Elon Musk’s Space X is expanding its business in rural Texas. It has built office buildings and a shopping centre. But the company has reportedly failed to pay builders, contractors, and other companies here.
Hydroz Energy Services LLC says that Space X has not paid its $19,214 bill.
Brian Rozelle, an owner of Hydroz Energy Services LLC, says that the lack of payment has hurt them.
“We’re not some hundred-million-dollar company. It was hard on us.”
Texas property records have shown that Hydroz is just one of the companies complaining. Over two dozen companies have filed 72 liens against SpaceX since 2019.
Liens are a legal mechanism through which creditors can secure claims against SpaceX. The legal claims are for work done at its properties.
Landowners can be held responsible for any unpaid bills related to construction work on their property. This is under Texas law. The records show the total amount sought by the companies is $2.5 million. But such legal provisions are often inadequate.
Companies say that lack of money and legal resources is the main problem. Many also hold out in the hopes of securing a bigger contract.
Carlos Cascos, an accountant and former Texas secretary of state confirms this.
“SpaceX is the big bully on the playground.”
“They get away with this stuff because people want to do business with them.”
SpaceX has made no comment on this issue.
Elon Musk has had a record of not paying people before. After his purchase of Twitter, now X, he faced lawsuits from contractors in 2022. These lawsuits also alleged lack of payment.
SpaceX is one of the most valuable private ventures in the US. Its value comes to more than $180 billion.
NASA paid SpaceX at least $11.8 billion for various projects and services in 2022.
(REUTERS)
