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Trump vs musk public feud threatens 22 billion in spacex deals competitors

A growing feud between Donald Trump and Elon Musk could jeopardize key SpaceX contracts, triggering opportunities for competing space tech firms.

Trump vs musk public feud threatens 22 billion in spacex deals competitors

Trump vs musk public feud threatens 22 billion in spacex deals competitors
X

6 Jun 2025 1:07 PM IST

A political feud with sky-high stakes is brewing in the U.S.—and this time, it’s not just about words. A growing rift between former U.S. President Donald Trump and Tesla and SpaceX CEO Elon Musk is now threatening to have real consequences for SpaceX’s government-backed contracts worth nearly $22 billion, insiders say.

The friction, once restricted to social media jabs and political one-liners, has deepened to the point where it could impact defense and space partnerships. While neither side has issued an official statement regarding contract implications, sources close to the matter hint at rising concerns within federal departments that oversee space and defense technology.

Political Fire Meets Aerospace Fuel

Elon Musk, whose companies depend heavily on government ties—especially SpaceX’s launches for NASA, the Pentagon, and civilian infrastructure projects—has recently found himself on the receiving end of Trump's criticism. The dispute reportedly stems from clashing political ideologies and Musk’s increasing influence over AI, satellites, and even online discourse through X (formerly Twitter).

Trump's inner circle has allegedly begun reconsidering Musk’s reliability in long-term strategic partnerships. Political analysts believe this could influence future policymaking if Trump regains office in the upcoming elections.

Why It Matters

SpaceX currently holds more than $22 billion worth of active and pending contracts with U.S. government agencies. These include:

Satellite deployments for national security

Lunar transport missions under NASA’s Artemis program

Missile tracking and defense collaborations with the Department of Defense

Even a temporary slowdown in these projects or a shift in contractor preference could open doors for competitors like Blue Origin, Northrop Grumman, or Lockheed Martin.

A senior analyst at a Washington-based think tank told Bizz Buzz:

"This isn’t just about egos. If politics start dictating who gets space contracts, it sends a signal across the tech sector that federal trust can shift overnight."

Competitors Seize the Moment

Rival aerospace firms have reportedly ramped up lobbying efforts in D.C. in recent weeks, seeking to capitalize on the uncertainty. Meanwhile, SpaceX has remained silent on the feud, likely choosing to avoid stoking the flames further.

However, industry watchers are keeping a close eye on Musk’s public responses and Trump’s campaign rhetoric, especially as both continue to wield enormous influence over their respective bases.

The Road Ahead

While the full impact of the Trump-Musk tension remains speculative for now, the business stakes are far from trivial. With billions of taxpayer dollars tied to cutting-edge tech and national defense, the situation underscores how personal rivalries at the top can ripple across industries—especially in high-stakes sectors like aerospace.

For now, SpaceX remains in the lead—but in a world where contracts and politics are deeply entwined, one feud could be all it takes to tilt the launchpad.

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