- Elon Musk’s political interventions are beginning to be a problem for SpaceX.
- The rocket firm is attempting to launch Starlink in South Africa even as Musk criticizes the country’s laws as “openly racist.”
- Ontario ripped up a Starlink contract in response to the threat of US tariffs from Musk ally Donald Trump.
Elon Musk has thrown himself head-first into politics — and that is causing problems for one of SpaceX’s most prized assets.
Starlink, the satellite internet service operated by Musk’s rocket company, has grown rapidly in recent years, launching in 27 new markets and tripling its internet traffic last year.
Musk’s political interventions across the globe and presence in the Trump administration are now complicating the service’s expansion drive.
The world’s richest person attacked a Black empowerment law introduced by South Africa’s coalition government, which requires foreign telecom companies to provide 30% equity to Black-owned businesses to be granted operating licenses, as “openly racist.”
Musk, who grew up in South Africa, has also railed against the country’s land appropriation law, which allows the government to seize unused land in certain circumstances.
On Monday, President Donald Trump said the US would cut funding for South Africa over the law, which was intended to address the damage caused by colonial and Apartheid-era policies that restricted the ability of South Africa’s Black majority population to own land.
South Africa hit back against Trump’s move, with President Cyril Ramaphosa writing on X that the government has not “confiscated any land.”
Musk’s interventions in South African politics come as SpaceX waits to receive permission to launch Starlink there.
The rocket firm has launched its satellite internet service in other southern African nations, but is waiting for regulatory approval as politicians in South Africa debate whether to grant SpaceX an exemption to Black empowerment rules.
South Africa isn’t the only place Musk’s outspoken political interventions are causing a headache for SpaceX.
After donating more than $200 million to Donald Trump’s campaign, the SpaceX founder has taken on a key role in the Republican president’s administration, spearheading efforts to overhaul government spending with his so-called Department of Government Efficiency and even becoming a “special government employee.”
Musk’s status as one of the new administration’s biggest personalities has made him a target as Trump has ramped up an aggressive trade war against Canada, China, and Mexico.
On Monday, Ontario Premier Doug Ford said the Canadian province would be “ripping up” its $68 million contract with Starlink because of a mooted 25% tariff on Canadian goods, which Trump later paused.
The backlash could spread to Musk’s other companies, with Canadian prime ministerial candidate Chrystia Freeland suggesting the country could respond to the tariffs by imposing a 100% levy on Tesla vehicles.
Musk doesn’t seem particularly concerned. “Oh well,” he posted on X in response to the news that Ontario was tearing up the multimillion dollar contract.
SpaceX did not immediately respond to a request for comment from Business Insider.
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