
Here’s what the Trump-Musk feud means for SpaceX and Tesla
- by Deseret News
- Jun 06, 2025
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Failure to launch
A cancellation of its U.S. federal government contracts, should it come to fruition, would have massive financial consequences for SpaceX, the space vehicle development company Musk launched in 2002.
SpaceX president and COO Gwynne Shotwell has said the company currently has about $22 billion in federal government contracts with a variety of agencies.
Easily the biggest majority of that value, around $15 billion, is with NASA, where SpaceX provides transport services, via its Dragon spacecraft, for both cargo and astronauts to and from the International Space Station. The company also provides launch services for classified satellites and other payloads to the Defense Department, according to Reuters, and is also the contractor for a variety of services related to the upcoming decommissioning of the ISS in 2030.
In this image made from NASA TV, the SpaceX Crew Dragon spacecraft, left, approaches the International Space Station, Saturday, April 24, 2021.
| NASA via the Associated Press
While a loss of federal dollars would be devastating to SpaceX, a cancellation of current contracts would have seismic impacts on U.S. space-related efforts. One of the most significant of those impacts would include the loss of the Dragon spacecraft, currently the only U.S.-based vehicle certified to carry supplies and astronauts back and forth to the ISS.
Tesla unplugged?
While Tesla benefits from various state and federal subsidy programs, including a $7,500 federal electric vehicle credit that is slated to be phased out in Trumpâs current budget proposal, the harms that have befallen the Musk-owned automaker of late are more personal in nature and were well in play before this weekâs relationship melt-down.
President Donald Trump and Tesla CEO Elon Musk speak to reporters as they sit in a red Model S Tesla vehicle on the South Lawn of the White House, March 11, 2025, in Washington.
| Pool via the Associated Press
The end of federal programs aimed at growing the EV sector would not damage Tesla as severely as other problems the automaker is confronting, John Helveston, a professor at George Washington University who studies the electric vehicle industry, told NPR.
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