Corporate Misinformation: How Elon Musk Targetted Verizon

Elon Musk’s recent attempts to disrupt a $2.4 billion Federal Aviation Administration (FAA) telecommunications contract with Verizon have ignited a firestorm over corporate misinformation.

By leveraging his platform X (formerly Twitter), Musk allegedly spread misleading claims about Verizon’s capabilities while promoting SpaceX’s Starlink as a replacement. U.S. Senator Maria Cantwell condemned the move, stating his actions “raise serious red flags” about undue influence over critical infrastructure. This incident underscores a pressing challenge for businesses: safeguarding trust in an era where misinformation can instantly dismantle reputations.

The Musk-FAA-Verizon Controversy: A Case Study in Misinformation

In February 2025, the FAA awarded Verizon a $2.4 billion contract to modernise U.S. air traffic control telecommunications. Shortly after, Musk began posting on X, questioning Verizon’s reliability and advocating for Starlink as a “cost-effective alternative.”

Internal FAA documents later revealed that Starlink’s infrastructure remains unproven for such large-scale safety systems. Yet, despite this, Musk’s posts spurred lawmakers to reconsider the contract, highlighting how his words, his presence on DOGE and his close connection to Donald Trump, as well as the influence he can leverage on his platform, can create a firestorm on social media can skew public perception and regulatory decisions.

The Ripple Effect: How Misinformation Undermines Trust

Musk’s campaign against Verizon illustrates three critical risks:  

Reputational Damage

By suggesting that the FAA’s decision-making process might be compromised, Musk’s statements risk undermining the trust that the public and stakeholders place in both Verizon’s ability to deliver secure, reliable services and the FAA's ability to support flying in the US—this after the recent tragedies in Washington DC National and other locations across the country.

Stock Price Volatility

Such high-profile commentary can influence investor sentiment, potentially affecting Verizon’s share price as market participants react to perceived instability.

Stakeholder Distrust

For companies like Verizon, the cascading effect of misinformation can erode confidence among partners, customers, and regulators, even after misinformation is debunked.

The Rising Threat of Misinformation in Business

Musk’s tactics reflect a broader trend: bad actors weaponising social media to manipulate policies and markets for their own interests.

Deepfakes, bot networks, and viral disinformation campaigns now enable individuals to destabilise companies faster than ever before.

For businesses, the stakes extend beyond lost contracts—they risk lasting erosion of stakeholder trust.

Damage to Corporate Reputation

Misinformation can create a narrative that, even if untrue, leaves a lasting impact on a company’s brand image. When influential figures target established players like Verizon, it becomes crucial for the affected companies to counteract these narratives with factual, transparent communication at pace. It is essential to find the balance between legal action and audience engagement.

Influence on Share Prices and Stakeholder Perception

Investor sentiment is highly sensitive to news—especially in sectors like telecommunications and technology. Tweets or posts that doubt regulatory decisions can lead to short-term volatility, while long-term trust is built on consistent, reliable communication. The risk here is not just immediate market reaction but the potential for a sustained impact on how stakeholders perceive corporate governance and competitive fairness.

A Structured Defense: How Companies Can Protect Themselves

To combat misinformation, businesses must adopt a proactive, multi-layered strategy:

Proactive Monitoring

Deploy AI tools to track brand mentions and detect false narratives in real time. At the same time, work with communications executives, internal teams and external advisors to ensure that executives and spokespersons with media training can effectively communicate under pressure.

Rapid Response Protocol

Establish a cross-functional team (legal, PR, leadership) to swiftly issue fact-based rebuttals. This team, led by the General Counsel and Strategic Communications (I’ve called for the working relationship to be implemented at the top of companies), must work together speedily and transparently to refute misinformation, which can damage trust, reputation, and the valuation of a company or an investment.

Facts and data, along with an understanding of the emotions of your audiences and stakeholders, are critical if false claims are going to be countered. It is essential that consistent messaging is promoted privately and publicly, whether through press releases, social media, or internal updates—are consistent and evidence-based

Stakeholder Education

Regularly engage and update investors, employees, and customers via trusted private and public channels. Preemptively address vulnerabilities exposed in crises.

Maintain open lines of communication with stakeholders, investors, and regulatory bodies. Transparency in decision-making processes builds trust. Equally, conducting regular audits by independent third parties can validate a company’s practices and provide an objective view of its operations.

Regulatory Partnerships

Collaborate with policymakers to strengthen accountability for misinformation. Senator Cantwell’s scrutiny shows the value of regulatory allies. This is an example of social proof and community engagement, where verified customer testimonials and case studies reinforce service reliability.

Invest in Verification, Digital Monitoring and Cybersecurity Tech

Implementing real-time advanced monitoring systems to track social media and news coverage is becoming essential. Early detection of misinformation can allow companies to respond before false narratives gain traction.

At the same time, cybersecurity is no longer just about protecting IP and assets but also about reputation and perception online, which influences people's opinions. It is critical that cyber now maps out networks used where your brand and those of your leaders and partners are discussed to ensure that their reputations are protected.

Blockchain-based authentication and digital watermarking can help validate official communications, making falsification harder.  

Turning Crisis into Opportunity  

The Verizon-FAA saga is a wake-up call: trust is your most fragile asset. By embedding anti-misinformation measures into your company’s DNA, companies can mitigate risks and position themselves as transparent industry leaders.

This is a growing issue for companies, investors, and governments. The erosion of trust requires organisations to look within themselves and see how they can make their organisations more transparent and proactive in how they present themselves.

Your reputation and the trust you hold are critical to growth. Think strategically and be ready tactically to protect yourself.

We are living in a time where now more than ever, as The Wu-Tang said, we have to ‘Protect Ya Neck.’