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European spacecraft converge on the US for rides on SpaceX rockets
Thanks in large part to delays suffered by Arianespace’s next-generation Ariane 6 rocket, a small fleet of European satellites are simultaneously converging on the United States to hitch rides into orbit with SpaceX.
SpaceX launching European payloads is nothing new. The company has occasionally launched spacecraft built in Europe for European space agencies or companies, but the combination is exceedingly rare. For several reasons, however, what was once alien is beginning to become commonplace, and that fact is about to be made even clearer over the remainder of 2022.
SpaceX kicked off a string of six or seven launches of spacecraft built by or for Europe on October 15th. Over the weekend, the company’s workhorse Falcon 9 rocket – 70 meters (230 ft) tall, 3.7 meters (12 ft) wide, and capable of producing up to 770 tons (1.7M lbf) of thrust at liftoff – successfully launched the Hotbird 13F communications satellite into a geostationary transfer orbit (GTO) for the French satcom company Eutelsat.
Hotbird 13F is the first of three Eutelsat satellites the company secretly agreed to launch on SpaceX rockets. Hours after its twin’s launch, Hotbird 13G arrived in Florida in a custom Airbus Beluga XL transport jet (its first visit to the US since 2009) and will soon begin preparing for its own ride on a SpaceX rocket as early as November 2022. Eutelsat 10B, also on track to launch on a Falcon 9 rocket sometime in November, likely left France for Florida on an oceangoing Arianespace ship on October 12th.
Normally, selecting the launch provider for communication satellites that cost eight or nine figures is accompanied by a press release and plenty of celebration. That the European Space Agency, Eutelsat, Airbus, and Thales Alenia said next to nothing until the last moment says a lot about how all parties involved really feel about transferring three of their satellites onto SpaceX rockets. Originally, all three were intended to launch on Arianespace’s rockets: Eutelsat 10B on one of the last Ariane 5s and Hotbird 13F and 13G on one of the first Ariane 6s.
It’s not entirely clear why Ariane 5 wasn’t able to launch Eutelsat 10B, but it’s unsurprising that partners ESA, Thales Alenia, Airbus, and Eutelsat decided to move Hotbird 13F and 13G to Falcon 9. The Ariane 6 rocket meant to launch both satellites simultaneously is years behind schedule, and its launch debut recently slipped even further from late 2022 to sometime in 2023. Originally scheduled to debut in mid-2020, it’s now possible – if not likely – that Ariane 6 won’t be ready to launch until the second half of next year (or even later).
Thanks to those delays, the new rocket will enter the scene with a very busy 2023 and 2024 manifest packed with high-value institutional and commercial payloads from all across Europe. In other words, a pair of semi-commercial communications satellites like Hotbird 13F/13G could have easily been forced to wait for a year or more to launch on Ariane 6. Adding insult to injury, Hotbird 13F and 13G are the first two satellites built under the joint European Space Agency and Airbus Eurostar Neo program, and will now be flying on an American rocket built by a company that is almost singlehandedly responsible for ending a golden era of competitive European launch services.
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With confidence in Ariane 6’s debut timing lower than ever, a NASA official recently revealed that ESA is even studying the possibility of launching Euclid – a next-generation two-ton space telescope – on SpaceX’s Falcon 9. Euclid was originally scheduled to launch on one of Arianespace’s Russian-built Soyuz 2.1 rockets (or Ariane 6) in mid-2022. That contract was signed in 2020, six years after Russian President Vladimir Putin reminded the world of his instability, recklessness, and brutality by illegally and unofficially invading Ukraine. In February 2022, after months of obvious buildup, Russia doubled down on its Ukraine offensive with an openly genocidal full-scale invasion. In the aftermath, it kidnapped a batch of European OneWeb satellites, requisitioned a Soyuz rocket the company had already paid for, kneecapped a joint European-Russian Mars mission, and (while mostly mutual) revoked its support of European Soyuz launches.
That has effectively removed Russia as a serious option for European launches or collarboration, leaving several European missions and companies in limbo. Britain’s OneWeb, for example, had an exclusive contract with Russia to launch its entire low Earth orbit (LEO) internet satellite constellation on up to 21 Soyuz rockets. After losing $230 million in the process, the company was forced to abruptly shift gears, and is now on track to launch its first batch of satellites since early 2022 on an Indian SLV-3 rocket. One of at least two SpaceX Falcon 9 missions could follow as early as December 2022. Unless Ariane 6 aces its launch debut in the near future, many more European payloads could find themselves in similar positions in 2023 and 2024.
Meanwhile, several other European-made payloads are preparing for Falcon 9 launches. While these payloads have been assigned to SpaceX rockets from the start, they still demonstrate just how big of a bite the US startup has taken out of the European launch industry. Most recently, the joint NASA-ESA-CSA Surface Water and Ocean Topography (SWOT) spacecraft was flown from France to California on October 17th. Falcon 9 will launch SWOT from the California coast as early as December 2022.
Soon, Japanese startup ispace’s first HAKUTO-R Moon lander – largely assembled, tested, and propellant by France’s ArianeGroup – will be transported from Germany to Florida for a November 2022 SpaceX launch. Germany’s second and third SARah radar satellites could head to the US shortly for a Falcon 9 launch tentatively scheduled as early as the final days of 2022 or early 2023. Finally, SpaceX could complete its first OneWeb launch around the same time.
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.”
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.
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.
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.
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.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
