Trump wants replacement to Musk’s SpaceX
(MENAFN) The Trump administration is reportedly distancing itself from Elon Musk’s SpaceX in its plans for the Golden Dome missile defense project, according to a Reuters report published Tuesday, citing three anonymous sources. Once allies during the 2024 presidential campaign, Trump and Musk have recently fallen out, with tensions escalating over Trump’s $5 trillion budget plan — which Musk openly criticized.
In response, Trump accused Musk of profiting excessively from government subsidies and threatened to revoke SpaceX’s federal contracts. SpaceX, a key player in U.S. defense communications through its Starlink and Starshield systems, was previously considered a leading candidate to build parts of the Golden Dome. In April, it was reportedly shortlisted alongside tech firms Palantir and Anduril.
Now, the White House and Pentagon are said to be actively exploring alternatives to reduce dependence on Musk’s company. Among those being approached are Amazon’s Project Kuiper — despite its limited satellite launches so far — and major defense contractors such as Lockheed Martin, Northrop Grumman, L3Harris, as well as smaller aerospace firms like Rocket Lab and Stoke Space.
While SpaceX might still be tasked with specific roles in the $175 billion missile shield program, particularly satellite launches due to its experience and infrastructure, the broader contract may be awarded elsewhere.
The feud between Trump and Musk deepened last month when Trump suggested the Department of Government Efficiency (DOGE), previously headed by Musk, should investigate his past subsidies. Trump wrote on Truth Social that without government support, Musk “would probably have to close up shop and head back home to South Africa,” claiming the U.S. could save billions by severing ties with his companies.
Musk hit back, warning that Trump’s budget would “bankrupt the country” and announced plans to form a new political group — the America Party — aimed at challenging the two-party dominance in Congress.
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