Tensions Rise: White House Scrutinizes Elon Musk's SpaceX Contracts

The White House has directed the Defense Department and NASA to review SpaceX contracts after a public dispute between President Trump and Elon Musk. The review aims to prepare for potential action against Musk, though the legality and practicality of canceling existing contracts remain in question.

The White House recently instructed the Defense Department and NASA to review billions of dollars in SpaceX contracts. The directive follows a public disagreement between President Donald Trump and Elon Musk, sources told Reuters.

This ongoing review positions the administration to act swiftly if Trump decides to retaliate against Musk's business interests. Pentagon officials are also evaluating SpaceX's role in a new U.S. missile defense system.

The potential move raises concerns among governance experts about political influences on government contracts. Musk's SpaceX remains integral to U.S. aerospace and defense amid tensions with the administration.

(With inputs from agencies.)