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Home»Technology»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

AdminBy AdminJune 6, 2025No Comments3 Mins Read
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Elon Musk’s Fight With Trump Threatens $48 Billion in Government 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, reminiscent of a Division of Inside facility in Nevada.

The information could possibly be outdated or embody errors, however most of the listed figures line up with press releases from businesses such because the US House Drive. Among 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 mentioned this week that SpaceX would earn about $15.5 billion in income this 12 months, practically double estimates from two years in the past. SpaceX has accounted for 134 of the 166 orbital launches within the US thus far this 12 months, in line with monitoring by Jonathan McDowell, an astrophysicist on the Heart for Astrophysics | Harvard & Smithsonian.

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

The federal government’s car fleet contains Tesla electrical automobiles, in line with paperwork on-line, and the Common 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 electrical automobiles within the authorities fleet. Earlier this 12 months, the Trump administration paused orders of latest zero-emissions automobiles, dealing a blow to corporations reminiscent of Tesla.

DOGE Pinching

Musk’s corporations have benefitted from authorities help for years. In February, an evaluation by the Washington Submit discovered 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 recognized 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 chainsaw to federal spending by 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 mentioned he was stepping away from DOGE work to concentrate on 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 businesses, in line with representatives at two corporations with main authorities contracts. They declined to be named out of worry of retribution from Trump.


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