June 6, 2025 — In a dramatic escalation of a public feud with President Donald Trump, SpaceX CEO Elon Musk announced on Thursday that his company would begin “decommissioning its Dragon spacecraft immediately” in response to Trump’s threat to cancel billions in government contracts. Hours later, Musk reversed course, stating, “Good advice. Ok, we won’t decommission Dragon,” after an X user urged him to “cool off.” The whirlwind exchange has raised concerns about the future of U.S. space exploration, given SpaceX’s critical role in NASA’s operations.
The conflict erupted after Musk criticized Trump’s tax-cut and spending legislation, dubbed the “Big Beautiful Bill,” which Musk called a “disgusting abomination” on X, the social media platform he owns. Trump retaliated on Truth Social, writing, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!” Musk’s initial response was swift and provocative, threatening to decommission the Dragon spacecraft, a cornerstone of NASA’s ability to ferry astronauts and cargo to the International Space Station (ISS).
The Dragon spacecraft, operational since 2012, is the only U.S. vehicle currently capable of transporting astronauts to and from the ISS. It has completed 51 missions, 46 of which were to the ISS, including a high-profile rescue of NASA astronauts Butch Wilmore and Suni Williams in March 2025 after Boeing’s Starliner capsule failed. Decommissioning Dragon would leave NASA reliant on Russia’s Soyuz spacecraft, potentially disrupting U.S. space operations and jeopardizing the ISS program, which is set to retire by 2030.
Musk’s threat sent shockwaves through the space community. Eric Berger, Senior Space Editor at Ars Technica, warned that canceling SpaceX’s contracts “would both end the International Space Station and simultaneously provide no way to safely deorbit it.” Astrophysicist Dr. Meredith Wills expressed alarm on BlueSky, asking, “Is he really holding astronauts hostage???” NASA press secretary Bethany Stevens declined to comment directly on SpaceX but stated, “We will continue to work with our industry partners to ensure the President’s objectives in space are met.”
The feud, described as “Alien v Predator for political nerds,” stems from a deteriorating relationship between Musk and Trump, who were once allies. Musk recently completed a 130-day stint as a special government employee leading the Department of Government Efficiency (DOGE), aimed at cutting federal costs. However, tensions flared when Musk opposed Trump’s fiscal policies, even suggesting Trump’s inclusion in sealed Epstein files and calling for his impeachment. Trump, in turn, claimed Musk had “gone CRAZY” and accused him of ingratitude, noting, “Without me, Trump would have lost the election.”
Analysts suggest that Musk’s threat, though retracted, was a high-stakes bluff. SpaceX has received over $20 billion in government contracts since 2008, including $5 billion for Dragon missions and $4 billion for developing Starship, NASA’s chosen lunar lander for the Artemis program. Former NASA Deputy Administrator Lori Garver called Musk’s threat “untenable,” noting that canceling SpaceX’s contracts would likely be illegal and against U.S. interests. However, she added that a “rogue CEO” risking astronauts’ safety is equally problematic.
Musk’s reversal came after calls for de-escalation, including from hedge fund manager Bill Ackman, who urged peace for the sake of the nation. While SpaceX’s Dragon remains operational for now, with a private mission scheduled for June 10, the episode underscores the fragility of U.S. space ambitions amid personal and political conflicts. As Justus Parmar, CEO of SpaceX investor Fortuna Investments, noted, “SpaceX’s dominance in the space industry offers some shield, but lost contracts would mean significant revenue losses.”
The Trump-Musk fallout could have broader implications. SpaceX is also contracted to deorbit the ISS by 2030 and launch Pentagon satellites, while its Starlink network supports federal initiatives. With competitors like Boeing’s Starliner and United Launch Alliance’s Vulcan rocket lagging behind, the U.S. space program remains heavily reliant on SpaceX. As the dust settles, NASA and the public await clarity on whether this high-profile clash will disrupt America’s cosmic aspirations.
