Elon Musk has addressed potential concerns regarding future government contracts following the recent midterm elections, where Democrats swept in and are set to regain the majority in Congress come January. President Trump’s close ally, who spent significantly during the election cycle to support Republican wins, claimed via a post on X that he is unconcerned about a potential crackdown on SpaceX’s multibillion-dollar deals with the federal government. Responding to a user who suggested he offer to cancel federal contracts, Musk revealed that government agreements will account for less than 10 percent of SpaceX’s revenue in the upcoming quarter.
Key takeaways
- Government contracts will make up less than 10 percent of SpaceX revenue next quarter.
- The share of government revenue is projected to shrink to 5 percent over the next year.
- Anthropic reportedly surpassed the U.S. federal government to become SpaceX's single biggest customer.
- Tesla and SpaceX shed more than $450 billion in combined market value over the two days following the election.
Shifting Revenue Proportions and Major Commercial Deals
The reliance on federal agreements has been on a downward trajectory for the aerospace company. In the past quarter, SpaceX reported that government contracts made up 16.6 percent of its revenue. These specific deals involve NASA and the Pentagon, covering operations such as satellite launches and building the missile defense shield system known as Trump's Golden Dome. Musk noted that this share will shrink even further to 5 percent over the next year. Earlier this year in February, Musk had already claimed that NASA contracts would account for approximately 5 percent of SpaceX revenue throughout the year.
Commercial and private sector partnerships are scaling up to fill that space. Artificial intelligence lab Anthropic recently surpassed the U.S. federal government to become SpaceX’s single largest customer. An IPO filing unveiled by the AI lab last month showed that Anthropic agreed to spend up to $120.5 billion through 2029 for a compute deal with SpaceX, marking a figure roughly $36 billion higher than previously reported estimates.
Political Scrutiny and Market Reactions
Despite Musk's public dismissal of any adverse impact from a Democrat-led Congress, the election outcomes appear to have unnerved some investors. Tesla and SpaceX experienced a combined market value drop of more than $450 billion over the two days following the election. Concurrently, reports indicate that congressional Democrats are preparing to launch investigations into hundreds of corporate executives and major technology companies once they take control of Congress in January.
Scrutiny has also focused on other operational aspects of Musk's ventures. Recent investigative reporting highlighted federal payments to SpaceX totaling nearly $1.2 million between March 2025 and June 2026 for a military unit establishing communications for White House officials. Previously, House Oversight Committee Democrats requested information regarding Starlink hardware installations at the White House, raising questions over potential conflicts of interest. Additional controversy has surrounded Starlink availability in conflict zones, including Ukraine, where officials reported sudden speed limitations and disruptions, prompting Musk to accuse the Ukrainian military of breaching terms of service.
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