A growing feud between Elon Musk and Donald Trump is now threatening billions of dollars in government contracts tied to SpaceX. As tensions rise, the Biden administration has ordered a review of SpaceX’s $22 billion in defense and NASA contracts, fearing that a potential Trump presidency could try to cancel or shift them. This includes projects like the proposed $175 billion “Golden Dome” space-based missile defense system. Trump, angered by Musk’s recent public criticism, has reportedly threatened to cut funding and remove subsidies for Musk’s companies. In response, Musk hinted at pulling back from key space missions, though he later walked back those comments. The situation has created serious uncertainty, given SpaceX’s central role in national defense and space exploration, and few viable alternatives in the short term.

 

• National Security Dependence: SpaceX is central to U.S. space operations—handling NASA’s astronaut launches and Pentagon spy satellite missions, including the classified Starshield program

• Legal & Structural Complexities:

  • Canceling contracts could face legal challenges.

  • Replacing SpaceX isn’t easy—Boeing’s Starliner is still delayed; Northrop’s options and Blue Origin’s capabilities remain limited

• Economic Ripple Effects:

  • Tesla stocks dropped ~15%, erasing over $150 billion after Musk’s feud spilled into markets

  • Some rival space companies (EchoStar, AST SpaceMobile) saw short-term share gains amid uncertainty