The United Auto Workers union, sixteen states, and four environmental groups recently filed lawsuits against the United States Postal Service (USPS). The groups aim to stop the Postal Service’s plan to purchase and produce gas-powered delivery vehicles to update its fleet.
Background
The USPS announced it would spend up to $11.3 billion on up to 165,000 gas-powered NGDVs. The Biden Administration urged the Postal Service to reconsider its plans. President Biden had ordered federal agencies to phase out the purchase of gas-powered vehicles, and the USPS makes up a third of the U.S. government fleet.
In March, the USPS received criticism from U.S. lawmakers in the House Oversight Committee for its gas-powered Next Generation Delivery Vehicles (NGDV). The Committee sent a letter to the USPS Inspector General requesting an investigation into the agency’s NGDV order. According to the Committee’s letter, the Environmental Protection Agency (EPA), the White House Council for Environmental Quality (CEQ), and numerous environmental stakeholders were concerned that the USPA did not meet NEPA obligations with its gas-powered NGDV fleet.
The USPS responded to EPA feedback with a record of decision (ROD), which outlined the Postal Service’s decision to purchase and deploy 50,000 to 165,000 NGDVs over the next ten years. The agency stated that the NGDV fleet would be a mix of ICE and battery electric delivery vans. Electric vehicles would make up at least 10% of the agency’s fleet. However, the Postal Service also determined that ICE NGDVs were the “most achievable” replacements for its existing fleet.
USPS Lawsuits by States
As per Reuters, sixteen states, led by New York and California, filed a lawsuit against the USPS for its flawed and unlawful environmental analysis of the NGDV program. The lawsuit also accuses the Postal Service of signing the contracts to purchase the gas-powered NGDV before completing a draft environmental review.
According to the CEQ, the Postal Service’s final review for the NGDV program was “flawed in some ways that cannot be so easily remedied.” For example, USPS estimated that the gas-powered NGDVs would get 29.9 miles per gallon, but the EPA discovered that the vehicles would only get 14.7 miles per gallon or less.
UAW and NRDC Lawsuit
Besides the states lawsuit, the UAW filed a joint lawsuit with the Natural Resources Defense Council (NRDC), claiming the USPS “failed on multiple levels” when it evaluated and finalized the contract for the NGDVs. The two parties demand that the agency stop producing the next-generation delivery vehicles. As per the complaint, the UAW and NRDC stated that the NGDV contract is “based on an unlawfully deficient environmental analysis issued after the Postal Service had already decided on a course of action.”
The two parties also criticized the agency’s Environmental Impact Statement (EIS). The UAW and NRDC claim that the Postal Service did not consider the impact NGDV production — opposed to the operation — would have on the local environment. The EIS did not disclose that the vehicles would be produced in South Carolina by Oshkosh Defense, a Wisconsin-based contractor.
“With this contract, USPS and Oshkosh Defense abandoned the Wisconsin workers that built the company and failed taxpayers with a sham process to evaluate the environmental and community impacts of these vehicles. The USPS’s Next Generation Delivery Vehicle is an opportunity for the Biden administration to reverse-court and make real investments in both a cleaner future and good union jobs The contract as it currently stands fails on both accounts. It’s time to halt production and start the procurement process over,” said Ray Curry, president of the United Auto Workers.
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Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
SpaceX issues statement on Starship V3 Booster 18 anomaly
Tesla analyst maintains $500 PT, says FSD drives better than humans now
