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PulseReporter > Blog > Tech > Elon Musk’s Combat With Trump Threatens $48 Billion in Authorities Contracts
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Elon Musk’s Combat With Trump Threatens $48 Billion in Authorities Contracts

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Last updated: June 7, 2025 1:26 am
Pulse Reporter 2 months ago
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Elon Musk’s Combat With Trump Threatens  Billion in Authorities Contracts
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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The information could possibly be outdated or embrace errors, however lots of the listed figures line up with press releases from companies such because the US House Drive. A number of the funding is topic to congressional approval, and a portion may find yourself going to SpaceX’s rivals.

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

WIRED did not assessment detailed contracts or seek for offers the federal government might have struck with Musk’s corporations by way of intermediaries. For example, some authorities companies could also be shopping for adverts on Musk’s X social media platform by way of promoting companies.

The federal government’s automobile fleet contains Tesla electrical autos, in response to paperwork on-line, and the Normal Companies Administration lately paid the corporate for upkeep.

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

DOGE Pinching

Musk’s corporations have benefited from authorities help for years. In February, an evaluation by The Washington Put up discovered Musk companies had acquired not less than $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 recognized not less than $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 way of his work main the Trump administration’s Division of Authorities Effectivity, 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 had been briefly blocked by the federal courts and in addition drew protests from federal labor unions, public activists, Congress, states, and even Trump’s personal aides and cupboard secretaries. Final month, Musk stated he was stepping away from DOGE work to give attention to his corporations.

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 companies, in response to representatives at two corporations with main authorities contracts. They declined to be named out of worry of retribution from Trump.

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