The dispute originated from Musk’s disapproval of Trump’s tax-cut and spending legislation that surfaced last week, quickly escalating. Trump criticized Musk during remarks in the Oval Office, which prompted Musk to respond with sharp comments on X, leading Trump to threaten the termination of government contracts with Musk’s enterprises.
Taking the threat seriously, Musk announced plans to start “decommissioning” SpaceX’s Dragon spacecraft utilized by NASA.
However, only hours later, Musk seemed to backtrack. In response to a follower on X suggesting they “cool off and take a step back for a couple of days,” Musk replied: “Good advice. Ok, we won’t decommission Dragon.”
Nonetheless, Musk’s initial threat to abruptly take the Dragon spacecraft out of operation marked a remarkable outburst from one of NASA’s prominent commercial collaborators.
Under a contract worth about $5 billion, the Dragon capsule has been the agency’s exclusive U.S. vessel capable of transporting astronauts to and from the International Space Station, rendering Musk’s company a crucial component of the U.S. space initiative.
The feud raises questions about how far Trump, known for his unpredictability and past interventions in procurement processes, would go to penalize Musk, who until last week led Trump’s effort to shrink the federal government.
If the president chose to prioritize political retribution and annul billions of dollars in SpaceX contracts with NASA and the Pentagon, it could hinder U.S. advancements in space.
NASA press secretary Bethany Stevens refrained from commenting on SpaceX but stated: “We will continue to collaborate with our industry partners to ensure the president’s objectives in space are fulfilled.”
The altercation between Musk and Trump disrupted an extraordinary partnership between a U.S. president and an industry leader that had resulted in notable advantages for SpaceX, including a proposed transformation of NASA’s moon program into a Mars initiative and plans for a massive missile defense system in space.
Ceasing the Dragon’s operations could potentially disrupt the ISS program, which involves numerous nations under a longstanding international accord. However, the speed of such a decommissioning remains uncertain. NASA also relies on Russia’s Soyuz spacecraft as an alternative transportation option for its astronauts to the ISS.
SPACEX’S RISE
SpaceX ascended to prominence well before Musk’s engagement in Republican politics last year, establishing a commanding market share in the rocket launch and satellite communications sectors, which may provide some protection from Musk’s fallout with Trump, analysts suggest.
“Fortunately, it wouldn’t be catastrophic, as SpaceX has evolved into a global powerhouse dominating much of the space industry. However, there’s no denying it would lead to significant revenue losses and missed contract possibilities,” stated Justus Parmar, CEO of SpaceX investor Fortuna Investments.
In recent months under Trump, the U.S. space sector and NASA’s workforce of 18,000 have been caught in a whirlwind of impending layoffs and proposed budget cuts threatening to cancel numerous scientific programs, while NASA remains without a confirmed administrator.
Trump’s nominee for NASA administrator, Musk ally and billionaire private astronaut Jared Isaacman, seemed to be an early victim of Musk’s break with the president when the White House unexpectedly removed him from consideration over the weekend, denying Musk his choice to lead the agency.
On Thursday, Trump explained Isaacman’s dismissal by stating he was “totally Democrat,” seemingly referring to reports of Isaacman’s donations to Democrats. Public records show Isaacman has contributed to both Republican and predominantly Democratic candidates.
Musk’s ambition to send humans to Mars has been a vital element of Trump’s space agenda, potentially diverting resources from NASA’s flagship initiative aimed at returning humans to the moon.
Trump’s budget proposal sought to cancel future Artemis moon missions beyond the third one, effectively putting an end to the over-cost Space Launch System rocket designated for those missions.
However, the Senate Commerce Committee’s version of Trump’s bill released late Thursday would restore funding for missions four and five, allocating at least $1 billion annually for SLS through 2029.
Since SpaceX’s rockets present a more economical alternative to SLS, the upcoming stance of the Trump administration on the Senate’s modifications in the following weeks could indicate Musk’s remaining political influence.
Founded in 2002, SpaceX has secured $15 billion in contracts from NASA for the Falcon 9 rockets and the development of SpaceX’s Starship, a multipurpose rocket system intended to land NASA astronauts on the moon within this decade.
The company has also received billions to launch most of the Pentagon’s national security satellites into orbit, while it constructs a large spy satellite constellation for a U.S. intelligence agency.
Moreover, Lori Garver, a former NASA Deputy Administrator, noted that cancelling SpaceX’s contracts would likely not be legal and counter to U.S. interests.
However, she also remarked, “A rogue CEO threatening to decommission spacecraft, jeopardizing astronauts’ lives, is untenable.”
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