• Boeing is having a rough year.
• The company has faced mechanical problems, lawsuits, a leadership shake-up, and layoffs.
• Here's a breakdown of how Boeing's year has gone from bad to worse.

Boeing has been going through it this year.

From losing a door plug on an Alaska Airlines flight, causing a side panel to blow out in midair, to an exodus of corporate executives, the company has faced a litany of crises in 2024. The company's stock has fallen about 35% this year.

In a message to employees during the company's third-quarter earnings call, Boeing CEO Kely Ortberg said the company was at a "crossroads."

"My mission here is pretty straightforward," she said. "Turn this big ship in the right direction and restore Boeing to the leadership position that we all know and want."

Here's how Boeing's year went from bad to worse.

Emergency on Alaska Airlines Flight 1282

The problems began almost immediately this year when, on January 5, Alaska Airlines Flight 1282 lost a door plug midair, blowing a hole in the side of the plane. While no one died in the incident, several passengers were injured, and the pilots were forced to make an emergency landing in Portland, Oregon.

In the aftermath of the incident, the FAA temporarily grounded over 170 of Boeing's 737 Max 9 planes until they could complete safety inspections.

The Justice Department opened an investigation into Boeing shortly after, and the FBI told passengers aboard the flight that they might have been victims of a crime.

Ongoing litigation

Boeing was hit with multiple lawsuits this year.

Passengers from the Alaska Airlines flight filed a class action suit against the company just days after the incident.

"Passengers were shocked and confused, thrust into a waking nightmare unsure if these were their last seconds alive," the lawsuit said.

Boeing's shareholders filed a separate class action suit against the company in January, stating that it had prioritized profit over safety, Reuters reported.

Separately, in July, Boeing struck a plea deal related to two 737 Max crashes in 2018 and 2019 that killed 346 people. If a judge had approved the deal, it would have allowed Boeing to plead guilty to conspiracy to commit fraud, avoid a trial, pay a fine of about $244 million, and invest at least $455 million in safety and compliance measures.

Boeing agreed to pay $2.5 billion in 2021 in a deal with the federal government to avoid prosecution for the crashes, but Justice Department officials said in May that Boeing had violated portions of the deal, putting a trial back on the table. Relatives of the deceased passengers asked a Texas judge in October to throw out the agreement, which they called a "sweetheart" deal. The families have previously called for the company to pay a fine amounting to nearly $25 billion.

In December, the judge rejected the deal. A lawyer representing families who lost people in the 2019 crash told BI that they "anticipate a significant renegotiation of the plea deal that incorporates terms truly commensurate with the gravity of Boeing's crimes."

FAA audit of Boeing's safety procedures

The Federal Aviation Administration commissioned a report into Boeing following the fatal 2018 and 2019 crashes — and the results published in February weren't good news for the company.

The FAA report found 27 insufficient areas in Boeing's safety procedures, including no clear system for employees to report safety concerns, confusing management structures, and poor communication with employees about safety procedures.

The latest statement from the FAA about Boeing's compliance to remedy the safety issues was published in August. It said the agency continues "actively monitoring Boeing's progress in a variety of ways," including regular reviews by FAA experts of Boeing's safety procedures and issuing airworthiness certificates for every newly produced Boeing 737 Max. 

The FAA itself has faced scrutiny for its oversight of Boeing. A report from the Department of Transportation's Office of the Inspector General in October found the agency's checks were insufficient.

Exodus of Boeing executives

In March, Boeing announced a leadership shake-up.

CEO Dan Calhoun said he would step down. Stan Deal, the CEO of the company's commercial airplanes division, said he would retire. In the same announcement, board chair Larry Kellner announced his plan not to seek reelection.

Stephanie Pope, the company's COO, was promoted to replace Deal shortly after his departure. At the end of July, Kelly Ortberg was named the company's new CEO.

Ted Colbert, who headed Boeing's defense, space, and security division, became the first prominent executive to leave the company after Ortberg took over. Colbert's departure was announced in September.

Stranded astronauts

The aerospace company faced another high-profile problem in June when NASA astronauts Butch Wilmore and Suni Williams traveled to the International Space Station on Boeing's CST-100 Starliner spaceship. It marked the first time Boeing flew astronauts to space.

The astronauts left Earth on June 5 and were supposed to return after eight days, but issues with Starliner's thrusters and helium leaks caused delays. NASA and Boeing began troubleshooting the problems to bring Wilmore and Williams back home. However, in late July, the two astronauts were still stuck at the International Space Station.

NASA's Commercial Crew Program manager, Steve Stich, said in a press briefing that month that Elon Musk's SpaceX could bring home the astronauts if needed. After working with Boeing to determine whether the two astronauts could safely return to Earth on Starliner, NASA announced in August that it chose SpaceX to do the job instead.

"Spaceflight is risky," NASA Administrator Bill Nelson said during a press conference. "Even at its safest. Even at its most routine. A test flight, by nature, is neither safe nor routine. So, the decision to keep Butch and Suni aboard the International Space Station, and bring the Boeing Starliner home un-crewed, is a result of a commitment to safety."

The decision was a major blow to Boeing, which spent $4.2 billion developing Starliner. Wilmore and Williams' flight was the final step Boeing needed to clear for NASA to certify Starliner for human spaceflight. It highlighted just how far Boeing lags behind its competitor, SpaceX.

Wilmore and Williams are now expected to return to Earth in 2025 on SpaceX's Crew Dragon spaceship, which launched for the International Space Station in September. The astronauts were initially set to return home in February, but NASA announced they would be delayed until March as SpaceX readies its spaceship.

Union strike

Thousands of unionized Boeing employees walked out in September after contract negotiations broke down.

The strike began despite a promising pay package proposal, which would have raised wages by more than 25% over the contract period for more than 32,000 employees in the Pacific Northwest.

Ultimately, union workers denied the proposal and voted to initiate a strike, which is costing the company about $50 million a day.

Negotiations stalled, with both sides filing National Labor Relations Board violations accusing the other of negotiating in bad faith.

Boeing and union leaders reached a tentative deal on October 19 that included a 35% general wage increase spread over four years and a one-time ratification bonus of $7,000.

However, striking Boeing employees rejected the deal on October 24.

"After 10 years of sacrifice, we still have ground to make up. We hope to resume negotiations promptly," the International Association of Machinists and Aerospace Workers said on X.

The 53-day strike ended in early November when workers approved a new contract.

Layoffs

Boeing began furloughs of white-collar workers in mid-September after the strike began. Select employees were required to take one week off every four weeks on a rolling basis.

Ortberg, in a staff memo, also announced that executive leadership would take a "commensurate pay reduction for the duration of the strike," though details of the pay reduction remain unclear.

Layoffs began several weeks later. In mid-October, Boeing announced plans to lay off about 10% of its 170,000-member workforce.

In a memo to employees, Ortberg said Boeing was in a "difficult position" and that "restoring our company requires tough decisions."

The company also delayed production of its 777X twin-engine jet and discontinued production of its 767 cargo plane, the memo noted.

Production delays with the Boeing 777X plane

The experimental 777X is Boeing's newest widebody plane, banking 481 orders from more than a dozen global carriers even though regulators have not yet approved it to fly passengers.

But the aircraft has been riddled with production problems — like supply chain issues, design troubles, and now the ongoing strike — which have already put it five years behind schedule and set Boeing back $1.5 billion.

That hole will likely deepen with the latest entry delay to 2026, further eroding the industry's trust in Boeing's 777X program. It could also push carriers to choose Boeing's European rival Airbus and its already-in-service Airbus A350.

The aircraft is still uncertified but started certification flight testing in July. Testing was halted in August due to a problem with a key part that connects the engine to the aircraft, CNBC reported.

Production troubles with Boeing's 737 MAX aircraft

The FAA announced in January that it would not grant any production expansions of Boeing's MAX aircraft, including the 737 MAX 9, following the emergency on Alaska Airlines Flight 1282.

"The Jan. 5 Boeing 737-9 MAX incident must never happen again," the FAA said in a press release said.

FAA Administrator Mike Whitaker said Boeing would not be cleared to expand production or add additional production lines for the 737 MAX "until we are satisfied that the quality control issues uncovered during this process are resolved," according to the press release.

Boeing held a three-hour meeting with the FAA in June to address safety and quality concerns. Afterward, Whitaker spoke at a press conference, where he told a reporter that expanding production of 737 MAX planes was still up in the air.

The FAA told Business Insider, "This is about systemic change, and there's a lot of work to be done. Boeing must meet milestones, and the timing of our decisions will be driven by their ability to do so."

The agency added: "Boeing has delivered a roadmap to change its safety culture, and the FAA will make sure Boeing implements the changes they have outlined. We will not approve production increases beyond the current cap until we're satisfied they've followed through on implementing corrective actions and transforming their safety culture."

Boeing restarted production of the 737 Max in December following the strike's conclusion.

Whistleblowers report problems at Boeing

Sam Salehpour, a Boeing engineer, testified at an April Senate hearing that the company ignored his reports on safety concerns, that his boss retaliated against him, and that he received threats against his physical safety.

The Senate subcommittee investigating Boeing's safety and quality practices released a 204-page report in June. The report included accounts from several whistleblowers.

Sam Mohawk, a Boeing quality assurance inspector, said the company lost track of hundreds of bad 737 parts and instructed employees to conceal improperly stored plane parts from FAA inspectors.

Another whistleblower, Richard Cuevas, wrote in a June complaint to the FAA that holes were being incorrectly drilled on Boeing's 787 Dreamliner planes.

Money woes

In a sign of how Boeing's problems have hurt its bottom line, the company said in a regulatory filing to the SEC in October that it had entered a $10 billion credit agreement with four major banks: JPMorgan Chase, Goldman Sachs, Bank of America, and Citibank.

The company also filed a prospectus saying it might sell up to $25 billion in securities.

"These are two prudent steps to support the company's access to liquidity," Boeing said in a statement.

While workers were on strike, Bank of America analysts estimated that the work stoppage cost Boeing $50 million a day.

To save money, Ortberg, the company's CEO, instructed top executives to stop flying private jets and instead fly economy on commercial flights.

• Elon Musk has had a big year with Tesla and SpaceX soaring in value, supercharging his net worth.
• He helped Donald Trump win reelection and intends to transform the US government in 2025.
• Scroll down for seven charts showing how Musk's 2024 played out.

Elon Musk has had a year for the record books.

His businesses have taken off, with Tesla, SpaceX, xAI, and Neuralink all touching new valuation highs. Their success has boosted Musk's net worth to above $450 billion for the first time, putting him over $200 billion ahead of the world's second-richest person, Amazon's Jeff Bezos.

Musk has also become a power player in US politics after wielding his cash and clout to help win Donald Trump a second term in office. As one of the president-elect's closest advisors, he's now gearing up to overhaul the US government.

The situation seems worse at X, formerly Twitter, after Musk's $44 billion takeover and reshaping of the platform sparked an advertiser exodus.

Take a look at Musk's 2024 in charts (all data is accurate as of Friday, December 20):

1. Charging ahead

Tesla shares have shot up as much as 85% this year, driving the electric vehicle maker's market value above $1.4 trillion for the first time. They've since retreated but continue to trade near record levels.

The automaker has benefited from market buzz around artificial intelligence — which it's harnessing to develop self-driving cars and humanoid robots — plus a robust US economy and the Federal Reserve cutting interest rates.

Investors are also betting that Musk's businesses will benefit from his close ties to Trump, which could translate into less stringent regulations, government subsidies, tariff exemptions, and more.

2. Reaching for the stars

SpaceX's valuation nearly doubled from $180 billion at the end of last year to $350 billion this month, based on the price paid by the company and its backers for employee shares in its latest tender offer.

Musk's rocket, spacecraft, and satellite communications company made several technological breakthroughs this year. For example, it plucked the first-stage booster of its new Starship out of the air using a massive pair of mechanical "chopsticks" in October.

3. Shifting fortunes

Musk's net worth slumped in the spring as Tesla stock tumbled, dropping below $170 billion at its nadir.

But it rebounded by over $300 billion to touch an unprecedented $486 billion on December 17, as Tesla hit fresh highs and SpaceX notched a $350 billion valuation.

4. Rise of the robots

Musk's artificial intelligence company, xAI, was only founded in July 2023.

Yet it notched a post-money valuation of $24 billion in May following its Series B funding round. That rose to $50 billion in November, reports say, meaning the maker of the Grok chatbot is worth roughly as much as Monster Beverage.

5. X marks the drop

It remains tricky to gauge the health of X, the social media company formerly known as Twitter that Musk took private in 2022. One way is to use Fidelity's monthly estimates of the value of its stake in the business.

The mutual fund giant's figures imply that X's valuation has crashed since Musk's purchase. The tech billionaire laid off a large part of the company's workforce and relaxed content moderation in support of greater free speech, triggering an advertiser exodus that hammered the company's revenues.

Regardless, Musk recently posted on X that the platform has roughly 1 billion active users, although around 40% of them only log on during important world events.

6. Trump train

Musk was one of the biggest spenders in the US presidential election, deploying over $270 million to back Trump's race for president, run ads against Democrats, and promote conservative viewpoints.

His starring role in Trump's victory and emergence as one of the president-elect's closest advisors and a co-chief of the new Department of Government Efficiency suggests that his investment in the election has paid off.

7. Building brainpower

Neuralink, Musk's neurotechnology company, was valued at $8 billion this summer, up from about $2 billion three years earlier.

The developer of brain-computer interfaces wants to allow people with quadriplegia to control computers with their thoughts. Musk released footage this spring of the first patient to receive one of its brain implants.

How did Elon Musk go from being an Obama supporter to a self-described "dark MAGA" Trump ally? Here's a look at the relationship between two billionaires ahead of the second Trump presidency.

• SpaceX employees worked grueling hours and gritty conditions in the company's early days.
• Elon Musk offered workers SpaceX stock options to poach top talent and keep them motivated.
• One expert said that for stocks to work, companies have to give employees chances to cash in.

Working at SpaceX in the company's earliest days was intense, but it may pay off for some hires.

Tough working conditions might tank some businesses, but not SpaceX. On December 11, Bloomberg reported that the Elon Musk-founded company was valued at $350 billion, making it the most valuable private startup worldwide.

The value comes after SpaceX and some of its approved investors struck a deal to buy up to $1.25 billion of employees' shares, offering $185 a share. Therein lies a partial key to SpaceX's overwhelming success.

Like many tech startups, SpaceX offered its early employees stock options as a financial incentive to keep them invested in the company's success — even when they were exposed to Musk's strict standards, his bouts of shouting when things went wrong, and his near-impossible timelines, space journalist Eric Berger reported.

In his new book "Reentry," Berger shares current and former employees' accounts of working 36-hour days, sleeping under their desks, urinating in buckets, dodging rattlesnakes, and injuring themselves on the job.

Stock options are a toss-up. They don't always end up being valuable. SpaceX was proving its value early, though.

"Even as far back as 2010, you could see that that had real value if you stayed there," Berger told Business Insider.

How equity pushes employees

Offering stock options is a common strategy, especially for early-stage companies that don't have much cash for salaries, said Jorge Martin, head of the employee-equity plan provider North American branch of JP Morgan Workplace Solutions.

"When they are working these grinding hours, when they are traveling all over the world, when they're under high pressure," Martin said, "then all of that is worth it when you have an equity grant that can grow as the company grows and as the company succeeds."

Martin said he's occasionally seen startup employees become millionaires off their equity.

The promise of those stock options gave SpaceX a competitive edge in recruiting top engineering talent. In the scramble for new hires fresh out of college in the 2010s, SpaceX, Berger said, often competed with Blue Origin, a similarly ambitious rocket company founded by Jeff Bezos.

"They would poach people back and forth," Berger said.

Cashing in on company equity

Workers can turn shares into cash when a company gets sold or goes public — which SpaceX has not done — or when it does a "tender offer," allowing employees to sell their shares to other investors.

Blue Origin has a stock ownership program too, Berger said, but it's "considered virtually worthless because Bezos is probably never going to sell a significant chunk of the company. So those shares can never really be sold."

SpaceX, meanwhile, has given its employees multiple opportunities to cash in on their shares, including through the deal it struck this month.

Musk's Mars vision helped

SpaceX offered some of its early employees more than stock. Some truly believed in Musk's plans to build a human settlement on Mars.

Unlike a regimented job at NASA or a legacy aerospace corporation, a gig at SpaceX meant working hands-on with multiple ambitious rockets, spaceships, or engines — back to back or simultaneously.

"You're going to work super hard, but you're also going to get to work on cutting-edge stuff, stuff that's actually going to fly," Berger said. "After a few years there with that on your résumé, you can basically write your ticket anywhere in the industry you want to go."

For some employees, Berger found, the stock was icing on the cake.

SpaceX did not respond to a request for comment.

• Bernie Sanders says Elon Musk is using his wealth and political clout to undermine US democracy.
• Musk lambasted a government funding deal and said a shutdown would be the Democrats' fault.
• "Are Republicans beholden to the American people? Or President Musk?" Sanders asked on X.

Elon Musk is wielding his immense wealth and political power to pressure US lawmakers, shifting America from democracy to oligarchy, Sen. Bernie Sanders says.

In two recent X posts, the Vermont senator called out Musk's influence over Republicans and his warnings to legislators if they don't vote the way he wants.

"The US Congress this week came to an agreement to fund our government," he wrote late Wednesday. "Elon Musk, who became $200 BILLION richer since Trump was elected, objected. Are Republicans beholden to the American people? Or President Musk? This is oligarchy at work."

"Elon Musk, the richest man in the world, is threatening to unseat elected officials if they do not follow his orders to shut down the government during the holidays," he said in a Thursday post. "Are we still a democracy or have we already moved to oligarchy and authoritarianism?"

Musk blasted the funding bill in question as bloated and overcomplicated and wrote on X that "any member of the House or Senate who votes for this outrageous spending bill deserves to be voted out in 2 years!"

He threw his weight behind Republicans' alternative bill, hailing it as cleaner and simpler. Moreover, he posted that it would be the Democratic Party's fault if an agreement isn't reached and the government shuts down.

Both Trump's team and Musk have pushed back against the idea that he's pulling Republicans' strings. Musk has said he's only bringing things to the attention of his followers, and they're free to voice their support.

The Tesla and SpaceX CEO's net worth hit a record $486 billion on Tuesday, up $257 billion from the start of the year — a figure that exceeds the fortune of the world's second-richest man, Amazon founder Jeff Bezos. Tesla stock has slid since then, but Musk was still worth $455 billion at Thursday's close.

As Sanders wrote, Musk's wealth surged after President Trump's election victory as Tesla stock rode a broader market rally, and investors wagered the automaker would benefit from Musk's close ties to the White House. Additionally, SpaceX was valued at a record $350 billion this month, boosting the worth of Musk's stake in the rocket company.

Sanders has called out Musk several times in his criticisms of wealth inequality, which often single out billionaires for having too much influence and paying too little in taxes.

"Never before in American history have so few billionaires, so few people had so much wealth and so much power," he said in a clip from "Meet the Press" that he recently shared on X.

"We can't go around the world saying, 'Oh well, you know in Russia, Putin has an oligarchy," Sanders continued. "Well, we've got an oligarchy here, too."

The progressive lawmaker has also clashed with Musk's Big Tech peers. Sanders recently told Bill Gates that he was a "very innovative guy" who deserved to be financially rewarded for his contributions to society as Microsoft's cofounder — but not to the tune of billions of dollars.

"How much do you deserve? Can you make it on a billion? Think you could feed the family? Probably. Pay the rent? Maybe," Sanders quipped.

In response to Sanders saying billionaires shouldn't exist in 2019, Meta CEO Mark Zuckerberg, now the world's third-richest person, agreed that "some of the wealth that can be accumulated is unreasonable."

• Jeff Bezos had dinner with Donald Trump and Elon Musk at Mar-a-Lago on Wednesday evening.
• Musk confirmed the dinner took place, describing it as a "great conversation."
• Bezos is the latest tech giant to meet Trump in Florida, after Mark Zuckerberg and Sundar Pichai both visited.

Jeff Bezos seems to be trying to patch up his feud with Donald Trump and Elon Musk.

The former Amazon CEO was pictured at Mar-a-Lago with fiancé Lauren Sánchez on Wednesday night in images circulating on social media, as he joined the president-elect for dinner.

Trump had previously told NBC's "Meet the Press" that he and Bezos were planning to have dinner.

Tesla CEO Elon Musk was also in attendance, confirming that the meeting had taken place in a post on X, describing it as a "great conversation."

Bezos, who also owns rocket company and SpaceX rival Blue Origin, is the latest tech figure to try to make nice with Trump in recent weeks.

Meta CEO Mark Zuckerberg and Google boss Sundar Pichai have both met with Trump at his Florida resort in recent weeks. Meta, Amazon, and OpenAI CEO Sam Altman have all donated $1 million to the incoming president's inauguration fund.

Bezos has had a rocky relationship in the past with both Trump and Musk.

The Washington Post owner clashed with Trump in his first term over his newspaper's coverage of his presidency.

However, Bezos praised Trump following an assassination attempt in July and said he was "very optimistic" about a second Trump term at the NYT's Dealbook conference earlier this month.

Bezos has also previously sparred with Musk, who is set to play an active role in the Trump administration after donating over $200 million to pro-Republican campaign groups during the election.

Musk wrote in a post on X last month that Bezos had told people they should sell Tesla and SpaceX stock because Donald Trump would lose the election, which the Amazon founder denied as "100% not true."

Blue Origin competes with SpaceX for lucrative NASA and federal contracts. In the leadup to the election, the billionaire came under fire over The Washington Post's failure to endorse a candidate, with multiple reports suggesting Bezos made the decision to do so.

Amazon and Elon Musk did not respond to requests for comment, sent outside normal working hours.

• Two astronauts have been stuck on the space station after their Boeing spaceship had engine issues.
• Now, their return is being delayed another month to give SpaceX time to process a new spaceship.
• NASA and SpaceX are using the new ship, instead of a refurbished one, to expand SpaceX's fleet.

Two astronauts have been stuck on the International Space Station for months because of issues with Boeing's new Starliner spaceship.

Now, they'll have to stay just a bit longer because SpaceX needs extra time to prepare its Crew Dragon spaceship.

Butch Wilmore and Suni Williams were set to finally come back to Earth in February. Now the earliest they can return is in late March, NASA announced in a blog post on Wednesday.

While one month is not a terribly long delay by regular NASA mission standards, the extra time in orbit is significant considering Wilmore and Williams launched into space for a roughly eight-day mission way back in June.

SpaceX needs extra time to process a new spaceship

SpaceX's Crew-10 mission, originally scheduled for February, is supposed to relieve Wilmore and Williams and allow them to finally return home.

NASA and SpaceX recently decided, though, to use a new Dragon spaceship rather than a used, refurbished one for that launch, according to NASA's blog post.

The new spaceship will need extra time after it ships to SpaceX's processing facility in Florida in January. That's why NASA pushed back the launch date.

"Fabrication, assembly, testing, and final integration of a new spacecraft is a painstaking endeavor that requires great attention to detail," Steve Stich, the manager of NASA's Commercial Crew Program, said in a statement.

This was "the best option for meeting NASA's requirements and achieving space station objectives for 2025," the blog post said.

SpaceX has reused Dragon spaceships for NASA missions in the past. However, a NASA spokesperson told BI that certifying the new spacecraft will expand the company's Crew Dragon fleet to five human-rated spaceships, for both NASA and private missions.

In a statement sent in an email, the spokesperson said that Wilmore, Williams, and their crewmate Nick Hague were "supportive of the path forward."

They added that the three astronauts "understood the possibilities and unknowns, including being aboard station longer than planned."

SpaceX did not immediately respond to a request for comment.

SpaceX to the rescue

The question of how Wilmore and Williams would get back to Earth arose soon after their launch.

As their newly-minted Boeing Starliner ship approached the ISS in early June, it experienced engine issues that raised NASA officials' eyebrows.

After weeks of testing and deliberating, NASA decided to send the Starliner back to Earth empty. Officials weren't confident enough that it was safe.

Meanwhile, Wilmore and Williams stayed on the space station. NASA reassigned them to its next mission with SpaceX, called Crew-9. They would have a ride home on that spaceship. Two other astronauts gave up their SpaceX seats to make room for the Boeing duo.

The catch was that Wilmore and Williams would have to serve the same six-month shift as the rest of Crew-9. They've been conducting experiments and maintenance on the ISS just like everyone else, with the promise of coming home in February.

Now, they'll have to wait another month.

"We appreciate the hard work by the SpaceX team to expand the Dragon fleet in support of our missions," Stich said in the Wednesday statement, adding his appreciation for "the flexibility of the station program and expedition crews."

Regulators have given SpaceX the go-ahead to launch Starship for the seventh time, although the company has not yet announced when that mission might take place.  While the exact launch date is unclear, SpaceX engineers have been as busy as ever at the company’s massive launch site near Boca Chica, Texas. In recent days, the […]

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• The European Union has finalized plans to build a satellite network to rival Elon Musk's Starlink.
• The $11 billion Iris² network aims to provide high-speed internet to remote locations in Europe.
• Musk has frequently clashed with European politicians and has faced scrutiny over Starlink's role in Ukraine.

Elon Musk's Starlink could have a new rival after the European Union confirmed it will join the race to provide high-speed internet to remote locations.

The EU said Monday it had finalized plans to build a €10.6 billion ($11.1 billion) satellite network that will take on SpaceX's Starlink. The bloc said the Iris² satellite constellation will include 290 satellites in low and medium-Earth orbit, with the service expected to be up and running by 2030.

European politicians have previously expressed concerns about the dangers of becoming overly reliant on Starlink.

SpaceX's satellite internet service has around 7,000 satellites in orbit, according to expert estimates, and has seen traffic surge in recent years as it has expanded its operations to over 100 countries.

Starlink has also played a vital role in the war in Ukraine, with Ukrainian military forces relying on the service for military communications.

That reliance has caused tensions with SpaceX's billionaire owner. In September 2023, Musk said he had denied a request to activate Starlink in Crimea, thwarting an attack on Russia's Black Sea fleet.

Musk has also frequently clashed with European regulators, who have launched proceedings against his social media platform, X, over the platform's blue checkmark system, which the EU says is misleading.

Europe has also been trying to cut its dependence on SpaceX's rockets with the Ariane 6, a reusable rocket that rivals SpaceX's Falcon 9 and had a successful first flight in July.

The EU is not the only one building their own Starlink rival. Amazon is working on its own network of internet-providing satellites, called Project Kuiper, with the first satellites expected to be deployed next year.

• Elon Musk fixes the biggest problems at his companies every week, Marc Andreessen says.
• Musk quickly tackles pressing issues by working directly with engineers and coders, the VC said.
• The Tesla and SpaceX CEO's method attracts great talent and inspires deep loyalty, Andreessen said.

Elon Musk has built some of the world's most valuable companies, from Tesla to SpaceX. A key driver of his success is a relentless focus on solving problems fast, often by working directly with the engineers or coders who've gotten stuck, Marc Andreessen says.

The legendary venture capitalist shared his insights from working closely with Musk on X, xAI, and SpaceX during a recent episode of the "Modern Wisdom" podcast.

Unlike many CEOs, Musk is devoted to understanding every aspect of his businesses, the Andreessen Horowitz cofounder and general partner said. He's "in the trenches and talking directly to the people who do the work," and acting as the "lead problem solver in the organization."

Musk's businesses include Tesla, SpaceX, Neuralink, xAI, The Boring Company, and X — formerly Twitter. Andreessen said that every week at each of his companies, Musk "identifies the biggest problem that the company is having that week and he fixes it. And then he does that every week for 52 weeks in a row. And then each of his companies has solved the 52 biggest problems that year, in that year."

In contrast, the bosses of most large corporations spend months or years holding meetings, watching presentations, and conducting legal and compliance reviews before they address their most pressing issues, Andreessen told host Chris Williamson.

Musk sees his businesses almost like assembly lines, and he focuses on removing bottlenecks and speeding up the conveyer belt a little more every week, the billionaire VC and Netscape cofounder said.

His laser focus on fixing problems attracts exceptionally talented people to his companies who want to work extremely hard and meet exacting standards, fueling further success for his businesses, Andreessen said.

Straight to the source

When Musk spots a bottleneck, he cuts through the layers of management to talk to the people actually working on the line or writing the code, Andreessen said.

"So he's not asking the VP of engineering to ask the director of engineering to ask the manager to ask the individual contributor to write a report that's to be reviewed in three weeks," the early-stage investor said. "He would throw them all out of the window."

Andreessen said Musk's approach of finding the person grappling with a particular issue, and then working with them to solve it, inspires deep loyalty.

The person thinks "if I'm up against a problem I don't know how to solve, freaking Elon Musk is going to show up in his Gulfstream, and he's going to sit with me overnight in front of the keyboard, or in front of the manufacturing line, and he's going to help me figure this out," the tech guru said.

Musk's strategy of tackling problem after problem has a "catalytic, multiplicative effect" that helps his businesses power ahead of rivals, Andreessen added.

In the past, Musk has been criticized for spreading himself too thin and not allocating enough time, energy, and resources to any one business like Tesla.

The world's wealthiest man has also said at points that he's working too hard and juggling too much, and his "hardcore" management style has been slammed as brutal and mercurial.

But in terms of technical progress and value generation, Musk's approach of getting involved quickly to fix things appears to be paying off.

• SpaceX is petitioning local authorities to incorporate its "Starbase" launch site as a city.
• The Texas facility has been the site of some of SpaceX's most ambitious launches, including the recent Starship rocket catch.
• Elon Musk said Starbase will also be SpaceX's new HQ, after he moved the rocket firm out of California earlier this year.

Elon Musk wants to build a city on Mars — but for now, he may have to make do with one in Texas.

SpaceX has submitted a petition requesting an election on incorporating the company's Starbase launch site as a city, according to a letter sent to local officials on Thursday.

The sprawling rocket facility near Boca Chica, Texas, has been a hub for SpaceX's rocket production since 2014.

Starbase has been the site of some of the company's most high-profile launches, including the recent Starship test flight, which saw SpaceX catch the spacecraft's booster rocket with giant "mechazilla" robot arms.

Musk has been floating the idea of turning the launch site into a city for several years, with SpaceX first approaching officials in Cameron County, Texas, about the plan in 2021.

Holding an election to incorporate Starbase is the next step. In the letter to local officials, Starbase general manager Kathryn Lueders wrote that the goal of the site was to make South Texas "a gateway to Mars."

She said thousands of SpaceX employees work at the launch facility, with several hundred living on-site.

Reposting the letter on X, SpaceX founder Elon Musk said the "city of Starbase" will also be the site of the company's new headquarters.

Musk announced in July that he would officially move the HQs of SpaceX and his social media site X from California to Texas.

The billionaire said the move was in response to a California law prohibiting rules requiring teachers to notify parents if a child changes their name, pronouns, or gender identity at school.

Musk has also frequently clashed with local regulators. SpaceX sued the California Coastal Commission after members criticized his political views and denied a request to increase the number of launches in the state.

SpaceX did not respond to a request for comment, sent outside normal working hours.

• Elon Musk is the founder-CEO of rocket company SpaceX.
• But Musk isn't privy to all of SpaceX's classified work with the US government, per the WSJ.
• Musk obtained top-secret clearance in 2022.

SpaceX CEO Elon Musk's security clearance doesn't grant him complete access to the company's classified work with the US government.

Musk isn't allowed to enter SpaceX facilities where classified information is being deliberated upon, The Wall Street Journal reported on Sunday, citing people familiar with the matter.

The billionaire also isn't privy to the classified cargo SpaceX launches into space as part of the company's contracts with US national security agencies, per the outlet.

In October, Musk said at a Trump campaign event in Pennsylvania that he has "top-secret clearance" for his work at SpaceX.

Musk obtained his top-secret clearance in 2022, following a review process that took years, the Journal reported. SpaceX's lawyers had advised the company not to seek a higher security clearance for Musk because he would have to disclose details about his drug use and interactions with foreign nationals.

In 2018, Musk appeared to smoke a joint during an interview with Joe Rogan. Musk later said in an interview with "60 Minutes" that he had "no idea how to smoke pot."

When the Journal reported about Musk's drug use in January, he said that "not even trace quantities were found of any drugs or alcohol" in his system when NASA requested that he undergo three years of random drug testing.

As for interactions with foreign nationals, Musk's business dealings have seen him meet with various foreign leaders over the years.

In April, Musk visited China, where he met with Premier Li Qiang, the country's second-highest-ranking politician. The two discussed the roll-out of Tesla's self-driving technology in China.

In October, the Journal reported that Musk has been in regular contact with Russian President Vladimir Putin since late 2022. In a statement, SpaceX said the Journal's story was "incredibly misleading" and based on "completely unsubstantiated claims."

Musk and Trump's relationship grows closer

Musk's clearance status might no longer be a problem for him, given his close relationship with President-elect Donald Trump.

Musk endorsed Trump and spent at least $119 billion on his campaign. In the past weeks, he has reportedly joined Trump on calls with world leaders, including Ukrainian President Volodymyr Zelenskyy.

In November, Trump announced Musk as the co-lead of the Department of Government Efficiency, or DOGE. The SpaceX and Tesla CEO will lead the commission alongside Vivek Ramaswamy.

Musk and Ramaswamy have talked about significantly reducing the size of the federal workforce and shutting down entire government agencies like the Department of Education and the Consumer Financial Protection Bureau.

Musk founded SpaceX in 2002. It was valued at about $350 billion during the latest round of staff share purchases. Musk is currently worth an estimated $455 billion, per the Bloomberg Billionaires Index, making him the richest person in the world by a roughly $200 billion margin.

Representatives for Musk at SpaceX and the Defense Department did not respond to requests for comment from Business Insider.

• Donald Trump said Elon Musk won't try to use his new power to benefit his companies.
• He said Musk is one of "very few people" who would have the credibility to do such work.
• Musk's work with DOGE will likely give him some power over agencies that regulate his companies.

In a new interview with Time Magazine, President-elect Donald Trump brushed back concerns that Elon Musk's companies could create a conflict of interest for his work on DOGE.

"I think that Elon puts the country long before his company," Trump said in the interview.

Trump, who Time named its 2024 Person of the Year, said that he trusts Musk, whose companies hold billions in federal contracts.

"He considers this to be his most important project, and he wanted to do it," Trump told Time. "And, you know, I think, I think he's one of the very few people that would have the credibility to do it, but he puts the country before, and I've seen it, before he puts his company."

Musk and conservative entrepreneur Vivek Ramaswamy have said they will remain outside the government as they oversee "The Department of Government Efficiency" or DOGE.

By staying outside of the government, Musk will avoid some ethical requirements that could have required him to divest some of his fortune. He also won't have to file a financial disclosure, which would have given a snapshot of his considerable holdings.

DOGE could have some influence over government agencies that have investigated Musk's businesses. Musk has repeatedly fought with the FAA, which has jurisdiction over his company SpaceX. The billionaire tussled with the Securities Exchange Commission, which led to Musk being forced to step down as chairman of Tesla Inc. The SEC is looking into Musk's takeover of Twitter. The Department of Justice has also investigated Musk's companies, including whether Telsa misled investors about self-driving capabilities.

Some details about DOGE are still up in the air, including whether the panel will comply with the legal requirements of the Federal Advisory Committee Act. Legal experts and those familiar with the law have said Musk's "department" clearly falls under the 1972 law's parameters. The law would require DOGE to conduct some of its work publicly and to balance its membership.

Musk has embraced his aura of being Trump's "first buddy" and has been virtually inseparable from the president-elect since Election Day.

In the wide-ranging Time interview, Trump said it will be "hard" to bring down grocery prices. A number of economists have warned that Trump's protectionist trade policies could exacerbate inflation. A spokesperson for Trump's transition did not immediately respond to. Business Insider's request for comment.

• Elon Musk is almost $200 billion richer than Jeff Bezos and worth more than Costco.
• His net worth hit $447 billion after Tesla stock jumped and SpaceX's valuation rose to $350 billion.
• Just five years ago, Musk was worth about $25 billion, and Tesla was valued below $100 billion.

Elon Musk is nearly $200 billion richer than Jeff Bezos, and personally worth more than Costco, after adding $63 billion to his fortune in a single day.

His net worth surged to $447 billion on Wednesday, per the Bloomberg Billionaires Index, after Tesla stock jumped 6% and SpaceX's valuation leaped to $350 billion based on employee share sales.

Musk's fortune has ballooned by $218 billion this year — a sum that exceeds the net worth of every other person on the rich list except Amazon's Bezos ($249 billion) and Meta's Mark Zuckerberg ($224 billion).

Musk is now more than twice as wealthy as Oracle's Larry Ellison ($198 billion), and more than three times as rich as Warren Buffett ($144 billion).

His one-day gain — the largest in the index's history — rivals the total wealth of Binance cofounder Changpeng Zhao, ranked 23rd with a $63.2 billion fortune. It also helped to lift the combined wealth of the 500 richest people on the planet to above $10 trillion for the first time, Bloomberg said.

Musk is now worth more on paper than the vast majority of US public companies, including Costco ($442 billion), Home Depot ($419 billion), and Netflix ($400 billion).

His wealth is largely made up of his roughly 13% stake and some contested stock options in Tesla, and his 42% slice of SpaceX. Musk's other businesses include xAI, Neuralink, The Boring Company, and X Corp, formerly Twitter.

Tesla shares have surged more than 70% this year to $425 at Wednesday's close, valuing the company at nearly $1.4 trillion. That figure comfortably exceeds the roughly $1 trillion market value of Buffett's Berkshire Hathaway and approaches the $1.6 trillion value of Zuckerberg's Meta.

The electric vehicle maker's shares have soared as investors bet it will harness artificial intelligence in revolutionary products such as self-driving cars and humanoid robots.

Musk's prominent role in Donald Trump's campaign, and his emergence as a close advisor to the president-elect who's tasked him with streamlining the US government, have also fueled optimism around his companies.

SpaceX is now valued at $350 billion based on the latest price paid by the company and its backers to buy shares from employees, Bloomberg reported Wednesday. The Starlink owner's valuation was previously $210 billion after a secondary share sale in June.

It's worth underscoring how dramatic Musk's wealth jump has been. He was worth less than $170 billion as recently as April, and only about $25 billion five years ago — around 1/18 of his net worth now.

Tesla was worth less than $100 billion during the Covid crash of 2020, or about 1/14 of its valuation today.

• The billionaire Jared Isaacman said his Polaris missions with SpaceX are "a question mark" now.
• Donald Trump nominated Isaacman for NASA Administrator months after he did SpaceX's first spacewalk.
• Space experts doubt Isaacman will fly during his NASA term, due to job demands and safety risks.

SpaceX and its go-to billionaire-turned-private-astronaut seem to be going their separate ways, at least for the next four years.

Jared Isaacman has flown two SpaceX missions to space and is slated to fly two more.

However, Isaacman may no longer fly those missions now that President-elect Donald Trump has tapped him to lead NASA.

Isaacman is the founder and CEO of a payments-processing company called Shift4, but he's more famous for conducting the world's first commercial spacewalk in September.

The spacewalk was the main feature of the first mission of the Polaris Program, which Isaacman started in partnership with SpaceX to supercharge the company's human-spaceflight capabilities as it aims for the moon and Mars.

The program is scheduled to fly two future missions, including the first human flight aboard SpaceX's Starship mega-rocket.

Isaacman has previously indicated that he would be on board that flight. It would be a crucial step in Elon Musk's plans to establish a human settlement on Mars using Starship.

The NASA nomination throws that mission into uncertainty, Isaacman acknowledged on Wednesday.

"The future of the Polaris program is a little bit of a question mark at the moment. It may wind up on hold for a moment," Isaacman said at the Spacepower 2024 conference in Orlando, according to Reuters.

Indeed, shortly after his nomination, experts told Business Insider that it was unlikely Isaacman would fly to space during his term as NASA Administrator.

"Well, it certainly has never happened before," John Logsdon, the founder of the Space Policy Institute at George Washington University, told BI.

That doesn't mean it can't happen, but Logsdon added, "NASA Administrator is a full-time, high-level government job. Taking time off to train for and carry out another spaceflight seems to me to be a little implausible."

If Isaacman wanted to fly a SpaceX mission during his NASA term, "that would take some thought on his part and the rest of the team," George Nield, a former head of the FAA's office of commercial space transportation, told BI. "What's the risk, what's the benefit, what happens if there's a bad day, and are there succession plans?"

Nield co-authored a 2020 analysis which calculated that US spaceflight has a 1% fatal failure rate, because four out of nearly 400 spaceflights have ended in deadly malfunctions. That's a rate 10,000 times greater than commercial airliners.

The US Senate has to confirm Isaacman's nomination before he can take office.

"Having the boss of the enterprise take the risk of spaceflight would be unusual, but we live in unusual times," Logsdon said.