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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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Elon Musk

Tesla Roadster owners to get “Flying Stunt Mode” and looping track access

Musk says Roadster owners can command the unveiling stunts autonomously, with a Texas looping track.

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Elon Musk says owners of the new Tesla Roadster will be able to ask the car to perform the stunts Tesla showed at its unveiling, with the car doing the driving itself. Musk made the comment Saturday in a reply on X to tech blogger Robert Scoble, and he added a promise of a looping track at Tesla’s Texas headquarters.

Scoble had argued that the person in the Roadster is not really driving it. In his description, the driver operates a computer that tells another computer what to do, with steering, braking and acceleration all handled by wire. Musk answered, “True. You will be able to ask the Roadster to perform any of the tricks shown autonomously, as it will be sentient. Also, we will have a wild looping track (crazier even than Hot Wheels) at our Texas HQ where you can test out your Roadster.”

At the October 15 event outside Waco, the car drove up a curved ramp until it was upside down, flew off on cold gas thrusters, flipped and landed. It also hovered over a Cybercab, Cybertruck, Semi, Model Y and Model 3 while moving. As we noted in our breakdown of the three Roadster configurations, Musk said at the event that the car “literally is just going to puff itself up” to perform the maneuvers whenever an owner wants. Saturday’s reply adds that the car would run them on its own.

Tesla has described some of the hardware that would make that possible. The Roadster uses steer by wire with a yoke, and its cold gas thrusters rely on electric actuators for small adjustments in flight. A fan system under the car creates suction, which Tesla says is strong enough to hold it upside down, a setup we covered in our look at the Roadster’s fan system and thrusters.

Musk did not say when an autonomous stunt feature might arrive, how it would work, or what he means by sentient. He also gave no size, location or opening date for the Texas track. Production is planned for Giga Texas in 2027 or 2028, and Tesla says the car is not approved for public road use. The Rocket version, the one built to fly, is invite only.

The comment follows a week of Musk teasing the event, including his claim that the demo would be a banger, which we covered before the stream. Tesla reports third quarter earnings on October 21, and shareholders can submit and vote on questions through the Say portal until 4 p.m. EDT on October 20, according to our earnings Q&A preview. A question about autonomous Roadster stunts and the Texas track would be a quick way to get specifics from management.

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Elon Musk

How to use Grok Bot to block spam calls and texts

Musk told users to ask Grok Bot to scrub their phone numbers from spam lists.

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Elon Musk has a new use case for Grok Bot, and it is the spam call. On Thursday he replied to an X user named Arash with a short instruction: “Ask your @Grok @Bot to remove your phone number from spam call & text lists!” Arash had said he got tired of the calls, had an AI bot find his number on listing sites and file removal requests, and packaged the process as a free skill for others.

The skill is called Spam-Call Scrubber, which is described to find a phone number on people search sites and data brokers, submits the opt outs, completes the confirmation emails those sites send back, and rechecks on a schedule the user picks. Using it requires the Grok Bot app. The pitch is time saved, since most broker opt outs sit behind separate forms on separate sites.



Musk said Grok Bot now gives each bot its own email address, and that it can detect scam emails. On Thursday he also said SpaceX would make users whole if the bot botches a purchase or leaks a card, then told users to shop away from Amazon after the retailer blocked the agent, as Teslarati reported. The terms of service we reviewed at the time put responsibility for what an agent does on the user.

For Tesla owners, Grok Bot is not just a phone app. Tesla brought Grok Bot into its vehicles on September 22, and we argued earlier this week that the Cybercab’s real advantage may be the errands it runs during a ride. Every Cybercab and the rest of the Model Y Robotaxi fleet has it enabled. The more routine tasks like this one become, the more a rider has reason to hand over something personal in the back seat.

The new Spam-Call Scrubber skill can be downloaded for free and works on sites that honor removal requests, while noting that listings can reappear, and illegal robocallers do not check any registry. Whether Spam-Call Scrubber cuts anyone’s call volume is something the first wave of users will find out, and Musk’s endorsement guarantees that wave is coming.

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Investor's Corner

Tesla’s flying Roadster just revealed something bigger than the car

Analysts say the Roadster demo puts a Tesla and SpaceX merger back on the table.

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Tesla’s new Roadster, upside down and trailing cold gas thruster smoke, flips over a lineup of Tesla vehicles at the Roadster unveiling near Waco, Texas on October 15, 2026. (Image: Tesla)
Tesla’s new Roadster, upside down and trailing cold gas thruster smoke, flips over a lineup of Tesla vehicles at the Roadster unveiling near Waco, Texas on October 15, 2026. (Image: Tesla)

The Roadster unveiling near Waco ended Thursday night, and by Friday morning much of the investor reaction had less to do with the car than with who owns the rocket technology inside it.

Wedbush analyst Dan Ives said the event “puts the Tesla/SpaceX relationship on the table in a tangible way,” pointing to the propulsion, pressure vessel and control hardware sitting on a Tesla product. Gene Munster of Deepwater Asset Management called the demo “a ridiculous display of engineering” with “no commercial value” beyond embarrassing traditional automakers, though he said it showed Musk wants the two companies together.

The more specific forecast came a day earlier from Barclays. Analyst Dan Levy told clients a deal could be announced before Tesla’s annual meeting, which must happen by December 6, and that an announcement in late October or early November could make shareholder approval harder. Barclays expects SpaceX to be the buyer in an all stock deal, with Tesla holders receiving SpaceX shares at a premium, based on market values of roughly $2.1 trillion for SpaceX and $1.5 trillion for Tesla. If nothing lands around the meeting, the bank still sees an announcement within 6 to 12 months.

The Roadster demo just added more weight to merger speculations. Tesla’s demo used cold gas thrusters and pressure tanks of the kind SpaceX uses on Falcon 9, and Musk described the car as a collaboration between Tesla and SpaceX engineers, as we mentioned in our breakdown of the three Roadster configurations.


Musk has not publicly addressed a deal since the event, as far as we have seen. His most direct answer remains the one he gave at the All In Summit, when he said that with so much collaboration, “who can imagine what action one might take” without ruling anything out. Ives has held to a 2027 timeline since his March note, and Musk pushed back on the China piece of the speculation when ARK floated a year end announcement in August.

The next test is Tesla’s third quarter earnings call on October 21. However, we recall in July that Musk told analysts, “we can’t talk about combining companies and that kind of thing on an earnings call,” so a clear answer wouldn’t be expected.

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