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DeepSpace: Europe reveals Mars sample return spacecraft as SpaceX builds Starships

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7 years ago

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The European Space Agency (ESA) revealed a concept for a spacecraft that would work alongside NASA to return samples of Martian soil to Earth. (ESA)

Eric Ralph · May 28th, 2019

Welcome to the latest edition of DeepSpace! Each week, Teslarati space reporter Eric Ralph hand-crafts this newsletter to give you a breakdown of what’s happening in the space industry and what you need to know. To receive this newsletter (and others) directly and join our member-only Slack group, give us a 3-month trial for just $5.

On May 27th, the European Space Agency (ESA) published updated renders of a proposed spacecraft, called the Earth Return Orbiter (ERO). ERO would be the last of four critical elements of a joint NASA-ESA Mars sample return mission, meant to return perhaps 1-5 kg (2-11 lb) of Martian samples to scientists on Earth. In a best-case scenario, such a sample return is unlikely to happen before the tail-end of the 2020s and will probably slip well into the 2030s, barring any unexpected windfalls of funding or political support.

Enter SpaceX, a private American company developing Starship/Super Heavy – a massive, next-generation launch vehicle – with the goal of landing dozens of tons of cargo and just as many humans on Mars as few as 5-10 years from now. The radically different approaches of SpaceX and NASA/ESA are bound to produce equally different results, while both are expected to cost no less than $5B-$10B to be fully realized. What gives?

The high price of guaranteed success

  • As proposed, the Mars sample return mission will be an extraordinary technical challenge.
    • At a minimum, the current approach involves sending a single-stage-to-orbit (SSTO) rocket from Earth to Mars, landing the SSTO with extreme accuracy on the back of a new Mars lander, deploying a small rover to gather the sample container, loading that container onto the tiny rocket, launching said rocket into Mars orbit, grabbing the sample with large orbiter launched from Earth, and returning said sample to Earth where it will reenter the atmosphere and be safely recovered.
  • This downright Rube Golberg machine-esque architecture is nevertheless the best currently available with current mindsets and hardware. It’s also likely the only way NASA or ESA will independently acquire samples of Mars within the next few decades, barring radical changes to both the mindsets and technologies familiar and available to the deeply bureaucratic spaceflight agencies.
  • However, this is by no means an attempt to downplay the demonstrated expertise and capabilities of the space agencies and their go-to contractors. Both ESA and NASA have a decades-long heritage of spectacular achievements in robotic space exploration, reaching – however briefly, in some cases – almost every major planet and moon in the solar system.
    • The NASA-supported Jet Propulsion Laboratory (JPL) remains a world-leading expert of both designing, building, and landing large, capable, and long-lived rovers/landers on the surface of Mars. JPL also has a track record of incredible success with space-based orbiters, including Cassini (Saturn), Magellan (Venus), Galileo (Jupiter), Voyager (most planets, now in interstellar space), Stardust (comet sample return), Mars Reconnaissance Orbiter (MRO, Mars orbiter) and more.
  • This success, however, can often come with extreme costs. NASA’s next Mars rover – essentially a modified copy of the Curiosity rover currently operating on Mars and a critical component of the proposed sample return – is likely to cost more than $2B, while Curiosity cost ~$2.5B. The Cassini Saturn orbiter cost around ~$3.5B for 15 years of scientific productivity. ESA’s Rosetta/Philae comet rendezvous cost at least $2B total. In the scheme of things, it would be hard to think of a more inspiring way to spend that money, but the fact remains that these missions are extremely expensive.

High risk, high reward

  • The price of missions like those above may, in fact, be close to their practical minimum, at least relative to the expectations of those footing the bill. However, it’s highly likely that similar results could be achieved on far tighter budgets, another way to say that far more returns could potentially be derived from the same investment.
    • The easiest way to explain this lies in the fact that the governments sponsoring and funding ESA and NASA have grown almost dysfunctionally risk-averse, to the extent that failure really isn’t an option in the modern era. Stakeholders – often elected representatives – expect success and often demand a guaranteed return on their support before choosing to fight for a given program’s funding.
    • As it turns out, an unwillingness to accept more than a minute amount of risk is not particularly compatible with affordably attempting to do things that are technically challenging and have often never been done before. That happens to be a great summary of spaceflight.
    • As risk aversion and the need for guaranteed success grew hand-in-hand, a sort of paradox formed. As politicians strove to ensure that space agency funding was efficiently used, space agencies became far more conservative (minimizing results and the potential for leaps forward) and the cost of complex, capable spacecraft grew dramatically.
    • The end result: spacecraft that are consistently reliable, high-performance, derivative, and terrifyingly expensive.
  • SpaceX is in many ways an anathema of the low-risk, medium-reward, high-cost approach that government space agencies and their dependent contractors have gravitated towards over the last 40-50 years. Instead, SpaceX accepts medium to high risk to attain great rewards at a cost that space agencies like NASA and ESA are often unable to accept as possible after decades of conservatism.
    • This is the main reason that it’s possible that NASA/ESA and SpaceX will both succeed in accomplishing goals at a dramatically disproportionate scale with roughly the same amount of funding.
    • If NASA/ESA bite the bullet and begin to seriously fund their triple-launch Mars Sample Return program, the missions will take a decade or longer and cost something like $5 million per gram of soil returned to Earth, but success will be all but guaranteed.
    • Both SpaceX’s Starship/Super Heavy and Mars colonization development programs run significant risks of hitting major obstacles, suffering catastrophic failures, and could even result in the death of crew members aboard the first attempted missions to Mars.
    • For that accepted risk, the rewards could be unfathomable and the costs revolutionary. SpaceX could very well beat the combined might of ESA and NASA to return large samples of Martian soil, rock, and water to Earth, all while launching ~100,000 kg into Martian orbit instead of the sample return’s ~10 kg.
    • In a best-case scenario, SpaceX could land the first uncrewed Starship on Mars as early as 2022 or 2024. Barring some unforeseen catastrophe or the company’s outright collapse, that first uncrewed Mars landing might happen as late as the early 2030s, around the same time as NASA and ESA’s ~10kg of Mars samples will likely be reentering Earth’s atmosphere.
  • Regardless of which approach succeeds first, space exploration fans and space scientists will have a spectacular amount of activity to be excited about over the next 10-20 years.
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– Eric
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Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Elon Musk

SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff

Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.

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9 hours ago

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August 11, 2026

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Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.

The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.

Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.

Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry

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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.

The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.

Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.

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Investor's Corner

Tesla has one big financial question to answer for investors: Morgan Stanley

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20 hours ago

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August 11, 2026

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Credit: Tesla

In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.

Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.

Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue

Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.

The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”

Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”

Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”

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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.

Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.

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Investor's Corner

SpaceX AI investment gamble will make it a big winner, firm says

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22 hours ago

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August 11, 2026

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Credit: SpaceX

SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.

The firm also upgraded shares to a Buy from Hold and set a $160 price target.

SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.

Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.

There are plenty of ways the company can do this:

Leasing excess compute capacity through contracts

SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.

SpaceX is charging Anthropic massive money for its compute

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High utilization driven by industry-wide scarcity

The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.

Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.

Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.

High incremental margins on the rental business once capacity is online

GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.

Parallel monetization of its own AI software and applications

Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.

These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.

Efficient, large-scale deployment and vertical integration advantages

SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.

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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.

SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.

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