What Musk’s 100 Days Mean for America
36min read Over the past 100 days, Elon Musk has left an indelible mark on the U.S. economy, government operations, and corporate landscapes. From SpaceX’s rapid space launches to his controversial role in dismantling federal agencies, Musk’s actions have created both opportunities and risks for investors. This analysis dissects the implications of his projects and policies, highlighting where markets stand and where they might head.
SpaceX: A Rocket-Powered Growth Engine
Musk’s space ventures have been a beacon of innovation. In May 2025 alone, SpaceX executed three major launches, including the historic Axiom Mission 4 (AX-4), which sent the first Indian astronaut to space. The Starlink constellation continues to expand, with two launches on May 1 and another on May 11 for NASA’s TRACERS mission.
SpaceX’s success is underpinned by its dominance in commercial spaceflight. The AX-4 mission’s fully private operation signals a paradigm shift: commercial entities now rival government-led space programs. For investors, this points to long-term growth in satellite internet, space tourism, and partnerships with NASA. However, the company’s reliance on federal contracts—$38 billion since 2000—means regulatory scrutiny remains a risk.
The Doge Controversy: A Threat to Governance and Markets
Musk’s advisory role in the Trump administration’s “Department of Government Efficiency” (Doge) has been a flashpoint. Over 2 million federal workers received buyout offers, agencies like USAID and NASA faced mass layoffs, and Musk’s allies targeted regulatory bodies overseeing his companies (e.g., NHTSA).
The Senate report released in January 2025 revealed $2.37 billion in potential liabilities for Musk’s firms, including Tesla’s $1.19 billion DOJ fine for Autopilot fraud and a $462 million racial harassment lawsuit. These legal battles, coupled with Musk’s public clashes with judges, have eroded trust in his leadership.
Tesla’s stock plummeted 25% by early 2025, with Q1 2025 profits down 71% amid protests and regulatory pressures.
Starbase: A Corporate City with High Stakes
On May 3, 2025, voters in Cameron County, Texas, approved the creation of Starbase, a city controlled by SpaceX employees. This referendum, backed by 90% of voters (mostly SpaceX staff), grants Musk’s firm unprecedented governance power over zoning, taxation, and infrastructure. While this streamlines operations for Starship development, critics warn of environmental risks and reduced public beach access.
The move raises broader questions about corporate influence in local governance. For investors, Starbase’s success could pave the way for similar ventures, but the concentration of power in a handful of employees’ hands poses reputational and operational risks.
Tesla’s Struggles and the Road Ahead
Tesla’s decline mirrors Musk’s polarizing influence. Despite ambitions for self-driving cars and Optimus robots, the company faces intensifying competition from Chinese automakers and a tarnished brand image due to protests and regulatory fines. Musk’s focus on technological expansion contrasts with stagnant sales and investor skepticism.
Conclusion: Riding the Rocket or Avoiding the Fallout?
Musk’s 100-day tenure has been a rollercoaster for markets:
- SpaceX: A high-risk, high-reward bet. Its technological edge and NASA partnerships offer long-term gains, but reliance on government contracts and regulatory battles could slow progress.
- Tesla: Avoid until legal liabilities are resolved and sales rebound. The $2.37 billion in potential fines and a 71% profit drop in Q1 2025 signal instability.
- Starbase: A speculative play. The city’s creation highlights Musk’s ability to reshape governance but carries environmental and democratic risks.
Investors should weigh Musk’s visionary projects against systemic risks. While SpaceX and Starbase point to future opportunities in space and tech, Tesla and Doge-related liabilities underscore the perils of unchecked corporate influence. For now, caution prevails: monitor regulatory outcomes, Starbase’s governance, and Tesla’s ability to rebound before committing capital.
The next 100 days will test whether Musk’s vision can overcome his controversies—or whether markets will demand accountability first.
