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    Home»Technology»Elon Musk’s Fight With Trump Threatens $48 Billion in Government Contracts
    Technology

    Elon Musk’s Fight With Trump Threatens $48 Billion in Government Contracts

    Editor Times FeaturedBy Editor Times FeaturedJune 7, 2025No Comments3 Mins Read
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    The information present the US can also be on the hook for about $14 billion for SpaceX’s Starlink web service at quite a few workplaces, similar to a Division of Inside facility in Nevada.

    The information could possibly be outdated or embrace errors, however most of the listed figures line up with press releases from businesses such because the US Area Power. A few of the funding is topic to congressional approval, and a portion may find yourself going to SpaceX’s rivals.

    However SpaceX’s competitors have confronted quite a few technical setbacks, and Musk’s firm stays the dominant market chief. The billionaire said this week that SpaceX would earn about $15.5 billion in income this 12 months, almost double estimates from two years in the past. SpaceX has accounted for 134 of the 166 orbital launches within the US to this point this 12 months, in line with tracking by Jonathan McDowell, an astrophysicist on the Harvard-Smithsonian Heart for Astrophysics.

    WIRED did not overview detailed contracts or seek for offers the federal government might have struck with Musk’s firms by intermediaries. For example, some authorities businesses could also be shopping for advertisements on Musk’s X social media platform by promoting businesses.

    The federal government’s car fleet includes Tesla electric vehicles, in line with paperwork on-line, and the Basic Providers Administration not too long ago paid the corporate for upkeep.

    However the GSA’s annual Federal Fleet Report doesn’t break down the variety of automobiles by producer or supply particulars on future spending. The report lists 7,706 battery-electric automobiles within the authorities fleet. Earlier this 12 months, the Trump administration paused orders for brand new zero-emission automobiles, dealing a blow to firms similar to Tesla.

    DOGE Pinching

    Musk’s firms have benefited from authorities help for years. In February, an evaluation by The Washington Publish found Musk companies had acquired at the very least $38 billion since 2003 in authorities contracts, loans, subsidies and tax credit throughout the US, together with on the state and native ranges. A New York Instances evaluation from October identified at the very least $15.4 billion in federal authorities contracts over the previous decade for Tesla and SpaceX.

    However Musk himself has tried to take a series noticed to federal spending by his work main the Trump administration’s Department of Government Efficiency, which claims to have saved $180 billion since January, together with by canceling contracts, although that determine stays extremely disputed.

    A few of DOGE’s efforts have been quickly blocked by the federal courts and likewise drew protests from federal labor unions, public activists, Congress, states, and even Trump’s own aides and cupboard secretaries. Final month, Musk stated he was stepping away from DOGE work to give attention to his firms.

    Trump’s cost-cutting initiatives haven’t stopped, although. Hiring freezes stay in impact, and the significance of stretching every greenback additional is being emphasised greater than ever at many federal businesses, in line with representatives at two firms with main authorities contracts. They declined to be named out of worry of retribution from Trump.



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