Elon Musk’s Starlink secured a contract with the Federal Aviation Administration (FAA) to use the SpaceX subsidiary’s internet services. This will upgrade the FAA’s information network used to manage U.S. airspace. That’s a major win for Musk’s company as it marks another of many government contracts under its belt.
However, there are concerns about Starlink acquiring another government contract now that Muks is directly involved with the government. As a leading Department of Government Efficiency (DOGE) member, Musk has a large influence over the U.S. government. His close relationship with President Donald Trump also calls into question Starlink’s latest contract.
Should Starlink Be Banned from Government Contracts?
While these concerns are valid, it’s worth noting Starlink was already in the good graces of the U.S. government before President Trump took office. That includes several government contracts for its internet services. Starlink parent company SpaceX has also worked extensively alongside NASA.
Additionally, President Trump has reversed the U.S. government’s stance on electric vehicles (EV), cutting programs that pushed for their acceptance over traditional gas-powered options. That’s a negative for Musk’s EV maker Tesla (TSLA), showing President Trump isn’t always acting in the best interest of one of his closest advisors.
That’s worth highlighting as Tesla would stand to benefit from government help. The company has failed to impress investors in 2025 with TSLA stock down 23.69% year-to-date. Building on that is another 6.85% drop this morning.
Is TSLA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Tesla is Hold based on 13 Buy, 12 Hold, and 10 Sell ratings over the last three months. With that comes an average price target of $351.38, a high of $550, and a low of $120. This represents a potential 14.21% upside for TSLA stock.
