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SpaceX’s upgraded Starship set for test flight despite sore NASA contract losers

Sore losers have potentially delay NASA's ability to work on SpaceX's HLS Moon lander contract but the company isn't letting the red tape stop it from making progress. (Dynetics/SpaceX/bocachicagal/Blue Origin)

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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.

https://twitter.com/CaseyDreier/status/1388232161921093634

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.

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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.

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 Cybercab spotted with interesting charging solution, stimulating discussion

The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.

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Credit: What's Inside | X

Tesla Cybercab units are being tested publicly on roads throughout various areas of the United States, and a recent sighting of the vehicle’s charging port has certainly stimulated some discussions throughout the community.

The Cybercab is geared toward being a fully-autonomous vehicle, void of a steering wheel or pedals, only operating with the use of the Full Self-Driving suite. Everything from the driving itself to the charging to the cleaning is intended to be operated autonomously.

But a recent sighting of the vehicle has incited some speculation as to whether the vehicle might have some manual features, which would make sense, but let’s take a look:

The port is located in the rear of the vehicle and features a manual door and latch for plug-in, and the video shows an employee connecting to a Tesla Supercharger.

Now, it is important to remember these are prototype vehicles, and not the final product. Additionally, Tesla has said it plans to introduce wireless induction charging in the future, but it is not currently available, so these units need to have some ability to charge.

However, there are some arguments for a charging system like this, especially as the operation of the Cybercab begins after production starts, which is scheduled for April.

Wireless for Operation, Wired for Downtime

It seems ideal to use induction charging when the Cybercab is in operation. As it is for most Tesla owners taking roadtrips, Supercharging stops are only a few minutes long for the most part.

The Cybercab would benefit from more frequent Supercharging stops in between rides while it is operating a ride-sharing program.

Tesla wireless charging patent revealed ahead of Robotaxi unveiling event

However, when the vehicle rolls back to its hub for cleaning and maintenance, standard charging, where it is plugged into a charger of some kind, seems more ideal.

In the 45-minutes that the car is being cleaned and is having maintenance, it could be fully charged and ready for another full shift of rides, grabbing a few miles of range with induction charging when it’s out and about.

Induction Charging Challenges

Induction charging is still something that presents many challenges for companies that use it for anything, including things as trivial as charging cell phones.

While it is convenient, a lot of the charge is lost during heat transfer, which is something that is common with wireless charging solutions. Even in Teslas, the wireless charging mat present in its vehicles has been a common complaint among owners, so much so that the company recently included a feature to turn them off.

Production Timing and Potential Challenges

With Tesla planning to begin Cybercab production in April, the real challenge with the induction charging is whether the company can develop an effective wireless apparatus in that short time frame.

It has been in development for several years, but solving the issue with heat and energy loss is something that is not an easy task.

In the short-term, Tesla could utilize this port for normal Supercharging operation on the Cybercab. Eventually, it could be phased out as induction charging proves to be a more effective and convenient option.

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Tesla confirms that it finally solved its 4680 battery’s dry cathode process

The suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.

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tesla 4680
Image used with permission for Teslarati. (Credit: Tom Cross)

Tesla has confirmed that it is now producing both the anode and cathode of its 4680 battery cells using a dry-electrode process, marking a key breakthrough in a technology the company has been working to industrialize for years. 

The update, disclosed in Tesla’s Q4 and FY 2025 update letter, suggests the company has finally resolved one of the most challenging aspects of its next-generation battery cells.

Dry cathode 4680 cells

In its Q4 and FY 2025 update letter, Tesla stated that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process. The confirmation addresses long-standing questions around whether Tesla could bring its dry cathode process into sustained production.

The disclosure was highlighted on X by Bonne Eggleston, Tesla’s Vice President of 4680 batteries, who wrote that “both electrodes use our dry process.”

Tesla first introduced the dry-electrode concept during its Battery Day presentation in 2020, pitching it as a way to simplify production, reduce factory footprint, lower costs, and improve energy density. While Tesla has been producing 4680 cells for some time, the company had previously relied on more conventional approaches for parts of the process, leading to questions about whether a full dry-electrode process could even be achieved.

4680 packs for Model Y

Tesla also revealed in its Q4 and FY 2025 Update Letter that it has begun producing battery packs for certain Model Y vehicles using its in-house 4680 cells. As per Tesla: 

“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks.”

The timing is notable. With Tesla preparing to wind down Model S and Model X production, the Model Y and Model 3 are expected to account for an even larger share of the company’s vehicle output. Ensuring that the Model Y can be equipped with domestically produced 4680 battery packs gives Tesla greater flexibility to maintain production volumes in the United States, even as global battery supply chains face increasing complexity.

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Tesla Giga Texas to feature massive Optimus V4 production line

This suggests that while the first Optimus line will be set up in the Fremont Factory, the real ramp of Optimus’ production will happen in Giga Texas.

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Credit: Tesla/YouTube

Tesla will build Optimus 4 in Giga Texas, and its production line will be massive. This was, at least, as per recent comments by CEO Elon Musk on social media platform X.  

Optimus 4 production

In response to a post on X which expressed surprise that Optimus will be produced in California, Musk stated that “Optimus 4 will be built in Texas at much higher volume.” This suggests that while the first Optimus line will be set up in the Fremont Factory, and while the line itself will be capable of producing 1 million humanoid robots per year, the real ramp of Optimus’ production will happen in Giga Texas. 

This was not the first time that Elon Musk shared his plans for Optimus’ production at Gigafactory Texas. During the 2025 Annual Shareholder Meeting, he stated that Giga Texas’ Optimus line will produce 10 million units of the humanoid robot per year. He did not, however, state at the time that Giga Texas would produce Optimus V4. 

“So we’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk stated. 

How big Optimus could become

During Tesla’s Q4 and FY 2025 earnings call, Musk offered additional context on the potential of Optimus. While he stated that the ramp of Optimus’ production will be deliberate at first, the humanoid robot itself will have the potential to change the world. 

“Optimus really will be a general-purpose robot that can learn by observing human behavior. You can demonstrate a task or verbally describe a task or show it a task. Even show it a video, it will be able to do that task. It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP. 

“It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does. Tesla, Inc. has never been a company to shy away from solving the hardest problems,” Musk stated. 

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