Elon Musk Serves Death Blow to Verizon’s $2.4 Billion FAA Contract (Because, Of Course)

“Elon Musk is HIM…”

The man, the myth, the legend, Elon Musk, is infiltrating himself in nearly every corner of the U.S. Government these days, and this time, he’s eyeing air traffic control as his next chess move.

(Source: Giphy) 

In short, the Federal Aviation Administration is reportedly "close" to canceling a $2.4 billion contract with Verizon—a deal meant to upgrade critical air traffic control systems—and instead handing it over to Musk’s Starlink. Meaning, running rockets, EVs, brain chips, and social media apparently isn’t enough for the man—-not to mention sketchy AF. 

Some may look at this as saying this is a Musk power grab with a full-platter of conflicts of interest–to which I say, I 100% agree. So with that, let’s connect some dots. For starters, Verizon won this contract in 2023 to modernize the FAA’s aging network, which helps air traffic control facilities talk to each other. However, Musk isn't a fan of Verizon (shocking, I know) and went straight to X to say their system is "putting air travelers at serious risk." 

(Source: The Daily Beast) 

Naturally, because everything Musk says is scripture, the FAA suddenly starts testing Starlink as a replacement—just as Musk’s buddies from SpaceX are working inside the agency to “help upgrade its tech.” But the real connecting dot that everyone knows about is that Elon has been  slashing FAA budgets and personnel through D.O.G.E., which he’s conveniently in charge of.

So yeah, the recap is that the guy gutting the FAA’s workforce is now the guy selling the FAA its new tech. Even for Musk, that’s a new level of savagery. But, but, but… just because Musk is bringing this into the limelight doesn't mean the government hasn’t already been a swamp of backroom deals. 

(Source: Yahoo Finance) 

We all know Congress and the Senate is a cesspool of self-interest at the expense of its American citizens—just ask the world's most skilled inside trader, Nancy Pelosi and her “hammer time” husband, Paul. 

(Source: Reddit) 

But now, at this rate, I wouldn’t be surprised if we wake up tomorrow and find out SpaceX is running the TSA and Neuralink is screening passengers for "travel compatibility” LOL. On the other hand, for Verizon, this is a death blow.  Not only was this contract going to lock in billions in revenue for Verizon over the coming years, but it was aimed to help Verizon diversify beyond its struggling wireless business, which is already losing ground to T-Mobile. 

For instance, Verizon’s consumer business—aka your grandma’s phone bill—is stagnant at best. But the worst part? The company’s biggest growth engine has been enterprise and government contracts, where it provides high-margin networking and security services. And now, one of Verizon's largest cash cows is at risk of being stripped away, courtesy of Elon.  

(Source: Giphy) 

Now of course, this isn’t set and stone yet, but it’s definitely on the table. And at the end of the day, this is just another prime example of Musk winning… at literally everything. He’s everywhere, and he’s pulling strings in every federal agency that matters. Obviously, the FAA might try to act like this is a "normal contract review", but let’s be real: Musk is HIM, and the feds are just living in his world.

For now, keep your eyes on Verizon to see how this potential gutting impacts future share prices and as always–stay safe and stay frosty, friends! Until next time… 

P.S. My buddy Jared is sharp as hell—probably one of the smartest guys I know. But when it comes to investing? An absolute clown. Why? Because he doesn’t grasp the one thing that separates winners from losers in the market: information. And not just any information—I’m talking about the kind of intel that Wall Street hoards like the FBI hoards Hunter Biden's laptop—because the second retail traders get their hands on it, their edge starts to disappear.

Moral of the story here? Don’t be a Jared. Get access to the real market-moving data, the stuff hidden behind paywalls and institutional gatekeeping by joining Stocks.News premium. At the end of the day, the market isn’t playing fair—so why should you? 

Stocks.News holds positions in Verizon and T-Mobile as mentioned in the article.