Musk offers to cut SpaceX’s government ties as the stock charts refuse to stay grounded 🚀

SpaceX (SPCX) shares rose about 6% on Friday after Elon Musk offered to cancel any federal contract the government no longer wants, saying government work will account for less than 10% of revenue this quarter and less then 5% a year from now. The rebound recovered only part of a 12.5% market-value decline across the two sessions after Democrats won Congress, leaving June IPO buyers below the company’s $135 entry price.

Musk was responding to Warren Redlich, who urged him to provide Democrats with a list of contracts to cancel. “Moreover government revenue will be less than 10% of SpaceX revenue this quarter and less then 5% a year from now. Happy to cancel any that the government doesn’t want. Just say the word!” At Musk’s figure, government work would represent at most about $1.46 billion of SpaceX’s $14.58 billion third-quarter revenue, although the forecast has not yet been confirmed by results.

The estimate is below the proportion disclosed in SpaceX’s S-1, which put US government agencies at about one-fifth of 2025 revenue. TipRanks noted that Washington continues to rely on SpaceX’s rockets and satellites, while NASA added $946 million to its astronaut contract in September, bringing that agreement to $5.92 billion. Since then, SpaceX’s AI division has outgrown the rest of the company and generated $7.56 billion of third-quarter revenue.

Musk separately wrote: “Exactly 😂 Tesla has no government contracts and President Trump ended federal incentives for electric vehicles. SpaceX contracts with the government are BOTH the best product AND the lowest price! Moreover government revenue will be less than 10% of SpaceX revenue this…” He also commented on November 6, 2026.

Democrats can hold hearings and demand records from January, but an investigation alone would not cancel existing contracts. Texas governor-elect Gina Hinojosa wants to pause new data center approvals until power and water protections are in place, a proposal affecting the AI division now producing more than half of SpaceX’s sales. SPCX first slipped below its IPO price in late October, recovered above $140 before the vote and must now show in fourth-quarter results whether government revenue falls under 10%. Hinojosa and the new Congress take office in January.