“SpaceX’s purchase of $90 million of SolarCity bonds from the $105 million offering in March will be used to retire the bonds SpaceX bought last year, according to Mr. Musk. He said the latest deal offered SpaceX a “decent return” on about 10% of its roughly $1 billion cash position.
The financial transactions have raised questions on Capitol Hill, where some lawmakers are concerned that money from federal contracts with SpaceX could be used to help SolarCity. SpaceX has received $3.2 billion for its rocket program from government contracts, according to a person familiar with the matter. The lawmakers want to make sure none of that money winds up at SolarCity.”
The Center for Business and Responsible Government (CBRG) is a non-partisan organization dedicated to highlighting cronyism and its effect on American taxpayers and policy. We believe public officials should establish an even playing field for all businesses to compete in the marketplace, not just those special interests who line their pockets.