After losing hundreds of billions of dollars, Musk plans to cash in on government contracts
24 March 17:56
Elon Musk ‘s SpaceX is preparing to win billions of dollars in government contracts under the new Donald Trump administration. It has already become the main contender for expanded funding from the Pentagon, NASA, and other federal agencies. This is stated in an article by The New York Times, according to "Komersant Ukrainian".
In particular, the Pentagon sees SpaceX rockets as a promising way to quickly transport military cargo around the world. The Department of Commerce, in turn, has made Starlink satellite internet fully available to participate in a 42-billion-dollar program to expand internet access in rural areas of the United States. During the Biden administration, SpaceX was not eligible for these funds. The Federal Aviation Administration (FAA) has begun integrating Starlink terminals into its aviation security systems, which may lead to new government orders.
In addition, NASA, after numerous calls from Musk, is facing pressure to shift its priorities to Mars exploration. This potentially paves the way for SpaceX to receive government contracts to send people to the Red Planet.
According to The New York Times, Musk’s company has also taken advantage of the new administration’s policy of favoring private space contractors in the areas of satellite communications, equipment manufacturing, and launches. At the same time, some SpaceX employees temporarily working for the Federal Aviation Administration (FAA) have been officially authorized to make decisions that could help expand Musk’s business.
The publication emphasizes that SpaceX has already submitted at least four applications to the Pentagon and the FAA to build new launch sites and increase the number of launches from state-owned spaceports in Florida and California. One of these requests has already been approved: SpaceX will be able to double the number of annual Falcon 9 launches from Cape Canaveral to 120.
In addition, the company is actively lobbying for additional frequency resources for the Starlink network, which will allow it to strengthen its position in the satellite Internet market. The new chairman of the Federal Communications Commission (FCC), appointed by Trump, has already approved one of these requests, despite the protests of mobile operators.
In general, experts believe that SpaceX can expect a significant increase in government funding. This is possible not only because of the Trump administration’s priorities, but also because a number of his associates and SpaceX representatives have been appointed to key government positions.
However, government contracting experts have expressed concern about possible conflicts of interest. According to analysts, the Trump administration has fired officials who were supposed to monitor compliance with ethical standards and prevent abuse in the distribution of government contracts.
“Given Musk’s influence and unprecedented access to levers of power, this situation looks problematic to say the least,”
said Steven Schooner, a public procurement expert.
Amid these changes, SpaceX has already received a $100 million contract from NASA to launch a new telescope. However, the real financial opportunities for the company may be revealed if NASA revises its Artemis program, which involves the return of astronauts to the moon. According to forecasts, Boeing, which is currently engaged in the production of rockets for this project, may lose its contracts, and NASA will switch to SpaceX services instead.
All this allows Musk to receive significant public funds, increasing his influence on key sectors of the US economy. However, experts warn that such monopolization may have long-term negative consequences for both the state and the market.
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Elon Musk is the world’s biggest victim of Trump’s trade wars
reported that Elon Musk was the world’s biggest victim of Trump’s trade wars. As of the beginning of March, his wealth has decreased by $116 billion since the record high of $464 billion recorded on December 17, when Tesla shares reached a historic high of $480 per share.
However, after that, Tesla began to lose ground in the market: on Tuesday, its shares closed at $272, the lowest level since the US election day.
The reason for Tesla’s fall was the overall negative dynamics of the stock market: the S&P 500 index fell by more than 1%, updating its annual low. This happened after the Trump administration imposed new tariffs on Canada, China, and Mexico.
However, it is likely that Musk is much more astute, and thanks to US government contracts, this temporary drop will turn into another rise to trillion-dollar figures.
Elon Musk is a visionary entrepreneur and lover of Russia
Elon Musk is one of the most influential entrepreneurs of our time, the founder and CEO of many innovative companies such as Tesla, SpaceX, Neuralink, and Boring Company. He was born on June 28, 1971 in Pretoria, South Africa. After moving to the United States, he became a pioneer in the field of electric vehicles, space technology, and artificial intelligence. Musk is often in the spotlight for his ambitious goals, including the colonization of Mars, the development of renewable energy, and the creation of neurocomputer interfaces.
Musk is also known for his active stance on social media, where he often posts controversial statements. In 2022, he acquired the Twitter platform, which he later renamed X. Musk takes a libertarian stance on Internet regulation and freedom of speech, opposing government interference in the activities of tech giants.
Musk plays a prominent role in the context of the Russian-Ukrainian war. His company SpaceX provides the Ukrainian Armed Forces with access to the Starlink satellite Internet, which has provided critical communications at the front. However, some of his public statements have caused outrage among Ukrainians and the international community. For example, Musk has proposed “peace initiatives” that included territorial concessions to Ukraine, which was perceived as support for the Kremlin’s narrative. Recently, Elon Musk was accused of secret contacts with Putin, and he ridiculed Zelenskyy’s statement about Ukraine’s independence.
After Trump came to power and received a position in his administration, Musk took an openly anti-Ukrainian position. Today, Musk is an active supporter of Trump’s pro-Kremlin policies. He calls President of Ukraine Volodymyr Zelenskyy a dictator and an extortionist from the United States and opposes any assistance to Ukraine in the war with Russia.
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