Donald Trump Threatens To Seize SpaceX And End Elon Musk’s Government Contracts In Washington Amid Explosive Fallout

Donald Trump Threatens To Seize SpaceX And End Elon Musk’s Government Contracts In Washington Amid Explosive Fallout

What began as a tense disagreement over government spending has exploded into a full-blown political war between Donald Trump and Elon Musk—complete with threats to NASA, accusations of illegal citizenship, and even Jeffrey Epstein name drops.

It’s a tech-meets-politics drama that has left astronauts in the middle and billions in federal contracts hanging in the balance.

Trump Threatens SpaceX Contracts, Musk Fires Back

On Thursday, things took a sharp turn when Trump publicly floated the idea of gutting Elon Musk’s government contracts.

Posting on Truth Social, he claimed, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.”

That didn’t sit well with Musk. Within hours, the SpaceX CEO announced he’d start decommissioning the Dragon spacecraft—NASA’s current method for getting astronauts to and from the International Space Station.

It’s a major move that could strand the four American astronauts currently in orbit.

Steve Bannon Calls for Government Takeover of SpaceX

Adding fuel to the fire, Trump’s former strategist Steve Bannon took to his “War Room Live” show and said the president should go a step further: seize SpaceX outright.

Bannon urged Trump to use the Defense Production Act—originally from the Korean War era—to take control of the company, citing national security concerns.

He also pushed for Musk’s security clearance to be revoked and demanded a full federal probe into all his government contracts.

And, in a wild turn, Bannon even called for Musk’s deportation, falsely suggesting he was in the U.S. illegally despite Musk being a naturalized citizen for more than 20 years.

The Fallout: Accusations, Resignations, and Rocket Retaliation

What triggered all this chaos? Musk had recently broken away from the Trump administration, citing frustration over the Republicans’ new “Big Beautiful Bill”—a federal budget plan Musk believed would balloon the national deficit and undo his efforts leading the Department of Government Efficiency (DOGE).

Soon after stepping down, Musk accused Trump of being “in the Epstein files” and endorsed the idea of replacing the 78-year-old president with his younger VP, J.D. Vance. Trump, in turn, dismissed Musk as “CRAZY” and suggested ending federal funding for both SpaceX and Tesla.

NASA in the Crossfire as Spacecraft Shutdown Begins

The most serious implication of this feud is its impact on NASA.

SpaceX’s Dragon spacecraft is currently the only American vehicle certified to ferry astronauts back and forth from the ISS.

With Boeing’s Starliner still plagued by malfunctions, there’s no reliable backup in sight.

Just two months ago, Dragon helped rescue astronauts Suni Williams and Butch Wilmore after a nearly 300-day stay in space.

Now, with Musk vowing to pull the plug on the Dragon program entirely, NASA could be left scrambling for alternatives.

Electric Vehicles, Appointments, and More Fuel for the Fire

Trump also accused Musk of being upset over losing out on EV subsidies and for having his preferred NASA appointee, Jared Isaacman, replaced.

“He recommended somebody that I guess he knew very well…and he happened to be a Democrat,” Trump said, adding, “We won, we get certain privileges.”

Musk didn’t let that slide. As Trump addressed the media, the billionaire posted on X, “Whatever,” and criticized the spending bill for cutting EV incentives while preserving subsidies for oil and gas.

“There has never been legislation that is both big and beautiful,” Musk wrote.

“Either you get a big and ugly bill or a slim and beautiful one.”

Who Helped Whom? Both Claim the 2024 Win

Trump says he would’ve won Pennsylvania in the 2024 election regardless of Musk’s help. Musk laughs at that.

He claims his $290 million donation and public endorsement after the July assassination attempt helped push Trump over the finish line.

Without him, Musk says, the GOP would’ve lost the House and had fewer seats in the Senate.

“Oh, and some food for thought,” Musk added, “Trump has 3.5 years left as President, but I will be around for 40+ years.”

Kanye Weighs In, Musk Drops the Epstein Bomb

Yes, even Kanye West got involved—pleading on social media, “Broooos please noooooo. We love you both so much.”

But things took an even darker turn when Musk tweeted: “@RealDonaldTrump is in the Epstein files.

That is the real reason they have not been made public.”

This came despite Trump previously promising to release Epstein-related documents, some of which were partially disclosed in February.

Musk cryptically added, “Mark this post for the future. The truth will come out.”

The Markets React—and So Does the White House (Sort Of)

As the online feud raged on, Tesla’s stock took a hit. Meanwhile, the White House didn’t immediately comment on the growing controversy.

Trump, for his part, kept hammering Musk online, suggesting he was fragile and ungrateful for all the administration had done for him.

“Elon was ‘wearing thin,’” Trump posted. “I asked him to leave…and he just went CRAZY!”

Musk, meanwhile, seemed to revel in the chaos, replying with a Clint Eastwood-style warning: “Go ahead, make my day…”

What’s Next? Astronauts in Limbo and an Uncertain Space Future

With Musk pledging to decommission the Dragon spacecraft and Trump threatening to pull all federal contracts, the stakes are higher than ever.

NASA’s ability to continue operations could be severely affected, and Musk’s lunar Dragon XL program now faces an uncertain future.

This isn’t just a celebrity Twitter spat—it’s a showdown with real-world consequences for America’s space program, its economy, and the political landscape heading into the next election cycle.

Whether this is just a power play or the beginning of a larger unraveling remains to be seen.