Elon Musk says SpaceX not ‘subsidised’ by NASA — here’s why he believes company won the space agency’s contracts
Billionaire Elon Musk used social media site X (formerly Twitter) to clarify the belief that his rocket and satellite company SpaceX is backed by the government space agency NASA.
In a post by X, the Tesla, SpaceX and Starlink owner said NASA will account for just 5% of the rocket maker’s revenue next year, 2026.
Elon Musk says this is why SpaceX gets NASA contracts
“While I have great affection for NASA, they will account for less than 5% of our (SpaceX’s) revenue next year. Commercial Starlink is by far the largest contributor to our revenue,” he said.
The world’s richest man also touched upon allegations that SpaceX was financially supported by the US government-run space agency, adding: “Some people claimed that SpaceX was “supported” by NASA. This is absolutely false.”
The reason according to Elon Musk? “The SpaceX team won NASA contracts because we offered the best product at the lowest price. BOTH the best product AND the lowest cost. When it comes to astronaut transportation, SpaceX is currently the only option that meets NASA safety standards.”
Elon Musk says there’s no $800 billion valuation for SpaceX
In the same title, Elon Musk also denied that SpaceX had raised $800 billion from investors and wrote: “There is a lot of press claiming that SpaceX has raised $800 billion, which is not true. SpaceX has been generating positive cash flow for many years and conducts periodic share repurchases twice a year to provide liquidity to employees and investors.”
“Valuation increases are a function of progress on Starship and Starlink and securing global direct-to-cell spectrum, which greatly increases our addressable market. And arguably another thing that’s been most important by far,” he added.
It is worth noting that an earlier report by Bloomberg News quoted sources who said SpaceX was preparing to sell insider shares in a transaction that would value the company at $800 billion. He added that such a sale would allow some investors and employees to convert some of their assets into cash.
Later, in the December 5th article, two sources told the publication that SpaceX is considering an initial public offering (IPO) for the company, which also owns Starlink, in the second half of 2026.
(With input from institutions)
