SpaceX’s Explosive Announcement & Reversal
Elon Musk announced SpaceX would “decommission its Dragon spacecraft immediately” after President Trump threatened to cancel government contracts. That decision, posted on X, came amid a budget feud. Within hours, Musk reversed the move, keeping the spacecraft operational for ISS missions. NASA still relies on Dragon, so halting it could have had major consequences.
SpaceX Revenue vs. Tesla
SpaceX projects $15.5 billion in commercial revenue for 2025—up 31 % from $11.8 billion in 2024. That makes SpaceX bigger than Tesla’s automotive business in annual revenue. However, a public feud risks putting $22 billion in government contracts on the line. Starlink, a major growth driver, contributes significantly, while Musk emphasizes that NASA accounts for just $1.1 billion of total revenue.
Dragon’s Role and the Fallout Risk
Dragon serves as the U.S.'s only crew transport to the ISS, under a $5 billion NASA contract. Thousands of flights support long-term ISS operations. Even hinting at its shutdown triggered alarm among NASA staffers and space analysts . Space journalist Eric Berger noted the seriousness, though Musk later softened his stance.
Related: Why Elon Musk Is Furious About Trump’s Budget Bill
Unique Viewpoint: Privatized Public Services
This incident highlights how privatizing public infrastructure can backfire. SpaceX controls critical launch systems, Starlink networks, and Dragon spacecraft. A dispute between government and private leader can disrupt national interests. Musk’s reversal shows a man in charge of systems beyond one company’s scope. That’s both impressive and risky.
Does SpaceX Make More Money Than Tesla?
Yes—and by a wide margin. Projected 2025 revenue of $15.5 billion outpaces Tesla's roughly $98 billion in sales—but Tesla has thinner margins and dependence on vehicle sales. SpaceX’s profits come from a mix of government contracts, satellite launches, and Starlink subscriptions. The diversified portfolio gives SpaceX a distinct financial edge, though its government deal exposure adds a new layer of vulnerability .
Unique Viewpoint: Musk’s Influence as a Threat Vector
Musk’s statement to phase out Dragon showed that a single voice can threaten core NASA capabilities. That sparked concerns among public officials about centralizing systemic power within private individuals. The Q&A over Dragon became a public test of how tethered national interests are to Musk’s decisions.
Bottom Line
-
2025 revenue outlook: ≈ $15.5 billion
-
Main income streams: Commercial launches, Starlink, government contracts
-
Dragon status: Declared for decommission, then reversed
-
Threat to revenue: $22 billion in NASA/DOD contracts
-
Public risk: Privatized infrastructure caught in power disputes
SpaceX’s success now hangs on the balance of commercial prowess and political stability. The Dragon saga reminded everyone—and Musk—that disrupting core services can disrupt the company itself.
