June 6, 2025, states: "*TRUMP: WILL 'TAKE A LOOK’ AT MUSK'S GOVERNMENT CONTRACTS."

Elon Musk’s government contracts are extensive, totaling $38 billion historically, with $11.8 billion in ongoing contracts primarily through SpaceX (NASA, DoD) and Tesla (EV credits, incentives). Trump’s statement about reviewing these contracts puts significant financial stakes at risk for Musk’s companies. Trump is expected to follow through.

Overview of Musk’s Government Contracts

It is a well known fact that Musk’s business SpaceX and Tesla has benefited significantly from government contracts, subsidies, and incentives. These financial arrangements span multiple federal, state, and local agencies, supporting Musk’s ventures in space exploration, electric vehicles, and other technologies. Here’s a detailed look:

1. SpaceX Government Contracts NASA Contracts
   • SpaceX has secured significant contracts with NASA, particularly for the Artemis program, which aims to return humans to the Moon. According to a 2023 NASA release, SpaceX was awarded a contract modification (Option B) valued at $1.15 billion to further develop its Starship human landing system for the Artemis IV mission, scheduled for a crewed landing demonstration in 2027. This follows an earlier contract under Artemis III for humanity’s first lunar return in over 50 years.
   • SpaceX also conducts uncrewed demonstration missions as part of these contracts, ensuring the Starship system meets NASA’s requirements for long-term lunar exploration.
   • Historically, SpaceX has been a key player in NASA’s Commercial Crew Program, ferrying astronauts to the International Space Station (ISS), and has contracts for cargo resupply missions under the Commercial Resupply Services (CRS) program. Defense Department Contracts
   • The U.S. Department of Defense (DoD) is another major contributor to SpaceX’s government funding. SpaceX has contracts for launching military satellites and providing launch services for national security missions. For example, the Pentagon’s DARPA (Defense Advanced Research Projects Agency) began funding SpaceX as early as 2003 for conceptual work, long before its first successful

According to a February 2025 Washington Post analysis, SpaceX has 52 ongoing contracts with seven government agencies, including NASA and the DoD, potentially worth an additional $11.8 billion over the next few years. The majority of these funds come from NASA and DoD contracts.

2. Tesla Government Funding

Tesla has earned $11.4 billion in regulatory credits from federal and state programs designed to boost the electric vehicle (EV) industry. These credits are often earned by selling excess credits to other automakers who fail to meet emissions standards. Tesla benefits from a federal $7,500 electric-vehicle tax credit for consumers, which has bolstered its sales. Trump’s mention of taking the EV mandate” in the Axios article likely refers to plans to cut this tax

Since 2007, state and local governments have provided Tesla with at least $1.5 billion in tax credits, grants, and reimbursements, according to Good Jobs First data cited by the Washington Post. These funds have supported the development of Tesla’s factories (e.g., Gigafactory in Nevada) and battery

Various government agencies have contributed another $2.1 billion to Tesla, much of it to drive the development of electric vehicles and battery technology.

Total Government Funding

The Washington Post estimates that Musk’s business empire has been built on $38 billion in government funding, including: $11.8 billion in ongoing contracts (primarily SpaceX). $11.4 billion in Tesla regulatory credits. $1.5 billion in state and local incentives. $2.1 billion in additional federal, state, and local contributions for Tesla and battery development.

This funding has been crucial for Musk’s companies, with SpaceX relying heavily on NASA and DoD contracts, and Tesla leveraging EV incentives to achieve market dominance.

canceling NASA contracts for Artemis or DoD launch services would be a significant blow to SpaceX. Similarly, removing EV tax credits or regulatory credits could hurt Tesla’s financials, as evidenced by the drop in Tesla’s shares (a $152 billion market cap loss) reported by The Guardian on June 6, 2025.

Potential Impact SpaceX’s Artemis contracts ($1.15 billion for Option B alone) and DoD launch contracts are at risk. Tesla’s reliance on EV tax credits and regulatory credits $11.4 billion historically could face cuts, especially if Trump follows through on his stated frustration