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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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Tesla says its Texas lithium refinery is now operational and unlike anything in North America

Elon Musk separately described the site as both the most advanced and the largest lithium refinery in the United States.

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Credit: Tesla/YouTube

Tesla has confirmed that its Texas lithium refinery is now operational, marking a major milestone for the company’s U.S. battery supply chain. In a newly released video, Tesla staff detailed how the facility converts raw spodumene ore directly into battery-grade lithium hydroxide, making it the first refinery of its kind in North America.

Elon Musk separately described the site as both the most advanced and the largest lithium refinery in the United States.

A first-of-its-kind lithium refining process

In the video, Tesla staff at the Texas lithium refinery near Corpus Christi explained that the facility processes spodumene, a lithium-rich hard-rock ore, directly into battery-grade lithium hydroxide on site. The approach bypasses intermediate refining steps commonly used elsewhere in the industry.

According to the staff, spodumene is processed through kilns and cooling systems before undergoing alkaline leaching, purification, and crystallization. The resulting lithium hydroxide is suitable for use in batteries for energy storage and electric vehicles. Tesla employees noted that the process is simpler and less expensive than traditional refining methods.

Staff at the facility added that the process eliminates hazardous byproducts typically associated with lithium refining. “Our process is more sustainable than traditional methods and eliminates hazardous byproducts, and instead produces a co-product named anhydrite, used in concrete mixes,” an employee noted. 

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Musk calls the facility the largest lithium refinery in America

The refinery’s development timeline has been very impressive. The project moved from breaking ground in 2023 to integrated plant startup in 2025 by running feasibility studies, design, and construction in parallel. This compressed schedule enabled the fastest time-to-market for a refinery using this type of technology. This 2026, the facility has become operational. 

Elon Musk echoed the significance of the project in posts on X, stating that “the largest Lithium refinery in America is now operational.” In a separate comment, Musk described the site as “the most advanced lithium refinery in the world” and emphasized that the facility is “very clean.”

By bringing large-scale lithium hydroxide production online in Texas, Tesla is positioning itself to reduce reliance on foreign refining capacity while supporting its growth in battery and vehicle production. The refinery also complements Tesla’s nascent domestic battery manufacturing efforts, which could very well be a difference maker in the market.

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Tesla Optimus V3 gets early third-party feedback, and it’s eye-opening

Jason Calacanis’ remarks, which were shared during a discussion at CES 2026, offered one of the first third-party impressions of the yet-to-be-unveiled robot

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Credit: Tesla/YouTube

Angel investor and entrepreneur Jason Calacanis shared some insights after he got an early look at Tesla’s upcoming Optimus V3. His remarks, which were shared during a discussion at CES 2026, offered one of the first third-party impressions of the yet-to-be-unveiled robot.

Calacanis’ comments were shared publicly on X, and they were quite noteworthy.

The angel investor stated that he visited Tesla’s Optimus lab on a Sunday morning and observed that the place was buzzing with energy. The investor then shared a rare, shocking insight. As per Calacanis, Optimus V3 will be so revolutionary that people will probably not even remember that Tesla used to make cars in the future.

“I don’t want to name drop, but two Sundays ago, I went to Tesla with Elon and I went and visited the Optimus lab. There were a large number of people working on a Sunday at 10 a.m. and I saw Optimus 3. I can tell you now, nobody will remember that Tesla ever made a car,”  he noted.

The angel investor also reiterated the primary advantage of Optimus, and how it could effectively change the world.

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“They will only remember the Optimus and that he is going to make a billion of those, and it is going to be the most transformative technology product ever made in the history of humanity, because what LLMs are gonna enable those products to do is understand the world and then do things in the world that we don’t want to do. I believe there will be a 1:1 ratio of humans to Optimus, and I think he’s already won,” he said. 

While Calacanis’ comments were clearly opinion-driven, they stood out as among the first from a non-Tesla employee about Optimus V3. Considering his reaction to the humanoid robot, perhaps Elon Musk’s predictions for Optimus V3 might not be too far-fetched at all.

Tesla has been careful with its public messaging around Optimus V3’s development stage. Musk has previously stated on X that Optimus V3 has not yet been revealed publicly, clarifying that images and videos of the robot online still show Optimus V2 and V2.5, not the next-generation unit. As for Calacanis’ recent comments, however, Musk responded with a simple “Probably true” in a post on X.

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Tesla taps Samsung for 5G modems amid plans of Robotaxi ramp: report

The move signals Tesla’s growing focus on supply-chain diversification and next-generation communications as it prepares to scale its autonomous driving and robotaxi operations.

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Credit: Samsung Electronics

A report from South Korea has suggested that Samsung Electronics is set to begin supplying 5G automotive modems to Tesla. If accurate, this would mark a major expansion of the two companies’ partnership beyond AI chips and into vehicle connectivity. 

The move signals Tesla’s growing focus on supply-chain diversification and next-generation communications as it prepares to scale its autonomous driving and Robotaxi operations.

Samsung’s 5G modem

As per industry sources cited by TheElec, Samsung’s System LSI division has completed development of a dedicated automotive-grade 5G modem for Tesla. The 5G modem is reportedly in its testing phase. Initial supply is expected to begin in the first half of this year, with the first deployments planned for Tesla’s Robotaxi fleet in Texas. A wider rollout to consumer vehicles is expected to follow.

Development of the modem began in early 2024 and it required a separate engineering process from Samsung’s smartphone modems. Automotive modems must meet stricter durability standards, including resistance to extreme temperatures and vibration, along with reliability over a service life exceeding 10 years. Samsung will handle chip design internally, while a partner company would reportedly manage module integration.

The deal represents the first time Samsung has supplied Tesla with a 5G vehicle modem. Tesla has historically relied on Qualcomm for automotive connectivity, but the new agreement suggests that the electric vehicle maker may be putting in some serious effort into diversifying its suppliers as connectivity becomes more critical to autonomous driving.

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Deepening Tesla–Samsung ties

The modem supply builds on a rapidly expanding relationship between the two companies. Tesla previously selected Samsung’s foundry business to manufacture its next-generation AI6 chips, a deal valued at more than 22.7 trillion won and announced in mid-2025. Together, the AI chip and 5G modem agreements position Samsung as a key semiconductor partner for Tesla’s future vehicle platforms.

Industry observers have stated that the collaboration aligns with Tesla’s broader effort to reduce reliance on Chinese and Taiwanese suppliers. Geopolitical risk and long-term supply stability are believed to be driving the shift in no small part, particularly as Tesla prepares for large-scale Robotaxi deployment.

Stable, high-speed connectivity is essential for Tesla’s Full Self-Driving system, supporting real-time mapping, fleet management, and continuous software updates. By pairing in-vehicle AI computing with a new 5G modem supplier, Tesla appears to be tightening control over both its hardware stack and its global supply chain.

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