Musk says SpaceX government contracts will drop to 5% of revenue within a year

Elon Musk told followers on X that government contracts will make up less than 10% of SpaceX's revenue in the upcoming quarter and are expected to decline to roughly 5% within a year. The comment came after a user suggested Musk write to Senate and House Democrats offering to cancel any contracts the government no longer wants.

Musk added that SpaceX's contracts with the government are "both the best product and the lowest price" and said the company would be willing to cancel any contracts at the government's request.

In the previous quarter, SpaceX reported that government contracts accounted for 16.6% of its revenue, primarily from NASA and Pentagon agreements for satellite launches and missile-defense projects. The proportion of government revenue has been falling, and Musk previously indicated that NASA contracts would represent about 5% of SpaceX revenue this year.

Anthropic, an artificial-intelligence lab, recently became SpaceX's largest customer, with an agreement to spend up to $120.5 billion through 2029, according to its IPO filing.

Investors reacted to the election results, with Tesla and SpaceX together losing more than $450 billion in market value over two days after the midterms. Congressional Democrats are reportedly preparing investigations into a range of technology firms, including SpaceX, as they anticipate regaining the House and Senate majority.

The Washington Post reported that between March 2025 and June 2026 the government agreed to pay nearly $1.2 million to SpaceX for a military communications unit serving White House officials. Democratic representatives on the House Oversight Committee have raised concerns that Musk's donations of Starlink service to the White House could present conflicts of interest.