Elon Musk's SpaceX is deploying Starlink satellite internet terminals to assist in upgrading the FAA's national airspace system, which raises potential conflict concerns with Verizon's existing contract.

Despite these concerns, Wall Street analysts maintain a consensus rating of 'Hold' for Tesla, indicating a potential upside for the stock amid its recent struggles.

Critics argue that Musk's actions indicate a focus on exerting control over the FAA rather than prioritizing safety, a sentiment echoed by unnamed sources within the agency.

This initiative, named 'TDM X', aims to be fully operational within 12 to 18 months and focuses on improving telecommunication connectivity at remote sites, a crucial upgrade for the FAA's framework.

Critics also highlight potential monopolistic control and safety risks associated with Musk's decisions regarding aviation, especially as the FAA manages approximately 45,000 flights and nearly 3 million passengers daily in the US.

However, the partnership has prompted regulatory and safety concerns due to SpaceX's history of license violations and self-investigations into rocket failures.

The urgency for modernization has been underscored by past air disasters, making this initiative necessary for enhancing aviation safety.

Experts have highlighted a lack of transparency in the contracting process, questioning the access Musk may have to non-public information regarding contract awards.

Ultimately, Musk's influence in government affairs continues to be a contentious topic as the FAA moves forward with its IT modernization initiatives.

Sources within the FAA have expressed alarm that recent layoffs could lead to future aviation accidents, particularly as personnel responsible for accident investigation were among those let go.

Additionally, three SpaceX employees received ethics waivers to work on projects that could benefit Musk's company, raising further ethical concerns.

Former President Donald Trump has criticized the FAA's outdated technology, calling it 'obsolete,' which aligns with Musk's push for modernization.