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White House probes into federal contacts with Musk’s companies

White House probes into federal contacts with Musk’s companies

Is a storm brewing over Tesla and SpaceX CEO Elon Musk? Alas, anything is possible! The administration of US President Donald Trump has launched an investigation into federal contracts with SpaceX. This comes after the White House chief hinted at ending cooperation with Musk's companies.

Popular media reported that the investigation, launched by the General Services Administration (GSA), involves assessing potential wasteful spending in SpaceX’s multi-billion-dollar agreements with federal agencies. As reported by The Wall Street Journal (WSJ), in early June, a GSA representative requested "evaluation maps" from the US Department of Defense, NASA, and other agencies. These documents list the cost of each contract and also contain information about competitors.

According to current estimates from the White House and Pentagon, most of SpaceX’s deals "are critical to national defense and NASA projects." This gives Musk's company a dominant position in rocket launches and satellite services.

The investigation was triggered after President Trump’s attacks on Musk via the Truth Social network. Interestingly, the Tesla CEO, who had previously served as an advisor to the US president, recently criticised the tax and budgetary bill proposed by Trump.

Despite the ongoing tension, SpaceX continues to secure major government contracts. Among them is a $5.9 billion deal with the Pentagon signed in April, as well as upcoming NASA missions.

 


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