NASA 2008 contract saved SpaceX from fourth straight failure, admits Elon Musk

"That was definitely the worst year of my life," SpaceX and Tesla Motors CEO Elon Musk says about the year 2008 when SpaceX Falcon 1 rocket was a failure just less than a minute into the flight and his EV motor firm Tesla had hit a bump with its early model Roadster “haemorrhaging” money, in CEO Musk’s language. 

Tim Higgins’s prepublication blurb of a new book on Elon Musk, Power Play: Tesla, Elon Musk, and the Bet of the Century reveals the highs and lows of the founder and CEO of the world’s most famous electric car company. Musk, during that year, had fired top executives and engineers after his Model 3 assembly also fell behind.

Musk’s Tesla was “burning money” according to Higgin’s account in his new book, and Elon Musk on Twitter was busy confessing his error: “Excessive automation at Tesla was a mistake. To be precise, my mistake. Humans are underrated.” Higgins says that Elon musk set “unachievable goals” and fired anyone who pointed out his faulty reasoning. It was clear to musk that something was needed to be done. Around this time, NASA’s one contract to Elon Musk’s SpaceX saved the now world’s billionaire. 

“To save Tesla, Musk needed millions from investors. His fortune was gone," Pelley intones in the voiceover from the 60 Minutes broadcast, a clip now being widely circulated across social media. On Wednesday, Tesla Owners of Silicon Valley posted the footage on Aug.4, wherein CEO Elon Musk has a conversation with Pelley about what was it like for Tesla to have NASA offer a contract for SpaceX during the firm’s very difficult times. That year, Musk was also getting divorced.

"That was definitely the worst year of my life,” Elon Musk says in the rest of the interview. “To save Tesla, Musk needed millions from investors. His fortune was gone,” Pelley elaborates in the video. "Oh yeah. In debt," Musk's brother, Kimbal, also agrees. "More than broke."

[Illustration of SpaceX Starship human lander design that will carry the first NASA astronauts to the surface of the Moon under the Artemis program.Credits: SpaceX]

The fourth failure would've been 'game over, done!'

While Musk was contemplating the financial ruin, as the $180 million that he had made from selling PayPal to eBay in 2002 was gone having "bet it all,” NASA, to Musk’s astonishment awarded SpaceX a $1.6 billion contract to haul at least 20 metric tons of cargo to ISS. “NASA called and told us we won a $1.5 billion contract,” Musk can be heard saying in the clip. “I couldn't even hold the phone. I just blurted out, 'I love you guys!’" Pelley asks in the clip, "They saved you," Yeah, they did,” Musk is heard saying. He describes that he had “virtually no money, a fourth failure would have been absolutely game over. Done.” 

[A SpaceX Falcon Heavy flies a mission for the US military. Credit: SpaceX]

But on Sept. 28, 2008, SpaceX's Falcon 1 rocket lifted off for the fourth time and delivered the dummy payload to orbit successfully. It was Dec. 23, 2008, when NASA’s contract swung in for Musk, and just two days later, on Christmas eve, Tesla investors decided to pour in more money. "The rockets haven't failed since. His cargo capsule has docked three times with the space station and in the California plant they are fitting seats for what they hope will be eventual manned missions," Pelley narrates. 

As the segment from his 60 Minutes interview with correspondent Scott Pelley that aired in March made rounds, Musk took to his official Twitter handle to comment:  "It's true,” as he continued, "I do love NASA, always have.” "Just want to say thanks to those in government who fight hard for the right thing to happen, despite extreme pressure to do otherwise. Therein lies the core goodness of the American state," Musk further stated.  “He’s a guy with unlimited ambition,” his brother, Kimbal Musk, had said in a televised interview in 2014.