Yeah, it's not like their CEO came directly from the relevant government bureau, right? I'm not a fan of Elon (or most companies, for that matter), but this was the right thing to do. Previously the "government-sponsored" badge was nothing more than US propaganda.
It's always a bit strange when someone says they're not a fan of Elon and then proceed to give him an absurd level of benefit of the doubt by just eliding all the obvious facts that what he's doing is ridiculous and bad. Government-sponsored was not a US propaganda badge, it was a response to a serious concern about adversarial governments influencing US debate through 3rd party cut outs. It's a difficult problem to…
For most people USA is an adversarial government. You've just confirmed it was a propaganda badge meaning "unamerican".