TREE NEWS update: Elon Musk said Tesla holds no government contracts and that President Trump has scrapped the federal electric-vehicle subsidy. SpaceX’s government work is both its best product and its lowest-priced bid, he said, adding that government revenue will account for under 10% of SpaceX’s total this quarter and below 5% within a year. Musk said he would cancel the orders if the government no longer needs them.
Musk: Tesla Has No Government Contracts; SpaceX Government Revenue Share to Fall Below 10%
AI take
Musk is pre-emptively decoupling both companies from federal dependence, framing SpaceX's government work as a public-service discount rather than a revenue pillar. The subsidy removal lands on Tesla while the revenue-mix shift lands on SpaceX, so the political exposure is being recast as a choice rather than a vulnerability. What matters is whether the sub-10% and sub-5% figures hold as commercial launch and Starlink demand scales, and whether the offer to cancel orders is ever tested. The open question is how much of this is positioning ahead of policy risk.
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