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SpaceX space tourism ambitions made real with Crew Dragon's first private contract

SpaceX has officially signed its first Earth orbit space tourism contract with Axiom Space. (NASA/Richard Angle/SpaceX)

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Axiom Space has announced its first contract with SpaceX, revealing plans to launch three tourists to the International Space Station (ISS) on a Crew Dragon spacecraft as early as 2021

Building off of the extraordinary success of the privately-developed Cargo Dragon spacecraft, set to be retired perhaps just a month or so from now, SpaceX’s Crew Dragon spacecraft was designed almost from scratch to safely launch humans into space. While there are few guarantees in human spaceflight, SpaceX appears to be well on track towards its inaugural astronaut launch, and Crew Dragon is scheduled to support that mission – known as Demo-2 – as early as next month. If Demo-2 is successful and NASA signs off on Crew Dragon’s operational readiness, it’s starting to look like the spacecraft might have considerable demand even outside the space agency that funded its development.

Less than three weeks after SpaceX and Space Adventures revealed tentative plans to launch space tourists on a record-breaking Crew Dragon flight, this latest news seemingly implies that a separate company has gone a step further, putting real money down on its own space tourism launch contract. For SpaceX, this is now the second time in less than a month that the Crew Dragon spacecraft has received serious space tourism-related interest. The market, in other words, could be substantially larger than one might initially imagine.

SpaceX’s Crew Dragon spacecraft has won its first real space tourism contract, scheduled to launch perhaps just a year or so from now. (SpaceX/NASA)

First announced on February 18th, Space Adventures – a private firm that has been working in the space tourism business for more than two decades – and SpaceX revealed that they’d signed an agreement to potentially support a unique opportunity for private astronauts. Likely completed without any exchange of funds, the joint agreement means that Space Adventures can now begin to seriously pursue customers for a Crew Dragon mission that could reach an altitude that only a handful of NASA Apollo and Gemini astronauts have gone beyond.

NASA’s Gemini 11 astronauts reached an apogee some 850 miles (1350 km) above Earth’s surface while in its orbit – a record that still stands today. (NASA)

As such, there is technically no guarantee that the Space Adventures-SpaceX agreement will translate into any actual Crew Dragon or Falcon 9 contracts, although there is certainly a chance. The tourism company did successfully arrange eight orbital launches and space station visits for seven customers in the 2000s but has been relatively inactive in the decade since then.

Axiom Space, an unrelated venture, is also seriously interested in space tourism but is instead focused on the far more arduous task of building its own space station. Thanks to a recent agreement with NASA, potentially translating to $140M contract to build its first custom space station module, it appears to be increasingly likely that Axiom is not simply smoke and mirrors – depressingly common in space tourism industry.

Aside from three new modules that could become a temporary part of the International Space Station (ISS), Axiom wants to eventually separate its hardware to create the world’s first private space station. (Axiom)

Intriguingly, the contract Axiom announced with SpaceX and Crew Dragon appears to be entirely unrelated to the company’s plans to build its own space station modules. Instead, the contract would see SpaceX train and launch an Axiom ‘commander’ and three private passengers to the existing ISS for more than a week before returning them safely to Earth. Perhaps more impressive is the schedule: Axiom wants SpaceX to launch its first space tourism mission as early as the second half of 2021 – potentially less than a year and a half from now.

Regardless, if this contract does result in Crew Dragon’s first dedicated space tourism launch and Axiom’s customers are satisfied, it’s safe to say that SpaceX will be the first to receive a call if or when Axiom needs more orbital taxi services or rockets to launch its space station modules in the mid-2020s.

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A render of SpaceX’s Crew Dragon spacecraft docked to the International Space Station (ISS). (SpaceX)

If its prices are notably better than what past tourism ventures have been able to offer, SpaceX might even be able to expand the market for private (orbital) human spaceflight, creating an entirely new niche for Crew Dragon. Given that NASA’s Commercial Crew Program contract anticipates requiring no more than an average of two dedicated Crew Dragon astronauts launches per year, it would not take much at all for SpaceX to double the spacecraft’s annual flight rate with the help of orbital tourism.

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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 Full Self-Driving gets sparkling review from South Korean politician

“Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about.”

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Credit: Soyoung Lee | X

Tesla Full Self-Driving got its first sparkling review from South Korean politician Lee So-young, a member of the country’s National Assembly, earlier this week.

Lee is a member of the Strategy and Finance Committee in South Korea and is a proponent of sustainable technologies and their applications in both residential and commercial settings. For the first time, Lee was able to utilize Tesla’s Full Self-Driving technology as it launched in the country in late November.

Her thoughts on the suite were complimentary to the suite, stating that “it drives just as well as most people do,” and that “it already feels like a completed technology.”

Her translated post says:

“Finally, today I got to experience Tesla FSD in Seoul. Thanks to the Model S sponsored by JiDal Papa^^, I’m truly grateful to Papa. The route was from the National Assembly -> Mangwon Market -> Hongik University -> back to the National Assembly. Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about. Once it actually spreads into widespread use, I feel like our daily lives are going to change a lot. Even I, with my license gathering dust in a drawer, don’t see much reason to learn to drive a manual anymore.”

Tesla Full Self-Driving officially landed in South Korea in late November, with the initial launch being one of Tesla’s most recent, v14.1.4.

It marked the seventh country in which Tesla was able to enable the driver assistance suite, following the United States, Puerto Rico, Canada, China, Mexico, Australia, and New Zealand.

It is important to see politicians and figures in power try new technologies, especially ones that are widely popular in other regions of the world and could potentially revolutionize how people travel globally.

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Tesla dispels reports of ‘sales suspension’ in California

“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.

Sales in California will continue uninterrupted.”

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Credit: Tesla

Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”

On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”

Tesla enters interesting situation with Full Self-Driving in California

Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”

The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.

However, Tesla said that its sales operations in California “will continue uninterrupted.”

It confirmed this in an X post on Tuesday night:

The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.

One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.

Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.

This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”

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New EV tax credit rule could impact many EV buyers

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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tesla showroom
Credit: Tesla

Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.

After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.

However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.

Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.

However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.

This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.

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