SpaceX, the space venture founded by billionaire Elon Musk, is rapidly expanding its operations in rural Texas, with new launch facilities, office buildings, and even a shopping center in the works. However, a recent Reuters investigation has revealed that SpaceX and its contractors have been slow to pay builders and suppliers for their work, leading to a slew of unpaid bills and liens being filed against SpaceX properties.
One such company, Hydroz Energy Services LLC, was hired by SpaceX to clear storm drains at a facility near Brownsville, Texas. Despite completing the work months ago, SpaceX took over two weeks to pay Hydroz its $19,214 bill, causing financial strain for the small business.
The Reuters review of Texas property records uncovered more than two dozen companies that have filed at least 72 liens against SpaceX properties since 2019, totaling over $2.5 million in unpaid bills. While some of these liens have been settled, many remain outstanding, leaving suppliers and subcontractors frustrated and struggling to collect payment.
Even big companies like Martin Marietta Materials Inc have faced payment delays from SpaceX, with liens being filed to secure their claims. The situation has raised concerns among industry experts about the challenges faced by small businesses in collecting payment from larger corporations like SpaceX.
Despite these payment issues, SpaceX continues to expand its operations and secure lucrative contracts, making it one of the most valuable privately held ventures in the United States. The company’s impact on the local economy in Texas has been significant, bringing thousands of new jobs to the region, but the unresolved payment disputes highlight the challenges faced by construction businesses working with SpaceX.