A SpaceX official has allegedly pressured Federal Aviation Administration (FAA) employees to expedite work on a project that could secure a lucrative federal contract for the company. Those who resisted were reportedly warned they could face job losses.
According to Bloomberg, Ted Malaska, a SpaceX engineer, instructed FAA employees in Washington, D.C., to immediately begin work on a plan to deploy thousands of Starlink satellite terminals to enhance the national airspace system.
FAA Employees Allegedly Threatened
Malaska, who also volunteers with the Department of Government Efficiency (DOGE), reportedly told FAA employees last month that any interference with his directive would be reported to SpaceX CEO Elon Musk and could result in their termination.
Despite being a temporary government employee, Malaska continues his engineering role at SpaceX while working with DOGE. His dual role has sparked concerns about conflicts of interest, particularly as Musk continues to advocate for SpaceX to secure federal contracts while simultaneously playing a role in government restructuring.
Concerns Over Musk’s Expanding Influence
Musk, who leads both Tesla and SpaceX, has been involved in federal workforce reductions through DOGE. Critics argue that by cutting government jobs and then positioning his companies to take on the work, he is consolidating control over key federal projects.
Adding to the controversy, Musk is not an elected official, a Cabinet member, or authorized by Congress to restructure federal agencies. His increasing influence over government operations has raised alarms about potential ethical violations.
FAA Contract Worth Billions in Question
The federal government currently holds a $2.4 billion contract with Verizon to modernize FAA systems, but reports suggest the FAA is now considering canceling this agreement in favor of awarding the project to SpaceX’s Starlink.
The potential contract shift has led to uncertainty within the administration regarding appropriate compensation for SpaceX. Concerns over conflicts of interest and Musk’s involvement in federal workforce changes have added further complications to the decision.
Tesla’s Federal Deal Sparks Stock Market Fluctuations
This isn’t the first time Musk’s companies have been linked to potential federal contracts. Last month, a government spreadsheet indicated that the State Department planned to allocate $400 million for Tesla’s armored government vehicles.
Speculation over a major contract led to a brief spike in Tesla’s stock price. However, Musk quickly denied the existence of any deal on his social media platform, X, stating, “I’m pretty sure Tesla isn’t getting $400 million. No one mentioned it to me, at least.”
Following his statement, the government document was revised, removing Tesla’s name from the line item. A State Department official later clarified that while discussions had taken place regarding electric vehicle armoring research, no funds had been allocated.
Ongoing Scrutiny Over Musk’s Business Ties
The controversy surrounding Musk’s business dealings with the federal government continues to raise concerns about transparency and accountability. With the FAA contract decision looming, questions remain about the growing intersection between Musk’s private ventures and public-sector operations.
As government officials weigh their options, the outcome of these high-stakes negotiations could have long-term implications for both federal agencies and Musk’s expanding business empire.
