EU Under Fire for Paying Hundreds of Millions to Elon Musk’s Companies

In a move drawing growing political backlash, the European Union has paid hundreds of millions of euros to companies owned by tech billionaire Elon Musk—despite his vocal criticism of the EU and close ties to U.S. President Donald Trump.

A document reviewed by AFP revealed that the EU transferred significant funds to Musk-linked businesses for services ranging from electric vehicle infrastructure to space launches and digital advertising.

German Green MEP Daniel Freund, a long-time advocate for transparency in EU spending, raised concerns in March with a formal inquiry to the European Commission. In its response, the Commission disclosed several key contracts:

• Tesla, Musk’s electric vehicle company, received €159 million ($176 million) in 2023 to develop and install electric car charging stations across the bloc.
• In 2024, SpaceX was awarded a contract worth $197 million to launch satellites for the Galileo navigation system, the EU’s answer to the U.S. GPS network. The Commission justified the deal citing persistent delays with Ariane 6, the EU’s default launch vehicle.
• Musk’s social media platform, X (formerly Twitter), was also paid €630,000 for advertising services prior to the EU suspending promotional campaigns on the platform in October 2023.

These revelations come amid worsening transatlantic relations following Donald Trump’s return to the White House in January. Tensions have flared further due to Musk’s repeated attacks on the EU’s digital regulations, which he claims amount to censorship.

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Critics argue that such massive public funding is inappropriate given Musk’s increasingly confrontational stance toward the EU’s democratic norms and rule of law.

“This man is an outspoken enemy of the EU and our core values,” said Daniel Freund in a post on X. “It is unacceptable that we continue to pay the richest man in the world hundreds of millions.”

As debate intensifies in Brussels, questions loom over whether future EU contracts with Musk-led enterprises will face more stringent scrutiny—or possibly come to a halt altogether.