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Musk Says SpaceX Government Revenue Will Shrivel Next Year

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Musk Says SpaceX Government Revenue Will Shrivel Next Year

The Democrats just swept in the midterm elections and will regain the majority in Congress come January. President Trump’s close ally Elon Musk, who coughed up a pretty penny this election cycle to ensure Republican wins, says he is not afraid of a crackdown on SpaceX’s multibillion-dollar deals with the federal government.

Government contracts will account for less than 10% of SpaceX’s revenue this upcoming quarter, Musk said in a post on X, in response to a user who suggested that Musk send a letter to Senate and House Democrats on January 1 offering to cancel the contracts. The share of the government revenue will shrink even further over the next year to 5%, Musk added.

“SpaceX contracts with the government are BOTH the best product AND the lowest price!” Musk claimed in the post. “Happy to cancel any that the government doesn’t want. Just say the word!”

In the past quarter, SpaceX reported that government contracts made up 16.6% of its revenue. Those contracts were inked with NASA and the Pentagon for things like satellite launches and the construction of Trump’s so-called Golden Dome missile defense shield system.

The share of government contracts in SpaceX revenue has been declining, and this is not the first time Musk has alluded to an even more rapid decoupling from government revenue. For example, in February, Musk claimed that NASA contracts would only make up around 5% of SpaceX revenue this year. S. federal government to become SpaceX’s single biggest customer. 5 billion through 2029 as part of its compute deal with SpaceX, a figure that is roughly $36 billion more than what was previously reported.


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