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SpaceX lobbies NASA to foster competitive deep space exploration
Tim Hughes, the senior VP of SpaceX’s global business and government affairs, testified earlier this morning before the Senate Subcommittee on Space, Science, and Technology and the Committee on Commerce, Science, and Technology. He put forth a strong argument that it would be in the best interests of both NASA and the United States to encourage commercial competition in pursuit of the exploration of deep space, and that this could be done with concrete goals like improved interplanetary communications, vertically landing spacecraft on the Moon, and sending substantial amounts of cargo to Mars.
Before joining SpaceX, Hughes was the central actor responsible for drafting and supporting the Commercial Space Launch Amendments Act of 2004, which effectively paved the way for NASA’s first programs of commercial competition just two years later. He joined the company in 2005, and has defined SpaceX’s approach to legal and government affairs in the many years since.
Leveraging data related to the major successes and efficiency of NASA’s Commercial Orbital Transport Services (COTS) initiative, which began in earnest in 2006, Hughes demonstrated that by awarding SpaceX with funds from COTS, NASA ultimately found themselves with a highly-capable orbital launch vehicle after a relatively miniscule investment of $396 million into the venture. A study later conducted by NASA estimated that developing the same vehicle with a traditional NASA or commercial approach would have cost approximately $4 billion or $1.7 billion respectively, implying that the COTS approach was as much as ten times more efficient than NASA’s own traditional strategies of launch vehicle procurement.
SpaceX’s CRS-11 mission just over a month ago was the company’s 10th successful transport of cargo to the ISS. (SpaceX)
Of course, SpaceX themselves invested over $500 million initially following NASA’s COTS award, but NASA’s bode of confidence in the company likely made it possible in the first place for it to raise that level of funding. The point of this presented data, of course, is to segue into the argument that the introduction of commercial competition into the field of deep space exploration could also benefit NASA in the sense that it might be drastically more cost effective than current approaches. Hughes did not explicitly call out any current programs during his testimony, but the clear figureheads are the Space Launch System and Orion. Such a request from private industry also acts as a bit of a gentle suggestion to those in NASA, related Congressional and Senatorial committees. Subcommittees that past and current traditional strategies of hardware procurement for space exploration may be showing signs of age and obsolescence in the face of more efficient commercial ventures.
In fact, NASA’s Chief of Spaceflight, Bill Gerstenmaier, admitted earlier today in a very rare streak of candor that he “[couldn’t] put a date on humans on Mars” and that that was a result of a severe lack of budget to design and build the myriad technologies, hardware, and vehicles necessary to actually take advantage of a heavy launch vehicle like the Space Launch System. NASA is admittedly beginning to pursue and request industry information for what they are calling a Deep Space Gateway or NEXTSTEP, intended to be a small orbital base or space station located closer to the Moon than to Earth. A successfully-developed DSG would indeed become one completed facet of the architecture needed to bring humans to Mars, and can be compared in concept to SpaceX’s Big Falcon Spaceship in a limited fashion.
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- Boeing (pictured here), SNC, and five other companies all produced concepts that are now being evaluated by NASA for the NEXTSTEP program. (Boeing)
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- Sierra Nevada’s NEXTSTEP cislunar station concept. (SNC)
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- SpaceX’s conceptual Interplanetary Transport System from 2016 was considerably larger and more structurally complex than 2017’s BFR. (SpaceX)
Given Gestenmaier’s frank admittance that NASA’s budget is not presently able to support even a fraction of what is necessary for their “Journey to Mars”, exploring alternative methods of more efficiently exploiting the money NASA could realistically make available for further deep space exploration is almost certainly a major priority, or it at least ought to be. Gertsenmaier’s unspoken need for more efficient methods of exploring Mars and deep space would perfectly mesh with the requested program SpaceX’s Tim Hughes also presented earlier today, and the potential benefits SpaceX might also reap from such an arrangement make it worth serious consideration.
The political and corporate mire that NASA is almost innately intertwined with is the primary and most obvious barrier to the existence of a deep space COTS-esque program, but it is possible that some amount of calculated politicking on behalf of SpaceX could result in the right Senators or Representatives getting behind SpaceX’s mission of cost-effective space exploration.
Investor's Corner
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
Tesla (NASDAQ: TSLA) beat Wall Street expectations of 406,000 vehicles delivered in Q2 by reporting 480,126 deliveries for the three months ending in June.
Tesla reported it delivered 467,762 Model 3 and Model Y units, while 12,364 Model S, Model X, and Cybertrucks switched hands during the quarter. The Model S and Model X were officially sunset this past quarter and will no longer be part of the company’s Production & Delivery reports moving forward.
🚨 BREAKING: Tesla delivered 480,126 vehicles in Q2, ANNIHILATING Wall Street expectations of 406,000. Production was reported at 451,758.
Deliveries:
Model 3/Y: 467,762
Other Models: 12,364Production:
Model 3/Y: 442,936
Other Models: 8,822 https://t.co/TTHwQAsKt8 pic.twitter.com/7qI4Zj6FE5— TESLARATI (@Teslarati) July 2, 2026
The quarter is a pleasant surprise and a good rebound from Q1, when Tesla slightly missed the Wall Street consensus of 365,645 cars by reporting 358,023 deliveries for the first three motnhs of the year.
Energy storage deployments also provided some strength in Tesla’s delivery report, hitting 13.5 GWh for Q2. This is a particular division of Tesla’s business that has been overwhelmingly robust over the past few years, truly being a strong point of the company’s overall model.
For the year, Tesla analysts still predict deliveries to trend in the 1.69 million unit region, a modest 3 to 5 percent increase from the 1.64 million cars the company delivered last year. Tesla will likely return to more sequential and noticeable year-over-year growth as the Cybercab project starts to ramp up considerably in the next few years.
Tesla has some other potential catalysts to spur vehicle deliveries, too. Not only is it expecting Cybercab to truly start making a change in the next few years, but other vehicles could be entering the company’s lineup.
Tesla sends production Cybercab with no steering wheel, pedals to on-road testing
The slightly longer Model Y L has been a highly speculated release candidate in the U.S. It has already done incredibly well in China, and U.S. buyers have been wanting slightly more interior space than the Model Y. Now that the Model X is gone, it is more needed than ever.
Q2 highlights a pretty stable automotive division within Tesla, and no true concerns arise from these figures, especially considering it managed to beat expectations convincingly.
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
Tesla Optimus project fires up as Musk sees production line progress
