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SpaceX bests Boeing to become NASA’s largest for-profit vendor

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Fourteen years after winning its first major NASA contract, data shared by Aviation Week reporter Irene Klotz shows that SpaceX has usurped every other major aerospace company in the US to become the space agency’s largest for-profit vendor.

SpaceX’s ascension up those ranks has been arduous and far from guaranteed, but the company now provides NASA with a wide range of relatively affordable spaceflight services. SpaceX was paid a record $2.04 billion for those services in the 2022 fiscal year. Only the California Institute of Technology (Caltech), a nonprofit that includes the entirety of the Jet Propulsion Laboratory (JPL) and received $2.68 billion in the same period, ranks higher on NASA’s list of FY2022 vendors. Boeing came in third with $1.72 billion, followed by Lockheed Martin with $1.34 billion.

Cargo

NASA kickstarted its relationship with SpaceX in December 2008 when it awarded the company a $1.5 billion contract to develop the first versions of the Cargo Dragon spacecraft and Falcon 9 rocket and deliver cargo to the International Space Station (ISS). Famously, founder and CEO Elon Musk once told 60 Minutes that, to a degree, NASA’s contract saved SpaceX from imminent bankruptcy and possible dissolution.

Saved by the infusion of resources, SpaceX successfully debuted Falcon 9 in June 2010 and began operational ISS cargo deliveries under NASA’s Commercial Resupply Services (CRS) program in October 2012. Aside from a survivable engine failure on CRS-1 (2012) and one catastrophic Falcon 9 failure on CRS-7 (2015), NASA and SpaceX’s CRS cooperation has been a thorough success. SpaceX is just a few weeks away from CRS-26, which will likely become Cargo Dragon’s 26th successful ISS cargo delivery in 10 years.

NASA ultimately paid SpaceX $3.04 billion to complete its first 20 CRS missions. SpaceX’s newer CRS-2 contract, which bore launches in January 2021, has 15 missions on contract and will likely cost NASA another $3.5 billion by the mid-2020s. SpaceX launches an average of three CRS missions per year, likely translating to about $700 million in annual revenue. SpaceX completed two Cargo Dragon launches for NASA in FY2022.

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SpaceX completed its last Cargo Dragon 1 launch in March 2020. (Richard Angle)
Cargo Dragon 2 rolls out for its fifth ISS cargo delivery in July 2022. (SpaceX)

Crew

The second biggest contributor to SpaceX’s NASA revenue is Crew Dragon. In 2014, NASA contracted with SpaceX and Boeing to independently develop spacecraft capable of safely transporting astronauts to and from the International Space Station (ISS), taking over the role the Space Shuttle and Russian Soyuz spacecraft filled from 2000 to 2020. Crew Dragon completed its first uncrewed orbital test flight in March 2019 and its first crewed test flight in May 2020. Operational launches began in November 2020.

Subverting all expectations, Boeing’s Starliner crew capsule completed its first fully successful uncrewed test flight in May 2022, a full three years behind SpaceX. Starliner’s first crewed test flight is now scheduled no earlier than (NET) February 2023, while its first operational astronaut launch is tentatively scheduled for Q3 2023 at the earliest. Thanks to Boeing’s woeful performance, SpaceX has been responsible for launching every NASA astronaut (save one) since late 2020 and will continue to do so well into 2023. That means that SpaceX is on call for two Crew Dragon launches per year for NASA, whereas the Commercial Crew Program originally hoped that SpaceX and Boeing would each launch once per year.

In 2022, NASA took the extraordinary step of purchasing eight additional Crew Dragon launches while buying zero extra Starliner launches. Through 2030, SpaceX is now under contract to complete 14 operational Crew Dragon missions for NASA for $4.93 billion – less than the $5.1 billion NASA will pay Boeing for just six operational Starliner launches. For its first six operational missions, SpaceX is charging NASA about $220 million apiece. For Crew-7 through Crew-14, SpaceX will charge approximately $290 to $300 million per mission.

SpaceX completed two Crew Dragon launches for NASA in FY2022.

SpaceX completed its sixth NASA astronaut launch on October 5th, 2022. (Richard Angle)

Falcon

Aside from launching Dragons for NASA, SpaceX’s Falcon 9 and Falcon Heavy rockets are also heavily relied upon to launch a wide range of scientific spacecraft through the Solar System. Since 2010, NASA’s Launch Services Program (LSP) has paid SpaceX almost $1 billion to complete six launches (worth about $400M) and prepare for at least nine others. The nine additional LSP launches SpaceX is scheduled to complete between November 2022 and June 2026 will cost NASA around $1.4 billion. Five of those missions will use SpaceX’s larger Falcon Heavy rocket and represent more than $1 billion of that $1.4 billion.

In FY2022, SpaceX completed two NASA LSP launches for about $120 million.

SpaceX’s last NASA ISP mission launched the IXPE X-ray telescope in December 2021. (Richard Angle)

Starship

Finally, the last major line item on NASA’s SpaceX expenditures is focused on Starship. In April 2021, NASA awarded SpaceX a $2.9 billion Human Landing System (HLS) contract (~$3 billion including previous funding) to develop a Starship-derived Moon landing system capable of transporting astronauts to and from the lunar surface. Since 2020, NASA has paid SpaceX $1.26 billion for its work on HLS, more than $800 million of which was disbursed in FY2022.

A render of SpaceX’s Starship HLS Moon lander.

All told, a rough estimate of the four programs above accounts for about $1.82 billion of the $2.04 billion NASA paid SpaceX in FY2022. SpaceX was also paid about $50 million for work on its 2024 launch of Europa Clipper, leaving about $170 million that can probably be explained by other advance payments for work on upcoming Dragon and LSP launches.

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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 sends clear message to Waymo with latest Austin Robotaxi move

It is the first expansion Tesla has made in Austin since the one on August 26. The company still operates in the Bay Area of California as well, referring to that program specifically as a “ride-hailing service.”

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Credit: Tesla

Tesla has sent a clear message to Waymo with its latest move to its Robotaxi program in Austin, Texas.

Tesla and Waymo are the two true leaders in autonomous ride-hailing to an extent. Tesla has what many believe is a lot of potential due to its prowess with the Supervised Full Self-Driving suite. It is also operating a driverless Robotaxi service in Austin with a “Safety Monitor” that sits in the passenger’s seat.

Tesla explains why Robotaxis now have safety monitors in the driver’s seat

The two companies have been competing heavily in the market since they both launched driverless ride-hailing services in Austin this year: Waymo’s in March and Tesla’s in June.

One of the main drivers in the competition between the two is service area size, or the geofence in which the cars will operate without a driver. In August, the two were tied with a service area of about 90 square miles (233.099 sq. km).

Tesla then expanded to about 170 square miles (440.298 sq. km) on August 26, dwarfing Waymo’s service area and expanding to freeways. Tesla’s freeway operation of the Robotaxi suite requires the Safety Monitor to be in the driver’s seat for safety reasons.

On Tuesday evening, Tesla made another move that sent a clear message to Waymo, as it expanded once again, this time to 243 square miles (629.367 sq. km).

This is according to Robotracker:

It is the first expansion Tesla has made in Austin since the one on August 26. The company still operates in the Bay Area of California as well, referring to that program specifically as a “ride-hailing service.”

Yesterday, it expanded that service to the San Jose Mineta International Airport, something it has been working on for several months.

Waymo has its own set of distinct advantages over Tesla as well, as it operates in more cities and states than the EV maker. Waymo currently has its autonomous vehicle services in Phoenix, Arizona, San Francisco, Los Angeles, Austin, and Atlanta, Georgia.

Tesla plans to have half of the U.S. population with access to the Robotaxi platform by the end of the year.

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Tesla exec reveals shock development with Cybercab

“If we have to have a steering wheel, it can have a steering wheel and pedals.”

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(Credit: Teslarati)

Tesla is planning to launch the Cybercab in the second quarter of next year, and it is designed to be fully autonomous, so much so that the company is planning to build it without a steering wheel or pedals.

However, a Tesla executive said today that the company could ditch that idea altogether in what would be a major shift from the plans the company, and especially its CEO Elon Musk, have announced for the Cybercab.

Earlier today, Robyn Denholm, the company’s Chair for the Board of Directors, revealed that Tesla would potentially switch up its plans for the Cybercab based on potential regulatory requirements.

Credit: Tesla Europe & Middle East | X

Currently, even autonomous vehicles that operate for companies like Tesla and Waymo are required to have steering wheels and pedals. From a regulatory perspective, this could halt the plans Tesla has for Cybercab.

Denholm said in an interview with Bloomberg:

“If we have to have a steering wheel, it can have a steering wheel and pedals.”

Interestingly, Musk and Tesla have not veered away from the idea that the vehicle will be without these operational must-haves.

Since the vehicle was revealed last October at the We, Robot event in Los Angeles, Tesla has maintained that the car would be built without a steering wheel or pedals, and would equip two seats, which is what is statistically most popular in ride-sharing, as the vast majority of rides have only one or two passengers.

Musk doubled down on the plans for Cybercab as recently as last week, when he said:

“That’s really a vehicle that’s optimized for full autonomy. It, in fact, does not have a steering wheel or pedals and is really an enduring optimization on minimizing cost per mile for fully considered cost per mile of operation. For our other vehicles, they still have a little bit of the horse carriage thing going on where, obviously, if you’ve got steering wheels and pedals and you’re designing a car that people might want to go very direct past acceleration and tight cornering, like high-performance cars, then you’re going to design a different car than one that is optimized for a comfortable ride and doesn’t expect to go past sort of 85 or 90 miles an hour.”

Cybercab is fully conceptualized as a vehicle that has zero need for pedals or a steering wheel because it is aimed toward being fully reliant on a Level 5 autonomous platform.

Tesla is ramping its hiring for Cybercab vehicle manufacturing roles

Regulators could get in the way of this, however, and although the car could drive itself and be a great solution for ride-hailing, it might need to have these controls to hit the road in the future.

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SpaceX opens up free Starlink service for those impacted by Hurricane Melissa

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(Credit: Starlink | X)

SpaceX is opening up its internet service, Starlink, to those impacted by Hurricane Melissa, as it made landfall in Jamaica and the Bahamas as a Category 5 storm.

Hurricane Melissa is expected to reach wind speeds of over 165 MPH over the next few days as it extends out into the Atlantic Ocean by Thursday and Friday.

Citizens in Jamaica and the Bahamas have been preparing for the storm for the past week, getting necessary goods together and preparing for the massive storm to arrive. It finally did yesterday, and the first images and video of the storm are showing that it could destroy many parts of both countries.

Starlink is now being opened up for free until the end of November for those impacted by the storm in Jamaica and the Bahamas, SpaceX announced today:

It is a move similar to the one the company made last year as Hurricane Helene made its way through the United States, destroying homes and property across the East Coast. SpaceX offered free service for those impacted by the destruction caused by the storm.

The free Starlink service was available until the end of 2024.

Elon Musk’s companies have also made similar moves to help out those who are impacted by natural disasters. Tesla has offered Free Supercharging in the past, most notably during the California wildfires.

Tesla and SpaceX’s LA fire relief efforts: Cybertrucks, free Starlink and more

One major advantage of Starlink is that it is available for use in situations like this one, where power might be required to operate things like a modem and router.

Internet access is a crucial part of survival in these situations, especially as it can be the last leg some stand on to get in touch with emergency services or loved ones.

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