Musk to retire SpaceX Dragon spacecraft after Trump threatens contracts

In a tit-for-tat move, Elon Musk said Thursday that SpaceX will begin retiring its flagship Dragon spacecraft following President Donald Trump’s threat to cancel government contracts and subsidies tied to Musk’s companies.

“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump posted on Truth Social. “I was always surprised that Biden didn’t do it!”

The comment came just hours after Trump told reporters he was “very disappointed” in Musk, a former campaign ally and one-time head of the Department of Government Efficiency, who resigned last week after only 130 days.

In a sharp response, Musk didn’t hold back — or delay.

“Effective immediately, we will begin retiring the Dragon program,” Musk posted on X. “SpaceX will no longer operate a system at the mercy of politics.”

The Dragon spacecraft, which played a key role in resupplying the International Space Station and ferrying NASA astronauts to orbit, has become a symbol of American commercial space innovation. Now, it’s collateral damage in a rapidly intensifying political feud.

Musk’s reaction follows days of public clashes with Trump over the president’s signature “One Big Beautiful Bill,” which Musk slammed as a “disgusting abomination” that would “balloon the federal deficit.”

The Tesla CEO has also bristled at Trump’s decision to yank the NASA nomination of Musk ally and billionaire astronaut Jared Isaacman, calling the move “vindictive and partisan.” Trump defended the reversal, saying Isaacman was “totally a Democrat.”

The feud marks a dramatic reversal for two men who once appeared aligned in both policy and public image. Musk donated over $250 million to Trump’s re-election effort and was seen as one of the administration’s most high-profile tech advocates.

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