The White home instructed the Department of defence and NASA to gather detailed information on multi-billion-dollar contracts with SpaceX Following a public conflict between president Donald Trump and billionaire Elon Musk “ Reuters reported, citing sources.
"Sources reported that the administration had instructed the agencies to analyse Musk's contracts in order to prepare possible retaliation on the businessman and his companies by launching the current probe," the agency stated.
Reuters was incapable to get information on whether the White home was planning to cancel any of SpaceX's national contracts worth about $22 billion. It is besides unclear whether the US Government has the legal anticipation to cancel existing agreements.
It was previously reported that Trump threatened to terminate the SpaceX deal, and Musk warned against the possible cessation of the Dragon spacecraft. In response, NASA and Pentagon officials asked SpaceX competitors to accelerate the improvement of alternate rockets and spacecraft.
In fresh years, Muska SpaceX has become a key partner of the U.S. government in the air and defence sectors: it provides launch of satellites and space cargo, and in the future can gain control of the critical component of the "Golden Dome" rocket defence strategy proposed by Trump. Parallel SpaceX builds a network of hundreds of reconnaissance satellites from the National Reconnaissance Office (NRO).
Conflict background
In fresh weeks, the relation between Trump and Musk has worsened significantly, which has translated into administrative action. According to Reuters' information, the White home ordered government agencies to look into the SpaceX agreements to prepare for possible retaliatory steps against Musk and his businesses. However, it is not known whether the government intends to cancel any of the contracts with a full value of about $22 billion, or whether it has legal grounds.
NASA and Pentagon reaction
In consequence to the escalation of tensions, NASA and Pentagon officials turned to SpaceX competitors specified as Boeing or Lockheed Martin, asking them to accelerate work on alternate rocket systems and spacecraft. This is to guarantee that the US government can replace Musk's services in the event of a break in cooperation.
The key function of SpaceX in the space and defence sector
SpaceX has become an highly crucial partner of the American government in fresh years. The company is liable for carrying satellites, supplying the global Space Station (ISS) and developing the Dragon ship. In addition, SpaceX can play a key function in the “Golden Dome” rocket defence strategy proposed by Trump, as well as building a network of hundreds of reconnaissance satellites for the National Reconnaissance Office (NRO).
Possible consequences
If the administration decides to terminate the agreements, it can hold key space and defence programs and besides undermine US competitiveness in the space race. On the another hand, Musk warned that in the case of hostile actions by the government he could suspend Dragon's flights, which would affect deliveries to the ISS, among others.
Summary
The conflict between Trump and Musk introduces uncertainty in the relations of the US government with 1 of the most crucial companies in the space sector. Although the decision to cancel the contracts has not been taken for the time being, the administration's actions indicate that there is simply a anticipation of major changes in the existing cooperation. In response, NASA and the Pentagon are looking for alternatives, but fast replacement of SpaceX can be hard due to its advanced technologies and low costs. This dispute could have far-reaching consequences for both the American Space Programme and global competition in the defence sector.
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White home orders a review of government SpaceX contracts, reports media
