Musk decommissions Dragon capsule amid Trump’s attack on SpaceX contracts

New Delhi: The escalating feud between former US President Donald Trump and billionaire entrepreneur Elon Musk took a dramatic turn on Thursday, with Musk announcing that SpaceX will “begin decommissioning its Dragon spacecraft immediately” following threats from Trump to terminate government contracts awarded to his companies.

The statement, posted by Musk on X (formerly Twitter), came hours after Trump took to his own platform, Truth Social, to suggest that ending federal funding and contracts to Musk’s ventures would save “billions and billions of dollars.”

In light of the President’s statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately pic.twitter.com/NG9sijjkgW

— Elon Musk (@elonmusk) June 5, 2025

Musk’s terse response has added another layer of uncertainty to an already tense relationship between one of the world’s richest men and a former president who remains a dominant force in the Republican Party.

SpaceX’s Dragon capsule, developed with significant support from NASA and government funding, plays a central role in US space operations. It is currently the only American spacecraft capable of transporting astronauts to and from the International Space Station (ISS).

NASA's heavy reliance on Dragon

Since 2020, SpaceX has been ferrying astronauts to the ISS aboard its Crew Dragon spacecraft, helping NASA reduce reliance on Russian Soyuz capsules. Dragon’s importance grew even more evident after Boeing’s Starliner capsule failed to perform as expected.

In fact, during a test flight last year, Boeing's Starliner malfunctioned, leaving two NASA astronauts stranded in space. They returned to Earth in March 2025 aboard a SpaceX capsule—further cementing Dragon’s critical role in manned spaceflight.

While Boeing has been attempting to get its Starliner program back on track, the capsule remains grounded as NASA evaluates whether it will need another cargo-only test flight before clearing it for future crewed missions.

Commercial missions continue

SpaceX also uses its Dragon capsule for private missions, including those contracted by Houston-based Axiom Space. The next such mission is expected to launch next week. Cargo variants of Dragon routinely deliver food, research equipment, and supplies to the ISS as part of SpaceX’s Commercial Resupply Services contract with NASA.

Russian Soyuz: The only other option

At present, the only alternative to SpaceX for crewed ISS missions is the Russian Soyuz capsule, which carries three astronauts. Under a mutual agreement, NASA and Roscosmos maintain a crew exchange, with each Soyuz launch carrying one NASA astronaut and each Crew Dragon launch including one Russian cosmonaut. This ensures both US and Russian presence aboard either spacecraft in case of emergencies.

This exchange system became crucial after the US ended its reliance on Russian spacecraft following Crew Dragon’s first manned orbital flight in 2020. Prior to that, NASA was paying tens of millions of dollars per seat to fly astronauts aboard Soyuz.

SpaceX’s government footprint

Beyond the Dragon capsule, SpaceX has secured major NASA and Department of Defense contracts. These include launching high-value satellites, scientific instruments, and in 2023, being awarded the contract to de-orbit the ISS when its mission concludes later this decade.

More notably, NASA has selected SpaceX’s Starship—currently in the testing phase—to carry astronauts from lunar orbit to the Moon’s surface under the Artemis program. Starship completed its ninth test flight last week but lost control and broke apart shortly after stage separation.

No official response from NASA

As of Thursday evening, NASA had not responded publicly to Musk’s decommissioning claim. The space agency remains heavily invested in SpaceX’s infrastructure, both financially and operationally, with several upcoming missions dependent on the continued operation of the Dragon capsule.

Whether Musk’s statement will translate into action or remains a high-stakes response to Trump’s remarks is yet to be seen. However, any disruption to the Dragon program could significantly impact US space operations and ongoing commitments with NASA and private space customers.