SpaceX lost $900 million in US government subsidies

Elon Musk’s SpaceX has lost $900 million in subsidies from the US government due to the decision of the US Federal Communications Commission (FCC), informs CNN channel. Regulators have cited the Starlink satellite network submitted by SpaceX as failing to deliver promised results.

“After a thorough legal, technical and political review, we are rejecting these applications. Consumers deserve reliable and affordable high-speed broadband. <…> We cannot afford to subsidize businesses that do not deliver promised speeds or are unlikely to meet program requirements,” said FCC Chair Jessica Rosenworsel.

Musk’s company won almost $900 million in subsidies in an FCC auction with a total fund of $9.2 billion back in December 2021. wrote CNBC. The department noted that the subsidies “will be distributed over the next 10 years in the form of equal monthly payments.” The condition for receiving money was the completion of all stages of the deployment of broadband services in those regions for which applications were submitted and won.

Yesterday it became known that Musk sold 7.9 million Tesla shares worth $6.88 billion. According to US Securities and Exchange Commission filings, Musk sold the shares between August 5 and 9, following Tesla’s annual shareholder meeting on August 4. The entrepreneur did this in order to close the deal with Twitter, if necessary. If Musk still does not have to buy Twitter by court order, he will buy back the shares, the founder of Tesla said.

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