Elon Musk is becoming a problem even for his own businesses

SpaceX has just completed the daring and successful launch of the Starship rocket. The event, which took place last Sunday (13th), is an important milestone for Elon Musk's company and could begin the next phase of space exploration.

But the California Coastal Commission will not be part of that story. The organization rejected a proposal that would allow SpaceX to launch up to 50 rockets per day from an air base under its jurisdiction. While the decision can, and likely will, be challenged, this rejection represents an important point.

The problem is not with the company or its technical capacity. After all, it was just days away from launching and landing a rocket in the same location for the first time when the commission issued its decision. The real obstacle was Musk himself.

“Elon Musk is traveling the country spreading and tweeting political lies and attacking FEMA (US Federal Emergency Management Agency), while saying they want to help hurricane victims with free internet access via Starlink,” said Gretchen Newsom, representative of the California Coastal Commission, in announcing the decision.

These words highlight how toxic the billionaire's image has become – to the point of harming his own companies' businesses.

It is not the first time that Musk's personality and his insistence on imposing his political views have caused problems. The UK government decided not to invite him to an investment summit that attracted major business leaders.

The decision, taken last month, was reported by the BBCwhich reported that Musk was excluded due to his comments about the wave of racist attacks that occurred in the country in August.

It is both a risk and an advantage, and it is difficult to know which of the two is more important.

Plus, it's easy to forget that he recently lost an appeal to remove what they call his “Twitter babysitter” – a company lawyer who reviews every social media post he makes about Tesla under a deal with Tesla. US Securities and Exchange Commission following allegations that Musk had published fraudulent tweets that misled investors.

He attempted to appeal the ruling to the Supreme Court to prevent his posts from being reviewed, but the court rejected his request in April. Given his stance towards the authorities, this was probably not a difficult decision.

ERRATIC BEHAVIOR

“Musk’s image is tarnished”, analyzes Cary Cooper, professor of organizational psychology at the University of Manchester, in the United Kingdom. According to Cooper, strong support for Donald Trump and his hostile behavior are negatively impacting his business.

“It is both a risk and an advantage, and it is difficult to know which of the two is more important,” adds Anupam Chander, professor of law and technology at Georgetown University, in the USA.

However, the same characteristics that alienate some partners – including government representatives and courts – are those that energize much of their supporter base and have resulted in some of the extraordinary advances their companies have been responsible for.

“Even if Musk displeases some customers and politicians, it is not clear whether Tesla and SpaceX, under different leadership, would have the same loyal following or attract as much media attention,” highlights Chander.

On the other hand, both consumers and colleagues are turning away due to the billionaire's behavior. Cooper reports having heard people say they no longer buy Tesla vehicles because of Musk. And its relationships with governments are getting more complicated.

The UK government decided not to invite him to a meeting that brought together major business leaders.

“Governments prefer to deal with stable people,” says Cooper, suggesting that Musk does not fit this profile. “They need to know what to expect. In the past, he was such an innovative entrepreneur that it didn't bother them, but now he's deeply involved in the political scene” – which ends up alienating a lot of people.

All of this contributes to a troubled legacy, which continues to be shaped with each advance and setback. “He pushed his companies to achieve things that many considered impossible – but he also promised much more than he delivered,” concludes Chander.

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ABOUT THE AUTHOR

Chris Stokel-Walker is a British journalist whose works are regularly published in outlets such as Wired, The Economist and Insider find out more

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