Is Trump's Move Shaking NASA? Highlighting Dependence on SpaceX

1. The Two Sparking in "Space"

U.S. President Donald Trump and entrepreneur Elon Musk—both masters of social media, boasting massive fan bases, and effortlessly crossing the boundaries of politics, economics, and tech. However, in July 2025, their honeymoon abruptly ended. The catalyst was a post by Trump on Truth Social: "Musk is receiving the highest subsidies in history. If we cut those subsidies, he'd have no choice but to close shop and return to South Africa." This sentence, tinged with animosity, quickly spread, and the situation escalated when the President himself threatened to "review" SpaceX's government contracts.POLITICO

2.

According to White House sources, the departments overseeing space development and national defense immediately began reviewing contracts, concluding that "terminating them would create significant gaps in national security."The Economic Times

Meanwhile, an estimate by The Washington Post suggested that Musk-related companies have received a total of $38 billion in government support over the past 20 years.Fox Business

Trump's aim is seen not only as an appeal to the "anti-EV, fiscally conservative" line but also as a strong warning to the Musk camp, which opposed his flagship bill, the "One Big Beautiful Bill."Financial Times

3.

Provoked, Musk curtly responded on X (formerly Twitter), "Cut it all."POLITICOX (formerly Twitter)
Furthermore, he boldly declared, "Even with zero subsidies, our competitiveness remains unshaken," and warned Republican lawmakers that if they supported the bill, he would back opposing candidates in the primaries. Tesla's stock initially fell by 7% but recovered to about half that by the close. Investors seemed to prioritize the continuation of SpaceX's long-term contracts over the "war of words."Texas Standard

4.

As of 2024, SpaceX holds federal contracts worth $22 billion, serving as a key player in launches for NASA, the Department of Defense, and the NRO.Built In
Notably, it secured $5.9 billion in the Department of Defense's NSSL Phase 3 as a sole contractor.Federal Budget IQ
If these contracts were dissolved, there could be cascading delays affecting GPS, reconnaissance satellites, and manned ISS missions. Even within the White House, there are murmurs that such a political performance might be too extreme.Al Jazeera

5.

On social media, patriots cheered "expel the tax vampire," while the tech industry countered that "policy uncertainty stifles innovation." Even far-right commentator Steve Bannon made an extreme statement, saying, "Expel Musk from the country."Newsweek

6.

In the 2024 presidential election, Musk, who provided substantial financial support, was originally the "guardian of conservative IT" for the Trump camp. However, cracks became apparent over the repeal of EV tax credits and increased spending.

While hardliners within the party applauded the "Musk cut," moderates prioritized maintaining "space interests." As a result, the Republican Party is exploring a compromise that includes "subsidy reform" in its platform but stops short of specifically terminating SpaceX contracts.The Daily Beast

7.

• Stock Market

  • Tesla: Initially -7% → Closing -3% (7/1)

  • Defense-related ETF: +1.2% (Expectation for SpaceX alternative stocks)

• Employment

  • SpaceX creates 140,000 jobs in the U.S., with 30% in Florida. Contract termination would hit the state's economy hard.

• Technological Supremacy

  • Starlink is crucial for DoD operational communications, with 2,300 units active in supporting Ukraine.Reuters

8.

In 2017, Musk collaborated with Trump as a member of the President's Manufacturing Council. However, they parted ways over the Paris Agreement withdrawal in 2018, and tensions continued with COVID-19 regulations, the Inflation Reduction Act, and the 2025 "Big Beautiful Bill." The current subsidy uproar is merely the culmination of these events.

9.

1. Reconciliation: Trump limits subsidy reductions to symbolic measures, maintaining SpaceX's major contracts.

2. Partial Freeze: Only new contracts are frozen, while existing projects proceed. Musk hints at overseas launches for Starship.

3. Full-scale Clash: Partial termination of defense and NASA contracts → Delays in the manned lunar mission "Artemis III," allowing China to take the lead on the moon.

10.

"Subsidies vs. Self-reliance"—on the surface, their words appear to be a fiscal debate, but in reality, it's a political game over 21st-century space dominance and tech leadership. Trump replays "America First," while Musk counters with "Market First." Yet, like the trajectory of a rocket launch, their interests may intersect again somewhere down the line.