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Blue Origin lawsuit forces SpaceX, NASA to stop joint work on Starship Moon lander

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4 years ago

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Days after Jeff Bezos space startup Blue Origin sued NASA over its decision to solely award SpaceX a contract to turn Starship into a Moon lander, it’s become clear that the space agency will again have to freeze work on the program.

Earlier this week, it was reported that Blue Origin had made good on a veiled threat to sue NASA over disagreements over the space agency’s latest Human Landing System (HLS) procurement decisions. Namely, NASA decided not to proceed with Blue Origin’s National Team Moon lander proposal, which was twice as expensive as SpaceX’s Starship proposal, less technically sound, and promised significantly less cost-sharing.

SpaceX, on the other hand, proposed to turn Starship into a safe, crew-rated, reusable Moon lander for about the same cost as Blue Origin’s proposal price: $6 billion, give or take. However, NASA says that the company offered to pay for more than half of the Starship Moon lander’s development, lowering NASA’s actual cost to just $2.9 billion. Coincidentally or not, $2.9 billion – with some minor concessions on when that funding would be dispersed to the HLS winner – would end up being almost exactly what NASA could afford over the program’s four to five-year lifespan.

As previously discussed on Teslarati, NASA repeatedly and explicitly warned all three HLS Option A competitors (SpaceX, Blue Origin, and Dynetics) that it withheld the ability to award as many or as few contracts as it wanted – including none at all. Ultimately, exactly as it had cautioned, NASA weighed the three proposals it received against its existing budget (a middling $850M of $3.4B requested in FY21) and selected just one – a proposal from SpaceX that was conveniently both the cheapest and most technically sound.

“The fixed-price [Starship] contract will cost NASA $2.9B over four or so years – narrowly within the space agency’s reach if Congress continues to appropriate around $850M annually ($3.4B over four years). The numbers are very simple. As GAO notes [in its protest denial], the Broad Agency Announcement (BAA) tool NASA used for its HLS Option A acquisition also explicitly allowed the agency to select as many or as few proposals as it wants, including none at all. In the lead-up to proposal submission, official NASA documents repeatedly cautioned as much, warning that the agency might not even award one contract depending on funding or the quality of proposals it received.

For Blue Origin’s lawsuit to succeed, the increasingly desperate company will have to convince a federal judge that basic realities and longstanding precedents of federal procurement – not just NASA’s HLS award to SpaceX – are flawed and need to be changed. The odds of success are thus spectacularly low. However, if the presiding judge allows the case to proceed and awards Blue Origin an injunction against NASA, it could force the space agency to cease work on SpaceX’s HLS contract for months and potentially freeze SpaceX’s access to the $300M NASA recently disbursed.”

Teslarati.com — August 16th, 2021

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Unfortunately, just as speculated, Blue Origin’s lawsuit appears to have found just enough footing to disrupt the HLS program yet again. Thanks to the first protests of Blue Origin and Dynetics, NASA and SpaceX were forced to stop cooperative work on the Starship Moon lander for more than three months. Now, on August 19th, NASA reportedly “voluntarily paused” work on SpaceX’s HLS Moon lander contract and will continue to do so until November 1st – potentially adding another ~74 days to the 95-day delay Blue Origin’s meddling has already partially caused.

On its own, the announcement is already fairly bizarre. For unknown reasons, Blue Origin apparently agreed to “an expedited litigation schedule” in return for NASA voluntarily pausing work on SpaceX’s HLS contract. It’s unclear why any plaintiff that believes it has a strong case would allow an artificial limit to be placed on the amount of time available for litigation, but that’s exactly what Blue Origin has agreed to.

Per that “expedited schedule,” NASA’s voluntary work halt will end on November 1st after several scheduled rounds of motions and cross-motions from Blue Origin, SpaceX, and the space agency. It’s unclear when a ruling might be expected but the schedule published seems to imply that it would come sometime before NASA and SpaceX resume work.

It’s now increasingly likely that being forced to spend more than five months without the ability to seriously work or collaborate with SpaceX on its HLS contract will significantly delay NASA’s necessary contributions and thus humanity’s return to the Moon. Thankfully, as was the case with the initial 95-day delay caused by contract protests, no part of Blue Origin’s lawsuit will prevent SpaceX itself from continuing to develop Starship, though it almost certainly hampers the company’s ability to mature its Starship Moon lander design.

In the meantime, while Blue Origin busies itself with a general determination to disrupt NASA’s return to the Moon until it receives a slice of the pie its executives and owner feel entitled to, SpaceX will simply continue a full-court press towards Starship’s orbital launch debut and focus on building, testing, flying, and rebuilding the hardware that will return humanity to the Moon and, just maybe, revolutionize spaceflight as we know it.

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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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Tesla Robotaxi vs. New York Taxi: Why the Yellow Cab has a lot to lose

Tesla Robotaxi could spell the beginning of the end of the New York City yellow cab.

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13 hours ago

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August 13, 2025

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Tesla appears to be on its way into the Big Apple, and a traditional Yellow Cab in New York City might be a thing of the past in the near future.

As Tesla continues to put an immense focus on the rollout of its Robotaxi platform, it is evident that driverless ride-hailing modes of transportation could truly be the way that many choose to get around. This is especially prevalent in cities like New York, where many people do not own cars. Instead, they choose to walk to hail a cab.

Tesla Robotaxi is headed to New York City, but one thing is in its way

But the limited number of medallions available for taxi drivers in New York City, as well as several other points of emphasis, seem to show the future is here and yellow cabs might soon be a thing of the past.

Instead of working tirelessly to pay off the debt from medallions, entrepreneurs could soon just buy a Tesla and have it work autonomously in New York City. Tesla executives have mentioned figures as high as $50,000 per year in terms of passive income from Robotaxi operation.

That is just the tip of the iceberg, and Robotaxi presents not only one but at least five distinct advantages over the traditional cab platform. With Tesla starting to seek employees to operate Robotaxi rides in New York, according to recent job postings, New York City cabs should prepare for the disruption Tesla could potentially cause.

Lower Operational Costs and Cheaper Fares

Uber and Lyft have already undercut the costs of New York City taxis, but Robotaxi is starting to undercut even those ride-sharing programs in Austin, Texas.

In terms of how much cheaper Robotaxi will be than cabs, it is an exponential measurement over time. Robotaxi will not require salaries, benefits, or tips, and the cost of Robotaxi could end up being just a fraction of what the same ride would cost in a cab.

This feeds right back into medallion expenses and union wages: even buying a Tesla in the next few years that has the capability to operate as a Robotaxi will be a fraction of what medallions cost, which is sometimes $200,000.

Availability and Scalability

Cabs are available at all hours of the day, but at certain times, they are less available.

Robotaxis can technically operate without breaks, other than charging. Tesla has an immense focus on scaling its Robotaxi platform anyway, and once it is available for the public to use in their personal cars, Model Ys and Cybercabs could be roaming the streets of the five boroughs with more reliability and lower wait times than traditional cabs could ever offer.

This is an issue that is even more relevant in smaller cities or less congested portions of New York.

Safer and More Efficient Rides

Tesla’s Full Self-Driving technology has reported recent safety figures that are ten times less likely to be involved in an accident than a human. Tesla releases a Safety Report for each quarter that proves its safety against human drivers.

As Full Self-Driving continues to advance, it will get better. Riders who want a stable and safe ride could seek Robotaxi instead of going with a human driver. This is something that we’ll likely see more of in the future as sentiment on autonomous driving grows.

Trust in autonomous vehicles has increased substantially over the past ten years. In 2015, surveys showed that trust in autonomous vehicles was low, with only 23 percent of Americans showing that they’d ride in a driverless car.

In 2021, another study performed that asked the same question showed 57 percent of adults would try an autonomous car for their travel.

Seamless App Integration and User Experience

Taxis are not always the most entertaining to ride in, and sometimes they are even more difficult to get a ride in. Robotaxi has already shown to be an incredibly user-friendly experience, with riders being able to choose what temperature the cabin is and what music they want to listen to in the cabin.

The addition of a rear screen also allows riders to choose from a selection of games or YouTube videos in the car.

Hailing a vehicle was basically resolved with the use of Uber and Lyft. Robotaxi is just as good, if not better, from an app standpoint, especially as the in-car climate is able to be adjusted from the Robotaxi app.

Music from one Robotaxi will continue to play in your next one, too. It’s a small luxury, but it’s a feature that is an improvement over a traditional taxi.

The Push for Sustainability by New York City

New York is pushing for a city-owned fleet of all-electric vehicles by 2027.

Its green initiatives, including the Green Rides Initiative, have pushed the city’s rideshare trips to be conducted by either zero-emission or wheelchair accessible vehicles by 2030.

Tesla Model 3 taxis drive NY’s resolution for more all-electric yellow cabs

The focus by consumers to use green or zero-emission vehicles could also steer right into the direction of Tesla Robotaxi, as none of the vehicles in the Robotaxi fleet will be anything but all-electric Teslas.

Carbon neutrality is a goal of the City and its residents. Moving forward, we could see these programs start to put immense pressure on the yellow cab, which could eventually be a thing of the past.

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Tesla plans to use Unreal Engine for driver visualization with crazy upgrade

This could change the way Driver Visualization looks for Tesla owners.

Published

15 hours ago

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August 13, 2025

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Credit: Tesla Newswire | X

Tesla looks to be planning a major upgrade to its driver visualization for Autopilot with a crazy upgrade from its current version.

Tesla’s driver visualization appears on the center screen and shows the vehicle, its surroundings, and, when it is operating on Autopilot or Full Self-Driving, shows the route of travel.

It has improved over the years, and even includes things like pedestrians, pets, and the shapes of other vehicles. It also helps with manual driving because it can be a good representation of your surroundings when trying to change lanes or merge in traffic.

However, it appears Tesla is planning a pretty substantial upgrade with the

Coding found in the 2025.20 firmware by Tesla hacker greentheonly showed the company is planning to utilize Unreal Engine for Autopilot visualization. He said the one Tesla currently uses is “godot-based.”

Unreal Engine is a 3D computer graphics game engine that was developed by Epic Games, the developer of the popular third-party shooter game Fortnite. It was first released back in 1998, and the most recent version is Unreal Engine 5. The sixth version is in development, and it could be out in 2027 or 2028.

However, Tesla could use it for a more realistic representation of vehicle surroundings. It would undoubtedly improve driver visualization, creating a smoother and freer-flowing depiction of what is outside of the car.

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SpaceX is rolling out a new feature to Starlink that could be a lifesaver

Starlink now has a new Standby Mode that will enable low-speed internet access in the event of an outage.

Published

17 hours ago

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August 13, 2025

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(Credit: Starlink | X)

SpaceX is rolling out a new feature to Starlink that could be a lifesaver in some instances, but more of a luxury for others.

Starlink is the satellite internet service that Elon Musk’s company SpaceX launched several years ago. It has been adopted by many people at their homes, many airlines on their planes, and many maritime companies on their ships.

SpaceX produces its 10 millionth Starlink kit

It has been a great way for customers to relieve themselves of the contracts and hidden fees of traditional internet service providers.

Now, Starlink is rolling out a new service feature on its units called “Standby Mode,” which is part of Pause Mode. The company notified customers of the change in an email:

“We’re reaching out to you to let you know the Pause feature on your plan has been updated. Pause now includes Standby Mode, which comes with unlimited low-speed data for $5.00 per month, perfect for backup connectivity and emergency use. These updates will take effect in 30 days. All of your other plan features remain the same. You are able to cancel your service at any time for no charge.”

SpaceX did not define how fast these “low speeds” will be. However, there are people who have tested the Standby Mode, and they reported speeds of about 500 kilobytes per second.

The mode is ideal for people who might deal with internet or power outages, but still need to have some sort of internet access.

It could also be used as a backup for people who want to stay with their ISP, but would like to have some sort of alternative in case of an outage for any reason.

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