The Democrats have just won the midterm elections and will regain the majority in Congress in January. Elon Musk, a close ally of President Trump who paid a handsome sum this election cycle to ensure Republican victory, 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 in the next quarter, Musk said in a post on The share of government revenue will decline further over the next year, reaching 5%, Musk added.
“SpaceX government contracts are both the best product AND the lowest price! » Musk claimed in the message. “Happy to cancel anything the government doesn’t want. Just say the word!”
In the most recent quarter, SpaceX reported that government contracts accounted for 16.6% of its revenue. These contracts were signed with NASA and the Pentagon for things like launching satellites and building Trump’s Golden Dome missile shield system.
The share of government contracts in SpaceX’s revenue is declining, and this isn’t the first time Elon Musk has hinted at an even faster decoupling of government revenue. For example, in February, Musk claimed that NASA contracts would only represent about 5% of SpaceX’s revenue this year. Anthropic also reportedly recently overtook the US federal government to become SpaceX’s largest customer. The AI lab’s IPO filing unveiled last month showed Anthropic agreed to spend up to $120.5 billion through 2029 as part of its compute deal with SpaceX, a figure that is about $36 billion more than previously announced.
But the election may have sown fear among investors who bought Musk’s companies. As of Thursday, Tesla and SpaceX had lost more than $450 billion in combined market value in the two days following the election.
On Thursday, the Washington Sun reported that congressional Democrats were already preparing plans to launch investigations into hundreds of executives and companies, including tech giants and AI labs, once the party regains control of Congress.
Musk’s tweet came hours after The Washington Post reported that between March 2025 and June 2026, the government agreed to pay SpaceX nearly $1.2 million for a military unit to establish communications for White House officials. The Post notes that White House officials told the New York Times last year that Musk donated the Starlink service to the White House. At the time, Democrats on the House Oversight Committee requested more information about the Starlink installation.
“Donations like this raise significant red flags about whether Mr. Musk is using his position in the federal government to benefit his businesses,” the Democratic representatives wrote in a letter.
There is also significant controversy over Musk’s power in the Ukraine-Russia war. Last month, Ukrainian officials said their military abruptly lost critical access to Starlink services because SpaceX allegedly implemented a speed limit. Musk denied responsibility, but accused the Ukrainian military of violating Starlink’s “terms of service” via an alleged loophole that has now been closed.
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