How Elon Musk's companies work together


NASA astronauts Doug Hurley (left) and Bob Behnken stand in entrance of the Tesla Model X that can carry them to the launchpad for the SpaceX Demo-2 launch.

NASA

Tesla revealed in a current submitting among the ways in which the corporate works with CEO Elon Musk’s different companies, together with SpaceX and The Boring Company.

The submitting exhibits associated celebration transactions that included SpaceX buying $2.6 million value of Tesla car parts, and $1.5 million value of Tesla Energy programs, parts and providers in 2020. The submitting, published late Friday, notes that these costs embrace labor, and among the elements and programs had been modified.

Collaboration between Musk’s companies is not new.

For instance, SpaceX shares two board members with Tesla. Musk sits on the board of each, as does his brother Kimbal and Antonio Gracias.

SpaceX has additionally made it a convention to drive astronauts to the launchpad within the firm’s model of an “astrovan,” a NASA logo-emblazoned Tesla Model X, for crewed launches and different events. And Tesla shares some staff with SpaceX, together with Charles Kuehmann, who serves as vp of supplies engineering for each companies.

The transactions between Musk’s companies have been comparatively small. But Friday’s submitting means that SpaceX purchased extra tech and providers from Tesla over time, even because the automaker battled chip shortages which have plagued the auto trade.

The firm’s Crew Dragon capsule “Resilience” returned to Earth on Sunday, splashing down within the Gulf of Mexico after a record-setting SpaceX-NASA mission to the International Space Station.

To fulfill its varied missions, SpaceX purchased $2.1 million value of automotive elements, together with labor and modifications for nonvehicle use, from Tesla within the first quarter of 2021 alone. That’s greater than triple the $600,000 SpaceX spent on Tesla automotive elements in the course of the year-earlier interval.

During Tesla’s first-quarter earnings name on April 26, Musk touted a record quarter for his electrical automotive firm. He additionally bemoaned the complexity of auto manufacturing typically, and the continued chip scarcity and supply-chain constraints plaguing the trade and Tesla.

He mentioned the hassle it took for Tesla to realize excessive quantity electrical car manufacturing included overcoming “a logistics problem that makes World War II look trivial.” The CEO added that the primary quarter of 2021 had “some of the most difficult supply-chain challenges that we’ve ever experienced in the life of Tesla. Insane difficulties with the supply chains with parts, over the whole range of parts.”

Friday’s submitting did not say precisely what SpaceX bought or the way it will use all the programs and elements.

The submitting additionally mentioned The Boring Company, the place Musk is a co-founder and a big shareholder, is now a tiny buyer of Tesla’s. The Boring Company bought “Tesla Energy systems and related services” for a complete of $300,000 throughout 2020.

Musk’s tunneling enterprise developed the Las Vegas Convention Center Loop, 1.7 miles of tunnels to hold guests to totally different exhibit halls. Tesla Model 3 car drivers journey via the LVCC loop to select up and drop off passengers who should e book their rides by way of an app.

The LVCC loop price Nevada taxpayers about $50 million and has been criticized for a scarcity of pedestrian entrances, walkways and platforms, and since its people-moving capability pales compared to that of a subway.

Tesla’s submitting did not say whether or not it sells or will promote automobiles to The Boring Company for such infrastructure developments.

Here’s a listing of the ways in which Tesla says it labored with and was paid by Musk’s companies all through 2020 and thru March this 12 months, in accordance with the submitting:

SpaceX

  • SpaceX bought $1.5 million value of Tesla Energy programs, parts and associated providers in 2020. It spent $200,000 on related purchases in the course of the first quarter of 2021.
  • SpaceX purchased $2.6 million value of auto parts from Tesla, together with modifications, labor and assist in 2020. It spent $2.1 million on the identical gadgets from Tesla within the first quarter of 2021.
  • SpaceX paid Tesla $100,000 for “engineering support and resources” utilized in 2020.
  • SpaceX ordered a customized instrument that Tesla constructed for it on the automaker’s machining facility for $700,000 in 2020.
  • SpaceX licensed software program from Tesla from 2020 via February 2022 for combination charges anticipated to quantity to $100,000 by the tip of that time period.

Tesla

  • Tesla paid SpaceX $600,000 in 2020 to be used of the corporate’s plane. It paid $100,000 to SpaceX for a similar within the first quarter of 2021.

The Boring Company

  • The Boring Company bought “Tesla Energy systems and related services” for $300,000 throughout 2020.

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