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SpaceX set to launch NASA astronauts first after Boeing narrowly avoids catastrophe in space
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.
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.
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.
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.
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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Investor's Corner
LIVE BLOG: Tesla (TSLA) Q4 and FY 2025 earnings call
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter.
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter, which was published on Tesla’s Investor Relations website after markets closed on January 28, 2025.
The results cap a quarter in which Tesla produced more than 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products. For the full year, Tesla produced 1.65 million vehicles and delivered 1.63 million, while total energy storage deployments reached 46.7 GWh.
Tesla’s Q4 and FY 2025 Results
According to Tesla’s Q4 and FY 2025 Update Letter, the company posted GAAP earnings per share of $0.24 and non-GAAP EPS of $0.50 in the fourth quarter. Total revenue for Q4 came in at $24.901 billion, while GAAP net income was reported at $840 million.
For full-year 2025, Tesla reported GAAP EPS of $1.08 and non-GAAP EPS of $1.66 per share. Total revenue reached $94.83 billion, including $69.53 billion from automotive operations and $12.78 billion from the company’s energy generation and storage business. GAAP net income for the year totaled $3.79 billion.
Earnings call updates
The following are live updates from Tesla’s Q4 and FY 2025 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story.
16:25 CT – Good day to everyone, and welcome to another Tesla earnings call live blog. There’s a lot to unpack from Tesla’s Q4 and FY 2025 update letter, so I’m pretty sure this earnings call will be quite interesting.
16:30 CT – The Q4 and FY 2025 earnings call officially starts. IR exec Travis Axelrod opens the call. Elon and other executives are present.
16:30 CT – Elon makes his opening statement and explains why Tesla changed its mission to “Amazing Abundance.” “With the continued growth of AI and robotics, I think we’re headed towards a future of universal high income,” Musk said, adding that along the way, Tesla will still be improving its products while keeping the environment safe and healthy.
16:34 CT – Elon noted that the first steps for this future are happening this year, thanks to Tesla’s autonomy and robotics programs, which will be launching and ramping this year. He also highlighted that Tesla will be making major investments this year, though the company will be very strategic when it comes to its funding. “I think it makes a ton of strategic sense,” Musk said.
16:36 CT – Elon also announces the end of the Model S and Model X programs “with an honorable discharge.” If you’re interested in buying a Model S or X, it’s best to do it now, Musk said. The Model S and Model X factory in Fremont will be replaced by an Optimus line. “It’s slightly sad, but it is time to bring the S and X program to an end. It’s part of our overall shift to an autonomous future,” Musk said.
16:38 CT – Elon discusses how Unsupervised FSD is now starting for the Robotaxi service. He noted that these Unsupervised Robotaxis don’t have any chase cars as of yesterday. He reiterated Tesla’s plans for owners to be able to add their own vehicles to the Robotaxi fleet. Autonomy target for the end of the year is about a quarter and a half of the United States, Musk said.
News
Tesla announces massive investment into xAI
“On January 16, 2026, Tesla entered into an agreement to invest approximately $2 billion to acquire shares of Series E Preferred Stock of xAI as part of their recent publicly-disclosed financing round,” it said.
Tesla has announced a major development in its ventures outside of electric vehicles, as it confirmed today that it invested $2 billion into xAI on January 16.
The move is significant, as it marks the acquisition of shares of Series E Preferred Stock, executed on market terms alongside other investors. The company officially announced it in its Q4 2025 Shareholder Deck, which was released at market close on Wednesday.
The investment follows shareholder approval in 2025 for potential equity stakes in xAI and echoes SpaceX’s earlier $2 billion contribution to xAI’s $10 billion fundraising round.
Tesla said that, earlier this month, it entered an agreement to invest $2 billion to acquire shares of Series E Preferred Stock of xAI:
“Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round. As set forth… pic.twitter.com/HgtrcHdB2U
— TESLARATI (@Teslarati) January 28, 2026
CEO Elon Musk, who is behind both companies, is now weaving what appears to be an even tighter ecosystem among his ventures, blending Tesla’s hardware prowess with xAI’s cutting-edge AI models, like Grok.
Tesla confirmed the investment in a statement in its Shareholder Deck:
“On January 16, 2026, Tesla entered into an agreement to invest approximately $2 billion to acquire shares of Series E Preferred Stock of xAI as part of their recent publicly-disclosed financing round. Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round. As set forth in Master Plan Part IV, Tesla is building products and services that bring AI into the physical world. Meanwhile, xAI is developing leading digital AI products and services, such as its large language model (Grok).”
It continued:
“In that context, and as part of Tesla’s broader strategy under Master Plan Part IV, Tesla and xAI also entered into a framework agreement in connection with the investment. Among other things, the framework agreement builds upon the existing relationship between Tesla and xAI by providing a framework for evaluating potential AI collaborations between the companies. Together, the investment and the related framework agreement are intended to enhance Tesla’s ability to develop and deploy AI products and services into the physical world at scale. This investment is subject to customary regulatory conditions with the expectation to close in Q1’2026.”
The history of the partnership traces back to xAI’s founding in July 2023, as Musk launched the company as a counterweight to dominant AI players like OpenAI and Google.
xAI aimed to “understand the true nature of the universe” through unbiased, truth-seeking AI. Tesla, meanwhile, has long invested in AI for its Full Self-Driving (FSD) software and Optimus robots, training models on vast datasets from its vehicle fleet.
The investment holds profound significance for both companies.
For Tesla, it accelerates its Master Plan Part IV, which envisions AI-driven autonomy in vehicles and humanoid robots. xAI’s Grok could enhance Tesla’s real-world AI applications, from optimizing battery management to predictive maintenance, potentially giving Tesla an edge over its biggest rivals, like Waymo.
Investors, on the other hand, stand to gain from this symbiosis. Tesla Shareholders may see boosted stock value through AI innovations, with analysts projecting enhanced margins and significant future growth in robotics. xAI’s valuation could soar, attracting more capital.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings results
Tesla’s Q4 and FY 2025 earnings come on the heels of a quarter where the company produced over 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products.
Tesla (NASDAQ:TSLA) has released its Q4 and FY 2025 earnings results in an update letter. The document was posted on the electric vehicle maker’s official Investor Relations website after markets closed today, January 28, 2025.
Tesla’s Q4 and FY 2025 earnings come on the heels of a quarter where the company produced over 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products.
For the Full Year 2025, Tesla produced 1,654,667 and delivered 1,636,129 vehicles. The company also deployed a total of 46.7 GWh worth of energy storage products.
Tesla’s Q4 and FY 2025 results
As could be seen in Tesla’s Q4 and FY 2025 Update Letter, the company posted GAAP EPS of $0.24 and non-GAAP EPS of $0.50 per share in the fourth quarter. Tesla also posted total revenues of $24.901 billion. GAAP net income is also listed at $840 million in Q4.
Analyst consensus for Q4 has Tesla earnings per share falling 38% to $0.45 with revenue declining 4% to $24.74 billion, as per estimates from FactSet. In comparison, the consensus compiled by Tesla last week forecasted $0.44 per share on sales totaling $24.49 billion.
For FY 2025, Tesla posted GAAP EPS of $1.08 and non-GAAP EPS of $1.66 per share. Tesla also posted total revenues of $94.827 billion, which include $69.526 billion from automotive and $12.771 billion from the battery storage business. GAAP net income is also listed at $3.794 billion in FY 2025.
xAI Investment
Tesla entered an agreement to invest approximately $2 billion to acquire Series E preferred shares in Elon Musk’s artificial intelligence startup, xAI, as part of the company’s recently disclosed financing round. Tesla said the investment was made on market terms consistent with those agreed to by other participants in the round.
The investment aligns with Tesla’s strategy under Master Plan Part IV, which centers on bringing artificial intelligence into the physical world through products and services. While Tesla focuses on real-world AI applications, xAI is developing digital AI platforms, including its Grok large language model.
Below is Tesla’s Q4 and FY 2025 update letter.
TSLA-Q4-2025-Update by Simon Alvarez
LIVE BLOG: Tesla (TSLA) Q4 and FY 2025 earnings call
Tesla announces massive investment into xAI
