A public spat between Elon Musk and President Donald Trump has placed approximately $22 billion in SpaceX contracts under threat. The conflict, sparked by Musk’s disapproval of Trump’s tax and spending policies, has intensified with Trump threatening to cancel government contracts with Musk’s companies.
In retaliation, Musk has announced plans to “decommission” SpaceX’s Dragon spacecraft, a critical element of NASA’s operations.
What Happened: The Dragon spacecraft, under a $5 billion contract, is the only U.S. vessel capable of transporting astronauts to the International Space Station (ISS), according to a Reuters report.
Its potential decommissioning raises concerns about the future of U.S. space programs. NASA press secretary Bethany Stevens stated, “We will continue to work with our industry partners to ensure the president’s objectives in space are met.”
Musk, however, backed down after a user urged Musk and Trump to "cool off."
In response, Musk said, "Good advice. Ok, we won't decommission Dragon."
SpaceX’s dominance in the space industry, established before Musk’s political involvement, may mitigate some financial impacts. However, analysts like Justus Parmar of Fortuna Investments warn of significant revenue losses and missed opportunities.
The feud has already affected Trump’s space agenda, including the removal of Musk ally Jared Isaacman as NASA administrator nominee.
SpaceX’s contracts with NASA and the Pentagon, valued at billions, are crucial for U.S. space security and exploration. Former NASA Deputy Administrator Lori Garver noted that cancelling these contracts might not be legal, but Musk’s actions could jeopardize astronaut safety.
Why It Matters: The escalating feud between Musk and Trump has already had significant financial repercussions. On the same day, Tesla Inc. TSLA experienced a record $152 billion market cap loss, removing it from the $1 trillion club.
This decline followed Musk’s public criticism of Trump’s “Big Beautiful Bill.” The fallout has also drawn reactions from political figures like Sen. Chuck Schumer and House Speaker Mike Johnson, highlighting the unraveling relationship between Musk and Trump.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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