News
Blue Origin launches first suborbital tourists after six years and 15 test flights
More than six years after New Shepard’s first test flight and nine years after a pad abort featuring a prototype of the rocket’s capsule, Blue Origin has launched its first crew of suborbital tourists.
Almost exclusively funded by Amazon CEO Jeff Bezos’ stock sales over more than 21 years of operations, Blue Origin has been working towards New Shepard’s first crewed launch for approximately a decade. Aside from a pad abort test of the rocket’s relatively simple ‘crew capsule’ in October 2012, New Shepard – purported to be fully reusable – has performed 15 uncrewed test flights since April 2015. At least according to Blue Origin, of those 15 tests, 14 were fully successful and 11 crossed the 100 km (~62 mi) Karman Line – a largely arbitrary line drawn between Earth’s atmosphere and space.
Six years and three months after New Shepard’s first flight, the rocket lifted off on its 16th suborbital mission and inaugural crewed launch. Along for the ride were Jeff Bezos himself, brother Mark Bezos, hedgefund multimillionaire Joes Daemen’s son Oliver Daemen, and trailblazing pilot and aviator Mary “Wally” Funk.
While New Shepard NS-16 reached an apogee of 107 km (66 mi) and a maximum speed of 2233 mph (1 km/s / Mach 2.9), less than 13% of the way to orbit, the mission did mark a number of “spaceflight” firsts insofar as its passengers did technically spend between 70 and 150 seconds in “space.” Notably, NS-16 passengers Oliver Daemon and Wally Funk are now respectively the youngest and oldest people in history to reach space. While Blue Origin hasn’t disclosed the value of his second-place bid, Oliver Daemen was technically a paying customer, making New Shepard the first rocket in history to launch a paying passenger on its first crewed flight.
In June, Blue Origin held a tone-deaf auction that ultimately resulted in a mystery buyer winning the first ticket on New Shepard at a jaw-dropping cost of $28 million – just shy of the $30M Richard Garriott paid to ride a Soyuz rocket to space, spend almost two weeks in orbit, and scream back to Earth at Mach 25. Bizarrely, the company still hasn’t revealed the winner, at no point mentioned that there would be runners-up, inexplicably swapped the mystery winner for Oliver Daemen with “scheduling issues” as the comical excuse, and has yet to reveal what Daemen paid for his ticket. In general, Blue Origin still refuses to provide any information about the price of seats on New Shepard.
Meanwhile, although Blue Origin did provide invite-only access to some media outlets and offered numerous interview opportunities with the NS-16 crew, there have been virtually zero chances for reporters and journalists to ask real questions. Beyond New Shepard, which raises dozens of questions on its own, Blue Origin’s orbital New Glenn rocket is years behind schedule and apparent issues with the BE-4 engine meant to power both it and the United Launch Alliance’s (ULA) Vulcan has also significantly delayed the latter rocket’s launch debut.
For the last several years, Vulcan and New Glenn were both aiming for a launch debut sometime in 2020. Both targets eventually slipped to 2021 and as of 2021, Vulcan is now expected to launch no earlier than early 2022 and New Glenn’s debut has slipped to “late 2022” – likely meaning 2023.
On its own, New Shepard has had one of the most bizarre development paths of any rocket in history. Despite virtually unlimited resources from Bezos’ average sale of billions of Amazon stock each year and the fact that New Shepard is a fully reusable rocket that demonstrated the ability to fly twice in ~60 days in 2016, Blue Origin has only launched the rocket 15 times in the 75 months before NS-16. The company has never once implied that New Shepard suffered major issues during any of its test flights, save for NS-1’s failed booster recovery (though Blue has generally glossed over or ignored that lone failure).
Somewhat coincidentally, New Shepard’s first test flight occurred just a few weeks before SpaceX attempted the first major test of a partially integrated Crew Dragon prototype, resulting in a successful pad abort test in May 2015. Despite several significant, documented delays, less than four years later, Crew Dragon aced an uncrewed orbital launch to the ISS and back to Earth. 14 months after Demo-1, SpaceX became the first private company in history to launch astronauts to orbit. Less than six months after that historic launch and four months after Crew Dragon returned two NASA astronauts to Earth, SpaceX launched its first operational four-astronaut mission to the ISS.
In the same period that Blue Origin completed five uncrewed New Shepard test flights, SpaceX launched Crew Dragon’s Demo-1, In-Flight Abort, Demo-2, Crew-1, and Crew-2 missions, carrying six astronauts to orbit and back and delivering another four to the ISS (where they still are). Not only did SpaceX also launch five Crew Dragons, but April 2021’s Crew-2 mission marked the first time in history that astronauts launched on a flight-proven liquid rocket booster and a flight-proven space capsule, beating Blue Origin to the punch despite the far greater challenges and risks posed by orbital spaceflight.
Put simply, it’s disappointing but not exactly surprising that Blue Origin continues to go to great lengths to avoid having to answer questions that haven’t been obviously vetted or preselected.
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
In early 2026, Tesla made a bold strategic pivot: it largely eliminated the option to purchase Full Self-Driving (FSD) software outright and shifted to a subscription-only model. The change, effective around mid-February, ended the one-time fee that had previously ranged as high as $15,000 and later dropped to $8,000. Instead, customers would access FSD (Supervised) for $99 per month in the U.S.
At the time, skeptics questioned whether locking customers into recurring payments would hurt adoption or alienate buyers who preferred ownership of the feature. Tesla bet that a lower barrier to entry, seamless integration at purchase, and the ability to cancel at any time would drive higher uptake.
The results from Q2 2026 speak for themselves: the decision has been a resounding success, delivering the largest quarterly growth in FSD subscriptions in the company’s history.
Tesla FSD subscriptions went up 56% in Q2 2026 to 1.48 million, an increase of 200,000 from Q1 2026.
Tesla added more FSD subscribers in Q2 than in any quarter in its history. pic.twitter.com/jTciTD2JqW
— Sawyer Merritt (@SawyerMerritt) July 22, 2026
According to Tesla’s Q2 shareholder update, active FSD subscriptions reached 1.48 million globally by the end of June 2026. That represents a 56 percent increase year-over-year and a 15.6 percent jump from the prior quarter. Tesla added roughly 200,000 new subscriptions in the period alone—the biggest single-quarter gain on record.
North America led the charge, with more than 55 percent of new vehicle deliveries including an FSD subscription at the time of purchase, a record attach rate for the region.
Tesla explicitly noted that “more customers [are] opting for subscription at the time of vehicle purchase,” crediting the model shift and prominent placement of the option in the ordering process. Subscriptions now contribute meaningfully to ancillary revenue, helping offset pressure elsewhere in the business.
The financial upside is substantial: At $99 per month, 1.48 million active subscriptions generate approximately $146.5 million in monthly recurring revenue. Over a full year, that equates to roughly $1.76 billion in annualized recurring revenue (ARR) from FSD subscriptions alone, assuming steady retention and no major pricing changes.
These figures represent pure, high-margin software revenue. Unlike vehicle sales, which carry production costs, warranty obligations, and supply-chain risks, FSD subscriptions flow largely to the bottom line once the software is developed and deployed over-the-air.
Tesla does not break out exact FSD subscription revenue in its filings (it sits within “Services and Other”), but the category grew 50 percent year-over-year in Q2, with executives highlighting subscriptions as a key driver.
The subscription model offers several structural advantages. It lowers the upfront cost of a new Tesla, potentially broadening the buyer pool and supporting vehicle demand, especially important amid fluctuating EV market conditions. It creates a predictable revenue stream that compounds as the fleet grows and more owners try (and stick with) the software.
Legacy one-time purchasers still exist, but new growth is overwhelmingly subscription-based following the February cutoff.
Early data also suggests improving retention and satisfaction, as well. Tesla has rolled out iterative FSD updates, including v14 features, and expanded availability to additional markets. Recent regulatory approvals in parts of Europe have further boosted interest, with owners in newly enabled countries eager to activate the software they had been waiting for.
FSD is still supervised; regulatory hurdles for true unsupervised autonomy persist in many regions, including the United States, and competition in advanced driver-assistance systems is intensifying. Yet the Q2 numbers validate Tesla’s bet: by removing the large upfront commitment and making FSD accessible via subscription, the company has accelerated adoption faster than many anticipated.
What began as a controversial switch-up has become a clear win. With nearly 1.5 million subscribers, record attach rates, and nearly $1.8 billion in potential annual recurring revenue already in view, Tesla’s FSD business is transitioning from a promised future to a tangible, fast-growing profit engine.
If the momentum continues, and especially if unsupervised capabilities unlock robotaxi opportunities, the subscription flywheel could become one of the most valuable assets in Tesla’s portfolio.
Elon Musk claps back at France’s Tesla Full Self-Driving approval delay
Google’s massive stake in SpaceX will shock you
