The Importance of Being SpaceX

Much attention has been paid to how Elon Musk’s high-profile role in President Trump’s White House has hurt Tesla: Sales are falling, its stock price has slipped from its peak and embarrassed liberals are turning their cars back in.

Some of that attention is being supplied by Trump himself. “I know you’ve been through a lot,” Trump told Musk during today’s cabinet meeting, at which Musk perched at one end of the table wearing a red hat that said “Trump was right about everything.” Trump portrayed him as stoically weathering the backlash against his businesses.

“He has never asked me for a thing,” Trump said.

Perhaps not. But even as Tesla suffers, another of his companies is poised to profit off billions of dollars in new government contracts. That company is SpaceX.

My colleague Eric Lipton, an investigative reporter in The Times’s Washington bureau, has laid out the myriad ways that SpaceX stands to benefit from enormous sums in federal spending even as Musk, focused on cutting costs, slices his way through the government.

SpaceX is positioning itself to win billions in new federal contracts from the Pentagon, the Federal Aviation Administration, the Federal Communications Commission and NASA, Eric writes. The scale of the business is staggering, as is the potential for conflicts of interest.

Conflicts could arise not just from Musk’s dual roles as the chief executive of SpaceX and an adviser to Trump. Current and recent employees of SpaceX also now hold government positions, some of which could allow them to steer work back to SpaceX.