A public spat between President Donald Trump and Elon Musk intensified on Thursday, as both men traded sharp words over federal spending and government contracts — sparking concerns over the future of SpaceX’s collaboration with NASA and the U.S. military.
The confrontation erupted after Musk criticized a budget reconciliation bill backed by Trump. The disagreement, largely played out across social media platforms, quickly spiraled into personal attacks. Just days earlier, Musk had ended his role as a “special government employee” advising the White House on government efficiency.
In one of his posts on Truth Social, Trump suggested that canceling government contracts with Musk’s companies would be an easy way to cut billions from the federal budget. Though Trump did not name SpaceX directly, Musk appeared to interpret it as a direct threat to the aerospace company’s work with the U.S. government.
“In light of the President’s statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately,” Musk responded on X (formerly Twitter), though he provided no details on the process.
The possibility of terminating SpaceX’s federal contracts has raised alarm within the space community. SpaceX is a critical partner for both NASA and the Department of Defense, providing launch services, cargo missions to the International Space Station (ISS), and development of key spacecraft such as the U.S. Deorbit Vehicle, which will be used to safely retire the ISS. The company is also the only U.S.-based provider of crewed spaceflight to the ISS.
Financially, the stakes are high for SpaceX. Musk recently disclosed that the company expects $15.5 billion in revenue this year, with $1.1 billion coming from NASA contracts alone. SpaceX also serves the military, launching payloads and operating satellite services, though those contract values remain undisclosed.
While the feud has rattled nerves, some industry insiders believe neither Trump nor Musk will act on their threats. One source, speaking anonymously, described the exchange as “political bluster,” emphasizing that both sides are highly interdependent.
Indeed, Musk appeared to backtrack on his earlier post later in the day. Responding to a user who urged him to de-escalate the situation, Musk wrote, “Ok, we won’t decommission Dragon.”
NASA remained neutral throughout the clash. “NASA will continue to execute upon the President’s vision for the future of space. We will continue to work with our industry partners to ensure the President’s objectives in space are met,” said agency spokesperson Bethany Stevens.
NASA Leadership Still Uncertain
The Trump-Musk dispute also overshadowed a separate development regarding NASA’s leadership. Speaking earlier in the day alongside German Chancellor Friedrich Merz, Trump addressed his recent decision to withdraw the nomination of Jared Isaacman as NASA administrator.
Musk had reportedly supported Isaacman’s candidacy, but Trump dismissed the choice, saying, “We won. We get certain privileges and one of the privileges is we don’t have to appoint a Democrat,” despite Isaacman’s bipartisan donation record.
Trump added that General Dan Caine, chairman of the Joint Chiefs of Staff, would now be involved in selecting the next nominee — a surprising move, given Caine’s lack of a space background.
As of now, the future direction of NASA leadership remains unclear, adding another layer of uncertainty amid an already turbulent moment in U.S. space policy.
