Musk goes MAGA

Many Americans are celebrating Musk's bromance with Republican presidential nominee former President Donald Trump. They appreciate his embrace of Republican politics and the more than $100 million he has invested in Trump winning the presidency. In characteristic Musk fashion, he has gone all-in on a cause he deems essential to the future of his interests and those of humanity, even temporarily living in Pennsylvania.

But for many other Americans, the response to Musk's activities has been revulsion. He has used social network X (formerly Twitter) to push an increasingly partisan viewpoint and peddled a stream of ideas and theories that can accurately be described as misinformation. These people are increasingly uncomfortable with Musk's power over the US space program and the country's electric vehicle industry, and ability to influence geopolitical affairs through the Starlink constellation for which there is no viable competitor at present. The idea that Musk is regularly conversing with Putin, an avowed foe of the United States and Western democracies, is deeply uncomfortable.

After nursing a libertarian streak for decades, Musk has become ultra-political. He is loved. He is hated. Because he is so personally embodied by the brands of his biggest companies—much of Tesla's stock value is predicated on Musk's perceived ability to steer into the future, and for all intents and purposes Musk is SpaceX—there are bound to be consequences not just for the man, but for his brands.

Musk's increasingly partisan positions have already had some effect on Tesla, potentially reducing sales to Democratic-leaning voters. But until recently, SpaceX has largely flown above the fray. However, that could change. During Musk's recent showdown with Brazil, for example, the Starlink Internet service was caught in the crosshairs.

Implications for SpaceX

At a minimum, in the wake of Friday's report, Musk is likely to face increased calls for the revocation of his national security clearance. As the launch provider for sensitive Department of Defense missions, Musk has access to privileged information about the capabilities of spy satellites and other national security assets. He also has critical contracts with the US military for Starlink communication services under the Starshield business unit.