Overview of this Pivot episode
Kara Swisher and Scott Galloway open with Elon Musk’s latest attacks on Kara, then move into a wide-ranging breakdown of Tesla and SpaceX earnings, the business and political risks around Musk’s power, and Meta’s strong quarter plus Mark Zuckerberg’s latest control-preserving stock maneuvers. The episode’s second half features a long interview with Sacha Baron Cohen about his new film, Ali G, Who Is I?, where he argues that satire still matters—but has to adapt to a world where reality already feels absurd, and where social media and AI can turn lies into violence.
Elon Musk, the backlash, and the politics of power
Musk vs. Kara Swisher
- The hosts discuss Musk lashing out at Kara online after she suggested he should be worried if Republicans lose Congress.
- Scott argues that powerful people with huge followings need to be more careful, because their words can inspire real-world harassment or violence.
- Kara says the abuse she receives from Musk, and the way women journalists are often singled out, reflects a broader pattern of misogyny and intimidation.
Why Musk’s behavior matters
- They frame Musk’s online threats and political posturing as more than trolling: it affects markets, regulation, and public safety.
- The hosts say his influence now extends into geopolitics, defense, and elections, which raises the stakes of every comment he makes.
SpaceX and Tesla: huge numbers, huge vulnerabilities
SpaceX’s explosive growth
- SpaceX reported record Q3 revenue of $14.6 billion, up 161% year over year.
- It posted $4.4 billion in net income, reversing a prior-year loss.
- Scott highlights:
- Starlink now has about 14 million subscribers
- AI-related compute sales are now a major part of the business
- CapEx is enormous, approaching $20 billion
- The company is heavily concentrated in a few major customers
Tesla’s weaker fundamentals
- Tesla beat earnings expectations on revenue at $28 billion, but:
- Automotive revenue fell 3%
- Net income dropped 29%
- The company is spending heavily on AI and Optimus robots
- Scott argues Tesla is valued like a religion, not a car company:
- Its valuation is far out of line with auto peers
- It trades on narrative, not current fundamentals
- He says Tesla has “run out of rabbits to pull out of the hat,” which is why Musk is pushing the idea of a Tesla/SpaceX merger.
The proposed Tesla–SpaceX merger
- The hosts view the special committee exploring a merger as mostly theater.
- Scott says Musk is creating a new story to keep investor excitement alive and potentially increase his control and compensation.
- He argues that SpaceX shareholders would effectively be bailing out Tesla.
The biggest existential risks
- Regulatory blowback:
- The reported throttling of Ukraine’s Starlink service is, in Scott’s view, the clearest example of why governments may eventually regulate or even nationalize parts of Starlink.
- AI demand risk:
- SpaceX’s economics depend heavily on selling compute, so if AI demand cools, the business could be exposed.
- Political and commercial backlash:
- Europe, Canada, Delta, and others may become wary of depending on Musk-controlled infrastructure.
Meta’s strong quarter and Zuckerberg’s control play
Strong earnings
- Meta reported revenue of $64.6 billion, up 26% year over year.
- Ad prices rose and impressions grew, while headcount fell significantly.
- Scott calls it one of the clearest examples of AI-driven efficiency: fewer people, more revenue.
Legal and regulatory risk
- Meta took a $10 billion legal charge tied to social media addiction lawsuits.
- A New Mexico judge reportedly ordered Meta to pay $25 billion for privacy-related claims.
- The hosts see these lawsuits as a major long-term risk, even if they haven’t changed Meta’s behavior yet.
Stock split and control structure
- Meta announced a two-for-one stock split with new Class C shares designed to help fund AI spending while preserving Zuckerberg’s control.
- The structure also gives Zuckerberg flexibility if California’s proposed billionaire wealth tax ever passes.
- Scott says the move is mainly about keeping Zuckerberg in charge while making room for future capital needs.
Joel Kaplan’s departure
- Joel Kaplan, Meta’s top policy executive and a key Trump-era strategist inside the company, is leaving next year.
- Scott and Kara see this as part of Meta adjusting to a potentially more hostile political and congressional environment.
- Dina Powell is mentioned as a likely softer, more politically palatable successor.
Why Meta may be the AI winner
- Scott makes the case that Meta could ultimately be the biggest winner in AI because it has:
- Massive distribution
- Direct access to hundreds of millions of businesses
- Deep user engagement through Instagram and Reels
- The ability to build an agent-to-agent ecosystem
- Kara agrees Meta’s products are increasingly hard to resist, even if they can feel “creepy.”
Sacha Baron Cohen on satire, fear, and Ali G, Who Is I?
Why bring back Ali G now?
- Baron Cohen says Ali G is an “impossible character” in the current cultural moment, which is exactly why he wanted to revive him.
- He explains that the film pairs Ali G with two new characters meant to expose extremism on both the right and the left.
- The movie uses real, unsuspecting people rather than actors in many scenes, continuing his signature hidden-camera style.
Why satire still works
- Baron Cohen argues satire is not dead, but it must evolve to uncover something people haven’t yet noticed.
- In earlier eras, his characters exposed prejudice and extremism that were less openly discussed.
- Now, because reality is already so outrageous, satire has to find a new angle.
The danger of social media and AI
- He says social platforms are the “greatest propaganda machine in history,” and AI is its “monstrous child.”
- His core warning: lies and conspiracies spread online can have lethal consequences.
- He points to January 6 as an example of how people can be mobilized by misinformation.
Fear, risk, and the work
- Baron Cohen says he is not fearless; he is terrified but able to push through the fear when in character.
- He describes dangerous scenes from Borat and Borat Subsequent Moviefilm as genuinely risky, but worth it because he wants people to laugh and think.
- He says he feels a responsibility to help make the world a little more tolerant through comedy.
His outlook
- He doesn’t have a detailed 10-year plan.
- What matters to him now is family, public service, and using comedy to push back against intolerance and authoritarian drift.
Predictions and closing thoughts
Character.AI
- Kara says the company’s bankruptcy or restructuring is unsurprising given how harmful the product allegedly was, especially for kids.
- She frames it as a “prepackaged” deal where the tech and employees are absorbed while liabilities are left behind.
Who wins AI?
- Kara predicts Meta may emerge as the surprise winner in AI.
- Scott agrees Meta has the strongest combination of data, distribution, capital, and execution.
- He also suggests Google is another serious contender for similar reasons.
- Their broader point: the winners may be the companies that become the most useful daily utilities, not just the flashiest model labs.
Final takeaway
- The episode links three themes:
- Power without restraint can create political, business, and personal blowback.
- AI and social media are reshaping both markets and public discourse.
- Satire still matters because it can expose what normal conversation misses—but only if it keeps adapting to an increasingly absurd world.