Still trying to rectify the illegal immigrant thing in my own mind, have to chalk it up to Elon being misinformed about the data I guess, because that made an unfortunate amount of sense.

He was (awkwardly) trying to point out Elon's hypocrisy. The US has a strong existing structural political bias towards red states, who (on average) get significantly more funding and representation per person than blue states.

If Elon was truly concerned with "unfair allocation of funds" and "unfair representation in congress", you would expect him to be upset with gerrymandering, the electoral college and other things in addition to undocumented immigration. The fact that he only speaks up when it involved majority nonwhite refugees is telling.

That said, I agree it fell flat. Also letting him claim that the "great replacement theory" is actually just about census-related funding is like saying the civil war was about states' rights.