Name: What the Trump-Musk Feud Means for SpaceX and NASA
Uploaded: 2025-06-07T05:55:00Z
Duration: 6 min 48 s
Description: The U.S. government relies on SpaceX to support NASA and other agencies, and the company has received more than $20 billion in federal contracts for it. As Musk and Trump threaten to cut ties, here’s what that would mean for the U.S.’s space ambitions.

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The U.S. government relies on SpaceX to support NASA and other agencies, and the company has received more than $20 billion in federal contracts for it. As Musk and Trump threaten to cut ties, here’s what that would mean for the U.S.’s space ambitions. Photo Illustration: Reuters/Getty Images

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The U.S. government relies on SpaceX to support NASA and other agencies, and the company has received more than $20 billion in federal contracts for it. As Musk and Trump threaten to cut ties, here’s what that would mean for the U.S.’s space ambitions.

What the Trump-Musk Feud Means for SpaceX and NASA

Reporter: Amid the fallout between Elon Musk and President Donald Trump-

I'm very disappointed in Elon. I've helped Elon a lot.

Reporter: Musk threatened to decommission SpaceX's Dragon spacecraft. That's a big deal for US space missions.

Dragon has been the only US spacecraft launched by a US space company transporting astronauts to and from the station from the US.

I find this to be disconcerting how quickly this went to the threatening from contracts that's not good for the United States.

Reporter: Musk retracted the threat just hours later. Still, as the feud continues, SpaceX remains one of the largest financial and logistical vulnerabilities for both Musk and Trump. Since 2008, the government has awarded SpaceX more than 20 billion in contracts across at least 10 different agencies. Most of it is focused here.

NASA needs SpaceX, SpaceX needs NASA.

Musk said recently that SpaceX is expected to generate 1.1 billion in revenue this year from NASA. The company is less dependent on government contracts than it was in the past, but still does big business with agencies.

SpaceX has really deep relationships with a lot of government agencies. Unraveling that would not be easy for either side.

Reporter: NASA made a push during the Obama administration to contract with commercial companies.

We wanna leap into the future.

We had one launch provider, United Launch Alliance, they were the result of a merger of Lockheed and Boeing. When they consolidated, the costs went up and the US lost market share to the rest of the world, namely China, France and Russia. We set up competitions, and SpaceX has been by far the leader in these major competitions.

Elon brought the cost of his Dragon down to under a billion, and then under hundreds of millions. I mean, just the savings are wonderful from a customer perspective because I can now purchase services rather than have to do them all in-house myself.

Reporter: Since then, NASA has obligated more than 15 billion in awards to SpaceX, including 2.9 billion to develop a human landing system as part of the Artemis program. In 2022, NASA said the contract for ferrying astronauts to and from the ISS would total 4.9 billion

Beyond sort of the dollars and cents, as we've been talking about with these astronaut missions, it's SpaceX that has been allowing NASA to do some of its highest-profile operations.

When NASA says it's safe to fly on a SpaceX rocket, the world will follow. The governments, industries, anyone will say, "If it's good enough for NASA, it's good enough for us."

Reporter: SpaceX recently had to step in when another NASA contractor, Boeing, wasn't able to bring back two astronauts from the ISS.

The fact that SpaceX was tapped by NASA last summer to bring those two astronauts back to Earth, NASA did not want Boeing to sort of finish that job, shows how comfortable NASA is or has gotten over the years with using SpaceX and the trust that the agency has that the vehicle and the operational side of it works and can be safe. It also very much did highlight the dependence NASA has on SpaceX for this particular operation.

Reporter: Between Starlink flights and missions for outside customers, SpaceX carried out nearly double the amount of launches than the next three most active companies combined.

That is like a huge ongoing, you know, business and something that SpaceX is expected to be doing for years to come.

Reporter: Agencies also contract SpaceXperts' own satellites, it's growing and strategically important Starlink system.

You see sort of Starlink popping up in everything from military bases or government agencies needing some kind of satellite internet solution.

Reporter: One of the most notable contracts is one to provide Starlink to Ukraine.

A lot of military officials who are thinking about the future of war have been obsessed and really interested in how the Ukrainians have used Starlink. That experience in that conflict zone has created just a lot of awareness at the Pentagon, and frankly, in governments around the world about the need for fast, reliable, secure communications in conflict areas.

Reporter: Starlink is also a big revenue generator for SpaceX outside of the government. Quilty Space, a consulting firm, estimated that Starlink revenue is set to grow to 12.3 billion this year.

Starlink has provided a very significant revenue source for SpaceX that isn't dependent on government contracts and the budget cycles in Washington and all the rest.

Reporter: SpaceX has a number of important future projects with the US government lined up.

SpaceX, because they've been successful, have been built into the ecosystem and the architectures of future missions for both NASA and also the Department of Defense and other Spacefaring agencies. So a lot of the US government is dependent upon SpaceX for their very good vehicles.

Reporter: It's not just responsible for shuttling people and supplies to the ISS, it was also selected to deorbit the station at the end of its operational life in 2030. And in April, 2025, the company was awarded almost $6 billion from the Department of Defense for future satellite launches. SpaceX also submitted a proposal for Trump's Golden Dome, a missile defense shield that combines ground-based interceptors with satellites.

A lot of people I've talked to believe that SpaceX will have to be involved one way or the other in that because it has the most launch capacity, and of course, it's also developing a huge new vehicle that could potentially be involved in the future.

Reporter: So with all of this, what does it mean for SpaceX and NASA in Musk and Trump's potential divorce?

Getting more competition is probably the biggest answer. Elon himself says he wants competition. Unfortunately, SpaceX is so far ahead in so many areas, that will take years.

Reporter: NASA experts think that a full breakup is unlikely.

SpaceX, Elon have every incentive to do this work. It all supports what his long-term vision is, as stated to colonize Mars and make life interplanetary, make humanity interplanetary.

Ideally, we can take anyone who wants to go to Mars, we can take to Mars.

Reporter: A NASA spokesperson said in a statement that NASA will continue to execute upon the President's vision for the future of space, and that they will continue to work with industry partners to ensure the president's objectives in space are met.

News moves fast, and there's not always time to untangle the complex forces driving the day's biggest stories. WSJ Explains breaks down big market moves, business and economic trends, and scientific developments to help you stay ahead of the curve.

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