Elon Musk backed away from a threat to decommission SpaceX's Dragon spacecraft on Thursday, hours after President Donald Trump suggested cutting billions in government contracts with Musk's companies. The reversal followed a sharp escalation in rhetoric between the two influential figures, whose relationship has fractured over policy disagreements and personal jabs.

"In light of the President's statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately," Musk posted on X. But later that evening, Musk replied to a user urging de-escalation, saying, "Good advice. Ok, we won't decommission Dragon."

Trump had earlier written on Truth Social, "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts." He added, "I was always surprised that Biden didn't do it!"

NASA heavily depends on the Dragon capsule to transport astronauts and cargo to the International Space Station. Musk's threat briefly stirred concern, particularly given that Boeing's rival Starliner capsule remains grounded after an unsuccessful 2023 crew flight. NASA astronauts Wilmore and Williams returned aboard a Dragon capsule in March after being stranded on the ISS due to Starliner's failure.

Dragon also supports cargo resupply missions. On April 22, one capsule delivered 6,700 pounds of supplies and scientific equipment to the ISS. Musk's companies are deeply entwined with U.S. government programs; SpaceX has received more than $20 billion in contracts from NASA, the Department of Defense, and other agencies since 2008.

Bethany Stevens, press secretary for NASA, responded to the online spat by writing, "NASA will continue to execute upon the President's vision for the future of space. We will continue to work with our industry partners to ensure the President's objectives in space are met."

Musk had served as a top advisor in the Trump administration until recently. He spent more than $250 million supporting Trump's 2024 campaign. On Thursday, Musk posted, "Without me, Trump would have lost the election," and claimed Democrats would control the House without his intervention.

Dragon remains the only operational U.S. spacecraft capable of routinely ferrying astronauts to and from the ISS. Russia's Soyuz capsule is the only alternative, operating under a joint barter arrangement that places one Russian on each Dragon launch and one American on each Soyuz flight to maintain balance in emergencies.

According to SpaceX, Dragon can carry up to seven passengers and is the only spacecraft currently flying that can return substantial cargo to Earth. SpaceX President Gwynne Shotwell said in November the vehicle would remain operational for another six to eight years.

Meanwhile, development continues on SpaceX's next-generation Starship, which NASA selected for upcoming lunar landing missions. But during its most recent test in May, the rocket exploded-its third such failure.