Musk: 'You Can't Do It Without Me'... Confident Despite Feud With Trump

Source
Korea Economic Daily

Summary

  • The U.S. government has expressed high dependence on SpaceX’s irreplaceable technologies such as reusable rockets and Starlink.
  • SpaceX continues to secure government contracts for key projects with the Department of Defense and NASA, including National Security Launch Missions.
  • Regulatory reliefs such as the increased launch frequency approval for Starship by the FAA have been positive for SpaceX.

Trump Reviews Government Projects With SpaceX After Clashing With Musk

Recognizes U.S. Space Industry Can't Function Without SpaceX

Holds Irreplaceable Technologies Like Reusable Rockets and Starlink

The Trump administration has found that, despite conflicts with Elon Musk, the CEO of Tesla, it is difficult to exclude Musk from key government space-related projects. This is because Musk's aerospace company, SpaceX, continues to undertake various projects for the U.S. Department of Defense and NASA with its unmatched technological capabilities.

Recently, as Musk criticized President Trump’s flagship policy, the 'One Big Beautiful Bill' (OBBBA), citing increasing fiscal deficits, Trump reportedly ordered a review to see if the federal government could cancel contracts with Musk’s companies. However, during the review process, officials once again realized that U.S. space programs cannot proceed smoothly without SpaceX.

'Contracts With Musk Should Be Reviewed'

The Wall Street Journal (WSJ) reported on the 19th that the government reviewed contracts with SpaceX just days after President Trump’s public dispute with Musk earlier last month. Musk led the Department of Government Efficiency (DOGE) until May, after the start of Trump's second term. Following Trump’s push for the deficit-worsening tax cut bill, the 'One Big Beautiful Bill' (OBBBA), Musk openly criticized it in harsh terms. In response, Trump threatened to cancel federal contracts held by Musk’s companies.

According to the WSJ, President Trump actually attempted to revoke the contracts. The aim was to find inefficiencies in contracts worth billions of dollars. The White House explained that this contract review was not limited to Musk's companies, but also included various firms holding lucrative federal contracts.

In reality, GSA Administrator Josh Gruenbaum formally requested the Department of Defense to provide details on contracts and other transactions with SpaceX. The email stated that this information would also be shared with the White House.

Similar requests were sent to five or more additional federal agencies, including NASA. These agencies were required to evaluate the contract amounts and whether competitors could replace SpaceX.

However, most officials involved in the review concluded that the majority of contracts were essential to the Department of Defense and NASA and could not be terminated.

U.S. Government Relies on SpaceX

The WSJ noted that this situation demonstrates how SpaceX has firmly established itself as the world’s leading rocket launch company and a major satellite internet provider.

In practice, the U.S. government heavily relies on SpaceX for low-Earth orbit satellite internet, rocket launches, and crewed space vehicles. Some view SpaceX not as a mere government contractor, but as a strategic government partner.

One prime example is the Falcon 9, the world's first reusable rocket and its revolutionary technology. By vertically landing and reusing rockets multiple times, SpaceX has dramatically reduced launch costs—one of the main reasons NASA, the Department of Defense, and private satellite operators prefer SpaceX.

SpaceX’s Crew Dragon is currently the only American crewed spacecraft certified to transport astronauts to the International Space Station (ISS). NASA would lose its transportation capability to the ISS if SpaceX halted operations.

SpaceX also operates Starlink, the world's largest low-Earth orbit satellite-based internet service. The company has launched over 7,000 satellites for this network. Starlink is now recognized as essential infrastructure globally, both in military and civilian sectors, and the U.S. Department of Defense and intelligence agencies have signed military secure communications contracts with SpaceX to utilize Starlink.

Despite disputes between President Trump and Musk, SpaceX has continued to win government contracts this year. In April, it secured the U.S. Department of Defense’s National Security Launch Mission 28, becoming the largest beneficiary of a $5.9 billion contract.

The U.S. government is also heavily dependent on SpaceX for Mars exploration. In May, the Federal Aviation Administration (FAA) authorized SpaceX to increase the annual launch frequency of Starship, the crewed spacecraft developed for Mars missions, from five to up to twenty-five times. Reuters pointed out, “This regulatory relief will greatly benefit SpaceX, and Starship is expected to play a central role in the Trump administration's space program.”

New York — Correspondent Shin-young Park, nyusos@hankyung.com

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Korea Economic Daily

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