SpaceX
Dreams of Mars in the age of commercial spaceflight
If you had asked me five years ago what my ultimate goal in life was, I would have undoubtedly stated with confidence that it was to take part in the human exploration of Mars. Uplifted, brimming with optimism, and nostalgic for futures yet to pass after reading Kim Stanley Robinson’s unprecedented Mars Trilogy for the second time, I was dead set upon this singular goal. Amidst the throes of life and labor, my longing to live on Mars and personally experience our Solar system in general has remained steadfast and has continued to be fueled by a broad range of science fiction and space opera, among other things.
Now, it has been no easy task to keep those goals intact, and I cannot begin to count the number of times I have communicated those goals to others and experienced something akin to what someone in 1960 maintaining serious goals of visiting space and the Moon might have experienced — usually disdain, sometimes mild interest, and mostly polite dismissal and change of subject. I cannot blame people for this response, for all significant leaps made by humankind have been figuratively laughed out of the room at one time or another, and often just before they succeeded. Spaceflight is one of the best examples, with science fiction initially probing the willingness of the public’s imagination, central scientific and scholarly figures dismissing the possibility outright, and ups and downs of initial experimentation demonstrating both its futility and potential. Ultimately, the Mercury, Gemini, Apollo, and Soviet space programs invalidated a great deal of criticism and doubt while simultaneously demonstrating space exploration’s ability to capture the attention of a great many people, albeit under the iron curtain of the Cold War. Even if these programs and their subsequent accomplishments occurred not out of the desire to explore and discover but rather as a means to demonstrate the superiority of a political and economic ideology, it was nevertheless an awe-inspiring period for human exploration, technological development, and scientific inquiry.
Jump approximately half a century forward after Apollo 17 and one will find that the state of astronautics and space exploration are truly difficult to believe, in a sense of both intense disappointment and esteem. The impact of the United States Congress’ complete and utter failure to properly take advantage of the technology developed over the course of the Apollo Program is ever so painfully evident to this day, having led to a series of connected missteps over the course of NASA’s existence. The premature cancellation of the Apollo Program and complete dismissal of the Saturn family of rockets resulted in a five-year period wherein the U.S. was incapable of launching its own astronauts. This event marked the beginning of an apparent trend that saw itself repeated following the shuttering of the Space Shuttle Program in 2011 — the development of which led to the premature retirement of the Saturn family of rockets — in order to free up NASA’s budget to inexplicably allow for the development of another series of rockets as part of President Bush Jr.’s Constellation Program, which later found itself cancelled (for good reason) and again largely revived with the present Space Launch System.
Upon further examination of the Apollo, Space Shuttle, Constellation, and SLS programs, some rather disturbing realities set in. Following the cancellation of Apollo, Congress, the President, the Air Force, and the Department of Defense in general all had significant interest in the pursuance of much more affordable and rapid access to space by way of reusability, something that they all viewed was best achieved by way of a space plane. Each party had their own explicit and varied concepts for what that space plane might look like, and the Air Force, Department of Defense, and NASA were all engaged in scaled studies of demonstrators. To simplify a complex series of events, Congress and President Nixon ultimately decided that there should only be one spaceplane developed, and that that singular vehicle would be required to satisfy the goals of all parties to the greatest extent possible in order to allow its development to tap into the Department of Defense’s budgetary surplus. Furthermore, in order to satisfy the Senators and Congresspeople central to the development of the Apollo Program hardware, NASA was required to make use of all presently existing facilities, hardware, and expertise in their efforts to design and develop what would eventually become the Space Shuttle. As a consequence of this, the Space Shuttle was in no way an optimal design, as it first and foremost was the innate result of political and bureaucratic compromise on a vast scale. In fact, at least one of the two complete failures of the Shuttle (making it the deadliest spacecraft to have ever flown) can in large part be linked directly to one of those compromises, namely the general requirement that the Shuttle be completely reusable, resulting in the use of an exceptionally fragile (it could be broken by falling foam from the Shuttle’s external fuel tank) and complex thermal protection system being flown.
The Constellation Program, enacted by President Bush Jr. and pursued from 2005 to 2009, was even worse off. More or less the political pet project of a Presidential administration in their final term, Constellation was intended to take humans back to the Moon and eventually to Mars, and entailed the development of a super heavy launch vehicle and smaller launch vehicle for crews. Both of these were required to make use of Shuttle hardware and research, thus paving the road for the Space Launch System (SLS) that was to follow after Constellation was cancelled, largely due to massive budget overruns, gross safety concerns, and a NASA budget that was many times too small to support such ventures on a reasonable timescale. Arising from the grave of Constellation, the Obama administration’s Space Launch System and #JourneyToMars campaign began in earnest. Examined now, it is clear that all SLS learned from the failure of the Constellation Program was a strategy of legal obfuscation and legislated requirements of non-transparency, thus making the SLS Program extraordinarily difficult to characterize or cancel. Of course, the hints of commercial lobbyist fingers pulling strings can be easily observed, given that both Constellation and SLS heavily rely upon Boeing, Lockheed Martin, Orbital-ATK, and Aerojet-Rocketdyne; as well as the fact that the districts of the legislative members of space-related committees featured in Congress and the Senate tend to host large manufacturing and testing facilities developed by NASA and the commercial entities listed above. A mere coincidence this is not.
Nevertheless, the subject of commercial involvement in NASA and aerospace endeavors in general brings me to a more positive topic: the modern renaissance being experienced throughout the aerospace industry. While incredible things are being done with satellite miniaturization among other things, my main focus lies upon Space Exploration Technologies Corporation, more commonly known as SpaceX. Founded by the same individual who co-founded Tesla Motors, popularized a vacuum train concept known as the Hyperloop, and created Paypal, SpaceX has from the outset operated towards a single goal of colonizing Mars in order to better ensure the survival of humanity, while also inherently disrupting the aerospace industry (which was at the time ruled by Lockheed Martin and Boeing, later to become the United Launch Alliance monopoly). One could argue that they have thoroughly accomplished the latter goal, as SpaceX currently offers the most affordable launch prices (by a factor of two or more in the U.S.) and is also relentlessly pursuing a strategy of reusability in order to make their launch pricing magnitudes more affordable. Furthermore, SpaceX developed their second launch vehicle and orbital capsule, Falcon and Dragon, so fast and so efficiently that an optimistic NASA-produced estimate of development cost was more than 10 times higher than the reality. Nevertheless, there have been missteps along the way. SpaceX’s recent on-pad failure, captured in a dramatic and highly popularized video, has not been easy and simply demonstrates the inherent difficulties and risks that must be faced when attempting to push the margins with something as sensitive as spaceflight. This is thankfully accepted by the industries who rely upon access to space, and thus SpaceX’s many customers have responded pragmatically, and SpaceX has been treating this failure as another method of examining their vehicle in detail in order to better understand potential routes of failure and consequently ensure that they have the safest possible vehicle to conduct their initial upcoming manned launches.
Most importantly, this mishap has clearly failed to dampen SpaceX’s goal of creating a colony on Mars. In late September 2016, after more than a year and a half of anticipation in the aerospace community, Elon Musk took to the main stage of the International Aeronautical Conference and revealed the spacecraft and launch vehicle that SpaceX intends to use to construct a vast, self-sustaining colony on Mars. Deemed the Interplanetary Transport System, it hopes to exploit complete reusability and the benefits of mass production already demonstrated with the Falcon 9 in order to decrease the cost of trip to Mars by five million percent, thus optimistically opening the figurative gates to Mars by offering a ticket price equivalent to a modern luxury car or averagely priced house ($100,000 to $500,000). The shock value alone is enough to sow doubt in many. The combined spaceship and booster will stand 10 meters taller and 2 meters wider than Saturn V, the currently largest rocket to have ever flown successfully. Used in an expendable configuration, it would be capable of lofting more than four times the payload of Saturn V (550 metric tons), and up to 300 metric tons of payload to low Earth orbit while operating as a fully reusable system. The entire system will have a liftoff mass of 10,500 metric tons and produce 13,000 metric tons of thrust, both nearly four times as much as Saturn V. Framed in a fittingly staggering manner, the ITS booster at launch would momentarily produce as much power as the entire grid of the United States produces on average, 500 gigawatts.
A render of the complete ITS with booster and ship mated.
Seated in the audience of the Guadalajara Expo events room, I will admit that even I was quite skeptical. If successful, SpaceX would be leaping ahead of all competition and truly opening space to the masses, while also completely upsetting current accepted norms of what can be done in space. For perspective, the downright vast International Space Station, constructed over the course of more than a decade with more than 100 launches required at a cost of possibly $100 billion or more, masses in at about 430 metric tons. A single ITS ship could theoretically loft that mass and then some in a single launch, and at a cost of approximately $250 million. While of course that is an unfair comparison, it is still fair to judge the cost of the ISS almost entirely as a reflection of the launch costs, given that the 36 Shuttle launches it required cost NASA at least $50 billion, with the reasonable assumption that each STS launch was around $1.5 billion. Continuing on, SpaceX’s timescale noted that the ITS structure and propulsion systems are expected to be completed by the end of 2018, with complete ITS ship and booster test articles entering test phases in mid-2018 and early 2019 respectively. In this theoretical (and admittedly optimistic) schedule, cargo flights to Mars would begin in 2022, and the first ITS with passengers would depart for Mars in late 2024 (approximately 8 years from today) for a landing in early 2025. The next likeliest “competitor”, NASA, has no public schedule or plan whatsoever for their “#JourneyToMars” and have at best hinted at manned missions beginning in the late 2030s or early 2040s, although such an accomplishment would require massive budget increases for the agency. SpaceX’s claims are truly extraordinary in their audaciousness. Their ultimate goal in creating this rocket and vehicle are to eventually allow for the creation of a self-sustaining colony of hundreds of thousands of people on Mars, an outpost that would optimistically act as a fail-safe for humanity in the event of a global catastrophe on Earth. They hope to make this possible by lowering the ticket price per individual to something under $200,000, or much lower than the average price of a single family home in the United States.
Yet still, two major features of the presentation allayed the majority of my skepticism: not only has the company completed an ITS engine test article and begun to test fire it, they have also completed a full scale carbon composite propellant tank for the spaceship and successfully put it through an initial series of tests. Examined as a technological system, these two aspects are arguably the biggest hurdles for the ITS to solve, as neither technology has ever flown successfully. These successful hardware demonstrations act as a massive source of optimism for SpaceX’s bold goals and timeline, as the breadth of their present-day accomplishments nearly match the sheer boldness of their ambitions. Furthermore, Elon Musk’s incredible desire to make this happen encourages even more optimism when regarding the financing of the development of the ITS, as he has a track record of putting every last penny of his liquid assets into his projects, up to the last day he expects to be able to fund them (evidenced by Tesla and SpaceX). He is now worth upwards of $10 billion and could undoubtedly fund the development of the ITS himself, in the unlikelihood of interested third-party investors.

This is a test-article carbon composite tank SpaceX manufactured to thoroughly vet the technology. Initial tests in Northern Washington have been successful.

The first firing of a scaled test article of SpaceX’s Raptor engine, designed to power both the ITS booster and spaceship.
I was lucky enough to experience this extraordinary keynote in person, and even luckier to have had my group recognized by SpaceX and the congress organizers and been given reserved seating near the front row, alongside heads of state, agencies, and commercial aerospace behemoths, not to mention astronautical celebrities like Buzz Aldrin. I was also able to attend dozens of other technical talks, many focused on current robotic exploration of Mars, as well as research into closed habitats intended to allow humans to live comfortably away from Earth while also producing a large percentage of the food they would need. The researcher presenting on habitats also revealed that SpaceX had already approached his group and another.
All told, the 2016 International Astronautical Congress offered a cautiously optimistic view of the future of spaceflight. Elon Musk ended his keynote on the ITS by emphasizing that SpaceX wanted to encourage other companies to begin developing the systems necessary for humans to comfortably journey to and thrive on Mars. SpaceX has no interest in creating a monopoly, the company’s singular desire is to more effectively ensure the survival of humanity, and as Musk said himself, to encourage people to do things that make them excited to get out of bed in the morning. More than ever before, I am nearly certain that I will find my way to Mars well within my lifetime, and I have never been more thrilled to be alive.
Addendum – A New Year
Written a handful of months after the Interplanetary Transport System (ITS) was revealed last year, and a similar number of months after the trying loss of Amos-6, the new year has been undoubtedly kind to SpaceX. The company has returned to flight with a vengeance, and is now nearing a steady two week launch cadence. With SES-10, SpaceX successfully reused a recovered Falcon 9 first stage, and then recovered that stage yet again. With the launch of CRS-11 yesterday and its successful docking just minutes ago, SpaceX appears to have successfully reused a Cargo Dragon capsule. Amidst the 7 launches undertaken thus far, SpaceX’s first mission to Mars has been delayed to 2020 as expected, the ITS composite tank as pictured above was tested to destruction in northern Washington-state, and Elon keeps tweeting about a second update to the ITS planned for later this year. Particularly exciting, the center core and one of the booster cores for the inaugural Falcon Heavy launch have already been put through full static fires at SpaceX’s McGregor, Texas facilities, with tentative guesses for a launch date ranging from October through December of this year. SpaceX also made a surprise announcement that two wealthy customers had approached the company in a bid to undertake a voyage around the Moon, as early as late next year. Business as usual, in other words!
In the meantime, SpaceX has a myriad of launches scheduled for the final six months of 2017. For those of you who enjoy watching SpaceX’s exceptional live coverage of their launches, you will have no shortage of excitement. With a rapidly improving cadence and first stage recovery already beginning to feel routine, things are looking very bright for SpaceX and it will be truly exciting to see how plans for the ITS have evolved since they were first released. Keep your eyes peeled for Teslarati’s coverage!
Sources
“Constellation Program Lessons Learned.” 2016. Accessed August 29. http://ntrs.nasa.gov/archive/nasa/casi.ntrs.nasa.gov/20110015803.pdf.
Heimann, C. F. Larry. 1997. Acceptable Risks: Politics, Policy, and Risky Technologies. University of Michigan Press. http://www.jstor.org/stable/10.3998/mpub.14948.
Logsdon, John M. 1986. “The Space Shuttle Program: A Policy Failure?” Science 232 (4754): 1099–1105.
Madsen, Peter M., and Vinit Desai. 2010. “Failing to Learn? The Effects of Failure and Success On Organizational Learning In The Global Orbital Launch Vehicle Industry.” The Academy Of Management Journal 53 (3): 451–76.
McDougall, Walter A. 1997. The Heavens and the Earth: A Political History of the Space Age. Baltimore, Md: Johns Hopkins University Press.
Musk, Elon. 2016. “The Interplanetary Transport System and Mars — SpaceX.” Guadalajara Expo Center, September 27.
Simberg, Rand. 2016. “Ending Apolloism.” Accessed September 5. http://transterrestrial.com/papers/EndingApolloism.pdf.
Investor's Corner
SpaceX makes $20 billion move to optimize its balance sheet
SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.
The company announced an offering of senior unsecured notes expected to raise at least $20 billion.
The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.
🚨 SpaceX has announced its inaugural offering of senior unsecured notes.
The net proceeds will be used to repay outstanding loans under its bridge loan facility in full.
This inaugural debt offering represents a financing milestone for SpaceX, which previously depended… pic.twitter.com/pcOZuVbTRv
— TESLARATI (@Teslarati) June 22, 2026
According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.
The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.
SpaceX officially acquires xAI, merging rockets with AI expertise
In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.
The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.
SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.
Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.
Elon Musk
SpaceX confirms third massive compute deal at Colossus data center
SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Mississippi.
Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.
CNBC first reported the deal.
🚨 SpaceXAI has agreed to a new compute deal with Reflection AI.
Reflection gets access to NIVIDIA GB300s, and will pay $150M per month to SpaceXAI for the compute. pic.twitter.com/bNPare8U5u
— TESLARATI (@Teslarati) June 22, 2026
This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.
SpaceX has previously signed significant compute deals with other major players.
It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.
Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.
SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.
These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.
Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.
The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.
For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.
Elon Musk
Elon Musk responds to SpaceX’s ESG rating and says its rockets won’t go electric
It is safe to say SpaceX won’t be going for electric rockets anytime soon.
In a characteristically blunt reply on X, SpaceX frontman Elon Musk stated, “Unfortunately, electric rockets are impossible,” following reports that MSCI had assigned SpaceX its lowest possible ESG rating of CCC.
The assessment, issued just this past week, coinciding closely with SpaceX’s public market debut, placed the company on par with nations like Russia in sustainability scoring and cited significant risks in environmental, social, and governance areas.
MSCI flagged SpaceX’s exposure to rocket emissions and other operational impacts, alongside governance concerns such as concentrated control by Musk and limited shareholder protections. Musk’s terse comment directly addressed the environmental pillar, underscoring a core physical constraint that ESG frameworks often overlook when evaluating high-thrust industries.
Unfortunately, electric rockets are impossible
— Elon Musk (@elonmusk) June 21, 2026
Electric propulsion systems do exist and are widely used in space. Ion thrusters and Hall-effect thrusters accelerate ionized propellant, typically xenon or krypton, using electric fields, achieving very high specific impulse, often exceeding 3,000 seconds compared to roughly 300–450 seconds for chemical rockets.
This efficiency makes them ideal for satellite station-keeping, orbit raising, and deep-space missions where low thrust over long durations is sufficient. SpaceX’s own Starlink satellites employ electric propulsion for these purposes.
However, launching from Earth’s surface demands something entirely different: enormous thrust delivered rapidly to overcome gravity and atmospheric drag. A typical orbital-class booster must generate thrust far exceeding its weight, often in the millions of Newtons within seconds.
Chemical rockets achieve this through exothermic combustion of dense propellants, producing high-mass-flow, high-velocity exhaust. Electric systems, by contrast, expel very small amounts of mass at extremely high speeds. Generating equivalent thrust would require impractical onboard power levels, massive energy storage or generation systems, and prohibitive added mass, rendering the approach infeasible with current or near-term technology.
Musk has previously expressed a similar sentiment, noting a desire for electric orbital rockets while acknowledging the inescapable requirements of Newton’s third law and energy delivery. The distinction is clear: electric propulsion excels once a vehicle is already in space; it cannot replace the high-thrust chemical phase required to reach orbit from the ground.
The episode illustrates broader critiques of ESG ratings. Proponents argue they incentivize better risk management and long-term sustainability. Detractors, including Musk—who has previously called ESG a “scam”—contend that such metrics can penalize essential activities when no practical alternative exists, potentially discouraging innovation in sectors like space access.
Elon Musk dubs the S&P 500 ESG as “outrageous scam” after Tesla gets booted from index
SpaceX has sought to mitigate launch-related impacts through reusability: Falcon 9 boosters have flown more than 30 times in some cases, dramatically lowering the manufacturing and emissions burden per kilogram delivered to orbit. Starship’s design further emphasizes rapid reusability and methane propellant, which can theoretically be produced via sustainable pathways.
Ultimately, Musk’s remark serves as a reminder that certain engineering realities persist regardless of scoring systems. As humanity expands its presence in space for communications, science, and exploration, balancing genuine environmental progress with technological necessity remains a central challenge.
ESG frameworks may evolve, but the fundamental limits of electric launch propulsion are unlikely to change soon.