SpaceX, Elon Musk’s rocket and satellite company, has thrived on billions in government contracts while paying little to no federal income taxes over its two-decade history. Internal company documents reviewed by The New York Times reveal that SpaceX has used a legal tax benefit to offset nearly $5.4 billion in losses, potentially shielding it from paying federal taxes indefinitely. Despite soaring revenue and global influence, the company continues to capitalize on provisions originally designed to help struggling businesses.
Billions in Federal Contracts
Since its founding in 2002, SpaceX has landed hundreds of lucrative federal contracts with agencies such as NASA, the Pentagon, and U.S. intelligence services. In 2020 alone, federal contracts made up nearly 84% of its revenue, according to internal records.
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How SpaceX Avoids Taxes
The company’s accumulated $5.4 billion in operating losses, combined with a 2017 Trump-era tax law change, allows it to indefinitely carry forward losses to offset taxable income. Tax experts say this means SpaceX has likely avoided billions in federal tax obligations.
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“Not Intended for Success”
Danielle Brian, executive director of the Project on Government Oversight, criticized the practice: “It was quaint that SpaceX was using it, as it was clearly not intended for a company doing so well.”
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Soaring Revenue and Growth
Despite tax offsets, SpaceX reported nearly $5 billion in core earnings in 2024, up from $2.6 billion in 2023. Its Starlink satellite internet service has become a major revenue driver, with 6 million subscribers generating more than $8 billion in 2024.
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Federal Tax Payments Minimal
Documents show the company has paid small amounts in foreign and state taxes, $483,000 abroad and $78,000 to U.S. states in 2021, but almost nothing at the federal level. In 2020 and 2021, it reported paying just $6,000 in income taxes without specifying the recipient government.
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Musk’s Expanding Influence
SpaceX’s rise has boosted Musk’s fortune and global influence. Alongside Tesla, the company has cemented his power in technology, national security, and geopolitics. Musk has repeatedly boasted about SpaceX’s dominance, recently noting, “Commercial revenue from space will exceed the entire budget of @NASA next year.”
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Investor Backing Revealed
The internal documents also revealed investors not previously associated with SpaceX, including Access Industries, linked to billionaire Len Blavatnik, and Excalbians, tied to TED Talks head Chris Anderson.