Summary:
⚈ Elon Musk criticized expensive jets, calling drones a better investment.
⚈ Despite controversy, LMT stock is up 6.7% in the last 30 days.
The U.S. military-industrial complex is a controversial topic for numerous reasons and is generally no stranger to criticism. However, in April, it came under another form of attack: the accusation of being ‘woke.’
Specifically, investigative journalist Laura Loomer, often described as a far-right activist, took to X to accuse Lockheed Martin (NYSE: LMT) – one of the largest players in the war industry – of pushing a ‘woke agenda’ while essentially defrauding American taxpayers.
According to her lengthy tweet, the defense giant’s F-35 fighter jet program has not only ballooned in cost to a staggering $2 trillion but has also failed to deliver satisfactory products.
For example, Loomer claims that Lockheed Martin regularly ships fighters without a functioning RADAR and that the airplanes quickly degrade and rust at sea while serving with Carrier Air Groups (CAGs).
The journalist and activist blamed ‘wokeness,’ ‘diversity, equity, and inclusion’ (DEI), and ‘Trump-hating’ for the allegedly dire state of the program, while reflecting on what she believes are shady connections between the Biden administration officials, ‘cronyism,’ and a CEO who want to ‘live like a king’ without delivering to the U.S.
Elon Musk joins the Lockheed Martin dogpile
Interestingly, Lockheed Martin and the F-35 program have been under increased scrutiny in recent weeks, with the head of the Department of Government Efficiency (D.O.G.E.), chief ‘twit,’ and CEO of Tesla (NASDAQ: TSLA), Elon Musk, opining that it is, effectively, a waste of money.
Specifically, the South African-Canadian-American billionaire believes that expensive fighter jets can be easily destroyed by significantly cheaper drones, if employed by a power like China.
Drones have become a dominant narrative in modern warfare in recent years. The Russian invasion of Ukraine, in particular, brought them to public attention as they forced both sides to install the so-called ‘cope cages’ on tanks.
‘Cope cages’ are improvised metal encasings, usually covering the turret, which many believe are intended to ‘detonate’ suicide drones before they hit the target. They were initially ridiculed while being primarily employed by the Russians, but have since been seen on Ukrainian and even Israeli tanks.
Is the military-industrial complex more expensive than it is worth?
Elsewhere, the matter of highly expensive equipment being destroyed by relatively cheap weapons has been ongoing for decades, with seemingly little progress.
Multiple war games showing that Chinese or Russian missiles – or Swedish electrical submarines – can easily destroy supercarriers have been a particularly magnetic topic.
Lockheed Martin stock advances despite criticism
Interestingly, the controversy has not prevented Lockheed Martin stock from performing well. In the last 30 days, LMT shares are up 6.72%, and the last week of trading also featured significant positive momentum with a 3.10% rally.
Though Lockheed Martin is, at its press time price of $476.74, down 1.89% in 2025, it has decisively outperformed the broader market. For contrast, the benchmark S&P 500 index dropped 5.85% year-to-date (YTD), and the Dow Jones Industrial Average (DJIA) is down 4.77% in the same time frame.
Featured image via Shutterstock
