Trump Threatens Musk’s Government Contracts While China Ties Gain Scrutiny

President Donald Trump has suggested he may end Elon Musk’s lucrative federal government contracts, and the SpaceX founder’s Chinese business dealings may get renewed regulatory scrutiny given that Trump has suggested that Musk may be “susceptible” to influence because of those China ties.

Musk is heavily invested in China to make and sell his Tesla electric cars, and he has repeatedly praised the Chinese people while complimenting the Chinese Communist Party nine years ago for its economic accomplishments— even as the Pentagon and NASA are now heavily reliant upon another Musk company, SpaceX, to launch satellites and astronauts into space.

Ironically, the president, who fought off baseless allegations that he was under Russia’s influence, said in March that Musk might be “susceptible” to being influenced based on his lucrative Tesla business in China. Months after Trump’s remark, a public social media feud has developed between the two men — with Trump threatening to pull Musk’s government contracts as the SpaceX owner threatened to campaign against any Republicans who vote for Trump’s “One Big Beautiful Bill.”

Musk’s lucrative government contracts and controversy over his security clearance give Trump potential leverage over the SpaceX founder in their fight.

Battling against the “Big Beautiful Bill”
Musk has spent recent days battling against Trump’s big bill — which Musk has portrayed as fiscally irresponsible and claimed “will destroy millions of jobs in America” as it “gives handouts to industries of the past while severely damaging industries of the future.”