In a move that could have significant implications for the U.S. space and defense sectors, the Trump administration has directed the Department of Defense (DoD) and NASA to review federal contracts awarded to SpaceX, following a public dispute between President Donald Trump and Elon Musk.
The review encompasses approximately $22 billion in contracts, including those related to national security launches, satellite deployments, and crewed missions to the International Space Station (ISS). The administration’s directive comes after Musk, formerly a Trump advisor and head of the Department of Government Efficiency (DOGE), publicly criticized the president and called for his impeachment. In response, Trump threatened to terminate government business and subsidies with Musk’s ventures.
SpaceX plays a critical role in U.S. space operations, including launching satellites, operating the Dragon spacecraft in partnership with NASA, and constructing a spy satellite system under a classified deal with the National Reconnaissance Office. The company is also a leading candidate to collaborate on the $175 billion “Golden Dome” missile defense project.
Analysts warn that canceling or reducing SpaceX’s contracts could disrupt national security initiatives and space exploration goals. Scott Amey, general counsel at the Project on Government Oversight, stated, “Any decision shouldn’t be based on the egos of two men but on the best interests of the public and national security.”
The feud has already impacted Musk’s businesses. Tesla shares fell over 14% in a single day, decreasing the company’s market capitalization by $152 billion. Musk briefly threatened to decommission the Dragon spacecraft, vital for ISS missions, but later retracted the statement.
The outcome of the contract review remains uncertain, but the situation underscores the potential consequences of personal conflicts between business leaders and political figures on federal business relations and national interests.
