Elon Musk is proving that running a business heavily reliant on one individual can come with significant drawbacks. Once a favorite among progressive circles, Tesla is now grappling with a tarnished reputation. This shift comes as Musk veers towards a more hard-right stance, causing Tesla’s valuation to drop dramatically. Meanwhile, his ambitious Starship project, aimed at space exploration, has stumbled with two back-to-back test failures. Musk humorously refers to such setbacks as a “rapid unscheduled disassembly,” but it’s clear his once-lauded status is wobbling.
To counter this perception, Musk might highlight a recent victory: SpaceX’s successful return of two astronauts from the International Space Station. These astronauts had been stuck there for nine months because of a malfunctioning Boeing crew capsule, adding to Boeing’s long list of issues.
This juxtaposition of Musk and Boeing feeds into the narrative of the bold entrepreneur overtaking a sluggish legacy competitor—a narrative rooted in American business folklore. Superficially it fits, as SpaceX has outshone Boeing in the aerospace sector, much like Tesla temporarily surpassed traditional automakers. These accomplishments are nothing short of remarkable. However, upon closer inspection, Musk’s relentless innovation might appear to the public as both a strength and a weakness.
The recent spectacular failures of the Starship test flights illustrate this point starkly. These rockets, designed to be fully reusable, ended up dispersing debris across the Caribbean, even disrupting air traffic. These mishaps overshadowed the successful astronaut returns. Musk’s nonchalant dismissals of these incidents mask a looming challenge in his approach to crafting space vehicles—a necessity for the Artemis program, aiming to land astronauts back on the moon. Achieving an operational Starship by 2027, however, seems unlikely given these setbacks.
The initial launch stage with Super Heavy boosters isn’t the issue. They’ve performed admirably, including a recent dramatic booster retrieval at the launchpad. However, problems with the engines required to propel Starship into orbit have led to explosions. Experts agree that addressing these will demand expensive redesigns.
SpaceX is far from Musk’s solo act. Its president, Gwynne Shotwell, is equally critical to its triumphs. She has recruited exceptional engineers and bolstered Musk’s visionary risk-taking with astute management while allowing him to remain in the spotlight. Starship represents Musk’s grandest ambition—to go beyond the moon, ultimately to Mars. This aligns with his new focus, now that he’s turned his attention to matters in government efficiency.
In his inaugural speech, Trump pledged to pursue America’s “manifest destiny to the stars,” aiming to plant the American flag on Mars by the end of his term. Given Starship’s troubled trajectory, that timeline seems increasingly unrealistic. Visiting the moon might be as far as NASA can achieve by then. Yet, the moon’s potential as a commercial frontier isn’t lost on other global players, particularly China.
Back in 1969, the moon landing symbolized American ingenuity and spirit, marking the Apollo program as a victory of the analog era, with Boeing providing the massive rocket that propelled the mission. Fast forward to 2014; NASA enlisted Boeing and SpaceX to create a new generation crew capsule. Boeing, once synonymous with “moonshot” innovation, had shifted its focus to shareholder returns over audacious projects, a decision fraught with consequences. This shift led to quality compromises, culminating in two tragic 737 Max crashes. Airbus overtook Boeing as the industry standard.
This misfortune carved out a new legend for Musk, epitomizing a risk-averse visionary who met NASA’s needs within budget and on time with unfailing safety. SpaceX’s earlier Falcon 9 missions showcased remarkable reusability—something Boeing has yet to master.
Yet, with Starship’s setbacks, Musk’s business narrative is at a crossroads. Meanwhile, Tesla has been losing its edge, even before Musk aligned with Trump. Inexpensive, high-quality electric vehicles from China are flooding Europe, capturing the essence of Musk’s vision but making it affordable for the masses.
Tesla could have maintained its luxury niche, akin to brands like BMW, but Musk’s endorsement of far-right movements in Europe and his maneuvers in Washington shifted public perception. The ensuing backlash made Tesla particularly vulnerable, unlike the more discreet segments of Musk’s empire. Contracts with government agencies, classified projects, and essential satellite services like Starlink and Starshield remain crucial to national security.
Transforming buyer dissatisfaction into a political force is an unusual feat. In the past, figures like Henry Ford harbored offensive beliefs but lacked Musk’s levels of political influence. Musk stands as a new model of billionaire—a figurehead of Silicon Valley’s technological wonder. As his achievements in space and automotive industries face hurdles, one can only hope it tempers his aggressive political pursuits.
