Now that it looks like President Donald Trump and SpaceX CEO Elon Musk are on the outs with each exchanging blows on social media, it seems like Trump’s goodwill towards Musk may soon come to an end.
On that note, how much can Trump hurt Musk if he so chooses to?
Tesla rode a high after Trump was elected, and Musk’s presence in the government, not to mention inside the oval office did a lot for his companies, SpaceX, even X, but now that the billionaire former member of the Department of Government Efficiency (DOGE) has fallen out of favor,Trump has the power to derail Musk’s gravy train whenever it suits him.
READ: Amazon launches 27 Kuiper rockets, rivaling Elon Musk’s Starlink (April 30, 2025)
Consequences of the fallout are already being felt by Musk. Tesla shares tumbled 14% in trading Thursday following the very nasty and public spat between Trump and Musk.
Tesla is not the only company Musk should be worried about, as Trump threatened to revoke SpaceX’s government subsidies. Musk went on his social media platform X and made a retaliatory threat, where he said if the subsidies were cut, he would dismantle SpaceX’s Dragon Capsule that NASA relies on to travel to the International Space Station (ISS). Musk follows through with his threat NASA will have to rely on Russia’s Soyuz capsule.
Trump appeared to threaten Musk, as he posted on his Truth social media platform Thursday that, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!”
To which Musk replied on his social media platform X: “This just gets better and better,” followed by two laughing face emojis, along with “Go ahead, make my day.”
Another avenue Trump could make things hard for Musk is if he leans on the Securities and Exchange Commission (SEC) to get back to investigating Musk’s purchase of Twitter in 2022.
Here are some ways Trump could make things difficult for Musk:
Federal contract threats
o President Trump has threatened to cancel up to $22 billion in federal contracts with SpaceX.
o This would impact critical NASA and Department of Defense projects like Dragon and Starship.
o Loss of funding could halt missions and delay future space initiatives.
Regulatory pressure
o Trump can influence agencies like the FAA and FCC, which oversee rocket launches and satellite operations.
o Regulatory delays or denials could stall launches, restrict Starlink, and hurt SpaceX’s schedule and business model.
Public and political influence
o Trump’s public criticism can sway public opinion and damage Musk’s reputation.
o His actions may shake investor confidence, leading to market volatility for SpaceX, Tesla, and other Musk-led ventures.
National space strategy impact
o Weakening SpaceX would reduce the U.S.’s independent access to space, forcing greater reliance on foreign partners like Russia.
READ: Elon Musk’s DOGE slashes millions in grants supporting DEI programs (April 25, 2025)
o It could also derail NASA’s long-term goals for Moon and Mars exploration.
The conflict between President Trump and Musk shows how political power can deeply affect private innovation. Disruptions to key partnerships like NASA and SpaceX risk slowing space progress, increasing foreign dependence, and unsettling markets—proving that political decisions can shape the future of technology, exploration, and economic growth.