Elon Musk, CEO of Tesla TSLA 3.80%, tried to copy a key patent for Lockheed LMT 0.04% Martin.
Usually, investors wouldn’t care what the CEO of a car company thinks about cutting-edge defense technology. But Musk is also in charge of a commercial space company, and his closeness to Trump makes almost every statement from the iconoclast an event for investors.
Musk posted a video of drones flying in different patterns on Sunday morning, along with the message, “Some idiots are still building manned fighter jets like the F-35.”
Lockheed Martin made the F-35, which can fight in stealth, fly faster than sound, and carry advanced weapons. It’s a pretty big plane. The Russian and Chinese armies both have jets that use the same technology.
Musk could change his mind about what he is saying. Richard Aboulafia, managing director of AeroDynamic Advisory, says that modern fighter jets play “irreplaceable roles.” He also says that drones can’t stop enemy bombers or launch from thousands of miles away to support navy operations or other strategic goals.
Drones are used by the military, of course. As technology changes, they get better. Unmanned flying vehicles and bombs that can be guided have also been used for a long time. The “Replicator Initiative” of the Defense Department wants to put “thousands of autonomous systems across multiple warfighting domains” into use.
Either/or doesn’t work here. The military has gear for a variety of tasks.
Admiral Samuel Paparo, head of the U.S. Indo-Pacific forces, talked about drones at the Brookings Institution a few days ago when asked if some of the drone technology that helped Ukraine fight off Russian forces could be used in a conflict between China and Taiwan.
“Okay, so the Chinese military has 2,100 soldiers.” They have three platforms for planes. Their battle fleet is made up of 200 ships, Paparo said with a sarcastic tone. “Oh well, Roger. We have a few drones.” Not a problem.
We asked Lockheed for a statement, and this is what they said: “As we did during his first term, we look forward to a strong working relationship with President Trump, his team, and also with the new Congress to strengthen our national defense.” The F-35 is the world’s most advanced, resilient, and interconnected fighter aircraft. It is a key deterrent and the foundation of joint actions across all domains.
Musk didn’t answer right away when asked for comment on Sunday.
It’s not clear how Musk’s comment could affect the defense contractor’s stock.
Musk is not only the CEO of Tesla, but also of SpaceX, which is worth about $250 billion and is the most valuable aerospace and defense company in the world. When debt is added in, Lockheed’s value is closer to $150 billion.
Musk is now also co-in charge of Trump’s Department of Government Efficiency. This is kind of like an expert who gives the president advice on how to cut down on waste in the government.
It’s not clear where the new department and military meet. Gwynne Shotwell, COO of SpaceX, recently said that she doesn’t like cost-plus contracts with the government. She likes to win bids that are based on the lowest costs and the biggest gains so that the job gets done better.
Lockheed stock had dropped about 0.2% since the election on November 5th, when it was last traded. The S&P 500 SPX 0.35% is up 4.5%. Since the beginning of the year, Lockheed stock has gone up about 20%.
Lockheed’s stock is usually affected by defense spending and the level of threat around the world. Now there are also Musk’s tweets.
