Unhinged? It is possible, that Musk didn't expect the twitter deal to become as politicised, as it did. Maybe he just got afraid of getting into the center of politics in the US. For example the state is a major customer, and they could just stop buying launch services from SpaceX for example, as the president might not agree with the politics of Mr Musk.

I mean look at Bezos, he got into a fight with Trump, and the pentagon preferred Azure to AWS, all of a sudden. Yeah, and a year later that deal got cancelled too, by the next administration [1]. I mean Musk has a lot of business with Uncle Sam, he really can't play his own game, in terms of politics.

I mean, i mean, they really have a lot of 'leverage' with Musk, to begin with. I would guess that Musk would be looking for a way out of the twitter deal, in order to protect his business. Also the economy is going into a recession, therefore his deals with the various governments are going to be much more important. Look, there is even talk of Musk building an e-tank with a German firm, Rheinmetall [2]

[1] https://www.zdnet.com/article/pentagon-terminates-controvers...

[2] https://www.youtube.com/watch?v=LDe7OGpPodM