Musk-Trump Fallout Jeopardizes $22 Billion in SpaceX Contracts

As his feud with President Donald Trump erupts into open warfare, Elon Musk has threatened to shut down SpaceX's Dragon spacecraft, NASA's only US astronaut carrier. This move will set off a spiralling crisis that could ground American spaceflight, derail moon missions, and jeopardise $22 billion in government contracts.

 What started out as a disagreement about Trump's tax and spending plan has turned into a high-stakes confrontation with implications for the entire country.

The CEO of SpaceX responded to Trump's public suggestion that federal contracts with Musk's businesses might be terminated by announcing plans to "decommission" the Dragon spacecraft, which is now NASA's primary way of transporting humans to and from the International Space Station.

The $5 billion contract for the capsule is essential to maintaining American access to space. NASA's orbital footprint would be reduced, and future missions would be in jeopardy if it were to depend on Russia's ageing Soyuz spacecraft.

While providing no details, NASA press secretary Bethany Stevens stated that the agency will keep collaborating with commercial partners to make sure the president's space goals are achieved.

NASA to Take a Massive Hit

Active contracts worth about $22 billion are at risk. These include intelligence payloads, high-priority Pentagon satellite launches, and Musk's Starship system, which NASA has chosen to use for the Artemis III mission, which aims to land humans on the moon.

 Four astronauts currently on the ISS might still fly home if Musk cancels Dragon, but NASA wouldn't have a means to send replacements right away.

There are still delays with Boeing's Starliner. Other options such as Northrop Grumman's Cygnus and Sierra Space's Dream Chaser remain untested or marginalised. Even NASA's 2030 ISS retirement plan is currently in jeopardy. The vehicle that will safely deorbit the station is being built by SpaceX.

Experts Calling Musk Rogue

The danger posed by Musk goes well beyond low-Earth orbit. SpaceX rockets are essential to America's upcoming moon landing, transport national security payloads, and launch secure Starlink satellites for military communications.

Timelines fall apart in their absence. According to reports, Justus Parmar, CEO of SpaceX investor Fortuna Investments, said there is little doubt it will lead to a large loss of money and missed contract possibilities.

More bluntly, former NASA Deputy Administrator Lori Garver was cited as saying that it is unacceptable for a rogue CEO to threaten to decommission spacecraft, endangering the lives of astronauts. With a steep 14.26% drop, Tesla's shares (TSLA) fell to $284.70, down $47.35 from its previous close of $332.05. The stock fluctuated a lot over the day, going from a low of $273.42 to a high of $324.55.