Silicon Valley investor Roger McNamee called for SpaceX CEO Elon Musk to be prosecuted for undermining the federal government. McNamee claims that Musk, through his social media platform X, is sharing opinions that are detrimental to the government, which also happens to be a major client of Musk's companies. McNamee stated, 'You have somebody who runs strategic defense and aerospace projects for the federal government who's actively undermining the government that's paying him. Somewhere in that is a legal case that needs to be prosecuted,' McNamee said on 'The Last Word.' The comments from McNamee stem from a hate speech watchdog's report accusing Musk of spreading false or misleading claims about the U.S. election. These posts allegedly garnered nearly 1.2 billion views.

McNamee suggested that there should be limitations on Musk's free speech rights because SpaceX holds government contracts. He emphasized that Elon Musk's free speech should be moderated due to SpaceX's federal funding. Former U.S. Labor Secretary Robert Reich also voiced concerns, claiming that Musk is 'out of control' and suggesting that regulators should 'threaten arrest.' SpaceX has long been a significant partner for the U.S. government, especially in launching military satellites. In 2021, SpaceX entered into a $1.8 billion classified contract with the U.S., according to documents reviewed by the Wall Street Journal.

'Like any American, Elon Musk has a right to his opinion,' McNamee said. 'However, that right is not unlimited. He is under special limitations because his company, SpaceX, is a government contractor.' Musk filed a lawsuit last year against the Center for Countering Digital Hate, the organization behind the report. The lawsuit claims that the nonprofit's 'scare campaign' caused significant financial losses by driving advertisers away from the platform. Imran Ahmed, CEO of the watchdog group, defended the report, accusing Musk of blaming them for his own failings as a CEO. Ahmed claimed that Musk's approach made the platform a haven for racists, misogynists, homophobes, and anti-Semites. Adding to the controversy, former President Donald Trump recently proposed appointing Musk to lead a government efficiency commission if elected.

'I will create a government efficiency commission tasked with conducting a complete financial and performance audit of the entire federal government,' Trump announced. Musk responded positively on X, saying, 'I look forward to serving America if the opportunity arises. No pay, no title, no recognition is needed.' X did not respond to a request for comment from Fox News Digital.