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Boeing's Starliner and SpaceX's Crew Dragon spacecraft stand vertical at their respective launch pads in December 2019 and January 2020. Crew Dragon has now performed two successful full-up launches to Starliner's lone partial failure. (Richard Angle) Boeing's Starliner and SpaceX's Crew Dragon spacecraft stand vertical at their respective launch pads in December 2019 and January 2020. Crew Dragon has now performed two successful full-up launches to Starliner's lone partial failure. (Richard Angle)

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SpaceX set to launch NASA astronauts first after Boeing narrowly avoids catastrophe in space

Boeing's Starliner and SpaceX's Crew Dragon spacecraft stand vertical at their respective launch pads roughly six weeks apart. (Richard Angle)

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SpaceX is set to become the first private company to launch NASA astronauts as few as three months from now, all but guaranteed after Boeing’s competing Starliner spacecraft narrowly avoided a catastrophe in space on its orbital launch debut.

The ultimate purpose of NASA’s Commercial Crew Program (CCP) is to ensure that the US is once again able to launch its own astronauts into orbit and to the International Space Station (ISS) – a capability the country has not possessed since it prematurely canceled the Space Shuttle in 2011. In a logical step, NASA decided to fund two independent companies to ensure that astronaut launch capabilities would be insulated against any single failure, ultimately awarding contracts to Boeing and SpaceX in 2014. Boeing did actually try to have Congress snub SpaceX back in 2014 and solely award the contract to Starliner, but the company thankfully failed.

As a result, SpaceX beating Boeing on the (not-a-) race to launch NASA astronauts to the International Space Station (ISS) would represent an immense and deeply embarrassing upset in the traditional aerospace industry – essentially a case of David and Goliath. For the better part of a decade, Congress, most industry officials, and Boeing itself have argued ad nauseum the Starliner spacecraft was clearly a far safer bet than anything built by SpaceX – Boeing, obviously, has far more experience (“heritage”) in the spaceflight industry. However, multiple “catastrophic” failures during Boeing’s recent Starliner ‘Orbital Flight Test’ (OFT) paint a far uglier picture.

The SpaceX Crew Dragon capsule and Boeing CTS-100 Starliner are pictured here during separate pad abort tests. (SpaceX/NASA)

As its PR team and executives will constantly remind anyone within earshot, Boeing helped build the first stage of the Saturn V rocket, while a company it bought years after the fact (Rockwell) did technically buy the company (North American) that built the spacecraft (Apollo CSM) that carried NASA astronauts from the Earth to the Moon (and back). Rockwell (acquired by Boeing) also built all five of NASA’s Space Shuttle orbiters.

In the 1990s, Boeing – set to lose a competition to build an expendable rocket for the US military – acquired McDonnell Douglas at the last second, slapping a Boeing sticker on the Delta IV rocket – designed and built by MD. Boeing then conspired to steal trade secrets from Lockheed Martin (bidding Atlas V) and used that stolen info to mislead the USAF about the real cost of Delta IV, thus securing the more lucrative of two possible contracts. This is all to point out the simple fact that Boeing has far less real experience designing spacecraft than it tends to act like it does.

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Boeing’s Starliner spacecraft sits atop a ULA Atlas V rocket at the LC-41 launch pad ahead of its doomed orbital flight test (OFT). (Richard Angle)

As such, it’s substantially less surprising than it might otherwise be that Boeing’s Starliner spacecraft has had such a rocky orbital launch debut. Preceded just a matter of weeks by a quality assurance failure that prevented one of Starliner’s four parachutes from deploying after an otherwise-successful pad abort test, a second Starliner spacecraft launched atop an Atlas V rocket on its orbital launch debut (OFT) on December 20th, 2019. Atlas V performed flawlessly but immediately after Starliner separated from the rocket, things went very wrong.

Bad software ultimately caused the spacecraft to perform thousands of uncommanded maneuvering thruster burns, depleting a majority of its propellant before Boeing was able to intervene. Starliner managed to place itself in low Earth orbit (LEO), but by then it had nowhere near enough propellant left to rendezvous and dock with the ISS – one of the most crucial purposes of the uncrewed flight test. Unable to complete that part of the mission, Boeing instead did a few small tests over the course of 48 hours in orbit before commanding the spacecraft’s reentry and landing on December 22nd.

Starliner successfully landed on December 22nd after a partial failure in orbit. (NASA – Bill Ingalls)

But wait, there’s more!

As it turns out, although both NASA and Boeing inexplicably withheld the information from the public for more than two months, Boeing’s OFT Starliner spacecraft reportedly almost suffered a second major software failure just hours before reentry. According to NASA and Boeing comments in a press conference held only after news of that second failure broke after an advisory panel broached the issue in February 2020, a second Starliner software bug – caught only because the first failure forced Boeing to double-check its code – could have had far more catastrophic consequences.

NASA officials stated that had the second bug not been caught, some of Starliner’s thruster valves would have been frozen, either entirely preventing or severely hampering the spacecraft’s detached trunk from properly maneuvering in orbit. Apparently, that service module (carrying fuel, abort engines, a solar array, and more) could have crashed into the crew module shortly after detaching from it. Unsurprisingly, that ‘recontact’ could have severely damaged the Starliner crew capsule, potentially making reentry impossible (or even fatal) if its relatively fragile heat shield bore the brunt of that impact.

SpaceX has undeniably suffered its own significant failures, most notably when flight-proven Crew Dragon capsule C201 exploded moments before a static fire test, but the company has already proven that it fixed the source of the failure with the spacecraft’s second successful launch on a Falcon 9 rocket. Ultimately, it’s becoming nearly impossible to rationally argue that Boeing’s Starliner will be safer than SpaceX’s Crew Dragon – let alone worth the 40% premium Boeing is charging NASA and the US taxpayer.

As of February 2020, Crew Dragon has successfully docked with the ISS and completed two successful Falcon 9 launches in just nine months. (Richard Angle)

According to Ars Technica’s Eric Berger, Crew Dragon’s inaugural astronaut launch is now tentatively scheduled as early as late-April to late-May 2020. Paperwork – not technical hurdles – is currently the source of that uncertainty, and all Demo-2 mission hardware (Falcon 9 and Crew Dragon) is either already in Florida or days away from arriving.

Due to the combination of similar software failures Starliner suffered during its first and only launch, Boeing now has to review the entirety of the spacecraft’s software – more than a million lines of code – before NASA will allow the company to launch again. There’s also a very good chance that Boeing will now have to repeat the Orbital Flight Test, potentially incurring major delays. In short, it would take nothing less than a miracle – or NASA making a public mockery of itself for Boeing’s benefit – for Starliner to launch astronauts before SpaceX.

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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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Elon Musk

Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story

Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.

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tesla autopilot

Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.

The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.

The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.

For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.

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Elon Musk

Tesla isn’t joking about building Optimus at an industrial scale: Here we go

Tesla’s Optimus factory in Texas targets 10 million robots yearly, with 5.2 million square feet under construction.

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Tesla’s Q1 2026 Update Letter, released today, confirms that first generation Optimus production lines are now well underway at its Fremont, California factory, with a pilot line targeting one million robots per year to start. Of bigger note is a shared aerial image of a large piece of land adjacent to Gigafactory Texas, that Tesla has prominently labeled “Optimus factory site preparation.”

Permit documents show Tesla is seeking to add over 5.2 million square feet of new building space to the Giga Texas North Campus by the end of 2026, at an estimated construction investment of $5 billion to $10 billion. The longer term production target for that facility is 10 million Optimus units per year. Giga Texas already sits on 2,500 acres with over 10 million square feet of existing factory floor, and the North Campus expansion is being built to support multiple projects, including the dedicated Optimus factory, the Terafab chip fabrication facility (a joint Tesla/SpaceX/xAI venture), a Cybercab test track, road infrastructure, and supporting facilities.

Credit: TESLA

Texas makes strategic sense beyond the existing infrastructure. The state’s tax structure, lower labor costs relative to California, and the proximity to Tesla’s AI training cluster Cortex 1 and 2, both located at Giga Texas and now totaling over 230,000 H100 equivalent GPUs, means the Optimus software stack and the factory producing the hardware will share the same campus. Tesla’s Q1 report also confirmed completion of the AI5 chip tape out in April, the inference processor designed specifically to power Optimus units in the field.

As Teslarati reported, the Texas facility is intended to house Optimus V4 production at full scale. Musk told the World Economic Forum in January that Tesla plans to sell Optimus to the public by end of 2027 at a price between $20,000 and $30,000, stating, “I think everyone on earth is going to have one and want one.” He has previously pegged long term demand for general purpose humanoid robots at over 20 billion units globally, citing both consumer and industrial use cases.

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Investor's Corner

Tesla (TSLA) Q1 2026 earnings results: beat on EPS and revenues

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Credit: Tesla

Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.

The earnings results come after Tesla reported a miss on vehicle deliveries for the first quarter, delivering 358,023 vehicles and building 408,386 cars during the three-month span.

As Tesla transitions more toward AI and sees itself as less of a car company, expectations for deliveries will begin to become less of a central point in the consensus of how the quarter is perceived.

Nevertheless, Tesla is leaning on its strong foundation as a car company to carry forward its AI ambitions. The first quarter is a good ground layer for the rest of the year.

Tesla Q1 2026 Earnings Results

Tesla’s Earnings Results are as follows:

  • Non-GAAP EPS – $0.41 Reported vs. $0.36 Expected
  • Revenues – $22.387 billion vs. $22.35 billion Expected
  • Free Cash Flow – $1.444 billion
  • Profit – $4.72 billion

Tesla beat analyst expectations, so it will be interesting to see how the stock responds. IN the past, we’ve seen Tesla beat analyst expectations considerably, followed by a sharp drop in stock price.

On the same token, we’ve seen Tesla miss and the stock price go up the following trading session.

Tesla will hold its Q1 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.

You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.

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