Summary
- The alliance between President Donald Trump and CEO Elon Musk has collapsed, raising uncertainty for companies Musk owns, such as SpaceX.
- The U.S. government has contacted other private space companies—Rocket Lab, Stoke Space, and Blue Origin—as alternatives to SpaceX.
- President Trump mentioned his authority to revoke contracts with the federal government, but made clear he is not currently planning to do so.
Breakdown of the Trump–Musk Alliance
Musk Deletes 'Impeachment Support' Comments
Attempts to Contain the Fallout
Trump: "I think it's over with him"
Maintaining the 'Cutting Ties with Musk' Stance

Donald Trump, the former President of the United States, has declared that his relationship with Elon Musk, the Tesla CEO once considered a close confidant, is over. Musk tried to control the situation by deleting his supportive comments on 'President Trump's impeachment' from social media, but Trump is keeping his distance from Musk.
On the 7th (local time), during a phone interview with NBC News, when asked if he was willing to restore his relationship with Musk, Trump answered, "No." When questioned whether he considered the relationship over, he said, "I think so." He added, "I'm too busy with other things" and "I have no intention to talk with him."
Trump criticized Musk, saying he "behaved rudely" and described it as "very bad." He also warned that if Musk, who opposed the budget proposal Trump was pushing, supports Democratic candidates to defeat the Republican lawmakers who favored the bill, "he will have to face very serious consequences."
Musk fully supported Trump during the presidential election with campaign funding, and after the start of Trump's second administration, Musk was appointed as head of the Government Efficiency Department, taking a leading role in cutting government expenditure. However, cracks began to show as Musk openly opposed Trump’s budget proposal of economic policies. On the 5th, during a summit with the German Chancellor, Trump publicly criticized Musk, saying he was "very disappointed," and Musk responded by expressing his support for Trump’s impeachment on social media. According to The Washington Post (WP), Trump referred to Musk as a "tremendous drug addict" in a phone call with close associates, allegedly suggesting Musk’s behavior might be under the influence of substances.
WP reported that while the public spat broke the Trump–Musk relationship, tensions had been deepening for some time. There was growing dissatisfaction in the White House with Musk’s unilateral approach to policy, and Trump himself increasingly distanced himself, with the conflict erupting recently. The decisive moment came in February, when Musk’s Government Efficiency Department sent an email to all federal employees instructing them to report "five achievements from the past week," which caused a major stir since even senior officials weren’t notified in advance.
There are concerns that this dispute could have substantial effects on Musk’s business ventures. WP reported that government agencies such as the National Aeronautics and Space Administration (NASA) and the Department of Defense began searching for alternatives to SpaceX, Musk’s space exploration company. After the clash, government officials reached out to other private space companies like Rocket Lab, Stoke Space, and Blue Origin to check the development status of their technology and how soon they could be brought in for government missions.
On the 7th, Musk tried to manage the fallout by deleting the controversial social media comments and reaffirming SpaceX’s commitment to ongoing NASA projects. Trump stated that, while he has the authority to revoke federal contracts with SpaceX and other Musk-owned businesses, he is not currently considering it.
Reporter Dayeon Lim allopen@hankyung.com

Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.



