SpaceX Lands $6.45 Billion in Space Force Contracts Ahead of IPO

SpaceX is poised for what could be the largest IPO in history next month, significantly aided by the Trump administration.

On Friday, the U.S. Space Force announced it will grant SpaceX $4.16 billion under a contract to create satellites for the missile and air defense system referred to as the “Golden Dome,” which was advocated by President Trump.

This revelation comes on the heels of a different contract awarded to Elon Musk’s company earlier this week, worth $2.29 billion, for establishing a communications network in low-Earth orbit.

These contracts underline a crucial point from SpaceX’s IPO filing disclosed last week: the corporation is heavily dependent on government contracts, with 20% of its anticipated 2025 revenue projected to originate from government entities.

Musk invested around $300 million to back Trump’s campaign and has fostered a close relationship with the president. Nevertheless, SpaceX has emerged as a key player in the launch market over the last decade, making it logical for the federal government to often seek contracts with them. However, the company warned investors in its IPO filings that its “business with governmental entities is subject to changes in policies, priorities, regulations, mandates, and
funding levels.”