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

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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

Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for

Tesla and SpaceX formed special committees to weigh a merger, and Elon Musk supports it.

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5 hours ago

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October 20, 2026

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Elon Musk confirmed Tuesday that Tesla and SpaceX have each formed special committees of independent directors to study a possible merger, the first formal step toward combining the two companies after months of speculation.

Musk made the disclosure during SpaceX’s third quarter earnings call. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders,” he said. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” He described the setup as “an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.”

Musk did not hide where he stands. “Do I think it would be a good idea? Yes,” he said, pointing to shared work on super intelligence software, chip design, the Terafab facility in Austin, robotics, mass to orbit and connectivity. “I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity.”

He also tried to cool expectations. The committees have not agreed on terms for any transaction, and Musk said assuming a merger is a certainty “would be overstating it.” Any deal would go to shareholders, and on the Tesla side it would need approval from 50 percent of all outstanding shares, not just the shares that are voted. Musk called that “quite a high hurdle.”

That bar has tripped Tesla up before. The company’s 2025 attempt to declassify its board won support from only 39.4 percent of outstanding shares and failed. Musk’s own voting stake sits near 20 percent after he exercised his 2018 options in June, so a deal would need broad backing from institutions and a retail base that often leaves votes uncast.

Timing is another open question. Tesla filed its proxy statement Monday for its December 3 annual meeting, and the ballot has only three items: director elections for Musk, Robyn Denholm and JB Straubel, a say on pay vote and auditor ratification. Barclays analyst Dan Levy had argued that an announcement would need to land by late October or early November to make the annual meeting, as Teslarati noted in its SpaceX earnings preview. With no terms agreed, any vote would likely require its own special meeting.

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Elon Musk gives his most telling Tesla-SpaceX merger conversation yet

Musk has been edging toward this for weeks. At the All-In Summit in September, he asked “who can imagine what action one might take when there’s so much close collaboration,” Teslarati reported. Last week’s Roadster unveil, built around SpaceX derived cold gas thrusters, pushed the talk further. The two companies already share the Terafab chip project, and Tesla holds a small SpaceX stake that came from its earlier investment in xAI.

SpaceX brought strong numbers to the conversation. It reported Q3 revenue of $14.58 billion, up 161 percent year over year, with its Super Intelligence segment now its largest at $7.56 billion. A higher SpaceX valuation would shape any exchange ratio Tesla holders are offered.

Tesla reports its own third quarter results after the close on Wednesday, October 21. Investors had already ranked merger timing among the top retail questions for SpaceX’s call, and the committees will almost certainly come up again on Tesla’s.

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Investor's Corner

SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms

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7 hours ago

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October 20, 2026

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Credit: SpaceX

SpaceX reported its third-quarter 2026 financial results on October 20, posting the company’s first solidly profitable quarter since going public earlier in the year under the ticker $SPCX.

Revenue reached $14.58 billion, up 161 percent year-over-year from $5.6 billion, and well ahead of consensus estimates in the $12.7 to $12.9 billion range. The results highlight a rapid shift in SpaceX’s center of gravity toward artificial intelligence/super intelligence, while Starlink and traditional space operations continue to show robust progress.

Here are the key financial results for the quarter:

  • Revenue of $14.58 billion (+161% YoY)
  • Adjusted EBITDA of $8.8 billion (+306% YoY)
  • GAAP net income of $4.4 billion (versus a $1.1 billion net loss in the prior-year quarter)
  • Adjusted EPS of approximately $0.35 (versus roughly $0.13–0.16 expected)
  • Income from operations of $2.8 billion

The AI/SI segment generated $7.56 billion in revenue, an 830 percent year-over-year increase, making it the company’s largest segment for the first time. Growth was primarily driven by the activation of major cloud services agreements, the integration of Cursor (acquired earlier in 2026), and rising usage of Grok models and the newly introduced Grok Bot personal agent.

SI adjusted EBITDA reached $5 billion, and nameplate compute capacity stood at 1.7 GW at quarter-end, up from 1.4 GW in June and 0.6 GW a year earlier. Capital expenditures totaled $19.6 billion, with the majority allocated to AI infrastructure, including continued expansion of the Colossus facilities.

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The Connectivity segment, which primarily surrounds Starlink, produced $5.25 billion in revenue, a 69 percent year-over-year and 22 percent sequentially. These are pleasant results to see and expected, considering how many airlines have adopted Starlink over the past year.

Starlink consumer subscribers reached 13.6 million, an 89 percent increase from the prior year, and a sequential gain of 1.6 million. Consumer average revenue per user improved to $69. Meanwhile, Enterprise and Government revenue also grew strongly, and Starlink is now installed on more than 3,800 aircraft, making internet more accessible and better performing than previous options.

The Space segment also performed well and contributed $1.77 billion in revenue, up 6 percent year-over-year and 84 percent sequentially. A major milestone was the successful first revenue-generating Starship mission (Flight 14), which deployed 26 V3 Starlink satellites. Those satellites added roughly 10 times the downlink capacity of a typical Falcon 9 Starlink launch.

SpaceX completed 12 customer launches during the quarter, including NASA’s Nancy Grace Roman Space Telescope mission, and continued to grow its backlog of crewed, national security, and commercial flights.

CFO commentary noted that the combination of launch leadership, recurring Starlink revenue, and rapid SI expansion is producing meaningful operating leverage.

The company ended the quarter with roughly $90 billion in cash and marketable securities, providing substantial resources for ongoing investment while targeting an investment-grade balance sheet. Sequential revenue nearly doubled from the $7.81 billion reported in the second quarter, illustrating the pace of the AI-driven acceleration. Things are looking strong for SpaceX.

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What’s incredibly striking is the fact that SI has grown to be larger than the rest of the company in such a short amount of time. CEO Elon Musk said on the earnings call that Grok Bot is the “fastest-growing product I’ve ever seen,” so it seems that it could be a true keystone of SpaceXSI over the next few years.

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Investor's Corner

SpaceX reports its second earnings today: here’s what to expect

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11 hours ago

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October 20, 2026

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Credit: SpaceX

SpaceX (NASDAQ: SPCX) will report its second public earnings call today since its IPO earlier this year, and there are a few things we expect to hear about, as well as Wall Street analysts, who have already outlined their expectations for the call.

Wall Street analysts have a consensus of $12.72 billion in revenue and an earnings per share (EPS) of $0.13. These are broken down into three sectors: Space, Connectivity, and AI/SI, which are perceived in this way:

  • Space: $1.41 billion
  • Connectivity: $4.84 billion
  • AI/SI: $6.47 billion

Other outlets cluster near $12.8 or $12.9 billion in revenue and $0.14 – $0.15 EPS. This implies a roughly 65 percent sequential growth from Q2’s $7.81 billion, driven mostly by AI/SI, with the first post-IPO positive EPS expected.

SpaceX just launched its secret Starfall saucer again

Here are the three things to watch for on the call:

AI Revenue Ramp and the $100B+ ARR target

AI is truly the swing factor for SpaceX, and analysts expect it to roughly double from Q2’s $2.56 billion and become about half of total revenue. Management previously guided to a $100 billion+ annualized run rate by December, including the Cursor acquisition, which was $60 billion, to close the quarter.

SpaceX makes first acquisition post-IPO

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Listen for updates on SpaceX’s compute capacity, especially pertaining to its contracts with Google, Anthropic, and others, revenue per watt, any new deals, and Cursor’s early contribution.

Starlink/Connectivity Metrics and Mobile Expansion

Connectivity remains a main profit engine for SpaceX. Subscriber additions will be something to pay attention to, as Q2 ended at 12 million and previews are looking at 14 million for this quarter. Additionally, ARPU trends, enterprise and government growth, and any commentary on Starlink Mobile will be something to pay attention to, especially following the recent low-band spectrum deal and FCC-related constellation approvals.

Capex Trajectory, Cash Burn/FCF, and Starship/Operational Updates

Q2 capex of roughly $18.4 billion weighed on the stock. Investors will look to scrutinize Q3 spending levels, any guidance on the pace into Q4/2027, free cash flow, backlog, and liquidity. Operational color on Starship (Flight 14 milestones and Flight 15 timing/reusability progress), Falcon cadence, and government/NASA contracts are also in focus.

Of course, there will also be some speculation on the potential Tesla-SpaceX merger, but there was nothing mentioned in the company’s proxy it sent earlier this week.

SpaceX will report earnings after market close today and will stream the call on X.

Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here

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