Musk-Trump Clash Escalates at SpaceX: Watch These Space Stocks Soar
Elon Musk threatened late Thursday to decommission the SpaceX Dragon capsule — key for sending astronauts to and from the International Space Station — as his feud with President Donald Trump continues to escalate. Musk walked back the threat later on Thursday.
Musk's initial pledge followed President Trump threatening to terminate government contracts that have been awarded to Musk's various companies. Musk left his role as head of the Department of Government Efficiency at the end of May.
Please watch the video at Investors.com - Stocks Drop On Trump/Musk Drama: Cloudflare, Nutanix, ROAD In Focus
SpaceX and Starlink rivals Rocket Lab RKLB, Intuitive Machines LUNR and AST SpaceMobile ASTS rallied late on Musk's Dragon threat, though the gains didn't carry into Friday. Musk's change of heart came after extended trading ended on Thursday.
Trump Feud Is Out Of This World
"The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Government Subsidies and Contracts," Trump wrote. "I was always surprised that Biden didn't do it!"
"In light of the President's statement about cancellation of my government contracts, SpaceX will begin decommissioning its Dragon spacecraft immediately," Musk responded in a retaliatory post.
The Dragon capsule is a smaller spacecraft that sits on top of a rocket; it's designed to carry crews and cargo to and from space. It is currently the only U.S. option for delivering crew to and from the International Space Station, according to CNBC.
The Dragon capsule was also used to return NASA astronauts Butch Wilmore and Suni Williams to Earth in March. The pair were stranded on the ISS for months during a mission following complications with a Boeing BA Starliner capsule.
It is unclear what impact decommissioning the Dragon will have on SpaceX's missions. Musk's ultimate goal is to colonize Mars via his Starship spacecraft. The Starship is designed to carry crew and cargo without the Dragon.
Meanwhile, SpaceX has become an integral contractor for various NASA missions and programs. NASA in June 2024 tapped SpaceX to develop a vehicle to deorbit the ISS.
SpaceX Rivals Rally
The Trump and Musk threats may imperil SpaceX contracts, current and future. That could benefit rivals.
Rocket Lab stock swung 3.8% higher early Friday, after jumping 6% in Thursday's afterhours. Shares fell 1.7% to 26.45 on Thursday but found support at the 21-day line. RKLB stock has a 30.78 handle buy point.
Intuitive Machines LUNR surged 3.4% Friday after mixed trade late Thursday. Shares fell 1.6% to 10.88 on Thursday, slightly below the 200-day line.
AST SpaceMobile stock reversed for a slight decline early Friday. ASTS stock gained 1.9% after hours on Thursday. Shares jumped 7.5% to 30.85 on Thursday, pushing above a short-term high of 29.05. On Monday, ASTS stock soared 13.9%, rebounding above the 200-day line and breaking a downtrend. AST SpaceMobile has a 35.49 buy point.
President Trump, Musk Clash
The feud between the president and the SpaceX CEO came to a head on Thursday after Musk publicly criticized Trump's proposed tax bill. The pair traded barbs through interviews and a series of online posts.
Speaking with reporters Thursday, President Trump said he doesn't know if he and Elon will have a great relationship anymore.
"Elon is upset because we took the EV mandate, and you know, which was a lot of money for electric vehicles," Trump said Thursday. "And you know, they're having a hard time, the electric vehicles, and they want us to pay billions of dollars in subsidy."
The Tesla TSLA CEO responded by saying that Trump would have lost the election without him and his funding.
Musk escalated things further in the afternoon Thursday.
"Time to drop the really big bomb," Musk wrote on X, before adding that Trump "is in the Epstein files. That is the real reason they have not been made public."
"Have a nice day. DJT!" Musk said.
Musk also endorsed impeaching and removing Trump from office.
Tesla stock rebounded 5% Friday. The stock tumbled 14.3% Thursday amid the fight. Shares dropped below their 50-day and 200-day lines, undercutting an aggressive entry. Tesla stock is down 29.5% so far this year through Thursday.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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