs of up to 15 percent for 150 days, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The administration has not made a final decision and it could wait to impose any plans after a federal appeals court on Thursday temporarily reinstated the most sweeping of Trump’s tariffs following a trade court ruling to immediately block them, the report added.
Tens of thousands demonstrate in Nepal seeking restoration of ousted monarchy
Updated 30 May 2025
AP
KATMANDU, Nepal: Tens of thousands of protesters demanding the abolished monarchy be restored and the former king be made the head of state of the Himalayan nation demonstrated in Nepal Thursday.
The protesters, waving flags and chanting slogans, demanded the return of the king and the restoration of Hinduism as a state religion as they marched through the main circle in the capital, Katmandu.
Just a few hundred meters (yards) from the pro-monarchy protesters, their opponents, who are supporters of the Prime Minister Khadga Prasad Oli, had gathered at the exhibition grounds to celebrate Republic Day.
There was fear that these two groups could likely clash and create trouble in the city. Hundreds of riot police kept the two groups apart and authorities had given them permission on different times to carry out their rallies.
Nepal abolished the monarchy and turned the nation into a republic in 2008, bringing in a president as the head of the state.
“Bring king back to the throne and save the country. We love our king more than our lives,” the estimated 20,000 protesters chanted with a few playing traditional drums and musical instruments.
“We are going to continue our protests until the centuries-old monarchy is brought back and the country turned in to a Hindu stage for the interest of the country,” said Dil Nath Giri, a supporter of the former king at the rally.
The pro-monarchy supporters had announced they were restarting their protests from Thursday.
In their last protest on March 28, two people including a television cameraman, were killed when protesters attacked buildings and set them on fire while police fired bullets and tear gas on the protesters. Several protesters arrested on that day are still in jail.
There has been growing demand in recent months for Gyanendra Shah to be reinstated as king and Hinduism to be brought back as a state religion. Royalist groups accuse the country’s major political parties of corruption and failed governance and say people are frustrated with politicians.
Massive street protests in 2006 forced Gyanendra to give up his authoritarian rule, and two years later the parliament voted to abolish the monarchy.
Gyanendra, who left the Royal Palace to live as commoner, has not commented on the calls for the return of monarchy. Despite growing support, the former king has little chance of immediately returning to power.
US probes effort to impersonate White House Chief of Staff, WSJ reports
Updated 30 May 2025
Reuters
US federal authorities are investigating an effort to impersonate White House Chief of Staff Susie Wiles, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The report said Wiles had told associates that some of her cellphone contacts had been hacked, allowing the impersonator to access private phone numbers.
The incident affected her personal phone, not her government phone, the report said.
The Journal reported that in recent weeks, senators, governors, top US business executives and other figures received messages and calls from a person who claimed to be Wiles, citing the people familiar with the messages.
The White House and FBI did not immediately respond to requests for comment.
The White House has struggled with information security. A hacker who breached the communications service used by former Trump national security adviser Mike Waltz earlier this month intercepted messages from a broad swathe of American officials, Reuters reported recently.
And late last year, a White House official said the US believed that an alleged sweeping Chinese cyber espionage campaign known as Salt Typhoon targeted and recorded telephone calls of “very senior” American political figures.
As Wiles is a key Trump lieutenant and a lynchpin of the White House’s operation, the content of her personal phone would be of extraordinary interest to a range of foreign intelligence agencies and other hostile actors.
Wiles has reportedly been targeted by hackers at least once before, in the final months of Trump’s 2024 presidential campaign. At the time, hackers alleged by US authorities to be acting on behalf of Iran approached journalists and a political operative with a variety of messages sent to and from Wiles, some of which were eventually published.
Elon Musk came to Washington wielding a chain saw. He leaves behind upheaval and unmet expectations
The world’s richest person got a seat at Trump’s table and put $250 million behind his campaign
He was suddenly everywhere — in Cabinet meetings, sleeping in the White House, or with his young son in the Oval Office
“They made some changes without really knowing what they were doing... they set themselves up for failure,” says think tank exec
Updated 30 May 2025
AP
WASHINGTON: Elon Musk arrived in the nation’s capital with the chain saw-wielding swagger of a tech titan who had never met a problem he couldn’t solve with lots of money, long hours or a well-calibrated algorithm.
President Donald Trump was delighted to have the world’s richest person — and a top campaign donor — working in his administration, talking about how he was “a smart guy” who “really cares for our country.”
Musk was suddenly everywhere — holding forth in Cabinet meetings while wearing a “tech support” shirt and black MAGA hat, hoisting his young son on his shoulders in the Oval Office, flying aboard Air Force One, sleeping in the White House. Democrats described the billionaire entrepreneur as Trump’s “co-president,” and senior officials bristled at his imperial approach to overhauling the federal government.
After establishing Tesla as a premier electric automaker, building rockets at SpaceX and reshaping the social media landscape by buying Twitter, Musk was confident that he could bend Washington to his vision.
Now that’s over. Musk said this week that he’s leaving his job as a senior adviser, an announcement that came after he revealed his plan to curtail political donations and he criticized the centerpiece of Trump’s legislative agenda.
It’s a quiet exit after a turbulent entrance, and he’s trailed by upheaval and unmet expectations. Thousands of people were indiscriminately laid off or pushed out — hundreds of whom had to be rehired — and some federal agencies were eviscerated.
But no one has been prosecuted for the fraud that Musk and Trump said was widespread within the government. Musk reduced his target for cutting spending from $2 trillion to $1 trillion to $150 billion, and even that goal may not be reached.
In Silicon Valley, where Musk got his start as a founder of PayPal, his kind of promises are known as vaporware — a product that sounds extraordinary yet never gets shipped to market.
Trump said Thursday on his Truth Social platform that he would hold a press conference Friday with Musk. “This will be his last day, but not really, because he will, always, be with us, helping all the way,” Trump added. “Elon is terrific!”
Musk’s position was always designed to be temporary, and he had previously announced his intention to dedicate more of his time to his companies. But he also told reporters last month that he was willing to work part-time for Trump “indefinitely, as long as the president wants me to do it.” Musk got a seat at Trump’s table and put $250 million behind his campaign
It was clear that Musk wouldn’t be the typical kind of presidential adviser around the time that he showed the world his belly button.
Racing on stage at a campaign rally one month before the election, he jumped for joy next to Trump, his T-shirt rising to expose his midriff. Musk had already sold Trump on his idea for a Department of Government Efficiency while also putting at least $250 million behind his candidacy.
The plan called for a task force to hunt for waste, fraud and abuse, a timeworn idea with a new twist. Instead of putting together a blue-ribbon panel of government experts, Trump would give his top donor a desk in the White House and what appeared to be carte blanche to make changes.
Musk deployed software engineers who burrowed into sensitive databases, troubling career officials who sometimes chose to resign rather than go along. Trump brushed off concerns about Musk’s lack of experience in public service or conflicts of interest from his billions of dollars in federal contracts.
Their unlikely partnership had the potential for a generational impact on American politics and government. While Musk dictated orders for government departments from his perch in the White House, he was poised to use his wealth to enforce loyalty to the president.
His language was that of catastrophism. Excessive spending was a crisis that could only be solved by drastic measures, Musk claimed, and “if we don’t do this, America will go bankrupt.”
But even though he talked about his work in existential terms, he treated the White House like a playground. He brought his children to a meeting with the Indian prime minister. He let the president turn the driveway into a makeshift Tesla showroom to help boost sales. He installed an oversized screen in his office that he occasionally used to play video games.
Sometimes, Trump invited Musk to sleep over in the Lincoln Bedroom.
“We’ll be on Air Force One, Marine One, and he’ll be like, ‘do you want to stay over?’” Musk told reporters. The president made sure he got some caramel ice cream from the kitchen. “This stuff’s amazing,” Musk said. “I ate a whole tub of it.”
Elon Musk and President Trump shake hands as they attend the men's NCAA wrestling competition at the Wells Fargo Center in Philadelphia, Pennsylvania, on March 22, 2025. (AFP)
Looking back on his experience in government, he described it as a lark.
“It is funny that we’ve got DOGE,” an acronym that references an online meme featuring a surprised-looking dog from Japan. “How did we get here?” Musk did not give federal workers the benefit of the doubt
From the beginning, Musk treated federal workers with contempt. At best, they were inefficient; at worst, they were committing fraud.
His team offered them a “fork in the road,” meaning they could get paid to quit. Probationary employees, generally people new on the job without full civil service protection, were shown the door.
Anyone who stayed faced escalating demands, such as what became known as the “five things” emails. Musk wanted every government employee to submit a list of five things they accomplished in the previous week, and he claimed that “failure to respond will be taken as a resignation.”
Some administration officials curtailed the plan, concerned that it could jeopardize security in more sensitive areas of the government, and it eventually faded, an early sign of Musk’s struggle to get traction.
But in the meantime, he continued issuing orders like thunderbolts.
One day in February, Musk posted “CFPB RIP,” plus an emoji of a tombstone. The headquarters of the Consumer Financial Protection Bureau, created after the Great Recession to protect Americans from fraud and deceptive practices, was shut down and employees were ordered to stop working.
Musk had already started gutting the US Agency for International Development, a pillar of the country’s foreign policy establishment and the world’s largest provider of humanitarian assistance.
“Spent the weekend feeding USAID into a wood chipper,” he bragged.
Thousands of contacts were cut off, pleasing conservatives who disliked the agency’s progressive initiatives on climate change and gay rights.
Musk rejected concerns about the loss of a crucial lifeline for impoverished people around the globe, saying, “no one has died.” However, children who once relied on American assistance perished from malnutrition, and the death toll is expected to increase.
The lawsuits began piling up. Sometimes workers got their jobs back, only to lose them again.
The Food and Drug Administration, which is responsible for ensuring the safety of everything from baby formula to biotech drugs, planned to lay off 3,500 employees. But again and again, the agency was forced to rehire people who were initially deemed expendable, including laboratory scientists, travel bookers and document specialists.
Commissioner Marty Makary, who started his job after many of the cuts took place, told attendees at a recent conference that “it was hard and my job is to make sure we can heal from that.”
Only 1,900 layoffs took place, but another 1,200 staffers took buyouts or early retirement. Experts fear the agency has lost much of its institutional knowledge and expertise in areas like vaccines, tobacco and food.
There are also concerns about safety on public lands. The National Park Service has been bleeding staff, leaving fewer people to maintain trails, clean restrooms and guide visitors. More cuts at the Forest Service could undermine efforts to prevent and fight wildfires.
The Environmental Protection Agency faces a broad overhaul, such as gutting the Office of Research and Development, which was responsible for improving air pollution monitoring and discovering harmful chemicals in drinking water.
Not even low-profile organizations were exempt. Trump ordered the downsizing of the US Institute of Peace, a nonprofit think tank created by Congress, and Musk’s team showed up to carry out his plan. The organizations’ leaders were deposed, then reinstated after a court battle. Musk made little headway at the top sources of federal spending
The bulk of federal spending goes to health care programs like Medicaid and Medicare, plus Social Security and the military.
Unfortunately for Musk, all of those areas are politically sensitive and generally require congressional approval to make changes.
Thousands of civilian workers were pushed out at the Pentagon, and Defense Secretary Pete Hegseth is reducing the ranks of top generals and looking to consolidate various commands. A plan to downsize an office for testing and evaluating new weapons systems could save $300 million per year. Hegseth recently asked employees to submit one idea per week for cutting waste.
US President Donald Trump and Elon Musk (R) speak before departing the White House on his way to his South Florida home in Mar-a-Lago in Florida on March 14, 2025. (AFP)
However, the Pentagon budget would increase by $150 billion, for a total of more than $900 billion, under Trump’s spending proposal working its way through Congress. The money includes $25 billion to lay the groundwork for Trump’s “golden dome” missile defense program and $34 billion to expand the naval fleet with more shipbuilding.
Another $45 million is expected to be spent on a military parade on June 14, which is the 250th anniversary of the Army’s founding and Trump’s 79th birthday.
Musk also faced blowback for targeting Social Security, which provides monthly benefits to retirees and some children. He suggested that the popular program was “a Ponzi scheme” and the government could save between $500 billion and $700 billion by tackling waste and fraud.
However, his estimates were inflated. Social Security’s inspector general said there was only $71.8 billion in improper payments over eight years. Nor was there any evidence that millions of dead people were receiving benefits.
Changes to Social Security phone services, pitched as a way to eliminate opportunities for fraud, were walked back after an outcry from lawmakers and beneficiaries. But the agency could still shed 7,000 workers while closing some of its offices.
Musk’s popularity cratered even though Americans often agreed with his premise that the federal government is bloated and wasteful, according to polling from The Associated Press-NORC Center for Public Affairs Research.
Just 33 percent of US adults had a favorable view of Musk in April, down from 41 percent in December. In addition, 65 percent said Musk had too much influence over the federal government. Musk talked of staggering savings but delivered modest results
During a campaign rally in October, Musk said he could find “at least $2 trillion” in spending cuts. In January, before Trump was inaugurated, he revised by saying, “if we try for $2 trillion, we’ve got a good shot at getting one.”
But in April, at a Cabinet meeting, Musk provided a different target. He was “excited to announce” that they could reach $150 billion in savings during the current fiscal year.
Whether that figure proves to be accurate is difficult to measure, especially because DOGE routinely inflated or mischaracterized its work. But it falls short of President Bill Clinton’s initiative three decades ago, which resulted in $136 billion in savings — the equivalent of more than $240 billion today.
Elaine Kamarck, a key figure in the Clinton administration, said they focused on making the government more responsive and updating antiquated internal procedures. The work took years.
“We went about it methodically, department by department,” she said. The effort also reduced the federal workforce by more than 400,000 employees.
However, Musk did little to seek insight from people who knew the inner workings of government.
“They made some changes without really knowing what they were doing,” said Alex Nowrasteh, vice president for economic and social policy studies for the libertarian think tank Cato Institute. He said there were “a lot of unforced errors.”
In the end, Nowrasteh said, “they set themselves up for failure.”
Trump’s big plans on trade and more run up against laws of political gravity, separation of powers
he laws of political gravity, the separation of powers and geopolitical realities are proving to be tougher to conquer than Trump will publicly admit
Updated 30 May 2025
AP
WASHINGTON: Once again, President Donald Trump’s biggest policy plans were stopped in their tracks.
On Wednesday, an obscure but powerful court in New York rejected the legal foundation of Trump’s most sweeping tariffs, finding that Trump could not use a 1977 law to declare a national emergency on trade imbalances and fentanyl smuggling to justify a series of import taxes that have unsettled the world. Reordering the global economy by executive fiat was an unconstitutional end-run around Congress’ powers, the three-judge panel of Trump, Obama and Reagan appointees ruled in a scathing rebuke of Trump’s action.
The setbacks fit a broader pattern for a president who has advanced an extraordinarily expansive view of executive power. Federal courts have called out the lack of due process in some of Trump’s deportation efforts. His proposed income tax cuts, now working their way through Congress, are so costly that some of them can’t be made permanent, as Trump had wished. His efforts to humble Harvard University and cut the federal workforce have encountered legal obstacles. And he’s running up against reality as his pledges to quickly end the wars in Ukraine and Gaza have turned into slogs.
The laws of political gravity, the separation of powers and geopolitical realities are proving to be tougher to conquer than Trump will publicly admit. As various legal skirmishes play out, he may have to choose between bowing to the limits of his power or trying to ignore the judicial system.
“If the latter, we may have a constitutional crisis,” said University of Texas history professor H.W. Brands.
After a second federal court on Thursday found Trump’s tariffs to be improper, White House press secretary Karoline Leavitt said the Trump administration expects to prevail in its judicial appeals but also indicated that officials are exploring other laws to implement tariffs. A federal appeals court said Thursday the government can continue to collect the tariffs under the emergency powers law for now as the Trump administration challenges the ruling, though the government could be obligated to refund the money if the ruling is upheld.
Kevin Hassett, director of the White House National Economic Council, said there are two baseball caps in the room behind the Oval Office that say “Trump Always Wins” and Trump has been “right” about everything.
“Trump does always win these negotiations because we’re right,” Hassett said on Fox Business Network’s “Mornings with Maria.” “These activist judges are trying to slow down something right in the middle of really important negotiations.”
Part of Trump’s challenge lies in the nature of the job, in which only the thorniest of problems cross his desk. But there’s also the fact that Trump’s keen instincts for what plays well on TV don’t necessarily help with the nitty-gritty of policy details.
By unilaterally ordering tariffs, deportations and other actions through the White House, Trump is bypassing both Congress and the broader public, which could have given more popular legitimacy to his policy choices, said Princeton University history professor Julian Zelizer.
“The president is trying to achieve his goals outside normal legal processes and without focusing on public buy-in,” Zelizer said. “The problem is that we do have a constitutional system and there are many things a president can’t do. The courts are simply saying no. The reality is that many of his boldest decisions stand on an incredibly fragile foundation.”
As Trump sees it, his tariffs would solve genuine problems. His “Liberation Day” taxes on imports would close persistent trade imbalances with other countries, with his 10 percent baseline tariff providing a stream of revenue to help offset the trillions of dollars in federal borrowing that would be created by his planned income tax cuts.
But when the financial markets panicked and the interest charged on US debt shot up, Trump backtracked and ratcheted down many of his tariffs to 10 percent while negotiations began to take place.
Treasury Secretary Scott Bessent suggested this had been the plan all along to force new trade negotiations. But Trump shortly undercut him by saying on the White House South Lawn that he backed down because the financial markets were getting “yippy” — a reminder that Trump’s own improvizatory and disruptive style can upend any working policy process.
Trump still has tariffs in place on autos, steel and aluminum. Those are tied to the premise that imports would create national security risks based on previous investigations under Section 232 of the Trade Expansion Act of 1962. He could use other laws to start new investigations or temporarily impose tariffs, but the White House is more focused at the moment on challenging the court rulings.
“What is unprecedented is Trump asserting authority under a 1977 statute that had never been used for tariffs, not just for targeted tariffs, but the largest tariffs since the 1930s,” said Peter Harrell, a fellow at the Carnegie Endowment for International Peace who served in the Biden White House. “That’s what is unprecedented and unusual.”
Harrell said Trump could re-create many of his tariffs using other laws but “it would require more work and be a much more orderly process.”
Rice University history professor Douglas Brinkley said Trump’s sense of the presidency relies on a deep misreading of the office. He mistakenly assumes that the tariffs used in the 19th century to fund a much smaller federal government would now be able to pay for a much larger federal government. But he also assumes that power flows to and from him, rather than from institutions and the rule of law.
“He doesn’t seem to realize that anytime he doesn’t listen to the court orders that he’s making an anti-American statement,” Brinkley said. “It’s telling people that I’m bigger than the American Constitution, that judges are just errand boys for me.”
The Trump White House blamed its latest setback on the US Court of International Trade.
White House trade adviser Peter Navarro said in a Bloomberg News interview that the judicial branch was part of the problem, keeping Trump from delivering on his promises.
“We’ve got courts in this country who are basically engaged in attacks on the American people,” Navarro said. “The president ran on stopping the fentanyl poisoning, stopping international trade unfair practices from stealing our factories and jobs. And courts keep getting in the way of that.”