US Scrutinizes SpaceX Contracts After Musk’s Remarks: Billions at Stake

Following Elon Musk and Donald Trump’s public disagreement, the fallout continues. The White House is reviewing SpaceX’s multi-billion dollar contracts with the Department of Defense and NASA. This includes assessing SpaceX’s role in missile defense systems. The government is preparing potential retaliatory measures, giving it options should the political situation worsen despite Musk’s retracted threat to retire SpaceX’s Dragon spacecraft.

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A week after a very public spat between Elon Musk and Donald Trump, the fallout continues. While a hasty apology may have smoothed over the immediate conflict, the repercussions for SpaceX, and its founder, are far from over.

According to a Reuters report, citing four sources familiar with the matter, the White House has instructed the Department of Defense and NASA to gather detailed information about SpaceX’s multi-billion dollar contracts following the public exchange. Government officials have launched a review of the contracts awarded to Musk and his companies, ostensibly in preparation for potential retaliatory measures.

The Pentagon is also reportedly assessing whether to reduce SpaceX’s involvement in the U.S.’s next-generation missile defense systems.

A NASA spokesperson stated that the agency “will continue to collaborate with industry partners to ensure the president’s goals in the space arena are met.”

Sources suggest the contract review is intended to provide the government with the ability to respond quickly should Trump choose to take action. Essentially, this is about “arming” the administration with potential options, should the political situation escalate further.

Adding fuel to the fire, Musk initially threatened to “retire” SpaceX’s Dragon spacecraft in the wake of the discord with Trump.

However, Musk quickly backtracked, responding to a comment suggesting he “cool off,” by stating, “Good advice, ok, we won’t retire Dragon.”

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