The press is all abuzz about Elon Musk’s latest statements regarding his establishment a new political party called the America Party. Some of the stories also relate to his continued inattention to his companies, particularly Tesla. Fortune magazine quoted one security tech analyst who stated:
Very simply Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story.
The same concerns exist with SpaceX, even it if is a private company. Elon Musk has been distracted by politics for too long as his companies take a back seat. His budget-cutting work for President Trump tanked Tesla sales around the world while his recent divorce with the White House caused President Trump to ask whether the government needed to cut off contracts to SpaceX. Throughout, it has been a roller coaster for his customers and investors.
Surprisingly, even Treasury Secretary Scott Bessent commented on the board of directors at Tesla and SpaceX during CNN’s State of the Union, noting:
I imagine that those boards of directors did not like this announcement yesterday (Saturday) and will be encouraging him to focus on his business activities, not his political activities.
AInvest also ssued this warning over the weekend:
Musk’s political pivot is a gamble with no clear playbook. While his companies’ technological prowess and market dominance provide a cushion, the interplay of regulatory risks, political spending, and third-party uncertainty demands vigilance.
It also doesn’t help that some of President Trump’s friends are now calling for the nationalization of SpaceX. For example, Trump advisor Steve Bannon has already suggested the White House should consider using the Defense Production Act to take control SpaceX. That would be an extremely serious step.
Mr. Musk does seem to have trouble keeping focus on his businesses, so maybe it makes sense for him to hand over more control to other managers while he goes off and plays with politics. He is a man who is no longer driven by Mars the planet but instead by Mars the god or war, in this case political wars.
His many distractions are not good for NASA, the space industry, or SpaceX investors.
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