The next big venture: What is the Golden Dome that reports say Elon Musk is building for Donald Trump? Here's how much it will cost and what the Tesla CEO is saying
Is Elon Musk's SpaceX really joining Trump's Golden Dome project?
Live Events
'SpaceX has not tried to bid for any contract in this regard. Our strong preference would be to stay focused on taking humanity to Mars. If the President asks us to help in this regard, we will do so, but I hope that other companies (not SpaceX) can do this.'
What would the Golden Dome actually do and how much would it cost?
Hypersonic and Ballistic Tracking Space Sensor (HBTSS)
Proliferated Warfighter Space Architecture (PWSA)
Why is the global defense market booming right now?
Russia's invasion of Ukraine
Tensions in Asia, especially around China and North Korea
Middle East instability
Europe's defense spending rose 11.7%, reaching $457 billion.
Asia-Pacific nations like Japan, India, South Korea, and Australia all increased their defense budgets significantly.
The United States allocated $832.3 billion for defense in its 2025 budget.
China's defense spending reached $246 billion, up 7.2%.
Japan approved $55.1 billion, up 9.4%.
India's defense budget grew to $78.57 billion, marking a 9.5% rise.
Could this be Elon Musk's next big business venture?
What's next for Trump's Golden Dome project?
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Just months after returning to the White House, President Donald Trump announced one of the most ambitious defense programs in U.S. history—the 'Golden Dome.' And now, the buzz is around whether tech billionaire Elon Musk is joining this $2.5 trillion venture, raising the stakes in what's already a booming defense market.While Trump envisions a massive space-based missile shield, recent reports hint at SpaceX , Musk's rocket company, playing a major role. But is he actually in, or is it all speculation? Let's break it down in simple terms—what the Golden Dome is, how much it could cost, who's involved, and whether Musk is making a move into the trillion-dollar defense industry.On January 27, 2025, just days after returning to office, President Trump signed an executive order calling for the development of a massive space-based missile defense program—officially named the. The idea? To build a protective shield that can detect and destroy incoming threats like ballistic missiles, hypersonic weapons, and advanced cruise missiles before they reach U.S. soil.According to the order, Trump wants this system to cover threats from "peer, near-peer, and rogue adversaries"—understood to mean. The Golden Dome would include hundreds, potentially thousands, of satellites in low Earth orbit, advanced radar systems, orbital interceptors, and maybe even futuristic tech likeThe big question buzzing around headlines: Is SpaceX getting involved in Trump's Golden Dome?According to Reuters, Musk's company SpaceX is reportedly teaming up with Palantir (data software firm) and Anduril (a defense startup focused on drones and AI-based security systems) to design key components for the defense system.This trio reportedly plans to deploy 400 to 1,000 satellites to track missile activity around the world. While some satellites will simply track and monitor, others could potentially carry weapons to intercept hostile missiles. But Musk says something else.In a post on X (formerly Twitter), Musk denied these claims, saying:So, while SpaceX might be technically capable of building part of the infrastructure—like the satellite tracking layer—Musk hasn't confirmed any formal involvement as of now.If built, thewould work by tracking enemy missiles during their, the few moments after a missile is launched. This is the most vulnerable time to stop it.To do this, the system would need aconstantly orbiting the Earth, along with advanced ground stations and control systems. It would also depend on programs like:Trump's defense team believes this could cost, depending on how advanced and expansive the system becomes. The project is still in its, and no contracts have been publicly awarded yet.Interestingly, reports suggest the model could work like a—where the government pays for access to private satellite data instead of owning the entire system outright.This isn't happening in a vacuum. Global military spending hit a record high of $2.46 trillion in 2024, according to the Stockholm International Peace Research Institute (SIPRI). This surge is being driven by several factors:In 2024 alone:Trump has also asked NATO allies to spend at least 5% of their GDP on defense, which is pushing Europe toward even more spending, including a massive €800 billion ReArm Europe Plan led by European Commission President Ursula von der Leyen.Even though Musk has denied direct involvement, the defense market is clearly attractive. His companies already dominate in electric vehicles (Tesla) and space transportation (SpaceX). Moving into military and defense tech seems like a logical next step—especially as the U.S. and its allies pour trillions into new security technologies.His ties to Trump are also no secret. Musk has reportedly donated more than $250 million to Trump's campaign and is now serving as a special adviser in the Department of Government Efficiency.Even if SpaceX doesn't build weapons, it may still play a major role in missile tracking, satellite launches, and infrastructure for U.S. military systems. And with private defense contracts now more lucrative than ever, that could turn into a multi-billion-dollar stream for Musk's empire.Right now, the Golden Dome is still in its early planning stage. The Pentagon has been asked to deliver architectural plans within 60 days of the January 27 order, and insiders say companies like SpaceX, Palantir, and Anduril are seen as top contenders for building parts of it.However, there's a lot still undecided—how it'll be structured, which companies will be selected, and how it'll be funded. The Biden administration had previously scaled back some space-defense ambitions, but under Trump, the focus has shifted back toward space dominance.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
29 minutes ago
- Time of India
Army Jawan Pinned To Pole, Beaten By Toll Plaza Workers On Meerut-Karnal Highway; 4 Arrested
Zelensky Does It AGAIN! From EU HQ, He Rejects Trump Plan, Lists His Own Conditions For Peace Ukrainian President Volodymyr Zelensky pushed for a ceasefire before a peace deal with Russia, ahead of his meeting tomorrow with US President Donald Trump at the White House in Washington, DC. Speaking alongside the chief of the European Commission, Ursula Von Der Leyen, Zelensky said it is 'impossible' to give up territory under Ukraine's Constitution. He also called on the Russian President Vladimir Putin to end the killings in Ukraine. Watch this video to know more. 5.8K views | 12 hours ago
Economic Times
29 minutes ago
- Economic Times
Not so much Putin-Trump summit, it's Modi's GST rationalisation promise that is pushing market up: Sunil Subramaniam
Sunil Subramaniam, Market Expert, says the Trump-Putin Peace Summit signals a potential easing of US-Russia relations, benefiting countries like India by reducing the risk of additional sanctions. Even if all agreements aren't met, it won't be seen as a failure of the meeting, as Putin has the authority to make decisions unilaterally. However, a bigger thing for India will be the GST rationalisation that the prime minister announced on August 15. Almost 98% of the items are going to see GST cut and it is likely to be signed before Diwali. ADVERTISEMENT Post the joint press conference with Putin, Donald Trump said that many points were agreed to, but a few remain. What could possibly he be hinting at or referring to when he says that a few remain but many were agreed upon? Sunil Subramaniam: I think that it is basically territory driven. Russia has occupied certain key Ukrainian territories and two big things are which territories Putin is willing to give away and what he wants to retain. Otherwise, he said 8 out of 10 areas have been mostly conclusive. In fact, he has rated the meeting 10 on 10 from that perspective. I am saying this because he was very clear that he was not seeking a solution from this meeting. Even before this meeting he said that yes, the next stage would be for a meeting with Mr Zelenskyy and Russia and the US probably together. From what he wanted to get away with, he has gotten away with that. So, to that extent, the meeting must be described as a success because people were expecting a solution to the war from this, I think that was not even what Mr Trump was expecting. So, these two big things are one thing. China's $11 trillion stock market is a headache for both Xi and Trump But more importantly it indicates an easing of relationship between the US and Russia and that is extremely good news. Let us say that Mr Putin has agreed to certain things and these two are disputable. Now Trump is going to speak to NATO, and get them to agree to Putin's demands. If they do not, Mr Trump can always claim that look I brought a deal to the table, you guys are not accepting, now do what you want. So, this clearly represents that Mr Trump and Putin have agreed on certain things and as an India-based observer and from our country's perspective, Russia and the US getting there is positive for us because additional sanctions could come through if this meeting was a disaster. That is not going to if all things do not go through, it is not a failure of Putin-Trump meeting. It is not Mr Trump's failure. Remember, he is dealing with a leader who has no democracy to go and represent his case to. Mr Putin is the ultimate decision maker. Even if he decides to give up some Russian wins there, nobody is going to object to him. So, he is talking to a person who can conclude a deed, whereas that is not necessarily true in other countries with our democracy. So, to that extent, it is positive from an India perspective that the danger of secondary sanctions is removed there and if things worsen, he may now need to act on China and not put more pressure on India because he has taken the India pressure to the maximum extent already. ADVERTISEMENT With respect to the Indian market, FIIs have been on a selling spree leading to a bit of volatility. Is that going to continue? How do you see the Indian market moving forward in the near term? Are we going to be largely insulated due to domestic investor interest? Sunil Subramaniam: Markets will be relatively calm about this news. They do not need to jump up. We have a big thing in India in terms of GST rationalisation that the prime minister announced on August 15 in his independence day speech. The details are to come out and almost 98% of the items are going to see a reduction in GST and it is likely to be signed before Diwali. The markets should react positively on the consumption stocks and the banking related stocks on Monday. So, the markets will be up. How much of it can be attributed to this easing of Trump-Putin relation and how much to the local factors we have to see. Unlock 500+ Stock Recos on App I expect the markets to be positive and FII also because they will see this growth in the Indian consumption sector may come in and start buying into FMCG and consumer discretionary stocks. So, the Indian market will respond positively. Not all can be attributed to the Trump-Putin meeting but definitely there are enough wins here. ADVERTISEMENT The second point is Pakistan is taking an edge over India in terms of ties with the US and that is what the main problem is. But two things I would like to say here, one is that India is not for sale. We are not willing to give up our Bitcoin just to make up with the president. We are not going to propose his name for a Nobel Prize just because of a deal. We are a nation which is strong on our own. So, there is pride at stake here. We are not going to put all those just to have a good relationship with Mr Trump. Number two is that Mr Trump has not helped that cause by using very damaging language. He called them obnoxious tariff related things. He also called India a dead economy. He is not the most popular person in India right now and India has also taken an iron hand in a velvet glove stance on this. We are not fighting tooth for tooth or throwing insult after insult, but we are staying firm on saying that buying oil from Russia will be based on our economic needs and what our citizens need. So there is going to be a different way that this relationship pans out. So, to that extent, secondary sanctions may ease away. Regarding the 50% tariff on India, I treat the 25% as an economic tariff, the second 25 as a political tariff. ADVERTISEMENT The chances of political tariff may ease up in the coming weeks based on how this goes because I do not think Mr Trump is going to be angry with Putin for anything because Putin has said I am looking to end the war. So, to that extent, whatever he wanted to punish India for as a route to make Putin agree to a meeting and do something that has been achieved. He could ease up on the 25% that if announced in the next couple of weeks, will be a huge positive for Indian markets. That is my take on this situation here. The geopolitics does not affect the Indian market so much. The Indian markets react to the Indian impact due to these talks. (You can now subscribe to our ETMarkets WhatsApp channel)
Mint
29 minutes ago
- Mint
Stock market: What does Chinese FM Wang Yi's India visit before Trump-Zelensky meeting mean for Dalal Street? EXPLAINED
Indian stock market: After India's NSA Ajit Doval met the Russian President ahead of the Trump-Putin meeting in Alaska, Chinese FM Wang Yi landed in India ahead of the Trump-Zelensky meeting on Monday. This chain of developments provides some cues for the Indian and global markets, and Dalal Street investors need to understand this in a broader perspective, especially when the deadline for 100% Trump's tariffs on India ends on 27 August 2025. According to stock market experts, Trump's tariffs have brought India close to Russia and China, which suits the strong bonding of the BRICS countries. They said that Trump's India tariff has a limited impact as it is just 2% of India's GDP generated by US exports. They noted that warmth in New Delhi's diplomatic ties with Moscow and Beijing is expected to catalyse India's dependence on the US dollar. Experts maintained that Warmth in BRICS member nations and rising business activities may attract more non-NATO countries. They said the move may force the US president, Donald Trump, to soften his stand on tariffs imposed on India, as India is demonstrating its alternatives ahead of the 27 August 2025 deadline given by Donald Trump for raising the tariffs from 50% to 100%. On what this rising bonhomie in Russia-India-China means for the Indian stock market, Sandeep Pandey, Co-founder of Basav Capital, said, "The rising Russia-India-China bonhomie predates the BRICS (Brazil, Russia, India, China, South Africa) grouping, a strong global forum for its member countries to coordinate their positions on global and regional issues. India's NSA visiting Russia ahead of Trump-Putin meeting and Chinese FM Wang Yi visiting India ahead of Trump-Zelensky meeting is a tactical pressure diplomacy that Russia, India and China have been playing in unison. The move is expected to negate any chances of a negative outcome for these nations from the Trump-Zelensky meeting, scheduled on Monday." Speaking on Chinese FM Wang Yi's India visit ahead of the Trump-Zelensky meeting, Sugandha Sachdeva, Founder of SS WealthStreet, said, "Chinese FM Wang Yi's visit to India is positive for the markets and could lead the US to soften its stance on tariffs towards India and could even lead to strengthening of the Indian currency. The visit of China's Foreign Minister to India and any signs of thawing relations could create new space for revitalising refers to the Russia–India–China trilateral dialogue, a platform conceived in the late 1990s to promote multipolarity and cooperation among the three Eurasian powers. All three countries want to reduce dependence on the West and increase their influence in global governance bodies." Sugandha Sachdeva of SS WealthStreet said that by engaging in RIC, India can showcase its strategic autonomy and avoid being boxed into an exclusively pro-US alignment. Highlighting India's ploy to enhance its bargaining capacity in the India-US trade deal and the Russian oil imports, Sugandha Sachdeva said, "India's engagement with China signals that New Delhi is committed to pursuing a balanced foreign policy, preserving its strategic autonomy rather than being seen as fully aligned with Washington. Improved India–China engagement gives India bargaining power in its dealings with Washington." "After the outbreak of the Russia-Ukraine war, Indian and China have been buying Russian oil despite the US and European countries' sanctions on Russia. Russian oil imports surged from 2.5% to 38% of India's imports, with new payment systems bypassing the US dollar. Defence cooperation with Moscow persisted, while Prime Minister Modi prepared for his first visit to China since 2018. Experts warn these developments strengthen China-India ties at Washington's expense," said Gaurav Garg of Lemonn Markets Desk. On whether Trump tariffs may continue to haunt the Indian stock market, Gaurav Garg said, "India's economy proved more resistant than the Trump administration expected. Exports comprise just 20% of GDP, and the U.S. accounts for only 2% of India's GDP, limiting tariff impact. While steel and aluminium exports suffered, IT services and pharmaceuticals, India's largest export earners, were largely unaffected. Domestic institutional investors also helped steady markets after initial volatility." Ukrainian President Volodymyr Zelensky arrived in Washington, D.C., on Sunday, vowing his desire to end the Russia-Ukraine war 'quickly and reliably. " After the three-on-three 'progress with no deal' Trump-Putin meeting, the US president had summoned the Ukrainian President for a one-on-one meeting. The two leaders will be meeting at 10.45 PM IST on Monday at the White House. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
