Elon Musk Reacts After NASA OIG Says Launcher For Artemis 4 Mission May Cost $2.7B: 'Holy…'

The development of a second mobile launcher (ML-2) required to launch the Space Launch System (SLS) as part of future NASA Artemis missions may cost $2.7 billion or over five times the initial cost estimates, according to NASA Office of Inspector General (OIG).

What Happened: NASA contracted Bechtel National in 2019 to build the new ML and the company was supposed to deliver it by March 2023. But the ML is still under development with costs exceeding the agency’s estimates.

NASA Office of Inspector General on Tuesday published the results of the audit it conducted on the ML-2 project. OIG aims to detect and prevent waste and mismanagement in NASA operations by conducting audits and investigations.

OIG said that NASA now projects ML-2 to cost over three times more than what it planned. In 2019, NASA estimated the entire project to cost just $500 million but it now estimates the project to cost about $1.8 billion with a delivery date of September 2027.

But OIG believes the cost will be even higher than the agency’s estimate. The cost of the project may touch $2.7 billion and the ML-2 might be ready to support a launch only by Spring 2029, surpassing the expected launch date for the Artemis 4 mission, OIG said, while adding that NASA officials do not agree with the estimates for either cost or timeline.

The OIG now recommends that the agency explore whether it can change the contract with Bechtel to a fixed-price contract from a cost-plus contract. A fixed price contract will provide cost certainty, OIG said, while adding that the NASA management too agrees partially with the recommendation and has proposed corrective measures.

About The ML-2 Project: The mobile launcher refers to the ground structure used to assemble, transport, and launch the Space Launch System launch vehicle and Orion spacecraft which are the key infrastructural requirements for NASA’s Artemis program aimed at taking humans back to the surface of the Moon.

The first mobile launcher was originally made in 2010. It underwent modifications later and is expected to support the first three Artemis missions.

ML-2 refers to the second mobile launcher being developed at the Kennedy Space Center to support missions starting from Artemis 4, which is expected to launch in September 2028.

SpaceX CEO Responds: SpaceX CEO Elon Musk on Tuesday took to social media platform X to respond to the findings of the audit and wrote, “Holy Smokes!”

The billionaire also expressed surprise at how a launcher could be so expensive in another post reply.

SpaceX’s Role In Artemis Program: The Artemis 3 mission slated to launch no earlier than September 2026 is expected to enable humans to land back on the surface of the moon with the help of a lunar lander variant of SpaceX’s Starship spacecraft.

Musk’s SpaceX is currently developing the Starship and conducting test flights. The Starship is a two-stage launch vehicle composed of the Starship spacecraft and Super Heavy rocket. SpaceX believes the vehicle will enable people to reach the Moon and even Mars in the future.

The last time humans set foot on the Moon was in 1972 with Apollo 17. Since then, no crew has traveled beyond low-Earth orbit.

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Photo by NASA Kennedy

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