Trump’s FCC Chair Warns Elon Musk Critics: Betting Against Him Has Cost People ‘A Lot Of Money’

President Donald Trump‘s Federal Communications Commission (FCC) Chair Brendan Carr has backed Elon Musk-led SpaceX‘s Starlink satellite internet service amid a partnership between Verizon Communications Inc. (NYSE:VZ) and T-Mobile (NASDAQ:TMUS).

Betting Against Elon Musk Is Risky

In an interview with Reuters on Thursday, Carr expressed his optimism about SpaceX’s efforts in the satellite communications sector as the FCC approved the sale of EchoStar Corp‘s (NASDAQ:SATS) $40 billion spectrum to SpaceX and AT&T Inc. (NYSE:T).

“I would be very hesitant betting against Elon Musk,” Carr said in an interview, according to Reuters’ David Shepardson via X. He added that a lot of people had tried to do so, but failed and have lost “a lot of money” in doing so. Carr also shared that Musk wasn’t someone who spends money acquiring things, the post said.

“To see this level of investment by SpaceX/Starlink in spectrum,” Carr said, illustrates the company’s confidence in “direct-to-cell” or other technologies SpaceX was developing.

SpaceX’s IPO Faces Backlash

The news comes as SpaceX’s upcoming IPO is facing pushback from pension leaders and comptrollers from California and New York, who decried a “management-favorable” structure adopted by the commercial space flight giant for its IPO.

The leaders also flagged Musk’s CEO compensation packages from SpaceX and Tesla Inc. (NASDAQ:TSLA), saying that the two companies could risk competing against one another.

Delta Airlines Chooses Amazon Leo

Delta Air Lines Inc. (NYSE:DAL) announced it was entering an agreement with Amazon.com Inc.’s (NASDAQ:AMZN) Leo satellite internet service, much to the dismay of Musk, who said that SpaceX couldn’t reach an agreement as Delta was insistent on providing Starlink access via its Delta Sync portal, which Musk refused.

Musk also outlined that SpaceX “deliberately” entered into agreements with airlines that offered less revenue to expand access to Starlink and ensure it reached customers easily. Delta has since refuted Musk’s comments, saying Starlink could have been offered even on its Sync portal.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Photo courtesy: Shutterstock