Bavaria is one of the most richest (if not the most) state in Germany. By GDP alone it's the 7th largest economy in Europe (https://www.vbw.com/int/About-us/Facts-about-Bavaria/index.j...). Of course they have money to support Isar and they should do it to diversify their economy and break the heavy dependency on auto manufacturers.
(As a Bavarian,) I’m acutely aware of the state’s economy – but my point is that SpaceX has an even bigger economy behind it, if the two were to actually be compared or compete.
Good point re/ depending on auto makers, though. That also applies to all of Germany…
Bigger economy, yes by about 10x. But despite the spectacle, SpaceX's actual expenses have been around 0.3-0.4% of German GDP in recent years.
It's priorities rather than absolute costs that matter here. Germany could absolutely do all of SpaceX as almost a rounding error, but probably has better things for that money to get spent on.