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SpaceX’s NASA Starship contract safe for now as Blue Origin looks to Congress
Fresh off of a major contract loss during a competition to build NASA’s next crewed Moon lander, Blue Origin has begun aggressively lobbying Congress for the contract NASA didn’t give it.
Thankfully, albeit not at first, a modification has been made to an amendment first proposed by a Senator that has long pursued favorable treatment of Blue Origin that will prevent that legislation – if it passes – from unfairly interrupting the $2.9 billion contract NASA already awarded SpaceX. Announced on April 16th, that award came as a shock, effectively cementing SpaceX’s lunar Starship as both the cheapest and most technically sound proposal to return humanity to the Moon.
As such, although NASA made it clear that it would have selected two of the three competing proposals in a perfect scenario, Congress allocated just a quarter of the Human Landing System (HLS) funding NASA requested, forcing the agency between a rock and a hard place.
NASA repeatedly stated as much both before and after the decision was announced, effectively implying that the agency had learned its lesson with the Commercial Crew Program, in which it had selected two redundant providers – Boeing and SpaceX – only for Congress to systematically underfund the program for years. As a direct result of years of underfunding during an early and formative period, both providers suffered at least 2-3 years of delays, followed by another few years of more organic delays as development matured and new challenges were unsurprisingly uncovered.
Politically, NASA could never say that – effectively biting the hand that (under)feeds – out loud, but it was strongly implied in an official HLS source selection statement released to partially explain why it had chosen SpaceX and SpaceX alone. Almost instantly, both losing competitors – Blue Origin and Dynetics – filed protests with the US Government Accountability Office (GAO) filled with far more bizarre, rambling tangents than coherent legal arguments.
Unless GAO operates on a different standard than the court of law or uncovers something nefarious behind closed doors, a close reading of both partially redacted protests does not bode well for either document’s ability to sway the office’s opinion. Almost as if Blue Origin itself is aware of just how frivolous its protest really is, the company – seemingly backed by partners Northrop Grumman, Lockheed Martin, and Leidos – wasted no time lobbying Senator Maria Cantwell for an alternate avenue to get what it wants and the government money founder Jeff Bezos feels entitled to.
Cantwell represents Washington State, where both Amazon and Blue Origin are headquartered, and has frequently spoken out in support of – or personally introduced – legislation that would specifically favor Bezos’ space company. On May 12th, Cantwell introduced an amendment that would purportedly “maintain competitiveness” by forcing NASA to select a second HLS winner in addition to SpaceX. Without irony, the authorization bill also demanded that NASA make that decision within a mere 30 days.
Under those conditions, Congress would authorize $10 billion for NASA to develop and demonstrate two landers with an uncrewed and crewed Moon landing each – the original plan. Insultingly, Cantwell tacked that amendment onto an authorization bill, meaning that even if Congress were to pass the bill and the President were to sign it into law, Congress would still have to actually allocate that $10 billion in the form of a more than 10% boost to NASA’s annual budget. Historically, even if Congress were to defy all recent precedent and significantly boost NASA’s 2022 budget, there is no guarantee that that raise would be upheld for four or more years, which it would need to be for the authorization bill to be anything more than a hollow promise.
More recently, a clause was thankfully added clarifying that NASA is not allowed to “modify, terminate, or rescind” SpaceX’s HLS contract to comply with the amendment. Additionally, while still amounting to a legal gun to NASA’s head to force it to into a contract it knows it cant afford, the modification gives NASA 60 days to award a second lander contract. Based on the agency’s own selection statement, Blue Origin’s National Team would almost certainly be the recipient in the event that the bill becomes law, forcing NASA to commit more than $9 billion – instead of $2.9 billion – to the next stage of HLS development with no guarantee that its budget will be raised accordingly.
In the meantime, GAO still has to complete its reviews of Blue Origin and Dynetic’s protests and the White House has to submit its FY2022 budget request and consider adding NASA funding to its proposed jobs and infrastructure package.
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Tesla Sweden maintains Trelleborg port deal despite union blockade
As noted in a report from Dagens Arbete (DA), Tesla was able to maintain its storage agreement with the Port of Trelleborg.
Tesla Sweden is still storing vehicles at the Port of Trelleborg despite the ongoing blockades against the company from the country’s labor unions.
Tesla still at Port of Trelleborg
As noted in a report from Dagens Arbete (DA), Tesla was able to maintain its storage agreement with the Port of Trelleborg. This allows the company to keep vehicles at the port while imports into Sweden continue. This was despite the Transport Workers’ Union’s blockade, which was aimed at halting the loading and unloading of Tesla vehicles in the area.
Local union leader Jörgen Wärja, chairman of Transport and an employee representative on the port company’s board, confirmed that the agreement was still active. “The agreement has not been terminated. You want to have the money instead of having empty warehouses. I understand the reason, but I do not support it,” Wärja said
The local union leader also noted that he visited Tesla’s storage area earlier this week. “There were a lot of cars. I was surprised that there were so many, actually,” he said.
Tesla had been able to bring vehicles into Sweden via passenger ferries at Trelleborg, a method that unions said allowed the company to bypass the blockade, DA noted. According to estimates from IF Metall, the workaround enabled Tesla to deliver thousands of cars to Sweden each year.
Port defends decision
The Port of Trelleborg did not issue a comment on its current agreement with Tesla, but said it had complied with union sympathy measures. Documents reviewed by Swedish media showed that the contract with Tesla was being extended in six-month intervals. Port CEO Malin Collin noted that the port would not discuss individual customer arrangements.
“We do not go into details regarding any customer agreements. We have continuous dialogue with potential tenants, and this is not unique to any location,” Collin wrote in an email.
The CEO added that the port was following legal requirements related to the labor dispute. “We have taken note of the Transport Workers’ Union’s decision on sympathy measures and are of course following applicable legislation and the requirements placed on us as employers,” Collin said.
Jörgen Wärja, for his part, noted that the issue was not whether Tesla’s imports into Sweden could be fully stopped, but whether the port should provide logistical support to the electric vehicle maker during an active conflict. “The port shouldn’t have anything to do with Tesla at all, we believe,” he said. “It’s purely moral. Whether you honor a conflict or not. If you say you support Transport’s sympathetic actions against Tesla, it becomes a double standard.”
Elon Musk
Elon Musk shares insights on SpaceX and Tesla’s potential scale
In a pair of recent posts on X, Musk argued that both companies operate in domains where growth is not linear, but exponential.
Elon Musk outlined why he believes Tesla and SpaceX ultimately dwarf their competitors, pointing to autonomy, robotics, and space-based energy as forces that fundamentally reshape economic scale.
In a pair of recent posts on X, Musk argued that both companies operate in domains where growth is not linear, but exponential.
Space-based energy
In a response to a user on X who observed that SpaceX has a larger valuation than all six US defense companies combined, Musk explained that space-based industries will eventually surpass the total economic value of Earth. He noted that space allows humanity to harness roughly 100,000 times more energy than Earth currently uses, while still consuming less than a millionth of the Sun’s total energy output.
That level of available energy should enable the emergence and development of industries that are simply not possible within Earth’s physical and environmental constraints. Continuous solar exposure in space, as per Musk’s comment, removes limitations imposed by atmosphere, weather, and land availability.
Autonomy and robots
In a follow-up post, Elon Musk explaned that “due to autonomy, Tesla is worth more than the rest of the auto industry.” Musk added that this assessment does not yet account for Optimus, Tesla’s humanoid robot. As per the CEO, once Optimus reaches scaled production, it could increase Earth’s gross domestic product by an order of magnitude, ultimately paving the way for sustainable abundance.
Even before the advent of Optimus, however, Tesla’s autonomous driving system already gives vehicles the option to become revenue-generating assets through services like the Tesla Robotaxi network. Tesla’s autonomous efforts seem to be on the verge of paying off, as services like the Robotaxi network have already been launched in its initial stages in Austin and the Bay Area.
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Tesla Cybercab undergoes winter testing as Elon Musk reiterates production start date
CEO Elon Musk confirmed the timeline in a recent post on X, while Tesla’s official social media accounts separately revealed that Cybercab prototypes are now undergoing winter testing in Alaska.
Tesla has reiterated that production of its fully autonomous Cybercab is set to begin in April, even as the company continues expanding real-world testing of the vehicle.
CEO Elon Musk confirmed the timeline in a recent post on X, while Tesla’s official social media accounts separately revealed that Cybercab prototypes are now undergoing winter testing in Alaska.
Musk confirms April Cybercab initial production
In a post on X, Musk reiterated that Cybercab production is scheduled to begin in April, reiterating his guidance about the vehicle’s manufacturing timeline. Around the same time, Tesla shared images showing the Cybercab undergoing cold-weather testing in Alaska. Interestingly enough, the Cybercab prototypes being tested in Alaska seemed to be equipped with snow tires.
Winter testing in Alaska suggests Tesla is preparing the Cybercab for deployment across a wide range of climates in the United States. Cold temperatures, snow, ice, and reduced traction present some of the most demanding scenarios for autonomous systems, making Alaska a logical proving ground for a vehicle designed to operate without a human driver.
Taken together, Musk’s production update and Tesla’s testing post indicate that while the Cybercab is nearing the start of manufacturing, validation efforts are still actively ramping to ensure reliability in real-world environments.
What early Cybercab production might look like
Musk has previously cautioned that the start of Cybercab manufacturing will be slow, reflecting the challenges of launching an all-new vehicle platform. In a recent comment, Musk said initial production typically follows an S-curve, with early output constrained by how many new parts and processes are involved.
According to Musk, both Cybercab and Optimus fall into this category, as “almost everything is new.” As a result, early production rates are expected to be very deliberate before eventually accelerating rapidly as manufacturing processes mature.
“Initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast,” Musk wrote in a post on X.
Tesla Sweden maintains Trelleborg port deal despite union blockade
Elon Musk shares insights on SpaceX and Tesla’s potential scale
