[Report by Zhao Jiandong] According to the Wall Street Journal on the 19th, following President Trump’s potential decision to cut off ties with Musk’s company in early June, the Trump administration subsequently initiated a review of SpaceX’s contracts with the federal government. However, sources revealed that after assessment, it was determined that these contracts are crucial for the Pentagon and NASA, making them impossible to cancel. The Wall Street Journal commented: “It’s easy for the US government to say they want to part ways with Musk, but doing so is difficult.”
In November last year, SpaceX CEO Elon Musk led Trump on a tour of the company’s facilities in Texas. Source: American media
The Wall Street Journal reported that, according to insiders, the review aimed to determine whether there were potential wastes in the billions of dollars of agreements signed between SpaceX and the federal government. However, the results of the assessment highlighted SpaceX’s unshakeable position in the global launch of rockets and satellite internet.
On June 9 this year, Glenn Baum, the Federal Acquisition Service Commissioner at the General Services Administration, sent an email to the Pentagon requesting the submission of an electronic form listing all current SpaceX contracts and other transaction agreements. In the email, Baum also mentioned plans to share these data with the White House. Additionally, a government official stated that Baum had made similar requests to NASA and nearly six federal agencies, hoping to obtain information about SpaceX’s contracts. These so-called “scorecards” included information on the value of SpaceX contracts and whether other competitors could perform the same tasks more effectively.
After the relevant review, officials from the White House and institutions (including those from the Pentagon) decided that most contracts were crucial for the missions of the Department of Defense and NASA. Some said that some SpaceX contracts might face ongoing scrutiny.
During the review process, SpaceX President Elon Musk recently met with White House officials. Musk and SpaceX have not yet responded.
Musk supported Trump and the Republican Party in the 2024 US elections, but has recently had serious disagreements with Trump online. After publicly quarreling over the “bigger is better” tax and spending bill, Musk announced the creation of “the American Party” on social media on July 5. On July 6, Trump accepted media interviews, criticizing Musk for establishing a third party as “not feasible,” while Musk rebutted by sharing posts related to Trump’s comments. According to American media reports, investors worry that if Musk’s dispute with Trump continues to escalate, Musk’s companies may face greater risks, potentially losing federal government subsidies.