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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

    GizmoHome CollectiveBy GizmoHome CollectiveJune 6, 202503 Mins Read
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    The info present the US can be on the hook for about $14 billion for SpaceX’s Starlink web service at quite a few places of work, reminiscent of a Division of Inside facility in Nevada.

    The info could possibly be outdated or embody errors, however lots of the listed figures line up with press releases from businesses such because the US Area Drive.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 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 yr, almost double estimates from two years in the past. SpaceX has accounted for 134 of the 166 orbital launches within the US up to now this yr, in response to tracking by Jonathan McDowell, an astrophysicist on the Harvard-Smithsonian Middle for Astrophysics.

    WIRED did not evaluation detailed contracts or seek for offers the federal government might have struck with Musk’s firms by intermediaries. As an illustration, 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 includes Tesla electric vehicles, in response to paperwork on-line, and the Normal Providers Administration just 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 new zero-emission autos, dealing a blow to firms reminiscent of Tesla.

    DOGE Pinching

    Musk’s firms have benefited from authorities help for years. In February, an evaluation by The Washington Submit found Musk companies had obtained 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 sequence 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 had 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 deal with 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 response to representatives at two firms with main authorities contracts. They declined to be named out of concern of retribution from Trump.



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