Elon Musk, CEO of SpaceX, has clarified that the company’s revenue from NASA is derived from competitive contracts and not government handouts.
Musk posted on X that the company’s revenue from NASA constitutes about 7% of its total $15 billion earnings for the year. He emphasized that these funds were won through competitive bids for various contracts, including astronaut and cargo transport to the Space Station, launching research satellites, and lunar missions. Musk insisted that there were “zero handouts.”
Musk’s clarification comes in response to astro photographer Andrew McCarthy’s claim that SpaceX’s Starship development is privately funded through Starlink subscriptions and that SpaceX offers the cheapest option to NASA for launching payloads into space, thereby saving taxpayer money.
Warren Slams SpaceX Over Low Taxes, Big Contracts
Musk’s defense of SpaceX’s finances follows recent criticism about the company’s tax payments and government contracts. In July, Musk had criticized President Trump for cutting subsidies on renewable energy and claimed that SpaceX had won NASA contracts by providing better services for less money.
In June, Elon Musk even rejected a report valuing SpaceX at $480 billion, saying it was "too high" given the company's current stage. He forecasted SpaceX's revenue would surpass NASA's $18.8 billion FY2026 budget, which had notably been cut by the Trump administration.
However, recent reports suggest that SpaceX has paid minimal federal income taxes since 2002, despite receiving billions in government contracts. Furthermore, Senator Elizabeth Warren (D-Mass.) has accused SpaceX of paying less tax while benefiting from billions in U.S. government contracts.
Recently, Trump has taken steps that could favor SpaceX. In August, he signed an executive order easing space regulations, a move expected to enhance the company's operations.
READ MORE:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
