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


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.

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.

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.

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.
Elon Musk
Elon Musk offers to pay TSA salaries as government shutdown leaves agents without paychecks
Elon Musk offered to personally cover TSA salaries as the DHS shutdown deepens travel chaos nationwide.
Elon Musk says that he is willing to personally cover the salaries of Transportation Security Administration (TSA) workers caught in the crossfire of a partial government shutdown that has now dragged on for over a month. “I would like to offer to pay the salaries of TSA personnel during this funding impasse that is negatively affecting the lives of so many Americans at airports throughout the country,” Musk wrote.
I would like to offer to pay the salaries of TSA personnel during this funding impasse that is negatively affecting the lives of so many Americans at airports throughout the country
— Elon Musk (@elonmusk) March 21, 2026
The offer arrives as Congress let funding expire for the Department of Homeland Security on February 14, amid a disagreement over immigration enforcement, leaving most TSA employees classified as essential and on duty but working without pay. The timing could not be more disruptive, as the shutdown is colliding directly with spring break travel season when millions of Americans are in the air.
This is not the first time TSA workers have endured this kind of hardship. TSA agents are being asked to work without pay until congressional action unblocks their paychecks, having previously held out through the longest government shutdown in U.S. history at 43 days. The pattern reveals a systemic failure in how Congress funds critical security infrastructure, and Musk’s offer shines a spotlight on that recurring failure at a moment when the public is directly feeling its effects through long lines and terminal closures.
Whether Musk can legally follow through remains unclear, as federal law generally prohibits government employees from receiving outside compensation related to their official duties.
Elon Musk
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Tesla, SpaceX, and xAI unveiled TERAFAB, a $25B chip factory targeting one terawatt of AI compute annually.
Elon Musk took the stage over the weekend at the defunct Seaholm Power Plant in Austin, Texas, to officially unveil TERAFAB, a $20-25 billion joint venture between Tesla, SpaceX, and xAI that he described as “the most epic chip building exercise in history by far.” The announcement marks the most ambitious infrastructure bet Musk has made since Gigafactory 1 in Sparks, Nevada, and it fuses three of his companies into a single, vertically integrated AI hardware machine for the first time.
TERAFAB is designed to consolidate every stage of semiconductor production under one roof, including chip design, lithography, fabrication, memory production, advanced packaging, and testing. At full capacity, the facility would scale to roughly 70% of the global output from the current world’s largest semiconductor foundry from Taiwan Semiconductor Manufacturing Company (TSMC).
Elon Musk’s stated goal is one terawatt of computing power annually, split between Tesla’s AI5 inference chips for vehicles and Optimus robots, and D3 chips built specifically for SpaceXAI’s orbital satellite constellation.
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
The logic behind the merger of these three entities is rooted in a supply chain crisis Musk has been signaling for over a year. At Tesla’s Q4 2025 earnings call, he warned investors that external chip capacity from TSMC, Samsung, and Micron would hit a ceiling within three to four years. “We’re very grateful to our existing supply chain, to Samsung, TSMC, Micron and others,” Musk acknowledged at the Terafab event, “but there’s a maximum rate at which they’re comfortable expanding.” Building in-house was, in his framing, not a strategic option, but a necessity.
The space angle is where the announcement becomes genuinely unprecedented. Musk said 80% of Terafab’s compute output would be directed toward space-based orbital AI satellites, arguing that solar irradiance in space is roughly 5x greater than at Earth’s surface, and that heat rejection in vacuum makes thermal scaling viable. This directly feeds the SpaceXAI vision, which is betting that within two to three years, running AI workloads in orbit will be cheaper than doing so on the ground. The satellites, powered by constant solar energy, would effectively turn low Earth orbit into the world’s largest data center.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Historically, this announcement threads together every major Musk initiative of the past two years: the xAI-SpaceX merger, Tesla’s $2.9 billion solar equipment talks with Chinese suppliers, the 100 GW domestic solar manufacturing push, the Optimus humanoid robot program, and Starship’s development. TERAFAB is the capstone that ties them into a single coherent architecture — chips made on Earth, launched by SpaceX, powered by Tesla solar, run by xAI, and ultimately extended to the Moon.
“I want us to live long enough to see the mass driver on the moon, because that’s going to be incredibly epic,”Musk said during the presentation.
Announcing TERAFAB: the next step towards becoming a galactic civilization https://t.co/IDKey07mJa
— Tesla (@Tesla) March 22, 2026
News
Rolls-Royce makes shocking move on its EV future
When Rolls-Royce unveiled its first all-electric model, the Spectre, in 2022, former CEO Torsten Müller-Ötvös declared the brand would cease production of internal combustion engine vehicles by the end of the decade.
Rolls-Royce made a shocking move on its EV future after planning to go all-electric by the end of the decade. Now, the company is tempering its expectations for electric vehicles, and its CEO is aiming to lean on its legacy of high-powered combustion engines to lead it into the future.
In a significant reversal, Rolls-Royce Motor Cars has scrapped its ambitious plan to become an all-electric manufacturer by 2030. The luxury British marque announced the decision amid sustained customer demand for traditional combustion engines and shifting regulatory landscapes.
When Rolls-Royce unveiled its first all-electric model, the Spectre, in 2022, former CEO Torsten Müller-Ötvös declared the brand would cease production of internal combustion engine vehicles by the end of the decade.
The move aligned with the industry’s broader push toward electrification, promising silent, effortless power befitting the “Rolls-Royce of cars.”
However, new CEO Chris Brownridge, who assumed the role in late 2023, has reversed course. “We can respond to our client demand … we build what is ordered,” Brownridge stated.
The company will continue offering its iconic V12 engines, which remain a cornerstone of its heritage and appeal to discerning buyers who appreciate the distinctive sound and character. He noted the original pledge was “right at the time,” but “the legislation has changed.”
While not abandoning electric vehicles entirely, the Spectre remains in production, with an electric Cullinan option forthcoming; the decision marks the end of a strict all-EV timeline. Relaxed emissions regulations and slowing EV demand, evidenced by a 47 percent drop in Spectre sales to 1,002 units in 2025, forced the reconsideration.
It was a sign that perhaps Rolls-Royce owners were not inclined to believe that the company’s all-EV future was the right move.
Rolls-Royce joins a growing roster of automakers reevaluating aggressive electrification targets.
Fellow luxury brand Bentley has pushed its full electrification from 2030 to 2035, while continuing to offer hybrids and ICE models. Mercedes-Benz walked back its 2030 all-EV goal, now aiming for about 50% electrified sales while keeping combustion engines into the 2030s. Porsche has abandoned its 80% EV sales target by 2030, delaying models and extending hybrids.
Mainstream giants are following suit. Honda canceled its U.S. EV plans, including the 0-Series and Acura RSX, facing a $15.7 billion hit as it doubles down on hybrids. Ford and General Motors have incurred tens of billions in writedowns, canceling models and pivoting to hybrids amid an industry total exceeding $70 billion in charges.
This trend reflects a pragmatic shift driven by infrastructure gaps, consumer preferences, and policy changes. In the ultra-luxury segment, where emotional connection reigns, automakers are prioritizing flexibility over rigid deadlines, ensuring brands like Rolls-Royce evolve without alienating their core clientele.