From https://www.nordicnames.de/wiki/Finding_The_Perfect_Name
I find this ... funny.
I'm happy to live in a country where we are free to choose our offspring's names (though I do think Elon Musk could have done better. I Checked and "Elon" is approved.)
Nothing wrong with "Elon" I agree...
To be fair, this kid will be in social circles where being maximally exotic is highly valued. It will probably never see a normal school from the inside.
Don't get me wrong, I don't particularly like this name, but you have to see it in context (just like a traditional Icelandic name would be fine in Iceland, but not so much in the IS or Germany).
By the way, a lot of American states have rules for that baby names are allowed too. And there have been cases where names that have adhered to state law have still been refused (like names attached to Nazism).
America is just a lot more opaque about what names are allowed and what are not.