Is it? Or is it crony capitalism (national socialism)?
I’m asking - I don’t know the particulars here.
I don’t have a problem with a country protecting critical defense infrastructure though - so maybe if we are subsidizing Musk here it might be worth while.
SpaceX actually uses some off the shelf parts. They manufacture a lot of their own parts especially when suppliers jack up the prices.
Vertical integration and what Musk calls first principles engineering is what makes their costs significantly less.