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SpaceX nears big US govt. missions as ULA handwaves about risks of competition

Falcon 9 B1045 rolls out to Pad 40 ahead of its first launch in April 2018. (NASA/SpaceX)

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Speaking at the 2018 Von Braun Symposium in Huntsville, Alabama, ULA COO John Elbon expressed worries that the US National Security Space (NSS) apparatus could be put at significant risk if it comes to rely too heavily on the commercial launch industry to assure access to space.

Given that the US military’s launch capabilities rest solely on SpaceX and ULA and will remain that way for at least three more years, Elbon’s comment was effectively an odd barb tossed in the direction of SpaceX and – to a lesser extent – Blue Origin, two disruptive and commercially-oriented launch providers.

Reading between the lines

For the most part, Elbon’s brief presentation centered around a reasonable discussion of ULA’s track record and future vehicle development, emphasizing the respectable reliability of its current Atlas V and Delta IV rockets and the ‘heritage’ they share with ULA’s next-generation Vulcan vehicle. However, the COO twice brought up an intriguing concern that the US military launch apparatus could suffer if it ends up relying too heavily on ‘commercially-sustained’ launch vehicles like Falcon 9/Heavy or New Glenn.

To provide historical context and evidence favorable to his position, Elbon brought up a now-obscure event in the history of the launch industry, where – 20 years ago – companies Lockheed Martin and Boeing reportedly “set out to develop … Atlas V and Delta IV” primarily to support the launch of several large satellite constellations. The reality and causes of the US launch industry’s instability in the late ’90s and early ’00s is almost indistinguishable from this narrative, however.

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Despite the many veils of aerospace and military secrecy surrounding the events that occurred afterward, the facts show that – in 1999 – Boeing (per acquisition of McDonnell Douglas) and Lockheed Martin (LM) both received awards of $500M to develop the Delta IV and Atlas V rockets, and the military further committed to buying a full 28 launches for $2B between 2002 and 2006. Combined, the US military effectively placed $3B ($4.5B in 2018 dollars) on the table for its Evolved Expendable Launch Vehicle (EELV) program with the goal of ensuring uninterrupted access to space for national security purposes.

Rocketing into corporate espionage

“The robust commercial market forecast led the Air Force to reconsider its acquisition strategy.  The EELV acquisition strategy changed from a planned down-select to a single contractor and a standard Air Force development program [where the USAF funds vehicle development in its entirety] to a dual commercialized approach that leveraged commercial market share and contractor investment.” – USAF EELV Fact Sheet, March 2017

The above quote demonstrates that there is at least an inkling of truth in Elbon’s spin. However, perhaps the single biggest reason that the EELV program and its two awardees stumbled was gross, inexcusable conduct on the part of Boeing. In essence, the company’s space executives conspired to use corporate espionage to gain an upper-hand over Lockheed Martin, knowledge which ultimately allowed Boeing to severely low-ball the prices of its Delta IV rocket, securing 19 of 28 available USAF launch contracts.

Ultimately, Lockheed Martin caught wind of Boeing’s suspect behavior and filed a lawsuit that began several years of USAF investigations and highly unpleasant revelations, while Boeing also had at least 10 future launch contracts withdrawn to the tune of ~$1B (1999). USAF investigations discovered that Boeing had lied extensively to the Air Force for more than four years – the actual volume of information stolen would balloon wildly from Boeing’s initial reports of “seven pages of harmless data” to 10+ boxes containing more than 42,000 pages of extremely detailed technical and proprietary information about Lockheed Martin’s Atlas V rocket proposal.

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“If you rewind the clock 20 years, there were folks on a panel like this having dialogue about commercial launch, and there were envisioned several constellations that were going to require significant commercial launch. Lockheed Martin and Boeing set out to develop launch vehicles that were focused on that very robust commercial market – in the case of McDonald Douglas at the time, which later became Boeing, the factory in Decatur was…sized to crank out 40 [rocket boosters] a year, a couple of ships were bought to transport those…significant infrastructure put in place to address that envisioned launch market.” – John Elbon, COO, United Launch Alliance (ULA)

 

In reality, Boeing was so desperate to secure USAF launches – despite the fact that it knew full well that Delta IV was too expensive to be sustainably competitive – that dozens of employees were eventually roped into a systematic, years-long, highly-illegal program of corporate espionage specifically designed to beat out government launch competitor Lockheed Martin. Humorously, Delta IV was not even Boeing’s design – rather, Boeing acquired designer McDonnell Douglas in late 1996, five days before the USAF announced the decision to reject Boeing and another company’s EELV proposals, narrowing down to two finalists (McDonnell Douglas and Lockheed Martin).

Seven years after the original lawsuit snowballed, Boeing settled with Lockheed Martin for a payment of more than $600M in 2006, accepting responsibility for its employees’ actions but admitting no corporate wrongdoing. Five years after that settlement, John Elbon became Vice President of Boeing’s Space Exploration division. This is by no means to suggest that Elbon is in any way complicit, having spent much of his 30+ years at Boeing managing the company’s involvement in the International Space Station, but more serves as an example of how recent these events are and why their consequences almost certainly continue to reverberate loudly within the US space industry.

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SpaceX forces change

Worsened significantly by the consequences of Boeing’s lies about the actual operational costs of its Delta IV rocket (it had planned to secretly write off a loss on each rocket in order to steal USAF market share from LockMart), the commercial market for the extremely expensive rocket was and still is functionally nonexistent. 35 out of the family’s 36 launches have been contracted by the US military (30), NOAA (3), or NASA (2); the rocket’s first launch, likely sold at a major discount to Eutelsat, remains its one and only commercial mission.

ULA’s Delta Heavy seen during the August 2018 launch of NASA’s Parker Solar Probe. (Tom Cross)

Atlas V, typically priced around 30% less than comparable Delta IV variants, has had a far more productive career, albeit with very few commercial launches since the Dec. 2006 formation of the United Launch Alliance. Since 2007, just 5 of Atlas V’s 70 launches have been for commercial customers. Frankly, although Atlas V was appreciably more affordable than Delta IV, neither rocket was ever able to sustainably compete with Europe’s Ariane 5 workhorse – Ariane 5 cost more per launch, but superior payload performance often let Arianespace manifest two large satellites on a single launch, approximately halving the cost for each customer. Russia’s affordable (but only moderately reliable) Proton rockets also played an important role in the commercial launch industry prior to SpaceX’s arrival.

After fighting tooth and nail for years to break ULA’s US governmental launch monopoly, SpaceX’s first dedicated National Security Space launch finally occurred less than a year and a half ago, in May 2017. SpaceX has since placed a USAF spaceplane and a classified NSS-related satellite into orbit and been awarded launch contracts for critical USAF payloads, most notably winning five of five competed GPS III satellite launches, to begin as early as mid-December. Falcon 9 will cost the USAF roughly 30% less than a comparable Atlas 5 contract, $97M to ULA’s ~$135M.

 

A bit more than two decades after Boeing bought McDonnell Douglas and began a calculated effort to steal trade secrets from Lockheed Martin, Elbon – now COO of the Boeing/Lockheed Martin-cooperative ULA – seems to fervently believe that the most critical mistake made in the late 1990s and early 2000s was the USAF’s decision to partially support the development of two separate rockets. Elbon concluded his remarks on the topic with one impressively unambiguous summary of ULA’s position:

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“We have to make sure that we don’t get too much supply and not enough demand so that the [launch] providers can’t survive in a robust business environment, and then we lose the capability as a country to do the launches we need to do … [That’s] the perspective we have at ULA and it’s based on the experience that we’ve been through in the past.”

In his sole Delta IV vs. Atlas V case-study, what ULA now seems to think might have been “too much supply” under the USAF’s EELV program appears to literally be the fundamental minimum conditions needed for competition to exist at all – two companies offering two competing products. Short of directly stating as much, it’s difficult to imagine a more concise method of revealing the apparent belief that competition – at all – is intrinsically undesirable or risky.

A recording of the Von Braun Symposium’s Commercial Space panel can be viewed here at timestamp 01:11:40.

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 strikes down reports on SpaceX IPO rumors

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Credit: Grok

Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.

The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.

This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.

According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.

The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.

Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.

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Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.

SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.

By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.

They’ll have plenty of suitors.

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SpaceX just filed for the IPO everyone was waiting for

This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.

As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.

The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.

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Elon Musk

Tesla’s Robotaxi dreams just took a massive step toward reality

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Credit: Tesla

Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.

On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.

The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.

This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.

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Tesla and other companies can self-certify their vehicles and tech as long as they:

  • Operate in compliance with Texas traffic laws
  • Maintain proper registration, title, and insurance
  • Use compliant automated driving systems
  • Record onboard activity and handle system failures and glitches safely.

The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.

It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.

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On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.

Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.

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These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.

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Elon Musk

The Tesla and SpaceX merger everyone is talking about is quietly building

Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.

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Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.

The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.

Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI

Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.

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Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.

Elon Musk explains why he cannot be fired from SpaceX

Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.

What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.

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