On 6th June, a public fallout between Elon Musk and Donald Trump cast uncertainty over nearly Rs 1.83 lakh crore ($22 billion) in U.S. government contracts with SpaceX.

The feud began after Musk criticised Trump’s tax and spending policies. Trump responded by threatening to cancel government deals with Musk’s companies. In reaction, Musk briefly threatened to deactivate SpaceX’s Dragon spacecraft — NASA’s only U.S. vehicle for carrying astronauts to the International Space Station. He later reversed the statement but not before raising the alarm.

Dragon operates under a Rs 41,600 crore ($5 billion) contract with NASA and plays a critical role in U.S. space missions. Any disruption could impact global ISS operations.

The clash also affected Musk’s influence in Washington. Trump removed Musk-backed Jared Isaacman as his nominee for NASA administrator, weakening Musk’s standing in federal space policy.

NASA declined to comment directly but said it will continue collaborating with private partners to advance its objectives.

Though SpaceX remains dominant in the global launch and satellite market, analysts warn that the fallout could result in major revenue losses and missed opportunities.

SpaceX holds approximately Rs 1.25 lakh crore ($15 billion) in NASA contracts for the Falcon 9 and Starship rockets, as well as several billion dollars in Pentagon deals for launching security satellites and building a surveillance network.

Former NASA officials say cancelling these contracts may not be legal. But Musk’s threat to halt services raised serious concerns about astronaut safety and reliability.

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