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SpaceX hits back at FAA in scathing new letter, claiming fines were retaliation

SpaceX Starship's IF-3 Launch

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SpaceX has released a scathing new letter that it has sent to the Federal Aviation Administration (FAA), criticizing its “lack of resources to timely review licensing materials” and claiming the recently announced fines of over $600,000 are retaliation for “increased scrutiny” on the Office of Commercial Space Transportation (AST).

The space exploration company and the regulatory agency are clearly in a very public feud that now seems to be going in a direction that will not benefit either party.

SpaceX released a blog post earlier this month that talked about regulatory delays, and how Starship had been ready to take its fifth test flight, but the FAA had given an estimated approval date of November, well past the early August date the company had hoped and planned for.

The FAA then fined SpaceX for three different violations related to two flights, which were both launched last Summer in June and July.

Just a day after the FAA announced these fines, SpaceX has released a letter to FAA Chairs Frank Lucas and Maria Cantwell, as well as Ranking Members Zoe Lofgren and Ted Cruz.

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SpaceX alleges in the letter that the AST and FAA have not been able to complete a timely review of licensing materials, and the lack of streamlining in this process has not only hurt the development of its technologies but also impacted “national security and national priorities.”

The company also claims the $633,009 in penalties could be a potential retaliation for criticism it has passed to regulatory agencies:

“Most recently, the FAA alleged that SpaceX violated its regulations and proposed a $633,009 penalty for these alleged violations. It is notable that these violations and penalties were announced shortly after increased scrutiny on AST by Congress for its failure to reasonably and timely execute its regulatory obligations. It is also notable that, in announcing these penalties, FAA’s politically appointed Chief Counsel was quoted in the FAA’s announcement on the matter. It is SpaceX’s understanding that it is highly irregular, and perhaps unprecedented, for a Chief Counsel to be quoted on an enforcement matter. SpaceX forcefully rejects the FAA’s assertion that it violated any regulations.”

CEO Elon Musk has already revealed that SpaceX will sue the FAA, claiming “regulatory overreach.”

Elon Musk reveals SpaceX will sue the FAA

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SpaceX goes on to clap back at the FAA’s fines, breaking down each supposed violation and challenging the communication and legitimacy that the agency and the AST used to penalize that company.

Each rebuttal from SpaceX shows the FAA did not communicate in a timely fashion with the company, along with other pieces of evidence that challenge the legitimacy of the fines.

It is clear SpaceX is not going to take the fines laying down and will likely challenge the FAA at every step. Whether this will result in more streamlined approval processes for future launches remains to be seen.

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One thing is clear: SpaceX has one heck of a backbone, and it will refuse to be pushed around by regulatory agencies, especially if it feels there is a political motivation behind the exentsive delays.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla rival’s CEO makes shock suggestion to customers about Model Y

“The Model Y is a great car, and Tesla also announced a number of promotions yesterday, so you might want to consider it.”

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(Credit: Tesla)

Tesla rival Xiaomi is experiencing demand that is off-the-charts with its new YU7 crossover, which competes with the Model Y. The company’s CEO has stated that demand is truly outpacing what it can build, and that customers in limbo should consider the Model Y because “it’s a great car.”

The Xiaomi YU7 has already gained an incredible number of orders so far. Its launch a few months ago had consumers busting down doors to place an order before others, and demand has been so high that customers will wait, on average, between 56 and 59 weeks for delivery.

Tesla Model Y meets new competition from Xiaomi 

Within 18 hours, Xiaomi received about 240,000 orders, CarScoops reported. Some customers are truly interested in the vehicle, but cannot wait the extended period to take delivery as they might need a car now.

Xiaomi CEO Lei Jun said on social meida that there are other cars out there that would be suitable as a replacement to the YU7:

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“If you need to buy a car quickly, other China-produced new energy vehicles are pretty good.”

He explicitly mentioned the Model Y, Xpeng G7, and Li Auto i8.

Regarding the Model Y, he said:

“The Model Y is a great car, and Tesla also announced a number of promotions yesterday, so you might want to consider it.”

The Model Y has been the best-selling car in the world over the past two years, and it still leads in many markets as the most sought-after EV. However, in China, there are so many formidable competitors that customers are seemingly going for whatever they can get to first.

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Of course, a car is a car, but Tesla has gained a more notable reputation for its industry-leading tech and driver assistance systems, including City Autopilot, which has been used in China for a few months now.

Tesla China owners share first impressions of FSD-style “City Autopilot”

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Tesla offers tasty Supercharging incentive as Q3 push continues

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Credit: Tesla

Tesla is offering a tasty Supercharging incentive on inventory Model 3 units in Canada as it continues to push sales in the third quarter.

In the United States, Tesla is preparing for the end of the $7,500 electric vehicle tax credit. While it is offering a multitude of incentives in the U.S. to help push sales of its vehicles before the credit goes away, it is not saving the deals for Americans exclusively.

Yesterday, the company announced it is now offering Free Supercharging for life on all Model 3 inventory in Canada, a massive incentive for those who would use the vehicle as a daily driver:

The deal would normally only apply to Superchargers located in Canada, meaning if a Canadian drove over the border into the United States and Supercharged, they would have to pay for it.

However, Tesla also confirmed that the charging deal would extend to the U.S. Canadians will be able to drive across the U.S. and Supercharge for free for the life of the vehicle.

Free Supercharging is such a great perk because the money an owner saves on charging factors directly into what they are saving if they were to own a gas car. While Supercharging and home charging are, on average, cheaper than filling up with gas, the savings are not massive.

When Supercharging is free, it can save consumers hundreds of dollars per month, especially if they plan to use the Tesla for their daily commute. Some people could fill their gas cars up two times a week to get to work, spending $80-$100 every five days on gas.

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Tesla has been using incentives like this to push vehicles into customers’ hands. Q3 could be one of the best three-month spans in recent memory with the push it is making.

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Tesla is preparing to take on autonomy’s final boss

India’s city streets are notorious for their complexity and congestion.

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Credit: Whole Mars Catalog/YouTube

If there is any sign that Tesla is now confident about its self-driving program, it would be this. As could be seen on Tesla’s Careers page, the company is now hiring Autopilot Vehicle Operators in Delhi and Mumbai, India. 

As far as real-world traffic is concerned, one could argue that India’s city streets are the final boss of autonomous driving systems due to their complexity and congestion.

Tesla job openings

As per Tesla in its recent job openings, Prototype Vehicle Operators will be responsible for driving an engineering vehicle for extended periods and conducting dynamic audio and camera data collection for testing and training purposes. In both its job listings for Mumbai and Delhi, Tesla noted that successful applicants will be gathering real-world data on the weekends and around the clock. 

Considering the job openings in India, Tesla seems to be intent on rolling out its advanced driver-assist systems like FSD in the country. This is quite interesting, as Tesla is not hiring Prototype Vehicle Operators in other territories that recently launched, such as the Philippines. Perhaps Tesla intends to tackle FSD’s final boss of sorts before rolling out FSD in other territories.

FSD’s rollout

Tesla’s autonomous driving program uses the company’s Full Self-Driving system, which is currently available on vehicles in North America and China. Tesla, however, has a more advanced version of FSD called Unsupervised FSD, which is currently being used in vehicles that are part of the Robotaxi pilot in Austin and the Bay Area.

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Elon Musk has also recently announced on X that Tesla will be releasing FSD V14 in the coming weeks. He also shared a number of improvements that can be expected from FSD V14. “The FSD release in about 6 weeks will be a dramatic gain with a 10X higher parameter count and many other improvements. It’s going through training & testing now. Once we confirm real-world safety of FSD 14, which we think will be amazing, the car will nag you much less,” Musk wrote in his post. 

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