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Laura Coates Live
Trump Blames Biden as U.S. Economy Shrinks; Kamala Harris to Deliver Speech Critical of Trump; Tesla Board Opened Search for a CEO to Succeed Elon Musk; El Salvador Denied U.S. Request to Return Abrego Garcia; Comedians Talk to Trump Rally-Goers. Aired 11p-12a ET
Aired April 30, 2025 - 23:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[23:00:00]
(COMMERCIAL BREAK)
LAURA COATES, CNN HOST AND SENIOR LEGAL ANALYST: Breaking tonight, Kamala Harris had to take on Trump's first 100 days in her first major speech since the election. What is she going to say? Live remarks set to begin literally any moment.
Plus, the Trump Grinch memes hit a fever pitch after he openly admits his trade war will hit your wallet. But don't blame him. Blame Biden?
Plus, the breaking news from "The Wall Street Journal." The Tesla board opening a search for a new CEO to succeed Elon Musk. One of the investors who've been calling for this very move will join me tonight on "Laura Coates Live."
It was not often you hear President Trump admit his actions may have some negative consequences. And today, there was a lot of dodging, a lot of deflecting, but he did divulge one very critical thing, his biggest admission yet that economic pain is coming.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: Somebody said, oh, the shelves are going to be open. Well, maybe the children will have two dolls instead of 30 dolls. And maybe the two dolls will cost a couple of bucks more than they would normally.
(END VIDEO CLIP)
COATES: Thirty dolls to just two? Is Barbie about to lose Ken in the trade war? Maybe he'll be Kenough. It seems clear the president has heard the alarm bells, the warnings from CEOs and, of course, the jittery signs in the markets. Today's confession was a big upgrade from what he was saying before Liberation Day.
(BEGIN VIDEO CLIP)
TRUMP: There is a period of transition because what we're doing is very big. We're bringing wealth back to America. That's a big thing. And there are always periods of -- it takes a little time. It takes a little time. There'll be a little disturbance. But we're okay with that. It won't
be much.
We may have, short term, some little pain, and people understand that.
There could be some temporary short-term disruption, and people will understand that.
(END VIDEO CLIP)
COATES: So, if Trump is aware that his trade war will bring some pain, even if it's short term, you might think he would take responsibility for the U.S. economy shifting into reverse at its worst quarter since 2022, drinking by three-tenths of a percent. But is Trump owning it?
(BEGIN VIDEO CLIP)
TRUMP: This is Biden's economy because we took over on January 20th, and I think you have to get us a little bit of time to get moving, but this is the Biden economy.
(END VIDEO CLIP)
COATES: Now just for the record, the economy grew by 2.4% in the last full quarter under President Biden. The vast majority of this new contraction, well, that's on Trump's watch. And now, he's even saying he might throw Biden under the bus for the next three months.
(BEGIN VIDEO CLIP)
TRUMP: -- number like that. And that's includes --
(CROSSTALK)
-- on a daily or an hourly basis.
(END VIDEO CLIP)
COATES: It comes as a huge surprise that Trump is blaming his predecessor and successor, Biden. It's on brand. Right? Biden namedropped -- got -- got namedropped 51 times in Trump's Cabinet meeting today. Fifty-one times. And this new economic report is hard to read. But experts say the economic slide is a clear reaction to Trump's trade war.
(BEGIN VIDEO CLIP)
RICHARD QUEST, CNN INTERNATIONAL ANCHOR, CNN BUSINESS EDITOR-AT-LARGE: There was a huge number of imports, specifically, to beat the tariffs that were coming down -- that have come down the road. Therefore, this number reflects the Trump policy of tariffs. People imported ahead of the tariffs.
(END VIDEO CLIP) COATES: So, does all this mean we're in a recession or are heading into one? Frankly, it's still unclear. But the vibes, well, they are aren't good. And the head of the biggest port in America is telling Americans, brace for impact.
(BEGIN VIDEO CLIP)
GENE SEROKA, EXECUTIVE DIRECTOR, PORT OF LOS ANGELES: Right now, likely, you're looking or wearing at something that was brought in from overseas. Ninety percent of trade moves on water. Forty-five percent of our business here at the Port of Los Angeles is with China, whether it be furniture, electronics, appliances, clothing and footwear. The American consumer will be affected with less choice here in the weeks ahead on store shelves and online buying platforms. And likely, prices will rise.
(END VIDEO CLIP)
[23:04:57]
COATES: With me now, entrepreneur and founder of the Forward Party, Andrew Yang. He also ran for president as a Democrat in 2020 race. And the cofounder, president, and CEO of Gerber Kawasaki Wealth and Investment Management, Ross Gerber. Welcome back, gentlemen.
Let me begin with you on this, Andrew, because some economists, they don't see a recession yet. But you have investor Robert Conzo saying the backbone of any recession is a break in labor. We do not have a break in labor. But still, you're not optimistic we can actually avoid a recession in spite of that. Why not?
ANDREW YANG, FOUNDER OF FORWARD PARTY, FORMER 2020 PRESIDENTIAL CANDIDATE: I talked to a number of CEOs, Laura. They say they dragged a lot of economic activity up to try and beat the tariffs, and that's going to mean that you might have fine-looking numbers for the next several weeks.
But then, eventually, demand is going to fall off a cliff as people have fewer things to buy, costs are going to go up, and consumer sentiment is plummeting at a rate that has not been seen in years and years. A recession is technically defined as two quarters of contraction. We just had the first. And the second, unfortunately, I think, is on the way.
Americans should be furious, particularly if you voted for Donald Trump because, what did he run on? That he's going to bring prices down? These tariffs are doing the opposite, and they're punching us into a recession.
COATES: Speaking of quarters, you heard Ross, Trump blaming Biden for this report. He is hinting that he could actually blame Biden again if the economy shrinks in the next quarter, as Andrew was alluding to. What do you make of that? Is Biden to blame or is it the Trump tariffs?
ROSS GERBER, PRESIDENT AND CEO, GERBER KAWASAKI WEALTH AND INVESTMENT MANAGEMENT: Well, you know, these are absurd statements from Trump because this is 100% related to his exact policy changes that have caused this surge in imports, this recession that has begun.
And I'm calling it a recession now because I can see it with our clients already. People are preparing for the worst. And that means they're not spending, they're pulling back, businesses are pulling back. Home price -- home sales are not happening. That would have happened. Leases that would have been signed aren't being signed.
So, we're seeing negative economic activity because of Trump's actions already. So, the next three months might not be so bad, actually, because people have prepared companies that brought in stuff now to try to, you know, cushion this in hopes that maybe something will be reversed quickly enough to avert the -- the recession we're going to see.
But this idea that Trump thinks he can manage a recession or if, you know, a little pain isn't so bad, this is very ignorant thinking. This can cause a very, very deep downturn in the United States.
We're like a very big ship. So, when we're going in the right direction, that's great, like we were under the Biden administration. But once the ship turns, it's very hard to turn it back.
So, this is not a game you want to be playing, and it's one that's never really actually been done with the U.S. economy. And -- and I cannot come up with many scenarios where this works out well, even in the best case. And we get all the trade deals. A lot of damage has already been done.
COATES: Well, Andrew, if he can't contemplate the best case, how can Trump avoid the worst-case scenario? Is there a way to turn this ship around and get it back on course right now?
YANG: I agree with Ross that the damage is rippling through the economy in various ways. The best-case scenario would be that Trump wakes up tomorrow night -- tomorrow morning and says, guys, guys, I was just kidding about the whole thing, we're -- we're going to reverse it all, declare victory. Just posture some and say, look, we've got all these concessions.
This trade war should disappear as quickly as it came. But we don't foresee that. And confidence is slipping away in various ways.
Another group that should have accountability for this, in my opinion, are the members of Congress that have ceded their tariffs power to Donald Trump. They could just say tomorrow also, guys, like, tariffs are actually congressional powers, and we now will take them back from the president. The president is using them under this emergency economic international trade act. That is a real stretch.
So, I beseech any member of Congress that's on the fence. Guys, take back your constitutional power over tariffs and free us from this madness before more damage gets done.
COATES: Ross, I see you nodding your head. We'll come right back to you. Andrew, thank you so much. Ross, stick around because I want to bring in CNN political analyst Jackie Kucinich, former communications aide to Senator Lindsey Graham and vice president at Push Digital -- Push Digital Group, T.W. Arrighi, and former communications director for Vice President Kamala Harris, Ashley Etienne. Glad to have all of you, guys, here.
I'll begin with you T.W. I saw you nodding your head along throughout the course of the conversation. I want to play this moment from President Trump again. His statement about the dolls. Listen to this.
(BEGIN VIDEO CLIP)
TRUMP: Somebody said, oh, the shelves are going to be open. Well, maybe the children will have two dolls instead of 30 dolls. And maybe the two dolls will cost a couple of bucks more than they would normally.
(END VIDEO CLIP)
[23:10:02]
COATES: You're a communications expert.
T.W. ARRIGHI, VICE PRESIDENT OF PUSH DIGITAL GROUP, FORMER COMMUNICATIONS AIDE TO LINDSEY GRAHAM AND MIKE POMPEO: Uh-hmm.
COATES: Is that like banging your head on the desk if you're in the background listening to that or is that a, oh, that's a good call, president?
ARRIGHI: Well, many presidents have tried the burden sharing argument --
COATES: Hmm.
ARRIGHI: -- in the past to some mixed results. I'll put it that way. Look, Donald Trump --
COATES: What a very diplomatic way to put that. I can see now why you're in communications --
ARRIGHI: Yes. Absolutely. Look --
(LAUGHTER)
-- Donald Trump is trying to reorganize international trade. He was very open about this. He was very open about the bumps in the road that were necessary. He believes that after he put tariffs in place on China, prices increase by a very nominal amount. You hear Scott Bessent say it all the time.
Look, there are industries in China that we desperately need back and President Trump believes that past administrations have not done enough to put the foot on the neck of the Chinese and say we will not accept you stealing our IP, you doing all of our chip manufacturing, all of our computer manufacturing, all of our medical manufacturing, we need that back home.
Vice President Vance wrote an entire book about how America was strip mined by offshoring of businesses to other countries. I believe that the tariff rates of other countries not named China will eventually be worked out in short order.
President Trump, yes, doesn't like to see bad market results, but he's more focused on the bond market and exchange rates. So, if he can get those worked out quickly, the focus will be on China. And if the Democrats want to sit there and say, we need to play patty cake with the Chinese, I don't think that's a good answer.
COATES: I agree.
ARRIGHI: Also, by the way, I want to say --
COATES: Excuse me. One word that stuck in my mind when you said it was the word eventually. And that's the core for so many people because certainly, if you're talking about in a classroom setting and you wanted to have a purely intellectual discussion about the prospects of hypotheticals, but American voters are listening to eventually and wondering how long they can sustain the intellectual exercise. Are Democrats aware of that patience-tolerance threshold?
ASHLEY ETIENNE, FORMER COMMUNICATIONS DIRECTOR FOR VICE PRESIDENT KAMALA HARRIS: No. Absolutely. I mean, it's all over the polls. I mean, 55% of the American public have said Donald Trump's economic policies are making their lives worse. Fifty percent of them are -- have actually said that -- 55% of them overwhelmingly disapprove of how he's handling the economy.
Here's my thing. The reason why the American people don't have confidence in where Donald Trump is trying to take us as it relates to tariffs is because it's not clear -- not clear that the president actually has confidence in his path forward. I mean, he has reversed course three, four times. I mean, we're moving forward with tariffs one day. Same day, we're rolling back those tariffs. You've got --
COATES: He has called that leverage shifting at some different points in time. Do you buy that?
ETIENNE: No. Absolutely not. I mean, that -- that's clever spin, but the reality is I'm not so sure that he actually -- what it does is expose his incompetency. That's really what's at play right now.
And I'm not sure why, and you and I talked about this before, but I'm not sure why we would have confidence in Donald Trump to reorder the global economy when the man couldn't keep a casino afloat. I mean, the -- so -- so, all of these is baffling to me, but it's -- it's discouraging in that the --the intentionality behind Donald Trump's actions. It's clear all signs are indicating that this is a wrong path forward, and he continues to double down on it.
He just recently had three of his Republican senators vote against him. They've been outspoken about it. You've got headlines in West Virginia saying that the tariffs policy is going to cost $3 billion in the state, yet he continues to proceed forward. It's just baffling.
COATES: Well, let me bring you in this, Jackie, and I want to play for you what Trump had to say when he was asked tonight for a little bit of self- reflection. What was the biggest mistake he had made in the first 100 days? And, well, listen to this.
(BEGIN VIDEO CLIP)
TRUMP (via telephone): I'll tell you, that's the toughest question I can have, because I don't really believe I've made any mistake.
UNKNOWN: You made any mistakes.
(LAUGHTER)
TRUMP: We're (INAUDIBLE).
(END VIDEO CLIP)
COATES: Kind of has a Michael Scott moment of wires (ph). You know, what's your biggest flaws? I -- I work too hard.
Right.
COATES: I care too much. I think too --
JACKIE KUCINICH, CNN POLITICAL ANALYST: When you -- well -- I mean, all of the interviews he has done this week, he has not wavered on tariffs. It's something he wanted to do for a very long time. If you've studied the -- the arc of Donald Trump's career, he has always believed, you know, his version of -- of tariffs would make the country rich.
That said, I think when -- when I talk to, you know, folks in business, economists, the uncertainty is really what the problem is here. Businesses can't plan. Farmers can't plan. Small to large businesses can't plan for the future because of the kind of herky- jerky nature of these tariffs. One day they're there. One day, they're not. One day, they're on auto parts. One day, they're not. There's 90 days. There's not 90 days.
COATES: Well, do you attribute that, the way that Ashley spoke about it, being an incompetence issue or that he is so clear but we're in the dark?
KUCINICH: I think it's -- it's -- it's -- he's -- I mean, he is receptive to the markets. He is receptive to -- I mean, business owners have been making pilgrimages to the White House to explain what's -- what is going to happen. So, maybe he's hearing them out. I can't get into his head here.
[23:15:00]
But I do know that I'm hearing a lot about the uncertainty and how that's having effect not only on folks' personal economies, but the economy in real life. COATES: Well, in Congress, you had three Senate Republicans, T.W., joining Democrats tonight in a -- in a symbolic vote against Trump's tariffs. You had Senator Rand Paul pushing to cut his tariff power, saying -- quote -- "If tyranny is wrong in blue, it's still wrong in red." Now, it did not come to fruition they -- the way they thought it would. Of course, it would've been dead on arrival in the House in any event. But -- but can they afford to step out of line with Trump on an issue like this?
ARRIGHI: Sure. I mean, Murkowski and Collins do it frequently.
COATES: Uh-hmm.
ARRIGHI: Rand Paul has always been anti-tariff. But, by the way, his objection is that it just didn't go through Congress. That's his big sticking point. That's why he called it tyrannical or at least hinted at it.
COATES: Uh-hmm.
ARRIGHI: I want to make one additional point, that there's another side to this ledger that we're not really talking about. Donald Trump hinted that the 90-day pause for the tariffs for countries not named China --
COATES: Uh-hmm.
ARRIGHI: -- was because he was getting so many incoming calls about deals to be made. I've talked to friends in the international community frequently, and they have talked about the pain on their side, what they're hearing from people in their country.
President Xi in China is fully aware that he stays in power if people have jobs, if industry stay there. Today, Donald Trump just paraded out a bunch of CEOs who've announced billions upon billions, hundreds of billions dollars-worth of investments in moving manufacturing to the -- to this country. That was the goal of it. Now, the regulatory policies to come with it, the tax policies to come with it, and that's what this big beautiful bill is hopefully going to --
ETIENNE: Eventually.
COATES: Well, there is that phrase. What do you -- what do you make of --
ETIENNE: Eventually.
COATES: Well, are Democrats eventually going to have a strong response to it?
ETIENNE: Well, I mean, well, A, they've been doing all these people -- town tours, protests all over the country. And so that has been sort of amplifying this issue of how people are hurting in the economy.
But I do believe this bill that -- that went through the Senate actually creates an opportunity for Democrats to try to compel the House to bring that bill to the actual floor. Why not take the opportunity to beat vulnerable Republicans over the head with this question of, do you support, do you not support it?
You've got a series in the House side. You've got a series of funding bills that are coming to the House floor. There's opportunity there for Democrats to try to compel a vote on this tariff bill to box in Republicans. So, we'll see what actually happens. But, again, I think it creates an opportunity and definitely a strong talking point.
I've worked for two presidents, I'll tell you, Laura, and this is a nightmare situation for Donald Trump to be in. When you've got a situation where your own members of your -- your caucus or your party are voting against you, you've got a situation where you're underwater across every issue with the American people, you've got a situation where the economy is contracting.
There is headline in "The Wall Street Journal" today saying UPS and other companies --
COATES: Uh-hmm.
ETIENNE: -- are cutting jobs. I mean, it's a nightmare situation for Donald Trump. They can try to spin themselves out of it, but it's -- it's -- it's, again, a nightmare.
COATES: Well, let me hear from somebody who have -- may have a lot to say about this issue. Could everyone please stand by? And in just a moment, we'll hear from Kamala.
Breaking tonight, Kamala Harris stepping back into the spotlight, delivering her first major speech since losing the presidential election. Moments ago, she had this to say.
(BEGIN VIDEO CLIP)
(APPLAUSE)
KAMALA HARRIS, FORMER VICE PRESIDENT OF THE UNITED STATES, FORMER U.S. PRESIDENTIAL CANDIDATE: We all know President Trump and his administration and their allies are counting on the notion that fear can be contagious. They are counting on the notion that if they make some people afraid, it will have a chilling effect on others. But what they're overlooking, what they've overlooked is that fear is not the only thing that's contagious.
(APPLAUSE)
Courage is contagious.
(APPLAUSE)
The courage of Americans who are banding together in the face of the greatest man-made economic crisis in modern presidential history. Americans across the political spectrum who are declaring that the president's reckless tariffs hurt workers and families by raising the cost of everyday essentials, devastate the retirement accounts that people spent a lifetime paying into, and paralyze American businesses, large and small, forcing them to lay off people, to stop hiring or pause investment decisions.
[23:19:58]
The courage of Americans we are seeing who are rallying at Social Security offices to protect their hard-earned benefits. Of Americans who are speaking out to say, it is not okay to violate court orders. Not okay.
(APPLAUSE)
Saying it's not okay to detain and disappear American citizens or anyone without due process.
(APPLAUSE)
The courage of judges to uphold the rule of law in the face of those who would jail them.
(APPLAUSE)
Of universities that are defying unconstitutional demands that threaten the pursuit of truth and academic independence.
(APPLAUSE)
And I want to tell you --
(END VIDEO CLIP)
COATES: Harris addressing a gala for "Emerge America" in San Francisco, an organization that recruits Democratic women to run for office. Harris herself is weighing her own future, potentially run for governor or maybe another shot at the White House.
I want to bring back the panel to this point. Jackie, let me bring you in here because she's outlining a variety of things, hitting on universities, hitting on immigration, obviously hitting on the tariffs, talking about them hurting workers and families, raising the cost, devastating retirement accounts, paralyzing American businesses. Is she striking the right chord with the right audience?
KUCINICH: That -- that was my question is, who is this speech for? Is it for Californians who might, you know, want to vote for her for governor? Is it for disaffected Democrats? Is it for potentially setting up another presidential run? I don't know that we know that yet.
But what struck me is it wasn't as prescriptive as you heard someone like a Governor Pritzker the other day where he was saying, get out there in the streets, protest. You know, Republicans should not know a moment of peace.
COATES: Uh-hmm. KUCINICH: It wasn't at least what -- what we saw. You didn't see the, okay, now she was praising those who have been speaking up, who have been protesting, but you didn't hear a, now, go do this. So, I just -- just an observation.
COATES: And what does that absence tell you about the state of a democratic response?
ETIENNE: I mean, I -- I think we've not -- again, that was just a clip of it, but I've read the speech and I've talked to her team about it, and I think it's an incredibly powerful speech. I think the intended audience is the -- is Democrats who feel dissatisfied with how the party is showing up right now.
I think the point is to remind people who is actually responsible for the pain that the American people are experiencing right now. Not only is Donald Trump responsible for -- for what's happening in real time, but these are the plans that Republicans have been trying to put in place for decades. Undermining Roe v. Wade, getting rid of the Department of Education, cutting government, all of those have been Republican plans for decades. And so, her point is put the blame there.
The other part of her speech that I think is incredibly powerful is she makes the point that, listen, right now, our party needs every voice out there actively engaged in communities, rallying people from Cory Booker to Kamala Harris to -- to Walz. We need everybody because that is where the power of democracy is. It's little deep. It's with the people.
And so, her objective right now is to remind people who's to blame and to let them know they actually have the power to go out here and change their own circumstances by getting involved, getting active, getting engaged.
The one other thing I will point out, Laura, is the sense that I got from her team is the reason why this message is intended for Democrats is because she sees herself as the head of the Democratic Party --
COATES: Hmm.
ETIENNE: -- which is a sort of a new sort of pronouncement for her, and I think she has taken the mantle a while.
COATES: I want to play for you all another part of her speech this evening where she talks about criticism for Congress as well. Listen.
(COMMERCIAL BREAK)
HARRIS: If Congress fails to do its part, or if the courts fail to do their part, or if both do their part, but the president defies them anyway, well, friends, that is called a constitutional crisis. And that is a crisis that will eventually impact everyone.
Because it would mean that the rules that protect our fundamental rights and freedoms, that ensure each of us has a say about how our government works, will no longer matter.
[23:24:56]
And if that happens, the one check, the one balance, the one power that must not fail is the voice of the people.
(END VIDEO CLIP)
COATES: Now, T.W., obviously, she has run on, you know, Kamala Harris for the people. Obviously, harking back to her prosecutorial days and as attorney general. She's speaking about this constitutional crisis. We hear that phrase very often.
During the election, it seemed to be a not as high of a priority for people as say immigration or the economy. But now that we're in day 101, and this term is being thrown around a great deal, how should Republicans respond to the ongoing anxiety about a constitutional crisis?
ARRIGHI: Well, I think we've been hearing this fearmongering about Trump in the same words from Kamala Harris since the election. The American people voted soundly against her and handed Republicans both the Senate and the House.
They did it for a reason. It's because what Trump said about taking it to the institution of this country that people feel are -- are fully unfair to them, taking it to the immigration policy and deporting some of the 20 million people that Joe Biden left in here.
She decides to go after immigration policy, which people believe, if you're here illegally, you should go back. She wants to take it to and defend public -- private Ivy League universities with endowments that are the size of countries. Fine. American -- that's not going to play with the American --
COATES: Well, they're talking about -- I mean, I -- I just want to -- on -- on point, many people are not talking about their support for an individual institution as a university. They're talking about principles that are underscoring -- talking about First Amendment, for example. Right? Talking about democracy and checks and balances.
ARRIGHI: Yeah.
COATES: I do hear the term you use, of fearmongering. I think about that term as a -- when you're prospectively evaluating an administration. Now that you're a hundred days in, people are looking at what is happening, and they do have some genuine concerns as opposed to hyperbolic nature described. What can Democrats do about that?
ETIENNE: No -- I -- I mean, I don't -- I don't disagree with T.W., honestly. It has been an issue that we've been talking about, Democrats, since I ran the opposition in Trump 1.0 for Speaker Pelosi.
But here's the reality. It only took the American people a hundred days to now figure out that he is a threat to American democracy. Fifty-four percent of the country believe that Donald Trump is going too far on issues of immigration, on issues of tariffs, on issues of cutting the federal government.
So, it only took a matter of days for them to figure out that what we've been saying for years actually is now in front of us and being realized.
ARRIGHI: Just a brief note on that. There was a poll that came out.
COATES: Uh-hmm.
ARRIGHI: CNN reported on it just about a week and a half ago, that only 1% of Trump voters would change their vote to Harris. One percent. That means Trump would still win.
ETIENNE: Yeah, but we're only a hundred days in.
ARRIGHI: Sure. But --
(CROSSTALK)
ETIENNE: -- years of this stuff. And he is saying --
ARRIGHI: My point is --
ETIENNE: -- eventually these --
ARRIGHI: My point is would still vote for them. People have nuanced opinions. Sure, they're not happy, they're scared of what might happen with the economy given the media coverage, they're scared of what might happen here and there, but they still would vote for Donald Trump because --
(CROSSTALK)
ETIENNE: -- for the president of the United States. You should be responsive to the American people.
ARRIGHI: He is. He's delivering --
ETIENNE: And American people say, I'm concerned that your policies are making my life worse. From my economics to my rights to due process, all of these issues I'm concerned about. The president should then change course to be responsive to the American people.
ARRIGHI: That's not --
ETIENNE: The problem with Donald Trump -- that is -- the problem with Donald Trump is he double downs on it.
COATES: Well, we'll see what happens -- what happens on days 101 and beyond. We'll see what happens. Stand by, everyone. Thank you so much. As Elon Musk, important figure so far in Washington, we'll judge how, as he is exiting Washington, could a plan be in the works to have him leave Tesla as well? The breaking news tonight, the board has opened a search for a CEO to replace him. We'll talk about it next. (COMMERCIAL BREAK)
[23:30:00]
(COMMERCIAL BREAK)
COATES: Breaking tonight, "The Wall Street Journal" reporting Tesla's board is looking for a new CEO to replace Elon Musk. Why? Well, the journal reports tension was mounting at the company, obviously, as sales and profits deteriorated. Don't forget, Tesla's most recent earnings report showed their profits plunging by 71% in the first quarter.
Board members, they report, told Musk he needs to spend more time on Tesla and say he would be doing so publicly which, of course, he did, after just last week on an earnings' call that he was stepping back from DOGE.
And today, President Trump gave a big send off to Musk in his Cabinet meeting, saying Musk is invited to stay as long as he wants, but guess as he wants to get back to his cars.
Back with me, Ross Gerber. He was an early investor in Tesla. Ross, you and I have had this conversation. You have been calling for a new CEO for a while now. So, what's your reaction to this breaking news?
GERBER: Well, I -- I think it's what the -- it's nice to hear that the board is doing something about all of this. But, you know, it has become very apparent to me that his goal is really to go back and run X AI more than per se Tesla. They're making all the moves to try to, you know, make institutional investors and retail investors happy. But the truth of the matter is it is just not a great situation, and he has other CEOs at his other companies.
But when you look at the insider sales from the chairman of the board, Robyn Denholm, it seems fairly obvious that she's on her way out. Maybe Elon is going to become chairman of the board, and then they can get a real full-time CEO.
[23:35:00]
COATES: So, why do you think they need a new CEO as opposed to his return to Tesla in a hyper-focus?
GERBER: Well, I think it's mostly because they need to really re- jigger the image around the company and the reputation of the company and have it be less focused on Elon's outside activities and much more focused on Tesla and what they do and robotics, AI and for climate. And, you know, they make great products. It's -- it's a great company, but it's -- it has kind of lost its way ever since the Twitter acquisition.
COATES: Hmm.
GERBER: And you can see the stock price. And, you know, obviously, sales have gone to almost zero. Now, you know, like, nobody wants to buy a Tesla and it's because of Elon. So, they need to change the optics, and that's one way to do it. But we don't want to lose the perception of the innovation that's behind Elon as well. So, that's the challenge that Tesla faces in making a transition to a new CEO.
COATES: A conundrum, indeed. I mean, the market, as you say, has fallen substantially since it hit a record high in December. And the tariffs on China, they have made things even harder for the company. In fact, Musk told investors that he'd advocate for lower tariffs, but that there wasn't much he could do. So, where do you think the board drew the line for him to be replaced?
GERBER: I mean, I think it's mostly just the issue that, A, to have one of the biggest companies in the world not have a full-time CEO is just unheard of. It -- it's a corporate governance issue. The secession issue has been an issue for Tesla for a long time. But then just the clear obvious nature of his complete lack of focus on Tesla.
It's just so detrimental to his behavior around DOGE and around his personal comments that it just made sense for them to try to do what's best for all the shareholders of Tesla, not just Elon.
COATES: Ross Gerber, a lot of work ahead, I'm sure, for them and for Elon Musk. Thank you so much.
GERBER: Oh, yeah. Thanks for having me.
COATES: There's a new twist tonight in the deportation of Abrego Garcia. Secretary of State Marco Rubio reportedly reaching out to El Salvador to discuss the situation, but he says he'd never tell a judge if a request to return was even made. Why that comment may pose some trouble in court?
(COMMERCIAL BREAK)
[23:40:00]
(COMMERCIAL BREAK)
COATES: New tonight, the Trump administration releasing details of a second protective order filed by the wife of Kilmar Abrego Garcia, the man wrongfully deported from Maryland. The order says Garcia slapped her and broke his wife's phone during an argument back in 2020. But a week later, his wife asked to rescind the order, and Abrego Garcia was never charged with a crime.
Meantime, CNN has learned that the administration has been in contact with El Salvador and asked for the return of Abrego Garcia. But "The New York Times" reports that El Salvador's president denied the request. The Supreme Court has ordered the administration to facilitate, remember that word, facilitate the return of Abrego Garcia.
Secretary of state Marco Rubio says the case of Abrego Garcia is none of their business. They won't even share what he has talked about to a judge.
(BEGIN VIDEO CLIP)
UNKNOWN (voice-over): Have you been in touch with El Salvador about returning Abrego Garcia? Has a formal request from this administration been made?
MARCO RUBIO, UNITED STATES SECRETARY OF STATE: Well, I would never tell you that. And you know what else? I'll never tell a judge. Because the conduct of our foreign policy belongs to the president of the United States and the executive branch, not some judge.
(END VIDEO CLIP)
COATES: T.W. Arrighi and Ashley Etienne are both back with us. Well, first of all, I mean, that's -- that's a big flex, a bit of a chest- thumping moment for secretary of state. I wonder how a judge will see that moment. But I'll have to ask you, do you believe the administration is operating in good faith with respect to what the court has ordered about facilitating his return?
ARRIGHI: Yes, because I think we've talked about this many times, that the Supreme Court was a little shaky. There has been interpretations on both sides of -- of that order. So, it is what it is.
COATES: Shaking, meaning that they could have used a more precise word?
ARRIGHI: Correct. And I think they did -- they did it on purpose.
COATES: Hmm.
ARRIGHI: And I think a large part of that is because they do recognize the executive's authority over foreign policy. I think Marco Rubio is absolutely correct. This whole case perplexes me in terms of why this is the hill I think Democrats want to die on the immigration issue.
When I first learned about this issue, it was just simply a dad in Maryland who got wrapped up in a deportation. Then the information starts coming out, that he was arrested alongside MS-13 members. Two of them. That he did have cash on and that they were facilitating. That he did have a deportation order. Then he had to stay put on because in fear of a -- of a gang violence in El Salvador, a gang that no longer exists. We then find out he had domestic issues at home, two of them, that obviously were rescinded, which happens in a lot of these situations.
So, the story keeps changing and yet the attention keeps building from Democrats.
COATES: Well, one thing, T.W. --
ARRIGHI: And I don't believe that the American people --
COATES: Excuse me. One thing on that point, though -- I hear you, but I do want to add one other point of it. It was the administration who said that he was wrongfully deported. Don't put --
ARRIGHI: I agree. And that is hanging on over their head. But it's very clear the president doesn't feel that way. It is very clear Tom Homan doesn't feel that way. And it's very -- and I would contest that many Americans also don't feel that way.
COATES: Well, Ashley, what do you think about this? Because, as you heard from Trump just yesterday with this ABC interview, that he not only said that he could -- essentially, he -- he could get them back. He's not going to, he referred to his lawyers, talk about not due process, but a process.
And then he called out Democrats for supporting Abrego Garcia and saying the party is -- is vowing mass invasion and mass migration.
[23:45:04]
One has to wonder if Democrats are falling for or being led into a kind of communications trap.
ETIENNE: Well, I mean, here -- here's the reality. I think smart Democrats are talking about this in a way that clearly is having resonance with the American public. And it's not an issue of immigration. It is an issue of the president continue -- continually testing the limits of his power. It is the president's continuous effort to flout the law to --
COATES: But here he is saying that his power is limited jurisdictionally because he's already in El Salvador and that this is the choice of now the El Salvadorian president. He's essentially claiming his power is limited here.
ETIENNE: Yeah, but they wrongfully deported the guy. They've defended that. You -- you heard what Marco Rubio has said with a level of indignation.
COATES: Yeah.
ETIENNE: So, my -- so the way that the Democrats are framing this issue up is that this is another example of Donald Trump's power grab and his effort to try to expand the authority of the presidency.
And it's actually having resonance. As I said earlier, you've got 54% of the American people that thinks he's gone too far on the issue of immigration. Fifty-two percent think that he's wrong on this issue of Garcia's case. So, it's actually having resonance.
So, despite -- I love you, T.W. --
ARRIGHI: Love you.
ETIENNE: -- despite what he's saying and what Trump is saying and what the Republican Party is trying to make this out to be, I think Democrats are framing this issue upright, and it's clearly having resonance with American people. Folks are concerned about, again, how Donald Trump is flexing on all of these issues. COATES: There's a poll out there that -- a new CNN poll, by the way, that found that 56% of people believe the United States should try to bring back Abrego Garcia. So, to her point, why do you think this is resonating in spite of the list of statements that you have made about why, perhaps, as Trump has said, this is not the gentleman, I think he said, that we think he is?
ARRIGHI: Well, I'm not so certain it isn't. I think this is just an extension of the broader policy, immigration policy that Donald Trump has put forward. Look, the America -- the reason Donald Trump is in the White House is because of the immigration policy of the Biden administration. Twenty million people led into our country illegally.
The American people, like, we don't want that. They had a policy of starting with the worst first. And, obviously, MS-13 was a major part of that. We invoked the Alien Enemies Act, which there's debate over, off the camp, and I think it's appropriately used.
However, this is all trying to undo that damage, and I think American people are looking at this and saying they're actually the priorities the Democrats in this case are -- are out of whack. When they see Chris Van Hollen going to meet with an accused MS-13 member, somebody who is a well-known informant in that community, who helped bust up other cases, identified him, gave him his rank, gave him his nickname, when they see him go visit him --
COATES: He seems to know more than the judge, has been able to receive --
ETIENNE: Right.
ARRIGHI: Well, that was the original --
COATES: Well -- but --
ARRIGHI: -- led to the deportation.
COATES: I -- but it also led to the judge deciding if there was a stay, that was appropriate for him not to be deported. I raised the issue. I -- I don't know all the facts in this case. This is -- this is part of the issue. Due process, that now is something that we heard, can reveal certain data. That could ultimately be what you -- what you say will happen.
But remember, when you're thinking about this -- I want to get back in really quickly on this, Ashley. The worst first policy that T.W. mentioned, if that was the so-called mandate, this has been part of the coverage that the so-called worst first is not actually being implemented in terms of sheer criminals to all the people who are not.
ETIENNE: Yeah. I mean, the whole thing is haphazard, and this is why the American people are finding it to be deplorable. And polls are showing that they disagree with and think that Trump overstepped his bounds and exceeded his power on this particular issue.
Can I just say one thing, though? Republicans continue to focus on the issue -- the issue -- the issue that doesn't matter, which is his personality, his character, what he has done in life. The reality is he -- the man is owed due process just like the rest of us. We are a nation of laws. He needs to be -- as his lawyer said, bring him back here under due process and let him answer these questions about his character.
ARRIGHI: His characters and actions led to his original deportation order.
COATES: Well, we will see. We'd like to see the full due process hearing. Thanks, everyone.
Still ahead, it's a question that we get all the time. What are Trump supporters thinking about his second term? Our next guest have some answers for us. They went to Trump's rally last night and asked his voters a whole bunch of questions. Did they learn anything? Well, they're going to tell us, next.
(BEGIN VIDEO CLIP)
[23:50:00]
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNKNOWN: We need to start buying shit in America.
DAVRAM STIEFLER, PODCAST HOST: You want to buy American shit?
UNKNOWN: Yep. America -- made in America.
STIEFLER: Okay.
UNKNOWN: It costs more.
STIEFLER: Can I ask you where the hat is made?
UNKNOWN: Oh, it's brand of China (ph). I don't know. I bought this four years ago.
STIEFLER: (INAUDIBLE)?
UNKNOWN: It's made in China. Yeah.
STIEFLER: Okay.
(END VIDEO CLIP)
COATES: Hmm, the MAGA hat was made in China. Well, that was just one of the many exchanges between Trump supporters and the comedy duo, The Good Liars, at the president's rally in Michigan yesterday. The pair interviews people at Trump rallies, and let's just say they like to have some fun and stir the proverbial pot, shining a light on what they say is misinformation or just sometimes plain old hypocrisy.
(BEGIN VIDEO CLIP)
JASON SELVIG, PODCAST HOST: To see Trump get rid of DEI in colleges?
UNKNOWN: Yes.
SELVIG: Would you like to see -- would you like to see Trump have more pro-Trump professors in college?
UNKNOWN: Yeah. Possible. I wouldn't be opposed to that.
SELVIG: Yeah.
UNKNOWN: Even playing field.
SELVIG: Yeah. Make it a little more diverse?
UNKNOWN: Yes.
SELVIG: Yeah. And include more of the -- the Trump professors there?
UNKNOWN: Well, yeah. Why not? Because that's so overrun with all the others, so very progressive.
SELVIG: Would that be more equitable?
UNKNOWN: Well, we don't want to go on this whole DEI thing.
(END VIDEO CLIP)
[23:54:58]
COATES: Here with me now, Jason Selvig and Davram Stiefler. Glad to have both of you here. I mean, you're the host of the podcast, "The Good Liars Tell the Truth." So, let's talk some of the truth about what you all saw.
I want to talk first, Jason, about the woman we just heard from. You know, you tried explaining to her that her position, well, it's kind of hypocritical. What'd you make of her response?
SELVIG: Well, look, she said she was against DEI.
COATES: And yet?
SELVIG: Well, she was for diversity and inclusion. But the -- the equity part, that was the problem, she had a problem with. So, I think it was just the E for her because she said she was for diversity and inclusion.
So, yes, we do see this a lot where people, if you -- if you try and shine a light on some of their beliefs and ask them a couple follow-up questions, you -- you can find out that you could crack some holes in them. And we've seen that a lot on the road.
And this rally was -- I mean, it was a little different for us because it was not as big as some of the other Trump rallies we've been to. We -- I think we went to an event in 2023 at the same exact place, and there was a huge long line to get in, like, up until the evening time. And for this one, the line was gone at, like, 4:00.
COATES: Wow.
SELVIG: There was nobody -- nobody there. And there was actually a protest outside that maybe had more people protesting Trump than were in there supporting them. So, I -- I don't know if that's a tide changing or if it was just on a Tuesday and that was the reason, but -- but -- but things were a little different at this rally.
COATES: Well, I suppose post-election rallies give a different vibe as well. But let me ask you because, Davram, you asked another Trump supporter about the president's promise to end the war in Ukraine. He said he would do it on day one. Let's listen.
(BEGIN VIDEO CLIP)
UNKNOWN: Stop the war, spread peace.
STIEFLER: Let's talk about stopping war. You know, Donald Trump famously said that he was going to stop the -- the war in Ukraine in -- in 24 hours. What do you think about that?
UNKNOWN: He said he -- if it was -- he said he could've. He did say that. What do I think about that? I think that was more of him saying that. I don't think that's something that's actually possible.
STIEFLER: You would -- you mean he was just -- just saying it, but he knew it wasn't possible?
UNKNOWN: Sometimes, he does that. I mean, that's where people want to call him out and say he's a liar, he's a con man.
(END VIDEO CLIP)
COATES: I mean, he didn't think there was a real promise. But if someone says something and you don't believe what they say or you don't mean it, how does one interpret that moment?
STIEFLER: Well, I think he has the benefit of hindsight. So now he can say that Donald Trump didn't really mean it. But I think if we would have asked him or many others attending these rallies in the days leading up to the election, they would have said that was a real promise and that was something he was really going do.
I was talking to Jason at the rally, and we were saying there was an atmosphere of tolerance, kind of. Not tolerance for, you know, immigrants, which people want to deport without due process, but tolerance for Donald Trump and all of the things that he has said that he has not done, the crypto scams and the rising car payments and not ending wars. There was endless tolerance, but just reserved for Donald Trump.
SELVIG: What a forgiveness.
COATES: Yeah.
STIEFLER: Yeah.
SELVIG: Beautiful to watch this.
STIEFLER: It was a harmonious place.
(LAUGHTER)
COATES: I sense the sarcasm. You asked a supporter about the 2028 talk. Yes, we're already there. Let's play it.
(BEGIN VIDEO CLIP)
SELVIG: Would you like to see Trump run for a third term?
UNKNOWN: Yes. And if not, why not be the V.P. to Vance as president if it's not allowed?
SELVIG: So, you would want J.D. Vance to run as president and Trump to run as V.P.?
UNKNOWN: If he can't run as president, yes. I think that's a great idea.
SELVIG: Who would you want to really be in charge there?
UNKNOWN: Equal. Trump and Vance. I think --
SELVIG: Equal?
UNKNOWN: He's holding his own. He's doing good. He is just doing great.
SELVIG: Are you worried about the Constitution not allowing him to do that?
UNKNOWN: Yes. That's why I think he could do V.P. instead.
SELVIG: Okay. Find a way around that.
UNKNOWN: Yeah. Hopefully.
SELVIG: But then what --
UNKNOWN: He finds around a way around a lot of stuff, doesn't he?
SELVIG: He does. He does. I have found that.
(END VIDEO CLIP)
COATES: Oh, so she'd be okay with that. Are his supporters, you think, a little bit more emboldened now than they were in, say, 2024, a shift of sorts about the end runs around things that used to be norms? STIEFLER: Yeah. I think that's very, very fair to say. We -- you know, we asked a lot of people about this 2028 question. Will Donald Trump, you know, run again, and would you vote for him? And -- and what about the Constitution?
COATES: Uh-hmm.
STIEFLER: And most people say, well, I think we could change the amendment. And, you know, we would ask people, well, would you throw out the Second Amendment if you throw out others? No, no, no, definitely not. So certain things are reserved for Donald Trump to do as he pleases and certain things are not. But again, it's -- it's like constant forgiveness for -- for anything Donald Trump does.
SELVIG: It was like the 50-50 thing gets me because he's like, yeah, Trump is going to be like, I'll do a 50-50 split with you. You will -- we'll split --
STIEFLER: Right.
SELVIG: I just don't see that happening.
STIEFLER: Donald Trump is -- is not used to -- to sharing the --
SELVIG: Yeah.
COATES: Go habsy (ph) on the presidency. That is a new phenomenon.
[00:00:00]
Jason Selvig, Davram Stiefler, nice to see you both. Thank you.
SELVIG: Thanks for having us.
STIEFLER: Thanks for having us.
COATES: Thanks for watching. "Anderson Cooper 360" is next.
