SpaceX’s Dragon capsule may be decommissioned, risking $22 billion in federal contracts and endangering U.S. spaceflight missions, as Elon Musk retaliates against President Trump’s threats.
Washington D.C. | June 6, 2025 –
In an unprecedented escalation of his feud with U.S. President Donald Trump, tech billionaire Elon Musk has threatened to decommission SpaceX’s Dragon spacecraft, the only U.S. vehicle currently capable of ferrying astronauts to and from the International Space Station (ISS).
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The move, if carried out, would leave NASA without an immediate backup, forcing a potential reliance on Russia’s Soyuz spacecraft and imperiling America’s entire crewed spaceflight program.
The standoff emerged after Trump publicly floated terminating Musk’s federal contracts, calling it “the easiest way to save money.” In response, Musk announced that SpaceX would begin winding down the Dragon program, which was developed under a $5 billion NASA contract and serves as a lifeline for U.S. astronauts.
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Implications:
- Over $22 billion in active federal contracts are now at risk, including SpaceX’s critical role in:
- Pentagon satellite launches
- Intelligence payload missions
- NASA’s Artemis III Moon landing program
- The future deorbiting of the ISS, scheduled for 2030
- NASA has no immediate replacement: Boeing’s Starliner continues to face delays, while alternatives like Sierra Space’s Dream Chaser and Northrop Grumman’s Cygnus remain unready or unsuitable for human transport.
Official Responses and Market Impact:
NASA’s spokesperson Bethany Stevens said the agency will “continue to work with industry partners to ensure the president’s space goals are met,” offering no direct comment on Musk’s threat.
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Former NASA Deputy Administrator Lori Garver called the situation “untenable,” warning:
“A rogue CEO threatening to decommission spacecraft, putting astronauts’ lives at risk, is beyond acceptable.”
Meanwhile, Tesla’s stock (TSLA) has taken a beating in the markets, plunging 14.26% to $284.70, amid broader investor concern over Musk’s intensifying political conflict. The stock saw a $47.35 drop from its previous close and faced high intraday volatility.
Background:
This dramatic clash follows Musk’s accusation that Trump’s name appears in the sealed Epstein files, a bombshell claim made after the President criticized Musk over the newly passed “Big Beautiful Bill”—a controversial tax-and-spending measure that Musk claims will devastate the EV industry.
Their year-long alliance—cemented by campaign donations, Air Force One trips, and close policy cooperation—has now unraveled in a public meltdown with far-reaching implications for space, defense, and tech sectors.
Tags:
Elon Musk, Donald Trump, SpaceX Dragon, NASA, ISS, Artemis Mission, Tesla Stock, Space Policy, US Politics, NASA Contracts, SpaceX vs Trump, Lori Garver, Tesla Share Crash, US Spaceflight