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SpaceX sues US government to protest mystery launch or rocket R&D contracts

SpaceX prepares Falcon 9 B1054 for the company's first major USAF launch in December 2018. (SpaceX/USAF)

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SpaceX has filed a lawsuit – technically a “Bid Protest Complaint” – against the United States government and successfully petitioned for the file to remain sealed, restricting access to additional case details for the time being.

This development follows a quiet series of bid protests SpaceX filed with the Government Accountability Office (GAO) in February 2019, shortly after NASA announced that it had awarded ULA a ~$150M launch contract for Lucy (a robotic Trojan asteroid explorer). SpaceX believed that it could perform the mission at a “dramatically lower” price, potentially saving the federal government tens of millions of dollars. SpaceX withdrew both of its GAO bid protests without comment on April 4th. Whether those prior protests are related to SpaceX’s May 2019 lawsuit is unclear.

https://twitter.com/ponder68/status/1129724676333346849

Adding even more complexity and uncertainty to the series of events, NASA awarded SpaceX the launch contract for its Double Asteroid Redirection Test (DART) spacecraft on April 20th, about two weeks after SpaceX retracted its Lucy protests. The cause-and-effect relationship between both events is wholly ambiguous. Perhaps SpaceX withdrew before the company was made aware of their DART win. Perhaps they withdrew their protest because they learned of NASA’s award.

Regardless of what did or did not trigger the contract award, the fact remains that SpaceX’s DART launch will cost NASA ~$70M, less than half the price of ULA’s ~$150M Lucy launch contract. As such, it seems likely that launching Lucy on Falcon 9 could have saved the US government as much as $50M, assuming an expendable profile (~$100M per SpaceX’s latest GPS III launch contracts).

Falcon 9’s upper stage and NASA’s 600 kg DART asteroid impactor. (SpaceX/NASA)

Returning to the topic at hand, the simplest explanation is that SpaceX’s GAO bid protests and May 2019 lawsuit are in some way related. Although SpaceX was clearly correct when it insinuated that it could launch Lucy far more affordably than ULA, the company was criticized for its GAO protests because they effectively froze – or at least complicated – work on the NASA spacecraft. In the event that the withdrawals and lawsuit are related, SpaceX would have backed down after entering into the slow GAO protest process, essentially conceding the contract to ULA and allowing spacecraft work to continue without disruption.

Replaced with a lawsuit against the US government, SpaceX could instead be attempting to change the processes that lead NASA to award ULA the Lucy launch contract in spite of potential savings on the order of ~$50M. SpaceX has done something similar once before when it sued the US Air Force for its uncompetitive launch procurement processes, a largely successful endeavor that has helped force some competition back into USAF/DoD launch contracts.

Atlas V lifts off with the USAF AFSPC-11 spacecraft, April 2018. (Ben Cooper)
Falcon 9 supported its first certified USAF launch – carrying the ~$600M GPS III SV01 spacecraft – in December 2018. (SpaceX)

However, there are several additional possibilities for the actual subject of SpaceX’s latest sealed suit. Most recently, NASA distributed ~$46M among 11 companies for studies and prototypes of lunar landers, transfer vehicles, and in-space refueling technology. SpaceX tied with Aerojet Rocketdyne for the least substantial awards out of those 11 companies, each receiving funds for a single study, while most other awardees were contracted for multiple studies and/or prototypes. This is a stretch, however.

The most likely alternative to a continuation of SpaceX’s Lucy protest is a lawsuit focused on the USAF’s latest EELV/NSSL development contracts and its proposed continuation of block-buy launch procurement. Of the four companies involved, Blue Origin and SpaceX have both criticized the USAF for a variety of reasons. Both did agree, however, in their dislike of the USAF’s inexplicable desire to award all launch contracts to two victors, despite there being as many as four different launch vehicles that could feasibly compete for those several-dozen contracts.

The USAF awarded major vehicle development funding to ULA, Orbital ATK (now NGIS), and Blue Origin. SpaceX was snubbed but is still eligible to compete for Phase 2 launch contracts. (Teslarati – ULA/NGIS/Blue Origin/SpaceX)

For now, details of SpaceX’s latest lawsuit will remain sealed, leaving the company’s motivations veiled in mystery. SpaceX’s next USAF mission could occur as early as June 22nd. Known as STP-2, it will mark Falcon Heavy’s third flight, the rocket’s first defense-related launch, and the USAF’s first use of flight-proven SpaceX boosters. If successful, SpaceX will effectively be able to compete with ULA for all conceivable future launch contracts.

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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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Investor's Corner

SpaceX IPO set to provide massive $11.6B windfall for teacher pension plan

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SpaceX Starship V3 from Starbase, Texas on April 14, 2026

The Ontario Teachers’ Pension Plan (OTPP) stands to reap one of the most extraordinary returns in pension fund history thanks to a bold 2019 investment in SpaceX.

According to a recent report from The Globe and Mail, the Toronto-based fund invested roughly $300 million CAD (~$220 million USD at the time) in Elon Musk’s space company as its inaugural deal through the Teachers’ Innovation Platform.

At SpaceX’s anticipated $1.75 trillion IPO valuation, set for a mid-June debut on Nasdaq under ticker $SPCX, that stake could now be worth up to $11.6 billion USD. This would represent a roughly 50x return and easily become OTPP’s most successful single investment ever.

The fund manages $279 billion in assets for approximately 346,000 working and retired teachers in Ontario, potentially delivering an average boost of around $33,500 per member if fully realized.

SpaceX has filed its S-1 and plans to price shares at $135 each, aiming to raise a record $75 billion in what would be the largest IPO in history, surpassing Saudi Aramco. The company reported $18.67 billion in revenue for 2025, driven primarily by Starlink satellite internet growth and NASA contracts, though it continues to post significant losses tied to ambitious R&D in Starship and AI initiatives.

Important pieces moving forward include:

  • Starlink Expansion: The satellite broadband service is scaling rapidly, targeting global connectivity, especially in underserved rural and remote areas. This segment offers massive recurring revenue potential as numbers climb.
  • Starship and Reusability Leadership: SpaceX’s fully reusable Starship aims to slash launch costs dramatically, enabling frequent missions, Mars ambitions, and lucrative government/defense contracts. Success here could unlock exponential growth.
  • AI and Diversification: Recent moves, including ties to xAI, position SpaceX in high-growth AI infrastructure, broadening beyond traditional aerospace.
  • Validation Scrutiny: While the $1.75 trillion target excites investors, analysts like Morningstar value the company closer to $780 billion, citing high multiples (around 90x trailing revenue) and execution risks. A 180-day lockup period will prevent early investors like OTPP from selling immediately post-IPO.

The irony has not been lost on observers. Ontario’s government previously canceled a Starlink rural internet contract amid political tensions involving Musk, yet the pension fund’s savvy investment, made when SpaceX was valued around $33-36 billion, and Starlink was nascent, delivers outsized gains independent of politics.

For OTPP, this windfall strengthens its already solid 111 percent funding ratio and underscores the value of patient, innovation-focused capital allocation.

For SpaceX, the IPO marks a new chapter: greater transparency, access to public markets for talent retention and growth capital, and heightened pressure to deliver on its multi-planetary vision.

SpaceXAI just launched into your kitchen with their new app

All eyes are fixed on whether SpaceX can justify its lofty valuation through sustained execution. For Ontario teachers, the returns are already stellar, but SpaceX, like other Musk companies in the past, has plenty of things to prove. Perhaps the most ideal person for the job is at the helm, hoping to bring the company to a massive valuation.

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Tesla skeptics will hate what this new reliability study says

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Credit: Tesla

In a notable shift for electric vehicle perceptions, Tesla has emerged as a standout performer in the latest iSeeCars longevity study, which analyzed over 174 million used vehicles.

The data reveals that Tesla models have a 4.6 percent chance of reaching 250,000 miles, matching the industry average of 4.8 percent and tying for sixth place among 32 brands. This positions Tesla ahead of many established names, including Subaru (2.3 percent, roughly half of Tesla’s rate), Nissan (2.4 percent), Mazda, BMW, Mercedes-Benz, and Porsche.

Toyota leads with an impressive 17.8 percent likelihood, followed by Lexus (12.8 percent), Honda, and Acura. Yet Tesla’s result stands out for a relatively young EV brand. Experts attribute this to the inherent simplicity of electric powertrains: fewer moving parts mean no oil changes, timing belts, or complex engine components that typically fail in internal combustion vehicles.

Fewer things to maintain means fewer things to break, and ultimately, fewer things to go wrong.

This design advantage helps Teslas defy unfounded skepticism about battery longevity and overall durability, two things that have plagued the company from outsider perspectives without much proof.

The iSeeCars reliability ratings further bolster Tesla’s case. The Tesla Model S earns a strong 7.9/10 reliability score, ranking No. 1 out of 35 most reliable electric cars. It boasts a predicted average lifespan of about 154,419 miles (around 16.9 years) and a 21.9 percent chance of hitting 200,000 miles.

Tesla, as an electric car brand, also scores 7.9/10 overall, securing the top spot among electric vehicle manufacturers in several luxury and segment categories.

Real-world examples reinforce the data. High-mileage Teslas, including Model S vehicles exceeding one million miles, demonstrate that EVs can endure when properly maintained. Owners report minimal mechanical issues beyond typical wear items like tires and brakes, which regenerative braking often extends.

Tesla Model 3 hits quarter million miles with original battery and motor

This performance challenges narratives around EV reliability, especially amid mixed reports from other sources like Consumer Reports or regional inspections. iSeeCars‘ massive dataset emphasizes long-term durability over short-term defect rates, painting Tesla as a leader in sustainable, high-mileage ownership.

For buyers prioritizing longevity and low maintenance, Tesla’s results signal strong value. While no brand is flawless, factors like driving habits, climate, and software updates matter—the numbers suggest Tesla belongs among the elite for those seeking vehicles built to last.

As EV adoption grows, this iSeeCars data underscores Tesla’s engineering edge in creating enduring, future-proof automobiles.

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DIY

Tesla owner fixes common feature complaint with crafty DIY retrofit

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Credit: @mikegapinski

Tesla owners have long griped about the wireless phone charger in the Model Y and other vehicles. It often turns smartphones into miniature ovens rather than reliably topping them up.

Software engineer and Model Y owner Michał Gapiński tackled this issue head-on with a clever DIY upgrade, swapping the cooled wireless charger pad from the China-made Model YL in for the one that came standard in his vehicle.

There are several key differences between the U.S.-built Model Y’s wireless charging pad and the one that Tesla has been installing in the Model YL. The one installed in U.S.-built vehicles lacks active cooling and relies on basic heat dissipation, leading to rapid temperature buildup during charging. In contrast, the Model YL integrates a small fan for active cooling.

This design maintains lower temperatures even in warm ambient conditions, though it does not support faster Qi2 charging on iPhones. The connector matches exactly, making physical swaps feasible on compatible consoles, but coding is required to enable full functionality.

Owners in the U.S. have complained about the wireless charging pad, with many reporting that overheating is fairly common. Within 20 or 30 minutes of placing a phone on the wireless charging pad, many have reported overheating messages on their phones, which halt charging and essentially turn the pad into a fancy place to rest your phone.

Many owners have opted to simply plug their phones into a charging cord. Tesla has acknowledged the problem by releasing several solutions for owners, including a relatively new feature that allows you to simply turn off the charging and simply act as a holder for your phone while driving.

Gapiński said that he sourced the cooled pad affordably from China, and it cost under $200 for the part.

He removed the existing console charger, swapped in the new unit, confirming a perfect connector fit, and handled the trim differences. Since the parameter isn’t fully secured, he enabled it through custom coding outside official Toolbox.

The fan activates quietly, blending with AC and seat cooling. He reported the installation was effective and the wireless charging pad worked perfectly; it even kept the phone cool as it stayed at just 86 degrees Fahrenheit. Many times, the wireless charging pad will bring the phone’s temperature well above 100 degrees, sometimes even being relatively hot to the touch.

This retrofit highlighted an elegant, owner-driven solution to a factory shortcoming. It is expected that Tesla will begin installing the cooled charging pads into new cars in the U.S. soon, and hopefully, it will offer some sort of retrofit service or kit to owners here who want to use the charging pad effectively.

For those who love to tinker, it’s an accessible upgrade, proving that innovation thrives beyond the production line.

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