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SpaceX flights could soon be taxed by the mile in California
California is looking to levy a new tax on rocket launches that would tax companies for each mile traveled from the surface up to the official limit of outer space, set at 62 miles above the earth.
Over the last 10 years, the rocket launch industry has undergone a revolution with the cost of space travel dropping dramatically as a result of innovations largely driven by California-based SpaceX. The company recently completed the first reuse of an orbital launch booster which promises to further slash the cost of commercial space flight. As a result, SpaceX aims to dramatically decrease the time between launches to less than 24 hours. It is this increase in activity that presumably catalyzed the proposed regulation as lawmakers seek to get their hands on a piece of profits generated from the new industry.
Regulation Section 25137-15 reads:
“Space transportation company” means a taxpayer that generates more than 50 percent of its gross receipts from the provision of space transportation activity for compensation in a taxable year.
The Vandenberg Air Force Base launch site in California is the only site in the continental US where satellites can easily be launched into a polar orbit. The state must walk a fine line to apply a fair and reasonable tax while ensuring it is not so drastic that it would chase the lucrative space launches and all of the industries supporting them out of the state.
Only two companies currently perform launches out of California: SpaceX and the United Launch Alliance, while Virgin Galactic plans to begin space tourism flights out of the state in the next few years. In a curious twist, SpaceX, the United Launch Alliance, and Virgin Galactic all support the tax, citing that it adds clarity and stability to their tax status. Without the tax, trips to space are financially vulnerable to a sudden spike in cost in the event that a tax was added in the future.
Quartz obtained a letter sent to the California Franchise Tax Board from SpaceX CFO Bret Johnsen who clarified why the company is supportive of the new tax. “Without the proposed regulation the standard apportionment rules are unclear as applied to space transportation companies. The proposed regulation provides certainty for us, as well as other taxpayers in the industry, for our California franchise tax filings going forward.”
California has long been a hub for aerospace activities. Corporate players like Boeing and Lockheed Martin each have several facilities in the state that serve as support to industry hubs like NASA’s Ames research center in Mountain View, California and the Jet Propulsion Laboratory facility in Pasadena, California.
Looking forward, SpaceX has another six launches on its launch manifest in the remainder of the year out of Vandenberg while ULA has 2 more flights expected this year. In addition to the pace of launches that will increase year-over-year for the foreseeable future and a lucrative new business model hanging out as bait, competition is surely not too far behind. This increase in competition is expected to further drive costs down and increase the frequency of rocket launches.
SpaceX recently confirmed its plans to launch 4,425 satellites into low earth orbit over the next 4 years that, if approved, would represent a three-fold increase in the number of satellites orbiting the earth.
News
Ford is charging for a basic EV feature on the Mustang Mach-E
When ordering a new Ford Mustang Mach-E, you’ll now be hit with an additional fee for one basic EV feature: the frunk.
Ford is charging an additional fee for a basic EV feature on its Mustang Mach-E, its most popular electric vehicle offering.
Ford has shuttered its initial Model e program, but is venturing into a more controlled and refined effort, and it is abandoning the F-150 Lightning in favor of a new pickup that is currently under design, but appears to have some favorable features.
However, ordering a new Mustang Mach-E now comes with an additional fee for one basic EV feature: the frunk.
The frunk is the front trunk, and due to the lack of a large engine in the front of an electric vehicle, OEMs are able to offer additional storage space under the hood. There’s one problem, though, and that is that companies appear to be recognizing that they can remove it for free while offering the function for a fee.
Ford is now charging $495 on the Mustang Mach-E frunk (front trunk). What are your thoughts on that? pic.twitter.com/EOzZe3z9ZQ
— Alan of TesCalendar 📆⚡️ (@TesCalendar1) February 24, 2026
Ford is charging $495 for the frunk.
Interestingly, the frunk size varies by vehicle, but the Mustang Mach-E features a 4.7 to 4.8 cubic-foot-sized frunk, which measures approximately 9 inches deep, 26 inches wide, and 14 inches high.
When the vehicle was first released, Ford marketed the frunk as the ultimate tailgating feature, showing it off as a perfect place to store and serve cold shrimp cocktail.
Ford Mach-E frunk is perfect for chowders and chicken wings, and we’re not even joking
It appears the decision to charge for what is a simple advantage of an EV is not going over well, as even Ford loyal customers say the frunk is a “basic expectation” of an EV. Without it, it seems as if fans feel the company is nickel-and-diming its customers.
It will be pretty interesting to see the Mach-E without a frunk, and while it should not be enough to turn people away from potentially buying the vehicle, it seems the decision to add an additional charge to include one will definitely annoy some customers.
News
Tesla to improve one of its best features, coding shows
According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.
Tesla is looking to upgrade its Matrix Headlights, a unique and high-tech feature that is available on several of its vehicles. The headlights aim to maximize visibility for Tesla drivers while being considerate of oncoming traffic.
The Matrix Headlights Tesla offers utilize dimming of individual light pixels to ensure that visibility stays high for those behind the wheel, while also being considerate of other cars by decreasing the brightness in areas where other cars are traveling.
Here’s what they look like in action:
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- Credit: u/ObjectiveScratch | Reddit
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- Credit: u/ObjectiveScratch | Reddit
As you can see, the Matrix headlight system intentionally dims the area where oncoming cars would be impacted by high beams. This keeps visibility at a maximum for everyone on the road, including those who could be hit with bright lights in their eyes.
There are still a handful of complaints from owners, however, but Tesla appears to be looking to resolve these with the coming updates in a Software Version that is currently labeled 2026.2.xxx. The coding was spotted by X user BERKANT:
🚨 Tesla is quietly upgrading Matrix headlights.
Software https://t.co/pXEklQiXSq reveals a hidden feature:
matrix_two_stage_reflection_dip
This is a major step beyond current adaptive high beams.
What it means:
• The car detects highly reflective objects
Road signs,… pic.twitter.com/m5UpQJFA2n— BERKANT (@Tesla_NL_TR) February 24, 2026
According to the update, Tesla will work on improving the headlights when coming into contact with highly reflective objects, including road signs, traffic signs, and street lights. Additionally, pixel-level dimming will happen in two stages, whereas it currently performs with just one, meaning on or off.
Finally, the new system will prevent the high beams from glaring back at the driver. The system is made to dim when it recognizes oncoming cars, but not necessarily objects that could produce glaring issues back at the driver.
Tesla’s revolutionary Matrix headlights are coming to the U.S.
This upgrade is software-focused, so there will not need to be any physical changes or upgrades made to Tesla vehicles that utilize the Matrix headlights currently.
Elon Musk
xAI’s Grok approved for Pentagon classified systems: report
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.
Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.
Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards.
Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD.
Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible.
The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.
Ford is charging for a basic EV feature on the Mustang Mach-E
Tesla to improve one of its best features, coding shows
