Vinod Khosla counters Elon Musk's 'half-Indian partner' defense

Indian-American billionaire Vinod Khosla and Tesla CEO Elon Musk have been locked in an on-and-off online feud for months. In the latest exchange, Khosla accused Musk of racism and promoting 'Waga – white America great again.' Musk brushed it off by pointing to his partner Shivon Zills's Indian heritage.

Indian-American billionaire and Sun Microsystems co-founder Vinod Khosla has taken the latest turn in his ongoing online feud with Elon Musk. Khosla accused Musk of racism, claiming he is promoting 'Waga – white America great again.' The spat has simmered on social media for months.

Musk dismissed the claim by referencing his partner Shivon Zills, who is half-Indian. Khosla countered this defense, though specifics remain unclear. The exchange was reported on January 29, 2026. The feud has spotlighted the Tesla CEO's public image amid racism allegations.

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Elon Musk and President Trump toasting at a reconciliatory dinner in Mar-a-Lago's grand dining room.
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Musk and Trump reconcile with dinner at Mar-a-Lago

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Elon Musk and President Donald Trump have rekindled their friendship after a public falling-out last year, highlighted by a dinner at Trump's Mar-a-Lago estate and praise from the president aboard Air Force One. This renewed alliance could ease regulatory hurdles for Tesla's autonomous vehicle projects. Tesla shares showed mixed premarket reactions on January 5, 2026.

A recent Tesla AI patent has sparked controversy on social media platform X, highlighting the role of immigrant engineers in the company's innovations. The patent credits four inventors of Indian origin, fueling debates around H-1B visas amid Elon Musk's involvement in immigration policy discussions. This development underscores the contributions of diverse talent to Tesla's AI division.

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Tesla's shares fell more than 3.5 percent in early trading on Monday following the Department of Justice's release of files detailing communications between Elon Musk and Jeffrey Epstein. The documents contradict Musk's earlier denials of interest in visiting Epstein's island. Despite some sales upticks in Europe, the company's stock has faced pressure amid ongoing controversies.

Elon Musk appears to be consolidating his companies, with Tesla halting production of key models to focus on AI robots and investing in xAI. Reports indicate plans to merge SpaceX with Tesla or xAI to prepare for a stock market listing. This move aims to bolster AI development amid growing resource demands.

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Tesla Inc. and the U.S. Equal Employment Opportunity Commission have agreed to private mediation to resolve a 2023 lawsuit alleging racial harassment against Black workers at Tesla's Fremont, California, plant. The parties expect mediation to begin in March or April. If unsuccessful, they will propose next steps to the court by June 17, 2026.

Following its unveiling of open-source Alpamayo AI models at CES 2026, Nvidia CEO Jensen Huang praised Tesla's Full Self-Driving as 'world-class,' while noting strategic differences. Elon Musk dismissed threats to Tesla, revealing hefty Nvidia hardware investments. Analysts see potential challenges to Tesla's self-driving lead amid bullish Nvidia sentiment.

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A Yale University study estimates that Elon Musk's partisan political activities since 2022 have reduced Tesla's U.S. sales by 1 to 1.26 million vehicles. The research highlights how Musk's actions alienated Democratic buyers, Tesla's core customer base, while boosting competitors' electric vehicle sales. Despite this, Tesla's focus on AI and autonomous technology offers potential recovery paths.

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