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SpaceX’s upgraded Starship set for test flight despite sore NASA contract losers
Within the last week, while SpaceX has been diligently working to ready an upgraded Starship prototype for its first launch, former competitors Blue Origin and Dynetics – both of which recently lost a historic NASA Moon lander contract to SpaceX – have filed “protests” and forced the space agency to freeze work (and funds).
That means that NASA is now legally unable to use funds or resources related to its Human Lander System (HLS) program or the $2.9 billion contract it awarded SpaceX on April 16th to develop a variant of Starship to return humanity to the Moon. However, just like SpaceX has already spent a great deal of its own time and money on Starship development and – more recently – a rapid-fire series of launches, the company appears to have no intention of letting sore losers hamper its rocket factory or test campaign.
Instead, on the same two days Blue Origin and Dynetics loudly filed official protests with the US Government Accountability Office (GAO), SpaceX performed two back-to-back static fire tests with a Starship prototype and Raptor engines outfitted with “hundreds of improvements.” Technical challenges and unsavory weather conditions forced SpaceX to call off a launch planned sometime last week but the company now appears to be on track to launch Starship prototype SN15 as early as Tuesday, May 4th.
In principle, the ability for companies to protest US government contracting decisions is a necessity and (nominally) a net good but it can easily be misused – and often in damaging ways. In the case of Blue Origin and Dynetics, it’s difficult not to perceive both protests as examples of the latter.
Blue Origin effectively disagrees with every single major point made and conclusion drawn by NASA’s Source Selection Authority (Kathy Lueders) and a separate panel of experts – often to the point that the company is strongly implying that it understands NASA’s contracting process better than the space agency itself. Blue Origin partners Northrop Grumman and Lockheed Martin are both partially or fully responsible for several of their own catastrophic acquisition boondoggles (F-35, Orion, SLS, James Webb Space Telescope, etc.) and are part of the military-industrial complex primarily responsible for turning US military and aerospace procurement into the quagmire of political interests, quasi-monopolies, and loopholes it is today.
The primary argument is generally shared by both protestors. In essence, Dynetics [p. 23; PDF] and Blue Origin [PDF] believe that it was unfair or improper for NASA to select just a single provider from the three companies or groups that competed. They argue that downselecting to one provider in lieu of budget shortfalls changed the procurement process and competition so much that NASA should have effectively called it quits and restarted the entire five-month process. Blue Origin and Dynetics also both imply that they were somehow blindsided by NASA’s concerns about a Congressional funding shortfall.
In reality, NASA could scarcely have been clearer that it was exceptionally sensitive about HLS funding and extremely motivated to attempt to return humans to the Moon by 2024 with or without the full support of Congress – albeit in fewer words. As Lueders herself noted in the HLS Option A award selection statement, the solicitation Blue, Dynetics, and SpaceX responded to states – word for word – that “the overall number of awards will be dependent upon funding availability and evaluation results.”
Additionally, implications that NASA somehow blindsided offerors with its lack of funding are woefully ignorant at best and consciously disingenuous at worse. Anyone with even the slightest awareness of the history of large-scale NASA programs would know that the space agency’s budget is all but exclusively determined by Congress each year and liable to change just as frequently if political winds shift. Short of blackmailing members of Congress or wistfully hoping that other avenues of legal political influence and partnership actually lead to desired funding and priorities appearing in appropriations legislation, NASA knows the future of its budget about as well as anyone else with access to the internet and a rudimentary awareness of history and current events.
It became clear that Congress was likely to drastically underfund NASA’s HLS program as early as November 2020 – weeks before HLS Option A proposals were due. The latest appropriations bill was passed on January 3rd, 2021, providing NASA $850 million of the ~$3.4 billion it requested for HLS. Historically, NASA’s experience with the Commercial Crew Program – public knowledge available to anyone – likely made it clear to the agency that it could not trust Congress to fund its priorities in good faith when half a decade of drastic underfunding ultimately delayed the critical program by several years. That damage was done by merely halving NASA Commercial Crew budget request from 2010 to 2013, whereas Congress had already set itself on a path to provide barely a quarter of the HLS funds NASA asked for in the weeks before Moon lander proposals were due.
Ultimately, the protests filed by Blue Origin and Dynetics are packed to the brim with petty axe-grinding, attempts to paint SpaceX in a negative light, and a general lack of indication that either company is operating in good faith. Instead, their protests appear all but guaranteed to fail while simultaneously forcing NASA to freeze HLS work and delay related disbursements for up to 100 days. Given that SpaceX is now technically working to design, build, qualify, and fly an uncrewed Lunar Starship prototype by 2023 and a crewed demonstration landing by 2024, 100 days represents a full 7-10% of the time that’s available to complete that extraordinary task.
Ironically, the protests made by Blue Origin and Dynetics have already helped demonstrate why NASA’s decision – especially in light of unambiguous budgetary restrictions – to sole-source its HLS Moon lander contract to SpaceX was an astute one. Had a victorious Blue Origin or Dynetics been in a similar position to SpaceX, it’s almost impossible to imagine either team continuing work to a significant degree in lieu of NASA funding or direction. SpaceX, on the other hand, hasn’t missed a beat and looks set to continue Starship development, production, and testing around the clock regardless of NASA’s capacity to help.
In other words, with a little luck, the actual schedule impact of a maximum 100-day work and funding freeze should be a tiny fraction of what it could have been if NASA had selected an HLS provider more interested in profit margins and stock buybacks than creating a sustainable path for humanity’s expansion beyond Earth.
A Texas man has been arrested and charged with manslaughter after his Tesla crashed into a home last month, striking a woman inside and killing her. The driver, Michael Butler, claimed the vehicle was in self-driving mode, but information from Tesla shows that Butler overrode the system.
Butler was arrested on Wednesday and booked at the Harris County, Texas, jail. He remained in custody through Thursday and Friday; he did not enter a plea, and his next court hearing is scheduled for Monday.
Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration
There are a handful of new clues in the case that could clear Tesla of any wrongdoing, especially as the woman who was killed’s family, the Avilas, filed a wrongful death lawsuit against Tesla and Butler, seeking at least $1 million in damages.
Charging documents from the Harris County prosecutor now show that Butler, who was working DoorDash the evening of the accident, had been using Full Self-Driving mode without incident through the duration of multiple deliveries that evening.
In the moments leading up to the crash, while in FSD and approaching a left turn, Butler pressed the accelerator pedal, overriding FSD’s speed control, and continued to push it until it reached 100 percent. This caused rapid acceleration; the brake pedal was never pressed, and there is no data to show that Butler aimed to turn away from the curb or house.
The charging documents state:
“I noted that the brake pedal was never pressed in the final minute before the crash. I also did not see any data to indicate that the driver attempted to turn away from the curb that he eventually struck. Further, I observed that no mechanical error was detected or recorded by the vehicle before BUTLER and the Tesla struck the curb.”
Additionally, a forensic analysis of Butler’s phone showed that he searched Google around the time of the crash with queries questioning why FSD was “too timid,” “not aggressive enough,” and even searched, “FSD is not aggressive enough for city driving.”
The documents outlined this:
“Investigator Veal also informed me that he had received BUTLER’s cell phone from Deputy Amad and that HDAO digital forensics team had completed a data extraction and download of the phone. Multiple Google searches related to Tesla had been made from BUTLER’s phone in the months leading up the crash. I noted multiple searches in May of 2026 indicating an apparent frustration with Tesla’s FSD mode, including the following searches: “Tesla fsd not aggressive enough 2026 model,” “Tesla fsd not [sic) aggressive enough 2026,” “FSD is not aggressive enough for city driving,” and “tesla fsd too timid.”‘
Tesla had claimed just after the crash that its internal data showed Butler had overridden the system’s speed control and pressed the accelerator completely, causing the vehicle to travel at an excessive rate of speed. Eventually, the car slammed into Avila’s house, killing her.
Butler has now been formally charged with Manslaughter, a felony.
Tesla shocked with its quarterly delivery report yesterday by reporting it delivered 480,126 vehicles in the second quarter of 2026, a 25 percent year-over-year jump that crushed Wall Street estimates of roughly 400,000–408,000 units. Production reached 451,758, with Model 3 and Model Y accounting for the vast majority.
The result ended two years of annual delivery declines and drew down inventory, signaling demand that outpaced earlier production.
Tesla bears had long warned that the expiration of the U.S. federal EV tax credit would hammer demand. Without the $7,500 incentive, they argued, American buyers would balk at higher effective prices, leading to a sharp slowdown.
Will Tesla thrive without the EV tax credit? Five reasons why they might
That narrative has not played out as predicted. While U.S. EV sales faced broader headwinds, Tesla’s global numbers held firm, underscoring the company’s ability to offset domestic pressure through other levers.
There are several plausible factors that explain Tesla’s strength during this quarter. Let’s take a look at them:
Rising Gas Prices
Rising gas prices provided a powerful tailwind, especially in the U.S.
Geopolitical tensions tied to the Iran conflict pushed fuel costs higher earlier in the year, amplifying the lifetime savings of electric vehicles. Even as oil prices later moderated, the psychological and financial impact lingered, encouraging fleet operators and private buyers to accelerate EV purchases. European sales rebounded sharply, helping drive the quarter’s outperformance.
Full Self-Driving Adoption
Advances in Full Self-Driving (FSD) supervised software also appear to have boosted appeal. Tesla expanded FSD availability in select European markets and continued refining the system.
No complaints from me because I finally got to enjoy this drive on FSD; I usually like to manually drive down this mountain https://t.co/RBFniRPSR0 pic.twitter.com/XQ5sOpN1Yg
— TESLARATI (@Teslarati) June 26, 2026
For tech-oriented buyers, the promise of future autonomy and enhanced driver-assistance features adds perceived value beyond the car itself. This differentiation helps Tesla stand out in a crowded market where competitors focus primarily on hardware and basic range.
Pricing Strategy, Affordable Configurations
Tesla’s offerings and its pricing strategy during Q2 further stimulated demand. Tesla introduced lower-cost versions of the Model 3 and Model Y, widening accessibility without sacrificing core margins.
These moves countered affordability concerns and attracted buyers who had been waiting on the sidelines. Combined with attractive financing and leasing options, the pricing strategy converted interest into actual orders more effectively than many analysts expected.
Broad European Recovery
Supported by government incentives, corporate fleet electrification, and easing political headwinds around CEO Elon Musk, Tesla was supplied additional momentum through stronger registration numbers throughout Europe.
Strong exports from the Shanghai Gigafactory and a production ramp at Giga Berlin ensured supply met this resurgent demand. Corporate buyers, in particular, accelerated transitions to EVs to meet sustainability targets, providing a steady volume base.
These elements created a virtuous cycle that delivered the strong deliveries report. While bears correctly flagged the loss of the U.S. tax credit as a risk, Tesla’s diversified playbook demonstrated that it could remain resilient against those headwinds. The Q2 beat suggests the company remains adept at navigating shifting market conditions, even as competition intensifies.
A Tesla Semi was involved in a fatal collision on U.S. Highway 50 in Dayton, Nevada, on Sunday, June 28, 2026, marking the first known fatal crash involving the electric Class 8 truck. The incident occurred around 7:20 a.m. at the intersection with Traditions Parkway, approximately 40 miles east of Reno and close to Tesla’s Gigafactory Nevada.
According to the Lyon County Sheriff’s Office and the Nevada State Police Highway Patrol, a semi-truck struck two passenger vehicles stopped at a traffic signal. The truck hit the vehicles from behind. Two people were pronounced dead at the scene, and a third person suffered life-threatening injuries and was flown to a hospital, Forbes reported.
Preliminary statements gathered at the scene by the Lyon County Sheriff’s Office suggested the truck driver may have fallen asleep at the wheel. However, the Nevada Highway Patrol, which is leading the investigation, stated that the official cause has not yet been determined.
Additional information is expected to be released early the following week. The truck was seized for evidence as part of the ongoing probe.
Responders at the scene included deputies from the Lyon County Sheriff’s Office, personnel from the Nevada Highway Patrol, Central Lyon County Fire Department, and the Nevada Department of Transportation. The crash led to the temporary closure of U.S. 50 in both directions.
The Tesla Semi is Tesla’s battery-electric heavy-duty truck, produced at the nearby Gigafactory in Nevada. Authorities initially described the vehicle as a semi-truck; its make was subsequently confirmed through reporting and scene identification; an interesting bit of information here, as the Semi is not yet available publicly and many do not know that Tesla builds electric trucks.
The investigation remains active, with no further official details on contributing factors or vehicle systems released as of early July 2026.
This incident highlights ongoing scrutiny of commercial vehicle safety on Nevada highways, particularly involving fatigue. Law enforcement continues to gather evidence and witness statements.
Texas man charged in fatal Tesla crash where he blamed Autopilot
Tesla’s strong Q2 deliveries: Four key drivers behind the surprise
