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SpaceX waits in the wings as NASA risks maiming Jupiter probe to pinch pennies
SpaceX and its Falcon Heavy rocket continue to wait in the wings as NASA risks maiming its ‘Europa Clipper’ Jupiter probe by pinching the wrong pennies.
For the second time, NASA has performed “continuation/termination reviews” of three of the Europa Clipper spacecraft’s scientific instruments after budget overruns on the order of no more than a few tens of millions of dollars. Thankfully, no instruments were canceled, unlike the “ICEMAG” magnetometer that was functionally killed last year. Still, a NASA program scientist casually noted that the space agency would tolerate launching without one of two cameras and would offer no more funding to a mass spectrometer instrument (MASPEX), raising the risk of instrument failure during the challenging mission.
For any scientific spacecraft or rover, the instruments carried along are effectively the entire reason for their existence: if those instruments are faulty (or even removed before launch), the mission is effectively rendered pointless. Further, due to the sheer complexity and challenges posed by the act of getting to the destination and surviving after arrival, the actual instruments most scientific spacecraft carry represent a tiny fraction of the overall mission cost and mass. It’s not easy to readily imagine a better way to signal inept program management than by singularly focusing on that tiny, lifeblood-esque portion of a spacecraft’s budget. Undeterred, that is exactly what NASA appears to be doing with Europa Clipper – penny-wise, perhaps, but undoubtedly pound-foolish.
It’s not always true that only a small portion of an exploratory spacecraft’s budget is spent on scientific instruments but it absolutely is when it comes to Europa Clipper. Originally hoped to cost as little as $2 billion in 2013, Europa Clipper’s budget allocation has ballooned to $4.5 billion over the life of the program. Of that $4.5 billion, as little as $110M was dedicated to nine scientific instruments assigned to the spacecraft – a ratio of ~41:1. Even if instrument cost ballooned by 100% to ~$220 million, it would still be a measly 20:1. The space environment around Jupiter is admittedly one of the most challenging in the Solar System, warranting some imbalance, but either ratio is still exceptionally bad as far as most exploratory missions go.
Designed to create detailed maps of Europa’s theorized water oceans, ICEMAG, for example, jumped from a $30 million cost estimate to $45 million before NASA abruptly killed it. A Clipper planetary scientist called ICEMAG “a critical instrument that’s been central to Europa science forever”. MASPEX, meanwhile, is a mass spectrometer that will be used to analyze possible chemicals captured by flying through Europa’s transient atmosphere (or, even better yet, plumes from vast ocean geysers). In other words, the instrument most likely to be hobbled next by NASA is also the only instrument on Europa Clipper capable of potentially detecting signs of life by directly sampling material ejected by Europa’s plumes.
Even just with ICEMAG removed, the value proposition of a $4.5 billion mission to an ocean moon of Jupiter becomes much hazier. With ICEMAG removed and MASPEX at risk of being thrown to the wolves, Europa Clipper’s purpose becomes even weaker. Of course, seven valuable instruments remain – some of which partially overlap with MASPEX’ goals – and MASPEX could still technically make it to the finish line in its original handicap-free state, but the tides are definitely not moving in an encouraging direction.
The worst part is that excluding the extraordinarily expensive spacecraft that will host instruments worth ~3-5% its cost, Congress has been dead-set on forcing Europa Clipper to launch on NASA’s chronically-delayed, over-budget Space Launch System (SLS) rocket. SLS has yet to launch once despite more than a decade of development and almost $30 billion spent on the rocket alone, and it would take a miracle for an SLS rocket to be ready to launch Clipper before 2025 or 2026. Europa Clipper is working towards a launch no earlier than 2024, meaning that the spacecraft would have to be stored indefinitely at a cost of at least $125 million per year.
Intrepid readers may note that the cost of simply waiting a single year for SLS to be ready for launch is higher than the cost of all of Europa Clipper’s scientific instruments at their original $110 million budget. The actual cost to NASA for a single SLS launch is expected to $1.5 billion at the absolute minimum, while $2-2.5 billion is far more reasonable. With a little effort and some moderate cruise stage tweaks, Ars Technica has already reported that an expendable SpaceX Falcon Heavy rocket augmented with an off-the-shelf kick stage could send Europa Clipper to Jupiter in 5-6 years, compared to ~3 with SLS.
Ironically, that means that if Falcon Heavy was ready to launch Europa Clipper when the spacecraft is expected to be ready in 2024, it would actually arrive at the same time (or close) if it launched on SLS – once a minimum two-year launch vehicle delay is accounted for. A Falcon Heavy would also save NASA at least $1-2 billion, while it would directly save the Europa Clipper program the ~$250 million it would otherwise need to spend to store the spacecraft while waiting years for an SLS rocket. That $250 million alone – an inevitable add-on cost if SLS is chosen – could easily double the budget of every single Europa Clipper science instrument, adding plenty of breathing room, reinstating ICEMAG, and likely improving the science they output – data-gathering quite literally being the whole purpose of the mission.
Of course, the odds that NASA actually steps out from under the political shadow of SLS and stops playing penny wise and pound foolish with the extraordinarily expensive science missions it shepherds is unlikely. But still, the possibility (and hope) remains. Most recently, a very slight change in the wording of a proposed law (bill) could give the Europa Clipper program the legal wiggle room it needs to sidestep Congress’ desire to force it to launch on SLS. Of course, the senators and representatives with parochial attachment to the rocket will continue to fight tooth and nail to legally force it upon NASA at every possible turn, but there is now at least a chance of a sane outcome.
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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.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
