Elon Musk Reduces SpaceX Reliance on Government Revenue

Elon Musk announced that government revenue for SpaceX will fall below 10% of total revenue this quarter and drop below 5% within a year. The SpaceX CEO stated he is willing to cancel any government contracts that agencies no longer desire, asserting that the company provides the best product at the lowest price.

This strategic shift follows Democratic victories in both chambers of Congress, which investors believe could complicate the company's federal business ties. Despite these political headwinds, SpaceX reported its first quarterly profit as a public company, with revenue increasing 161% to $14.6 billion.

While government payments previously accounted for 16.6% of revenue in the most recent quarter, the company has diversified its client base. Anthropic has emerged as the top customer for SpaceX, now contributing over one-third of total sales.