Elon Musk

SpaceX & The Boring Company Bought $5M Worth of Products from Tesla in 2020-2021

SpaceX & The Boring Company Bought $5M Worth of Products from Tesla in 2020-2021

Photo: Businessinsider

Tesla is the world's first vertically integrated sustainable energy company. They design, develop, manufacture, and sell high-performance, fully electric vehicles and energy generation and storage systems. The company also installs and maintains such energy systems, and sells solar-generated electricity. This contribution by Tesla is very valuable for many companies, including SpaceX and The Boring Company.

Having a wide range of multi-directional high-end products, Tesla also sells them to other of Elon Musk's companies. In a document filed with the US Securities and Exchange Commission, Tesla disclosed information that it sells its products to SpaceX and The Boring Company.

SpaceX purchased Tesla Energy systems and components and related services from Tesla for an aggregate of $1.5 million in 2020 and an aggregate of $0.2 million in 2021 through March in standard sales processes. The prices were negotiated in good faith, according to the document.

SpaceX has purchased and may purchase in the future certain vehicle components from Tesla, including with modifications for non-vehicle applications. The prices for such components and any associated labor and support, which were negotiated in good faith and were consistent with prices offered to other third parties to whom any such components have been sold, were $2.6 million in the aggregate in 2020 and $2.1 million in the aggregate in 2021 through March.

Tesla has provided SpaceX certain engineering support and resources from time to time upon the mutual agreement of the parties and at costs per hour that were negotiated in good faith. SpaceX incurred an aggregate of $0.1 million in 2020 for such support and resources.

In 2020, Tesla built a custom tool for SpaceX at its tool machining facility at a cost of $0.7 million. The pricing for such project, including labor hours, was negotiated in good faith, and such work took place during previously scheduled downtime at Tesla's facility.

In 2020, Tesla granted to SpaceX a limited non-perpetual license to certain software, as to which Tesla retains all intellectual property rights. Such license was renewed in 2021 and is scheduled to expire by February 2022. The aggregate fees for the license through its scheduled term were negotiated in good faith and are expected to be $0.1 million.



Tesla, in turn, also used the resources of SpaceX. Since April 2016, SpaceX has invoiced Tesla for use of an aircraft owned and operated by SpaceX. Tesla incurred $0.6 million in 2020 and has incurred $0.1 million in 2021 through March.

Tesla also sells its products to another Musk company, The Boring Company, and to organizations owned by one of Tesla's Board members. The Boring Company purchased Tesla Energy systems and related services for $0.3 million in the aggregate during 2020. The prices were negotiated in good faith. Entities affiliated with Tesla's Board member Lawrence J. Ellison purchased Tesla Energy systems and related services for $2.2 million in the aggregate during 2020 and $0.6 million in 2021 through March.

_____________________________

We appreciate your readership! Please share your thoughts in the comment section below.

Article edited by @SmokeyShorts, you can follow him on Twitter


About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

Follow me on X

Reading next

Miami Mayor Suarez, Boring Company Supporter, Sees Tesla Robotaxi Launched There in 2022
SpaceX Plans To Launch Starship SN15 Equipped With Starlink Dish This Week

Tesla Accessories