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NASA snubbed SpaceX, common sense to overpay Boeing for astronaut launches, says audit

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A detailed government audit has revealed that NASA went out of its way to overpay Boeing for its Commercial Crew Program (CCP) astronaut launch services, making a mockery of its fixed-price contract with the company and blatantly snubbing SpaceX throughout the process.

Over the last several years, the NASA inspector general has published a number of increasingly discouraging reports about Boeing’s behavior and track-record as a NASA contractor, and November 14th’s report is possibly the most concerning yet. On November 14th, NASA’s Office of the Inspector General (OIG) published a damning audit titled “NASA’s Management of Crew Transportation to the International Space Station [ISS]” (PDF).

Offering more than 50 pages of detailed analysis of behavior that was at best inept and at worst deeply corrupt, OIG’s analysis uncovered some uncomfortable revelations about NASA’s relationship with Boeing in a different realm than usual: NASA’s Commercial Crew Program (CCP). Begun in the 2010s in an effort to develop multiple redundant commercial alternatives to the Space Shuttle, prematurely canceled before a US alternative was even on the horizon, the CCP ultimately awarded SpaceX and Boeing major development contracts in September 2014.

Crew Dragon approaches the ISS on March 3rd during DM-1, the spacecraft’s uncrewed orbital launch debut. (NASA)
Boeing’s Orbital Flight Test (OFT) Starliner spacecraft prepares for flight on November 3rd. (Boeing)

NASA awarded fixed-cost contracts worth $4.2 billion and $2.6 billion to Boeing and SpaceX, respectively, to essentially accomplish the same goals: design, build, test, and fly new spacecraft capable of transporting NASA astronauts to and from the International Space Station (ISS). The intention behind fixed-price contracts was to hold contractors responsible for any delays they might incur over the development of human-rated spacecraft, a task NASA acknowledged as challenging but far from unprecedented.

Off the rails

The most likely trigger of the bizarre events that would unfold a few years down the road began in part on June 28th, 2015 and culminated on September 1st, 2016, the dates of the two catastrophic failures SpaceX’s Falcon 9 rocket has suffered since its 2010 debut. In the most generous possible interpretation of the OIG’s findings, NASA headquarters and CCP managers may have been shaken and not thinking on an even keel after SpaceX’s second major failure in a little over a year.

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Under this stress, the agency may have ignored common sense and basic contracting due-diligence, leading “numerous officials” to sign off on a plan that would subvert Boeing’s fixed-price contract, paying the company an additional $287 million (~7%) to prevent a perceived gap in NASA astronaut access to the ISS. This likely arose because NASA briefly believed that SpaceX’s failures could cause multiple years of delays, making Boeing the only available crew transport provider for a significant period of time. Starliner was already delayed by more than a year, making it increasingly unlikely that Boeing alone would be able to ensure continuous NASA access to the ISS.

As NASA attempted to argue in its response to the audit, “the final price [increase] was agreed to by NASA and Boeing and was reviewed and approved by numerous NASA officials at the Kennedy Space Center and Headquarters”. In the heat of the moment, perhaps those officials forgot that Boeing had already purchased several Russian Soyuz seats to sell to NASA or tourists, and perhaps those officials missed the simple fact that those seats and some elementary schedule tweaks could have almost entirely alleviated the perceived “access gap” with minimal cost and effort.

The OIG audit further implied that the timing of a Boeing proposal – submitted just days after NASA agreed to pay the company extra to prevent that access gap – was suspect.

“Five days after NASA committed to pay $287.2 million in price increases for four commercial crew missions, Boeing submitted an official proposal to sell NASA up to five Soyuz seats for $373.5 million for missions during the same time period. In total, Boeing received $660.7 million above the fixed prices set in the CCtCap pricing tables to pay for an accelerated production timetable for four crew missions and five Soyuz seats.”

NASA OIG — November 14th, 2019 [PDF]

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In other words, NASA officials somehow failed to realize or remember that Boeing owned multiple Soyuz seats during “prolonged negotiations” (p. 24) with Boeing and subsequently awarded Boeing an additional $287M to expedite Starliner production and preparations, thus averting an access gap. The very next week, Boeing asked NASA if it wanted to buy five Soyuz seats it had already acquired to send NASA astronauts to the ISS.

Bluntly speaking, this series of events has three obvious explanations, none of them particularly reassuring.

  1. Boeing intentionally withheld an obvious (partial) solution to a perceived gap in astronaut access to the ISS, exploiting NASA’s panic to extract a ~7% premium from its otherwise fixed-price Starliner development contract.
  2. Through gross negligence and a lack of basic contracting due-diligence, NASA ignored obvious (and cheaper) possible solutions at hand, taking Boeing’s word for granted and opening up the piggy bank.
  3. A farcical ‘crew access analysis’ study ignored multiple obvious and preferable solutions to give “numerous NASA officials” an excuse to violate fixed-price contracting principles and pay Boeing a substantial premium.

Extortion with a friendly smile

The latter explanation, while possibly the worst and most corruption-laden, is arguably the likeliest choice based on the history of NASA’s relationship with Boeing. In fact, a July 2019 report from the US Government Accountability Office (GAO) revealed that NASA was consistently paying Boeing hundreds of millions of dollars worth of “award fees” as part of the company’s SLS booster (core stage) production contract, which is no less than four years behind schedule and $1.8 billion over budget. From 2014 to 2018, NASA awarded Boeing a total of $271M in award fees, a practice meant to award a given contractor’s excellent performance.

In several of those years, NASA reviews reportedly described Boeing’s performance as “good”, “very good”, and “excellent”, all while Boeing repeatedly fumbled SLS core stage production, adding years of delays to the SLS rocket’s launch debut. This is to say that “numerous NASA officials” were also presumably more than happy to give Boeing hundreds of millions of dollars in awards even as the company was and is clearly a big reason why the SLS program continues to fail to deliver.

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Boeing completed a most-successful Starliner pad abort test earlier this month, the spacecraft’s first integrated flight of any kind.

Ultimately, although NASA’s concern about SpaceX’s back-to-back Falcon 9 failures and some combination of ineptitude, ignorance, and corruption all clearly played a role, the fact remains that NASA – according to the inspector general – never approached SpaceX as part of their 2016/2017 efforts to prevent a ‘crew access gap’. Given that the CCP has two partners, that decision was highly improper regardless of the circumstances and is made even more inexplicable by the fact that NASA was apparently well aware that SpaceX’s Crew Dragon had significantly shorter lead times and far lower costs compared to Starliner.

This would have meant that had NASA approached SpaceX to attempt to mitigate the access gap, SpaceX could have almost certainly done it significantly cheaper and faster, or at minimum injected a bit of good-faith competition into the endeavor.

Finally and perhaps most disturbingly of all, NASA OIG investigators were told by “several NASA officials” that – in spite of several preferable alternatives – they ultimately chose to sign off Boeing’s demanded price increases because they were worried that Boeing would quit the Commercial Crew Program entirely without it. Boeing and NASA unsurprisingly denied this in their official responses to the OIG audit, but a US government inspector generally would never publish such a claim without substantial confidence and plenty of evidence to support it.

According to OIG sources, “senior CCP officials believed that due to financial considerations, Boeing could not continue as a commercial crew provider unless the contractor received the higher prices.” A lot remains unsaid, like why those officials believed that Boeing’s full withdrawal from CCP was a serious possibility and how they came to that conclusion, enough to make it impossible to conclude that Boeing legitimately threatened to quit in lieu of NASA payments.

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All things considered, these fairly damning revelations should by no means take away from the excellent work Boeing engineers and technicians are trying to do to design, build, and launch Starliner. However, they do serve to draw a fine line between the mindsets and motivations of Boeing and SpaceX. One puts profit, shareholders, and itself above all else, while the other is trying hard to lower the cost of spaceflight and enable a sustainable human presence on the Moon, Mars, and beyond.

Check out Teslarati’s Marketplace! We offer Tesla accessories, including for the Tesla Cybertruck and Tesla Model 3.

Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Tesla Model Y prices just went up for the first time in two years

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Credit: Tesla Asia | X

Tesla just raised Model Y prices for the first time in two years, with the largest increase being $1,000.

The move signals shifting dynamics in the competitive electric vehicle market as the company continues to work on balancing demand, profitability, and accessibility.

The new pricing affects premium trims while leaving entry-level options unchanged. The Model Y Premium Rear-Wheel Drive (RWD) now starts at $45,990, a $1,000 increase.

The Model Y Premium All-Wheel Drive (AWD)—previously referred to in the post as simply “Model Y AWD”—rises to $49,990, also up $1,000. The top-tier Model Y Performance sees a more modest $500 bump, bringing its starting price to $57,990.

Base models remain untouched to preserve affordability. The entry-level Model Y RWD holds steady at $39,990, and the base Model Y AWD stays at $41,990. This selective approach keeps the crossover accessible for budget-conscious buyers while extracting more revenue from higher-margin configurations.

After years of aggressive price cuts to stimulate volume amid slowing EV adoption and rising competition from rivals like BYD, Ford, and GM, Tesla appears confident in underlying demand. Recent lineup refreshes for the 2026 Model Y, including refreshed styling and efficiency gains, have helped maintain its status as America’s best-selling EV.

By protecting base prices, Tesla avoids alienating price-sensitive customers while improving margins on the more popular variants.

Tesla Model Y ownership review after six months: What I love and what I don’t

For consumers, the changes are relatively modest—under 3% on affected trims—and still position the Model Y competitively against gas-powered SUVs in the same class. Federal tax credits and potential state incentives may further offset costs for eligible buyers.

This marks a subtle but notable shift from the deep discounting era that defined much of 2024 and 2025. As the EV market matures into 2026, Tesla’s pricing strategy will be closely watched for clues about production ramps, new variants like the rumored longer-wheelbase Model Y, and broader profitability goals.

In short, today’s adjustment reflects a company that remains dominant yet pragmatic—willing to test higher pricing where demand supports it. It is unlikely to deter consumers from choosing other options.

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Elon Musk explains why he cannot be fired from SpaceX

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Credit: SpaceX

Elon Musk cannot be fired from SpaceX, and there’s a reason for that.

In a blunt post on X on Friday, Elon Musk confirmed plans to structurally shield his leadership at SpaceX, ensuring he cannot be fired while tying a potential trillion-dollar compensation package to the company’s long-term goal of establishing a self-sustaining colony on Mars.

The revelation stems from a Financial Times report detailing SpaceX’s intention to restructure its governance and compensation framework. The moves are designed to protect Musk’s control and align his incentives with the company’s founding mission rather than short-term financial pressures. Musk’s reply left no ambiguity:

“Yes, I need to make sure SpaceX stays focused on making life multiplanetary and extending consciousness to the stars, not pandering to someone’s bullshit quarterly earnings bonus!”

He added that success in this “absurdly difficult goal” would generate value “many orders of magnitude more than the economy of Earth,” though he cautioned that the journey will not be smooth. “Don’t expect entirely smooth sailing along the way,” Musk wrote.

The strategy reflects Musk’s deep concerns about how public-market expectations could derail SpaceX’s core objective. Founded in 2002, SpaceX has repeatedly stated its purpose is to reduce the cost of space travel and ultimately make humanity a multiplanetary species.

Unlike Tesla, which went public in 2010 and has faced repeated battles over Musk’s compensation and board influence, SpaceX remains privately held. Musk has long resisted taking the rocket company public precisely to avoid the quarterly earnings treadmill that forces most CEOs to prioritize short-term stock performance over ambitious, high-risk projects.

By embedding protections against his removal and linking any outsized pay package to verifiable milestones—such as a functioning Mars colony—SpaceX aims to insulate its leadership from activist investors or board members who might demand faster profits or safer bets.

SpaceX Board has set a Mars bonus for Elon Musk

Musk has referenced past experiences, including his ouster from OpenAI and shareholder lawsuits at Tesla, as cautionary tales. In those cases, he argued, external pressures risked diluting the original vision.

Critics may view the arrangement as excessive, especially given Musk’s already substantial voting power and wealth. Supporters, however, argue it is a necessary safeguard for a company pursuing goals measured in decades rather than quarters. Achieving a Mars colony would require sustained investment in Starship development, orbital refueling, life-support systems, and in-situ resource utilization—technologies that may deliver no immediate financial return.

Musk’s post underscores a broader philosophical point: true breakthrough innovation often demands tolerance for volatility and a willingness to ignore conventional business wisdom. As SpaceX prepares for increasingly ambitious Starship test flights and eventual crewed missions, the new governance structure signals that the company’s North Star remains unchanged—humanity’s expansion beyond Earth.

Whether the trillion-dollar package materializes depends on execution, but Musk’s message is clear: SpaceX exists to reach the stars, not to chase the next earnings beat. For investors or employees who share that vision, the protections are not a perk—they are a prerequisite for success.

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Tesla discloses two Robotaxi crashes to NHTSA

Newly unredacted data filed with the National Highway Traffic Safety Administration (NHTSA) reveals the two incidents. 

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Tesla has disclosed information on two low-speed crashes that occurred in Austin with its Robotaxi platform. These incidents occurred with teleoperators steering the vehicle, and there were no passengers in the car at the time they happened.

Newly unredacted data filed with the National Highway Traffic Safety Administration (NHTSA) reveals the two incidents.

The first crash took place in July 2025, shortly after Tesla launched its nascent Robotaxi network in Austin. The ADS reportedly struggled to move forward while stopped on a street. A teleoperator assumed control, gradually accelerating and turning left toward the roadside. The vehicle then mounted the curb and struck a metal fence.

In the second incident, in January 2026, the ADS was traveling straight when the safety monitor requested navigation support. The teleoperator took over from a stop, continued forward, and collided with a temporary construction barricade at approximately 9 mph, scraping the front-left fender and tire.

Tesla Robotaxi service in Austin achieves monumental new accomplishment

Tesla has previously told lawmakers that teleoperators are authorized to pilot vehicles remotely—but only at speeds below 10 mph, as the only maneuvers they were approved to perform were repositioning in awkward areas.

“This capability enables Tesla to promptly move a vehicle that may be in a compromising position, thereby mitigating the need to wait for a first responder or Tesla field representative to manually recover the vehicle,” the company stated in filings earlier this year.

Before this week, Tesla redacted the NHTSA reports, but they decided to reveal all 17 Robotaxi incidents recorded since the launch in Austin last Summer. Most of the other crashes involved the Tesla being struck by other road users and were not caused by the self-driving suite itself.

There were other incidents, including two additional self-caused accidents involving the ADS clipping side mirrors on parked cars. In September 2025, one Robotaxi struck a dog that darted into the roadway (the dog escaped unharmed), while another made an unprotected left turn into a parking lot and hit a metal chain.

Although Waymo and Zoox have reported more total crashes, Tesla operates at a far smaller scale. The cautious pace reflects the company’s broader safety concerns; it has been very slow with the Robotaxi rollout to ensure the suite is ready for operation.

Last month, CEO Elon Musk acknowledged that “making sure things are completely safe” remains the primary bottleneck to expanding the network, describing the company’s approach as “very cautious.”

The unredacted filings arrive amid heightened regulatory scrutiny of autonomous vehicles. NHTSA recently closed a separate probe into Tesla’s Full Self-Driving software repeatedly striking parking-lot obstacles such as bollards and chains—a problem that also prompted a recall at Waymo last year.

Tesla Robotaxi has been a widely successful program in its early days of operation, and the transparency Tesla brings here is greatly appreciated. Incidents will happen, of course, but the honesty gives customers and regulators a sense of where Tesla is in terms of developing its self-driving and fully autonomous ride-hailing suite.

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