yes but Musk has claimed he could trivially re-implement the system with more or less only using AI

putting aside weather that is true or not and just assume it to be true for the later argument

then it is the perfect chance to replace a public service the country depends on by a billionaire controlled private company

thats how you convert a country to an oligarchy, bit by bit replacing essential parts with entities privately owned and (most importantly) controlled by a few people so that a country "has to" depend on them to function and they can use it as leverage to force through their interests

to be fair, this might not be the intend here. A lot of the shutdown seem more blind ideological driven then well calculated, but it's a potential danger anyway