I think this could be a lure to get musk to get in line. I don't think he will, but remember he has a lot of companies and potential business to loose if he doesn't play his cards correctly.
He has bent the knee to foreign countries many times. He is much more a carnival barker than any of the other personas people apply to him.
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He could be picking and choosing his battles? He can't win every single one. Not a fan, but I have noticed he has bent the knee a lot less than other tech leaders.
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