He’s referring to the Scouring Of The Shire, an event in the books after Sauron is cast down. During the War Of The Ring, the Sackville-Bagginses are making bank selling dank pipeweed to Saruman, and use that to buy up land and political power. Then, after Isengard falls, Saruman and his followers proverbially rape the Shire, despoiling the green fields with industry and their “order”. Our Hobbit heros return, throw off the chains of Saruman’s orcs and his paid thugs, and return the Shire to its original agrarian green beauty.

Now if Elon wasn’t a drug-addicted simple dipshit, he’d recognize authoritarianism, ecosystem destruction, and the leveraging of wealth and power to be the problem. But, he is a drug-addled simple dipshit, so he sees the whole situation and thinks: “ah, orcs are were the problem, and orcs must be like brown people”.