News
SpaceX and “new space” up against traditionalists for future of NASA
Speculation about the direction of NASA under the Trump Administration has been circling for weeks, and although there are still no definite answers, there’s finally some news about the process being executed.
According to internal White House advisory documents obtained by Politico, there’s a huge push from many advisors for NASA to be used as a driver for privatized space technology; however, that push is bringing the rift between traditional NASA contractors and the “new space” companies like SpaceX and Blue Origin to a head. NASA’s $19 billion dollar budget is simply not large enough to accommodate both commercially-driven and traditional visions for the agency. The struggle is real, apparently, and it isn’t just affecting inner White House circles, either.
Earlier this week, the Commercial Spaceflight Federation (CSF) surprised its audience by endorsing NASA’s Space Launch System (SLS), the heavy lift rocket being built to launch future NASA missions. In his remarks at the FAA’s Commercial Space Conference, CSF chairman Alan Stern characterized the SLS as a “resource” that could be complimentary to commercial space activity.
The surprise at this announcement comes in part from the fact that Boeing, a traditional NASA contractor and one-half of the government-customer-only launch service United Launch Alliance (ULA), is the prime contractor for the SLS. The cost comparison between private and government contracted technology is the issue.
Cost Effectiveness is Key
The billions of dollars it will take to fully develop SLS plus the high cost of launch missions is hard to justify when, for example, SpaceX estimates under $100 million dollars per flight on its upcoming heavy launch vehicle, Falcon Heavy.
SLS is estimated to be capable of carrying many times the payload weight of SpaceX’s vehicle, but it would still cost much less to use multiple SpaceX vehicles for a multi-part payload rather than justify the huge cost for a single launch. That, or one could argue that the cost of a SpaceX or Blue Origin developed vehicle in line with the SLS’s capabilities would be much more cost effective given the pricing record thus far. It also should be noted that such vehicles are, in fact, being designed by these companies already, albeit mostly still in non-tangible state. SpaceX has its Mars-bound Interplanetary Transport System (or “BFR” if you like), and Blue Origin has its “New Armstrong” in the works.
What about Congress?
The push from White House advisers will face obstacles in Congress as well. Space subcommittee members in both the House and Senate have discussed some of the details included in a draft 2017 NASA Authorization Act, the legislation which will define NASA’s priorities, and considering their comments alongside prior legislative drafts, “stay the course” looks to be the general direction. Concern over NASA’s need for “constancy of purpose” is a big driver, as missions requiring long-term development suffer when directives vary too widely from one presidential administration to another.
While prior presentations of NASA Authorization Acts have been lengthy and mostly inviting little to no controversy, they all still contain a requirement to use the SLS and Orion, NASA’s crew capsule under development, for deep space activity and anywhere else suitable. Such emphasis would likely clash with those advocating for transforming NASA’s role to one supporting commercial launch vehicles, especially those promoting the elimination of the SLS entirely.
Also, with thousands of NASA-dependent jobs on the line in the districts hosting SLS development facilities, the stakes are high for any congressional representatives thinking of supporting major shifts for NASA. The lines seem to have been drawn in the proverbial sand.
What about Mars?
News of commercial space supporters advocating for a NASA transition inside the White House may sound hopeful to those rooting for more privatized space technology; however, for colonization dreamers, Mars looks to be a carrot teased at the end of a “Moon first” road. The internal White House documents call for Moon development to begin by 2020, Mars falling under the “and beyond” category of capabilities that could be possible with an overhauled NASA.
In that light, the proposed NASA bills might sound like a Cinderella story for Mars enthusiasts: In order to go to the Prince’s ball (Mars), a whole host of lengthy chores (cis-lunar activity, Moon base, use the SLS, etc.) must be completed first.
If “Moon first” becomes the winner in the end, it still wouldn’t likely interfere with Elon Musk’s Mars plans but rather help them along with all the new space infrastructure launch income for SpaceX. And to continue with the Cinderella bit, we know there’s no way Musk would make it home by midnight anyway, although he does seem to have an affinity for mice.
Investor's Corner
Tesla Q4 delivery numbers are better than they initially look: analyst
The Deepwater Asset Management Managing Partner shared his thoughts in a post on his website.
Longtime Tesla analyst and Deepwater Asset Management Managing Partner Gene Munster has shared his insights on Tesla’s Q4 2025 deliveries. As per the analyst, Tesla’s numbers are actually better than they first appear.
Munster shared his thoughts in a post on his website.
Normalized December Deliveries
Munster noted that Tesla delivered 418k vehicles in the fourth quarter of 2025, slightly below Street expectations of 420k but above the whisper number of 415k. Tesla’s reported 16% year-over-year decline, compared to +7% in September, is largely distorted by the timing of the tax credit expiration, which pulled forward demand.
“Taking a step back, we believe September deliveries pulled forward approximately 55k units that would have otherwise occurred in December or March. For simplicity, we assume the entire pull-forward impacted the December quarter. Under this assumption, September growth would have been down ~5% absent the 55k pull-forward, a Deepwater estimate tied to the credit’s expiration.
“For December deliveries to have declined ~5% year over year would imply total deliveries of roughly 470k. Subtracting the 55k units pulled into September results in an implied December delivery figure of approximately 415k. The reported 418k suggests that, when normalizing for the tax credit timing, quarter-over-quarter growth has been consistently down ~5%. Importantly, this ~5% decline represents an improvement from the ~13% declines seen in both the March and June 2025 quarters.“
Munster also estimated that Q4 as a whole might very well show a notable improvement in Tesla’s market share in the United States.
“Over the past couple of years, based on data from Cox Automotive, Tesla has been losing U.S. EV market share, declining to just under 50%. Based on data for October and November, Cox estimates that total U.S. EV sales were down approximately 35%, compared to Tesla’s just reported down 16% for the full quarter. For the first two months of the quarter, Cox reported Tesla market share of roughly a 65% share, up from under 50% in the September quarter.
“While this data excludes December, the quarter as a whole is likely to show a material improvement in Tesla’s U.S. EV market share.“
Elon Musk
Tesla analyst breaks down delivery report: ‘A step in the right direction’
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026,” Ives wrote.
Tesla analyst Dan Ives of Wedbush released a new note on Friday morning just after the company released production and delivery figures for Q4 and the full year of 2025, stating that the numbers, while slightly underwhelming, are “better than feared” and as “a step in the right direction.”
Tesla reported production of 434,358 and deliveries of 418,227 for the fourth quarter, while 1,654,667 vehicles were produced and 1,636,129 cars were delivered for the full year.
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Interestingly, the company posted its own consensus figures that were compiled from various firms on its website a few days ago, where expectations were set at 1,640,752 cars for the year. Tesla fell about 4,000 units short of that. One of the areas where Tesla excelled was energy deployments, which totaled 46.7 GWh for the year.
🚨 Wedbush’s Dan Ives has released a new note on Tesla $TSLA:
“Tesla announced its FY4Q25 delivery numbers this morning coming in at 418.2k vehicles slightly below the company’s consensus delivery estimate of 422.9k but much better than the whisper numbers of ~410k as the…
— TESLARATI (@Teslarati) January 2, 2026
In terms of vehicle deliveries, Ives writes that Tesla certainly has some things to work through if it wants to return to growth in that aspect, especially with the loss of the $7,500 tax credit in the U.S. and “continuous headwinds” for the company in Europe.
However, Ives also believes that, given the delivery numbers, which were on par with expectations, Tesla is positioned well for a strong 2026, especially with its AI focus, Robotaxi and Cybercab development, and energy:
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026. We look forward to hearing more at the company’s 4Q25 call on January 28th. AI Valuation – The Focus Throughout 2026. We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
It’s no secret that for the past several years, Tesla’s vehicle delivery numbers have been the main focus of investors and analysts have looked at them as an indicator of company health to a certain extent. The problem with that narrative in 2025 and 2026 is that Tesla is now focusing more on the deployment of Full Self-Driving, its Optimus project, AI development, and Cybercab.
While vehicle deliveries still hold importance, it is more crucial to note that Tesla’s overall environment as a business relies on much more than just how many cars are purchased. That metric, to a certain extent, is fading in importance in the grand scheme of things, but it will never totally disappear.
Ives and Wedbush maintained their $600 price target and an ‘Outperform’ rating on the stock.
Investor's Corner
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Deliveries stood at 406,585 Model 3/Y and 11,642 other models, for a total of 418,227 vehicles.
Tesla (NASDAQ:TSLA) has reported its Q4 2025 production and deliveries, with 418,227 vehicles delivered and 434,358 produced worldwide. Energy storage deployments hit a quarterly record at 14.2 GWh.
Tesla’s Q4 and FY 2025 results were posted on Friday, January 2, 2026.
Q4 2025 production and deliveries
In Q4 2025, Tesla produced 422,652 Model 3/Y units and 11,706 other models, which are comprised of the Model S, Model X, and the Cybertruck, for a total of 434,358 vehicles. Deliveries stood at 406,585 Model 3/Y and 11,642 other models, for a total of 418,227 vehicles.
Energy deployments reached 14.2 GWh, a new record. Similar to other reports, Tesla posted a company thanked customers, employees, suppliers, shareholders, and supporters for its fourth quarter results.
In comparison, analysts included in Tesla’s company-compiled consensus estimate that Tesla would deliver 422,850 vehicles and deploy 13.4 GWh of battery storage systems in Q4 2025.
Tesla’s Full Year 2025 results
For the full year, Tesla produced a total of 1,654,667 vehicles, comprised of 1,600,767 Model Y/3 and 53,900 other models. Tesla also delivered 1,636,129 vehicles in FY 2025, comprised of 1,585,279 Model Y/3 and 50,850 other models. Energy deployments totaled 46.7 GWh over the year.
In comparison, analysts included in Tesla’s company-compiled consensus expected the company to deliver a total of 1,640,752 vehicles for full year 2025. Analysts also expected Tesla’s energy division to deploy a total of 45.9 GWh during the year.
Tesla will post its financial results for the fourth quarter of 2025 after market close on Wednesday, January 28, 2026. The company’s Q4 and FY 2025 earnings call is expected to be held on the same day at 4:30 p.m. Central Time.
Tesla Q4 delivery numbers are better than they initially look: analyst
Tesla analyst breaks down delivery report: ‘A step in the right direction’
