Trump vs Musk: 5 Explosive Moves in Bannon’s Push to Seize SpaceX

Trump vs Musk erupted into full-blown drama this week, with Steve Bannon demanding Donald Trump deport Elon Musk and seize SpaceX under the Defense Production Act. Let’s break down the facts — and the farce.

Bannon’s 5 Explosive Demands

Former White House strategist Steve Bannon, the far-right firebrand best known for helping Donald Trump win the 2016 election, has launched a blistering attack on Elon Musk.

Speaking on his War Room podcast and in follow-up interviews, Bannon urged Trump to:

1. Investigate Musk’s immigration status, claiming he’s an “illegal alien”
2. Deport Musk immediately
3. Suspend his security clearance
4. Invoke the Defense Production Act to seize SpaceX
5. Launch federal probes into alleged drug use and attempts to access classified Pentagon information

These claims ignore the fact that Musk has been a naturalised U.S. citizen since 2002, making the “illegal alien” claim patently false.

How the Feud Escalated

The feud began in early June when Musk slammed Trump’s One Big Beautiful Bill (OBBBA), calling it a “disgusting abomination” and suggesting the former president should be impeached.

Trump retaliated almost immediately, calling Musk “unstable” on Truth Social and threatening to revoke government contracts with Tesla, SpaceX, and other Musk-led companies.

In response, Musk briefly floated the idea of decommissioning SpaceX’s Crew Dragon spacecraft “in protest” but quickly walked it back after backlash.

What’s Really at Stake

• SpaceX holds approximately $22 billion in active contracts with NASA, the Department of Defense, and other federal agencies.
• Musk’s broader portfolio, including Tesla and Starlink, has benefited from $38 to $48 billion in combined government support over the years.
• Projects like the Mars Sample Return and ISS resupply missions rely heavily on SpaceX infrastructure.
• If SpaceX operations were disrupted, America could face a major gap in crewed launch capability, as Boeing’s Starliner continues to struggle.

Can the Government Actually Seize SpaceX?

While the Defense Production Act allows the U.S. government to direct private industry in times of national emergency, outright seizure of a company like SpaceX would require:

1. A formal emergency declaration
2. Strong legal justification
3. An executive order
4. Surviving a gauntlet of lawsuits

Experts call Bannon’s demands symbolic at best and legally implausible at worst.

Political and Financial Fallout

• Tesla lost around $34 billion in value last week amid the feud.
• Federal scrutiny of Musk’s companies has increased.
• National security analysts warn that the feud could jeopardise U.S. aerospace dominance.

Cold War or Political Theatre?

While some insiders claim the spat is mostly performative, others say the relationship between government and private contractors like SpaceX has never been more precarious. Behind-the-scenes efforts are reportedly underway to stabilise ties.

Trump vs Musk: What to Watch Next

👀 Will Trump escalate? Look for executive orders, contract terminations, or fresh probes.
👀 Will Musk push back or fold under pressure?
👀 Could national security projects suffer collateral damage?

Let’s Talk: What’s Your Take on Trump vs Musk?

Is Steve Bannon grandstanding, or does he have a point? Could this really be the beginning of Cold War 2.0—between a president and a tech titan?

Join the conversation below. Newsfangled still lets readers comment, argue, and even occasionally agree. Shocking, we know.

Join the conversation below. Newsfangled still lets readers comment, argue, and even occasionally agree. Shocking, we know.