Despite easing tensions between Elon Musk and President Donald Trump, the White House has reportedly initiated a review of SpaceX’s contracts with the Defense Department (DoD) and NASA.
What Happened: The White House has directed the Defense Department and NASA to gather information on SpaceX’s contracts, potentially worth billions of dollars, reported Reuters on Friday. This move is seen as a possible prelude to retaliatory actions against Musk and his companies.
The review is a direct result of the very public spat between Trump and Musk, with the administration considering reducing SpaceX’s role in a new U.S. missile defense system. The White House has not yet indicated whether it plans to cancel any of SpaceX’s federal contracts, which currently amount to approximately $22 billion.
“We’ll take a look at everything,” President Trump told reporters aboard Air Force One on June 6.
The White House and NASA have both affirmed their dedication to conducting a thorough and rigorous evaluation of all bids and contracts. Sources familiar with the matter say the contract review is aimed at giving the administration the means to take swift action against Musk if needed, with the process being described as “political ammunition.”
The uncertainty around canceling existing contracts highlights concerns that political and personal conflicts may inappropriately influence government decisions, potentially impacting national security, public interest, and the use of public funds.
SpaceX did not immediately respond to Benzinga’s request for comment.
Why It Matters: The feud between Trump and Musk has been a subject of intense interest, with Musk using SpaceX’s capabilities to taunt Trump and even threatening to cease critical components of NASA’s astronaut transportation to the International Space Station. The White House’s review of SpaceX’s contracts adds a new layer of complexity to this ongoing saga, potentially impacting the future of the company and its projects.
During the past week, the feud seems to have cooled with Musk even accepting that he “went too far” in his war of words with the President. On the other hand, Trump stated that he would not sell his Tesla (NASDAQ:TSLA) and softened his stance on Elon Musk.
Meanwhile, ARK Invest has projected a multitrillion-dollar future for SpaceX, forecasting a $2.5 trillion enterprise value for the company by 2030. This projection suggests that, despite the current turmoil, SpaceX’s long-term prospects remain strong.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
