Elon Musk said government revenue would account for less than 10% of SpaceX’s revenue this quarter and less than 5% a year from now, forecasting a smaller share of the company’s business from government customers.
The forecast came in a Friday post in which Musk also offered to cancel government contracts that officials did not want. His comments were an offer, not an announcement that any contract had been canceled.
For SpaceX investors, the figures describe Musk’s view of the company’s future customer mix. They do not establish a drop in government revenue in dollar terms, since a smaller share can also result from other parts of a business growing faster.
In the November 6 post, Musk wrote that “government revenue will be less than 10% of SpaceX revenue this quarter and less then 5% a year from now.”
He added: “Happy to cancel any that the government doesn’t want. Just say the word!”
Musk was responding to a post proposing that he offer to cancel federal contracts criticized by lawmakers. He described SpaceX’s government contracts as offering both the best product and the lowest price, a characterization made by Musk rather than an independent comparison of competing bids.
The post did not identify contracts to be ended, list a dollar value for possible cancellations or announce that a government agency had accepted the offer. The revenue percentages are Musk’s forecast, not reported quarterly results.
JBizNews Desk | Technology
© JBizNews.com. All rights reserved. Unauthorized reproduction or redistribution is strictly prohibited.
