Elon Musk could lose billions as politician threatens to terminate all Tesla contracts

Elon Musk could be walking into several-billion-dollar losses as a consequence of his recent comments, as one politician has threatened the world's richest man with terminated contracts.

This is far from the first time that Elon Musk's posts on social media have caused him trouble, as his former position as the head of the Department of Government Efficiency (DOGE) could have left him without key government contracts in Canada amid tariff tensions.

The world's richest man has also remained an active commentator on the state of politics in the United Kingdom across the past year especially, inserting himself into conversations surrounding child sexual abuse cases and he even seemingly threatened to invade one of America's closest allies.

However, his recent alleged incitement of violence amid far-right protests across Great Britain has caused one politician to call for action against the billionaire, and this could significantly affect the financial health of his many companies.

Ed Davey, the current leader of the Liberal Democrats and MP for Kingston and Surbiton, has called out Musk in a series of posts on X and an official statement through the political party.

What has Ed Davey said about Elon Musk?

"It should be simple," Davey declared on Tuesday, "people who cheer on violence in the UK can't enrich themselves with British taxpayers' money. That means Elon Musk — no government contracts for you, no energy supply license for you."

It comes after threats of violence from Musk, where he was heard ranting about the 'woke mind virus' and stated in reference to individuals who participated in Tommy Robinson's London-based protest on Saturday: "Whether you choose violence or not, violence is coming to you. You either fight back or you die, that's the truth."

Davey has also penned a letter to Keir Starmer, Kemi Badenoch, and Nigel Farage – the current leaders of the UK's Labour, Conservative, and Reform parties – asking them to join him in condemning Musk's remarks.

"As leaders, we must stand together and make clear Musk will face serious consequences for these actions," he wrote.

How much would Musk lose if contracts were terminated?

It's difficult to properly comprehend the full impact on Elon Musk and his companies if all contracts with the UK government were terminated, but it's generally expected that losses would be anywhere between several hundred million dollars to potentially even billions.

Musk currently receives a number of grants and contracts from the government, spread across companies such as Tesla, SpaceX, and subsidiaries such as Starlink.

Not every business would be affected, as while X does operate in the UK, it's understood that it doesn't currently receive any financial support from the government.

Reports from The Guardian indicate that Tesla alone has received more than £200 million ($273 million) in UK grants in the last nine years alone, and SpaceX has also received several multi-million pound contracts in addition.

There's also the consideration that the reputation of his companies would be affected as a result of government action, causing fewer people to buy cars from Tesla and opt for Starlink internet, resulting in further financial losses.

It's likely that this would also cause a significant rift between the government and Musk for the future too, putting all potential earnings from now onwards in jeopardy, so the financial impact, while difficult to properly quantify, would be incredibly significant.