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


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.
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]
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.
- 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.
- 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.
- 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.
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.

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.
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Tesla just tipped its hand on a major Cybercab feature as production hits Plaid Mode
Tesla has delivered a clear signal that its Robotaxi ambitions are shifting into high gear. On April 17, longtime factory observer and drone pilot Joe Tegtmeyer captured drone footage and still images showing approximately 14 freshly built Cybercabs parked in the outbound lot—each one conspicuously lacking a steering wheel.
Tesla just tipped its hand on a major Cybercab feature as it is putting production into Plaid Mode, but a clear indication of what the company plans to do with the vehicle is now apparent.
Tesla has delivered a clear signal that its Robotaxi ambitions are shifting into high gear, and it’s doing it with full autonomy in mind.
On April 17, longtime factory observer and drone pilot Joe Tegtmeyer captured drone footage and still images showing approximately 14 newly built Cybercabs parked in the outbound lot, each conspicuously lacking a steering wheel, and potentially pedals.
Tegtmeyer’s post highlighted the significance of this development: The images and video reveal sleek, two-seat Cybercabs in their final production form: no driver controls, no side mirrors, and the minimalist interior first unveiled at Tesla’s “We Robot” event in October 2024.
Something big has changed at Giga Texas with Cybercab production … ~ 14 in the outbound lot WITHOUT STEERING WHEELS!
Earlier this week, the production line has begun what we are all waiting for and I would expect to see many more starting on Monday, 4/20 🤠
A big step… pic.twitter.com/K17ZzBlQ8k
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) April 17, 2026
These units contrast with earlier test vehicles spotted at the factory’s crash-test area, which carried temporary steering wheels and pedals to meet current federal regulations during data-collection phases.
The outbound-lot vehicles appear complete, with production wheels, tire stickers, and the signature Cybercab styling ready for deployment.
This sighting represents a pivotal transition. Tesla designed the Cybercab from the ground up as a purpose-built robotaxi, engineered for unsupervised Full Self-Driving (FSD) operation. Removing manual controls eliminates cost, complexity, and weight while maximizing interior space and range.
The move also signals that Tesla has cleared initial validation hurdles and is now building vehicles to the exact specification intended for commercial robotaxi service.
Industry watchers note the timing aligns with Tesla’s broader rollout plans. Production of early Cybercabs began in late 2025 and early 2026, primarily for internal testing and regulatory compliance.
Federal Motor Vehicle Safety Standards currently limit vehicles without steering wheels to 2,500 units per year without exemption, a cap that Tesla is navigating through ongoing filings.
Tesla Cybercab spotted next to Model Y shows size comparison
The appearance of steering-wheel-free units in the outbound lot suggests the company is preparing a small initial fleet—likely for Austin pilot operations or further validation—while pushing for regulatory relief to scale output.
The development comes as Tesla ramps its dedicated Cybercab line at Gigafactory Texas. If the Monday surge materializes as predicted, observers expect dozens more units to accumulate rapidly.
With unsupervised FSD advancing and regulatory conversations ongoing, these wheel-less Cybercabs parked under the Texas sun represent more than hardware—they embody Tesla’s bet that autonomous mobility is no longer a prototype dream but an imminent reality.
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Tesla preps new Model Y trim for India, a once-elusive market
Tesla’s journey into India began with significant hurdles. For years, the electric vehicle giant faced steep import tariffs ranging from 70 percent to 110 percent on fully built vehicles, which dramatically inflated prices and stalled entry plans.
Tesla is preparing to bring its newest Model Y trim to India, a once-elusive market that was hesitant to allow any vehicles built outside the market into its automotive sector.
Now, it is preparing to allow China-built Model Y vehicles to come into the country, in an effort to expand sales and offer what is a widely-requested variant to Indian customers.
Tesla’s journey into India began with significant hurdles. For years, the electric vehicle giant faced steep import tariffs ranging from 70 percent to 110 percent on fully built vehicles, which dramatically inflated prices and stalled entry plans.
Elon Musk repeatedly criticized these duties as among the world’s highest, making premium EVs like the Model Y prohibitively expensive for most buyers in the price-sensitive market.
After prolonged negotiations and multiple delays, Tesla finally debuted in July 2025 with a quiet rollout focused on luxury segments. It opened showrooms in Mumbai and New Delhi, importing standard Model Y SUVs from its Shanghai Gigafactory.
Tesla China posts strong February wholesale growth at Gigafactory Shanghai
Yet the launch proved challenging: vehicles carried sticker prices near $70,000, leading to tepid demand. Bloomberg reported only about 600 orders in the first two months, while official data showed just 227 registrations for all of 2025—far below internal targets. By early 2026, the company offered discounts of up to ₹200,000 ($2,200) to clear unsold inventory.
Now, less than a year later, Tesla is demonstrating resilience and adaptability. According to a Bloomberg report on April 17, the company is preparing to launch the Model Y L—a six-seat, long-wheelbase variant with three-row seating—as early as next week.
This marks Tesla’s first new product introduction in India since its initial entry. Notably, the newest Model Y configuration, which debuted in China in 2025 and features extended space tailored for families, will once again be exported directly from Tesla’s Shanghai Gigafactory.
The move highlights a shift from early struggles to a more targeted approach, leveraging an existing platform to better suit Indian preferences for multi-generational, spacious SUVs without committing to immediate local production.
Tesla launches in India with Model Y, showing pricing will be biggest challenge
The Model Y L’s arrival underscores Tesla’s incremental strategy amid global EV headwinds and India’s unique challenges, including limited charging infrastructure and competition from local manufacturers.
While tariffs continue to keep pricing in the premium segment, the six-seater variant aims to broaden appeal beyond early luxury adopters by addressing practical family needs.
This evolution, from battling high barriers and disappointing initial sales to exporting its latest derivative model, signals cautious optimism.
Success with the Model Y L could strengthen Tesla’s foothold in one of the world’s most populous markets and potentially pave the way for deeper investments, such as localized manufacturing, should tariff relief or policy shifts materialize.
For now, the China-to-India supply chain represents a pragmatic bridge over the very obstacles that once made entry so difficult.
Elon Musk
Tesla’s golden era is no longer a tagline
Tesla “golden era” teaser video highlights the future of transportation and why car ownership itself may be the next thing to change.
The golden age of autonomous ridesharing is arriving, and Tesla is making sure we can all picture a future that looks like the future. A recent teaser posted to X shows a Cybercab parked outside a home, and with a clear message that your everyday life may soon look like this when the driverless vehicles shows up at your door.
Tesla has begun the rollout of its Robotaxi service across US cities, and the production of its dedicated, fully-autonomous Cybercab vehicle. The first Cybercab rolled off the Giga Texas assembly line on February 17, 2026, with volume production now targeted for this month. Additionally, the Robotaxi service built around it is already running, without human drivers, in US cities.
Tesla Cybercab production ignites with 60 units spotted at Giga Texas
The Cybercab is built without a steering wheel, pedals, or side mirrors, designed from the ground up for unsupervised autonomous operation. Musk described the manufacturing approach as closer to consumer electronics than traditional car production, targeting a cycle time of one unit every ten seconds at full scale.
Drone footage from April 13, 2026 captured over 50 Cybercab units on the Giga Texas campus, with several clustered near the crash testing facility. Musk has noted that Tesla plans to sell the Cybercab to consumers for under $30,000, and owners will be able to add their vehicles to the Tesla robotaxi network when not in personal use, potentially generating income to offset the vehicle’s purchase cost. That model changes the math on vehicle ownership in a meaningful way, making a car something closer to a depreciating asset that can also earn by paying itself off and generate a profit.
During Tesla’s Q4 earnings call, the company confirmed plans to expand the Robotaxi program to seven new cities in the first half of 2026, including Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. The service already runs without safety drivers in Austin, and public road testing of the Cybercab has expanded to five states, including California, Texas, New York, Illinois, and Massachusetts.
Golden era pic.twitter.com/AS6pX2dK8N
— Tesla Robotaxi (@robotaxi) April 16, 2026