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SpaceX Dragon XL could double as a crew cabin for lunar space station
A recent modification to SpaceX’s Dragon XL lunar cargo resupply contract with NASA suggests that the spacecraft could be used as an extra crew cabin and bathroom at a lunar space station known as Gateway.
The contract modification was made around April 1st of this year and provided SpaceX around $121,000 to complete the latest study on the potential utility of its expendable Dragon XL spacecraft beyond the primary goal of resupplying a space station orbiting the Moon. Designed to deliver at least five metric tons (~11,000 lb) of pressurized and unpressurized cargo to Gateway, Dragon XL will launch on SpaceX’s own Falcon Heavy rocket – currently the only super heavy-lift launch vehicle in operation – and meant to heavily borrow from hardware and systems already developed for Crew and Cargo Dragon.
NASA first announced its selection of SpaceX for the Gateway Logistics Services (GLS) contract back in March 2020. More than a year later, very little has been said (or visibly done) to progress from that announcement to a true contract – an unusually long period of inactivity for such a significant program.
Of note, as recently as April 2021, NASA officials made it clear that they were still in the cryptic process of “reviewing” the Artemis program, leading to such a long delay between the GLS award announcement and finalization of an actual contract with SpaceX. Of note, back when it was announced, NASA’s nominal plan was to begin Dragon XL cargo deliveries as early as 2024 to support the Artemis Program’s first crewed Moon landing attempt.
Since then, however, other crucial aspects – namely the concept of operations and Human Lander System (HLS) meant to carry astronauts to and from the Moon – have evolved significantly. Weeks after NASA’s GLS announcement, the space agency awarded approximately $1 billion to three prospective HLS providers – SpaceX, Dynetics, and a team led by Blue Origin. A little over a year later, NASA announced a shocking decision to award that initial HLS Moon landing demonstration contract to SpaceX and SpaceX alone.
More or less simultaneously, NASA it made it clear that it was seriously studying the possibility of performing Artemis-3 – the first crewed Moon landing attempt in half a century – without Gateway. Along those lines, the SLS-launched Orion spacecraft and HLS lander (a custom variant of SpaceX’s Starship) would dock directly in lunar orbit instead of separately docking to Gateway to transfer crew. NASA’s decision to solely select Starship as its future Moon lander was so surprising in large part because of how starkly the vehicle’s potential capabilities contrast with the rest of the Artemis Program.
As many have already noted, the very existence of a Starship with capabilities close to what SpaceX is working towards – now a practical inevitability for the company to complete its HLS contract – brings into question the architecture NASA has proposed for Artemis. Currently, the nominal plan is to launch astronauts into an exotic high lunar orbit with NASA’s own SLS rocket and Orion spacecraft – an inconvenient orbit only needed to make up for said spacecraft’s shortcomings. Prior to recent developments, Orion would then dock with Gateway. The HLS vehicle would follow and crew would eventually transfer to the lander, which would then carry 2+ astronauts to and from the surface of the Moon and re-dock with Gateway, followed by Orion returning those astronauts to Earth.
Given that Starship offers enough pressurized volume to rival even the vast International Space Station (ISS) in a single launch, the entire concept of Gateway – an almost inhumanely tiny space station – becomes dubious. If Orion also doesn’t need Gateway to transfer its astronauts to the lander, which NASA has all but confirmed, it’s difficult to see what value Gateway could offer outside of a very expensive technology demonstration. Including a planned Falcon Heavy launch of the first two Gateway segments, station production, and the possible need for expensive Dragon XL cargo deliveries, Gateway could easily end up costing NASA $4-5 billion before it hosts a single astronaut.
NASA is already deeply concerned about the apparent likelihood of Congress systematically underfunding the HLS and Artemis programs outside of SLS and Orion, going as far as selecting just a single HLS provider after clearly indicating a desire for redundancy given enough funding. NASA’s HLS contract with SpaceX is expected to cost around $2.9 billion. The next cheapest option – Blue Origin’s proposal – would reportedly cost around $6 billion. In other words, if NASA were able to stop work and Gateway and redirect that funding elsewhere, it could almost already afford two HLS providers without a larger budget.
Given that NASA has selected SpaceX for HLS and GLS, it’s not impossible to imagine that the space agency is growing increasingly aware that Gateway and Dragon XL look more than a little redundant beside the Starship vehicle NASA itself is now funding SpaceX to realize. For now, though, work on all three programs continue. Most recently, NASA and SpaceX are studying the possibility of adding a toilet and using Dragon XL as an extra crew cabin and bathroom to augment the tiny habitable volume of Gateway’s lone habitat. Only time will tell where the cards ultimately fall.
Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
A Tesla analyst believes the company’s Full Self-Driving suite is close to an “inflection point,” where people will finally realize that it is more than what it appears, similar to how many view the iPhone.
Pierre Ferragu, an analyst who has covered Tesla for many years at New Street Research, says the Full Self-Driving suite is one piece of evidence supporting the view that a Tesla is more than a car. He compared it to the iPhone and noted that the high price tag seemed like a lot for a phone early on. Then people realized the iPhone was more than just something you make calls with. It made their lives simpler.
🚨 Analyst @p_ferragu says Tesla Full Self-Driving is at an “inflection point” in a recent commentary:
“A Tesla is not a car, the same way an iPhone was not a phone. As a tool that gets you to work peacefully every morning, it is not expensive. Give us 2 more quarters to see… pic.twitter.com/tm6xFrjVPV
— TESLARATI (@Teslarati) July 10, 2026
Suddenly, that price tag was justified.
Tesla offers several models under the average transaction price for a new vehicle, which was above $49,000, according to Kelley Blue Book. However, that does not take into account that many people can still not afford a $35,000 vehicle. Ferragu offers his thoughts:
“Remember when the addressable market of the iPhone was 10 million units? Then people realized how good it was, and now, nearly 250m are sold every year.
A similar evolution for Tesla is still on the table. A Tesla is not a car, the same way an iPhone was not a phone.
A model 3 at $35k + $100 per month is too expensive for most, but only as a car, the same way a $600 iPhone was too expensive for most, until most realized it was much more than a phone.
As a tool that gets you to work peacefully every morning, it is not expensive.”
This point is valid, especially considering the iPhone’s impact on the cell phone market. There are still a handful of players, but most people you know have an iPhone. The iPhone ties into Apple’s other ecosystem of products.
This is how Tesla plans to infiltrate the automotive market, and once the company offers a fully autonomous suite, or something that can allow for unsupervised self-driving, more and more people will flock to Tesla.
Ferragu believes Tesla needs two additional quarters of development before things will truly change. He didn’t elaborate on what will happen in two quarters, but he said it will give us all time to “see where this is heading.”
It is really quite interesting to see people’s reactions when they find out what a Tesla is capable of. Full Self-Driving is a great tool for taking stress out of travel; I use it daily, and it has made it really difficult to consider taking any other car on a drive of practically any length.
To me, it is really hard to believe that people will not at least seriously consider a Tesla as their next car if they experience Full Self-Driving. This is a major point for those who argue that Tesla should advertise in some way.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Elon Musk admits he was ‘clearly wrong’ about Anthropic
