Elon Musk said Thursday that SpaceX will begin shutting down its Dragon spacecraft program after President Donald Trump threatened to end US government contracts with his companies.
The announcement came as tensions between the two men escalated publicly, following Musk’s sharp criticism of Trump’s top legislative proposal — a major tax and spending bill. Trump responded with a warning that government support for Musk’s companies may end.
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump wrote Thursday on his social media platform, Truth Social.
Shortly after, Musk fired back on X: “In light of the President’s statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately,” he posted.
In light of the President’s statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately pic.twitter.com/NG9sijjkgW
— Elon Musk (@elonmusk) June 5, 2025
Rift erupts over spending bill
The dispute began earlier in the week, when Musk slammed the bill on June 3, calling it a “disgusting abomination” and accusing lawmakers of irresponsible spending. “Shame on those who voted for it,” he posted.
Elon Musk criticizes Trump’s ‘One Big Beautiful Bill Act’ calling it a “disgusting abomination”:
“Shame on those who voted for it: you know you did wrong. You know it.” pic.twitter.com/qqsLH1c8kY
— Pop Base (@PopBase) June 3, 2025
By June 5, Trump acknowledged the growing tension during remarks in the Oval Office. “Elon and I had a great relationship. I don’t know if we will anymore,” he said. “He said the most beautiful things about me, and he hasn’t said bad about me personally, but I’m sure that’ll be next. I’m very disappointed in Elon. I’ve helped Elon a lot.”
Minutes later, Musk posted, “Slim Beautiful Bill for the win,” and denied Trump’s claim that he was familiar with the bill.
Trump on Elon Musk: "You saw a man who was very happy when he stood behind the Oval desk. Even with a black eye. I said, do you want a little makeup? He said, 'No, I don't think so,' which is interesting … Elon and I had a great relationship. I don't know if we will anymore." pic.twitter.com/I1IEo1ocuS
— Aaron Rupar (@atrupar) June 5, 2025
Musk floats a political alternative
Musk launched a poll on X, asking users if it was time to form a new political party that represented “the 80% in the middle.”
Trump responded by accusing Musk of turning on him after losing political influence. “Elon was ‘wearing thin,’ I asked him to leave,” Trump wrote, while repeating his call to cut Musk’s federal support.
The dispute took another turn when Musk agreed with a post suggesting Trump should be impeached. Minutes later, he warned that Trump’s trade policies could trigger an economic downturn. “The Trump tariffs will cause a recession in the second half of this year,” Musk wrote.
BREAKING: Elon Musk agreed that President Trump should face impeachment and be replaced by JD Vance. pic.twitter.com/GftDXAEbet
— ADAM (@AdameMedia) June 5, 2025
Future of partnerships uncertain
The fallout marks a dramatic shift in a relationship once seen as mutually beneficial. Musk’s companies — including SpaceX and Tesla — have received significant support from federal programs. That support now appears at risk as political divisions deepen.
It remains unclear whether Trump’s threats will result in actual policy moves, but the clash signals rising tension between political power and private industry. It also raises new questions about the future of public-private partnerships in areas like space, energy, and infrastructure.
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