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SpaceX hits back at FAA in scathing new letter, claiming fines were retaliation

SpaceX Starship's IF-3 Launch

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SpaceX has released a scathing new letter that it has sent to the Federal Aviation Administration (FAA), criticizing its “lack of resources to timely review licensing materials” and claiming the recently announced fines of over $600,000 are retaliation for “increased scrutiny” on the Office of Commercial Space Transportation (AST).

The space exploration company and the regulatory agency are clearly in a very public feud that now seems to be going in a direction that will not benefit either party.

SpaceX released a blog post earlier this month that talked about regulatory delays, and how Starship had been ready to take its fifth test flight, but the FAA had given an estimated approval date of November, well past the early August date the company had hoped and planned for.

The FAA then fined SpaceX for three different violations related to two flights, which were both launched last Summer in June and July.

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Just a day after the FAA announced these fines, SpaceX has released a letter to FAA Chairs Frank Lucas and Maria Cantwell, as well as Ranking Members Zoe Lofgren and Ted Cruz.

SpaceX alleges in the letter that the AST and FAA have not been able to complete a timely review of licensing materials, and the lack of streamlining in this process has not only hurt the development of its technologies but also impacted “national security and national priorities.”

The company also claims the $633,009 in penalties could be a potential retaliation for criticism it has passed to regulatory agencies:

“Most recently, the FAA alleged that SpaceX violated its regulations and proposed a $633,009 penalty for these alleged violations. It is notable that these violations and penalties were announced shortly after increased scrutiny on AST by Congress for its failure to reasonably and timely execute its regulatory obligations. It is also notable that, in announcing these penalties, FAA’s politically appointed Chief Counsel was quoted in the FAA’s announcement on the matter. It is SpaceX’s understanding that it is highly irregular, and perhaps unprecedented, for a Chief Counsel to be quoted on an enforcement matter. SpaceX forcefully rejects the FAA’s assertion that it violated any regulations.”

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CEO Elon Musk has already revealed that SpaceX will sue the FAA, claiming “regulatory overreach.”

Elon Musk reveals SpaceX will sue the FAA

SpaceX goes on to clap back at the FAA’s fines, breaking down each supposed violation and challenging the communication and legitimacy that the agency and the AST used to penalize that company.

Each rebuttal from SpaceX shows the FAA did not communicate in a timely fashion with the company, along with other pieces of evidence that challenge the legitimacy of the fines.

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It is clear SpaceX is not going to take the fines laying down and will likely challenge the FAA at every step. Whether this will result in more streamlined approval processes for future launches remains to be seen.

One thing is clear: SpaceX has one heck of a backbone, and it will refuse to be pushed around by regulatory agencies, especially if it feels there is a political motivation behind the exentsive delays.

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I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Ford CEO Farley says Tesla is not who to look at for EV expertise

Interestingly, Farley has been one of the most hellbent CEOs in terms of a legacy automaker standpoint to push the EV effort. It did not go according to plan, as Ford took a $19.5 billion charge and retreated from its EV push in late 2025.

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Ford CEO Jim Farley said in a recent podcast interview that Tesla is not who Americans should look at to beat Chinese carmakers.

The comments have sparked quite a bit of outrage from Tesla fans on X, the social media platform owned by Elon Musk.

Farley said that Chinese automakers are better examples of how to beat competitors. He said (via the Rapid Response Podcast):

“If you’re an American and you want us to beat the Chinese in the car business, you’re all going to want to pay attention, not necessarily to Tesla. Nothing against Tesla—they’ve been doing great—but they really don’t have an updated vehicle. The best in the business for us, cost-wise and competition-wise, supply chain, manufacturing expertise, and the I.P. in the vehicle, was really BYD. In this next cycle of EV customers in the U.S., they want pickups and utilities and all these different body styles. But they want them at $30,000, not $50,000. Like the first inning, they want them affordably.”

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Despite Farley’s synopsis, it is worth mentioning that Tesla had the best-selling passenger vehicle in the world last year, and in China in March, as the Model Y continued its global dominance over other vehicles.

Musk responded to Farley’s comments by stating:

“This is before Supervised FSD is approved in China. Limiting factor is production output in Shanghai.”

Interestingly, Farley has been one of the most hellbent CEOs in terms of a legacy automaker standpoint to push the EV effort. It did not go according to plan, as Ford took a $19.5 billion charge and retreated from its EV push in late 2025.

Ford cancels all-electric F-150 Lightning, announces $19.5 billion in charges

Instead, Ford is “doubling down on its affordable” EVs and said it would pivot from its previous plans.

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Reaction from Tesla fans was pretty much how you would expect. Many said they have lost a lot of respect for Farley after his comments; others believe he is the last CEO anyone should be taking advice on EVs from.

Nevertheless, Farley’s plans are bold and brash; many consider Tesla the most ideal company to replicate EV efforts from. It will be interesting to see if Ford can rebound from this big adjustment, and hopefully, Farley’s plans to replicate efforts from BYD work out the way he hopes.

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Elon Musk

SpaceX wins its first MARS contract but it comes with a catch

NASA awarded SpaceX a $175 million Mars rover contract while the White House proposes cutting the mission.

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NASA just signed a $175.7 million contract with SpaceX to launch a Mars rover that the White House is simultaneously trying to defund. The contract, awarded on April 16, 2026, tasks SpaceX’s Falcon Heavy with launching the European Space Agency’s (ESA) Rosalind Franklin rover from Kennedy Space Center in Florida, no earlier than late 2028. It would mark the first time SpaceX has ever sent a payload to Mars.

Under NASA’s Rosalind Franklin Support and Augmentation project, known as ROSA, the agency is providing braking engines for the rover’s descent stage, radioisotope heater units that use decaying plutonium to keep the rover warm on the Martian surface, additional electronics, and a mass spectrometer instrument, as noted by SpaceNews.

Those nuclear heating units are the reason an American rocket was required at all. U.S. export controls on radioisotope technology mean any payload carrying them must launch on a domestic vehicle, which narrowed the field to SpaceX and United Launch Alliance. Falcon Heavy’s pricing made it the practical choice.

SpaceX is quietly becoming the U.S. Military’s only reliable rocket

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Falcon Heavy debuted in February 2018 and has 11 launches to its record. The rocket has not flown since October 2024, when it sent NASA’s Europa Clipper toward Jupiter. The three-core design, built from modified Falcon 9 first stages, gives it the lift capacity needed for deep space planetary missions that a single Falcon 9 cannot reach.

The Rosalind Franklin rover has been sitting in storage in Europe for years. It was originally due to launch in 2022 as a joint mission with Russia, but Russia’s invasion of Ukraine ended that partnership, leaving the rover built but stranded without a launch vehicle or landing hardware. NASA stepped back in through a 2024 agreement with ESA to rescue the mission. The rover is designed to drill up to two meters below the Martian surface in search of evidence of past life, a science objective no previous mission has attempted at that depth.

The contradiction at the center of this story is hard to ignore. The White House’s fiscal year 2027 budget proposal included no funding for ROSA and did not mention the mission at all in the detailed congressional justification document released April 3.

Musk has long argued that reaching Mars is not optional. “We don’t want to be one of those single planet species, we want to be a multi-planet species.” Whether this particular mission survives Washington’s budget fight, the Falcon Heavy contract means SpaceX is now formally on record as the rocket that could get humanity’s next Mars science mission off the ground.

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The timing of this contract carries extra weight given that SpaceX filed confidentially with the SEC in early April and is targeting an IPO roadshow in the week of June 8. It would be the largest public offering in history.

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Elon Musk

Tesla Q1 Earnings: What Elon Musk and Co. will answer during the call

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Credit: Tesla

Tesla (NASDAQ: TSLA) is set to hold its Earnings Call for the first quarter of 2026 on Wednesday, and there are a lot of interesting things that are swirling around in terms of speculation from investors.

With the company’s executives, including CEO Elon Musk, answering a handful of questions that investors submit through the Say platform, fans want to know a lot of things about a lot of things.

These five questions come from Retail Investors, who are normal, everyday shareholders:

  1. When will we have the Optimus v3 reveal? When will Optimus production start, since we ended the Model S and Model X production earlier than mid-year? What’s the expected Optimus production rate exiting this year? What are the initial targeted skills?
  2. What milestones are you targeting for unsupervised FSD and Robotaxi expansion beyond Austin this year, and how will that drive recurring revenue?
  3. How will Hardware 3 cars reach Unsupervised Full Self-Driving?
  4. When do you expect Unsupervised Full Self-Driving to reach customer cars?
  5. When will Robotaxi expand past its current limited rollout?

Additionally, these are currently the three questions that are slated to be answered by Institutional Firms, which also answer a handful of questions during the call:

  1. Now that FSD has been approved in the Netherlands and is expected to launch across Europe this summer, can you discuss your Robotaxi strategy for the region?
  2. What enabled you to finish the AI5 tapeout early and were there any changes to the original vision? Last week, Elon said AI5 will go into Optimus and the Supercomputer, but one month ago said it would go into the Robotaxi. Has AI5 been dropped from the vehicle roadmap?
  3. Given the recent NHTSA incident filings, can you update us on the Robotaxi safety data? If safety validation remains the primary bottleneck, why not deploy thousands of vehicles to accelerate the removal of the safety driver?

The questions range through every current Tesla project, including FSD expansion and Optimus. However, many of the answers we will get will likely be repetitive answers we’ve heard in the past.

This is especially pertinent when the questions about when Unsupervised FSD will reach customer cars: we know Musk will say that it will happen this year. Is Tesla capable of that? Maybe. But a more transparent answer that is more revealing of a true timeline would be appreciated.

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Hardware 3 owners are anxiously awaiting the arrival of FSD v14 Lite, which was promised to them last year for a release sometime this year.

The Earnings Call is set to take place on Wednesday at market close.

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