Space Exploration Technologies Corp.’s (NASDAQ:SPCX) investor Ross Gerber sharply criticized Elon Musk over restrictions on Ukraine’s Starlink satellite communications, calling the disruption "strategically horrendous" and warning that the controversy could undermine governments’ trust in the company’s services.
Gerber Warns Starlink Could Lose Trust
"As a SpaceX shareholder, I’m disgusted. I am disgusted with Elon Musk," Gerber, CEO of Gerber Kawasaki, told CNN Wednesday. "I think that these decisions were strategically horrendous, and from a humanity perspective, just horrible."
Gerber argued that disruptions to Ukraine’s military communications exposed the dangers of relying on one satellite provider. "Now they’ve given everybody a reason not to use Starlink," he said, adding that the service "isn’t reliable for national security for anybody but Trump."
"One person should not have that control," Gerber warned, urging governments to develop competing satellite networks.
SpaceX did not immediately respond to Benzinga’s request for comment.
Conflicting Reports Raise Questions About Musk’s Role
The Wall Street Journal reported Tuesday that Musk ordered restrictions on Starshield, SpaceX’s military-grade satellite service, disrupting Ukrainian drone operations. Earlier, Reuters traced the restriction order to the White House, citing two American officials and a Western official. However, President Donald Trump denied involvement.
Musk maintained that the U.S. government controls Starshield restrictions. Secretary of State Marco Rubio offered another explanation Wednesday, saying, "I’m not aware that we knew about this decision beforehand. But that’s irrelevant." Rubio said service conditions depended on private commercial agreements, while Defense Secretary Pete Hegseth similarly attributed restrictions to SpaceX’s terms of service.
Lawmakers Demand Answers Over Ukraine Disruptions
Republican Sen. Thom Tillis (R-N.C.) previously sought a Pentagon investigation, warning that disrupted connectivity endangered Ukrainian civilians and military operations. Democratic Sen. Adam Schiff (D-Calif.) also demanded that Musk testify under oath, while Ukrainian President Volodymyr Zelenskyy called the slowdown a "big mistake."
Zelenskyy subsequently described his discussion with Rubio as "constructive," although questions remain about the restrictions. The controversy follows earlier warnings about SpaceX’s responsibilities toward Ukraine as governments increasingly depend on satellite communications.
Price Activity: SPCX stock was up 3.07% at $149.20 premarket on Friday, according to Benzinga Pro market data.
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