News
Russia quietly shelves development of sole SpaceX Falcon 9-competitive rocket
Russian space agency Roscosmos has indefinitely suspended development of the Proton Medium rocket, once expected to help the country compete with the meteoric rise of SpaceX and the growing field of interested entrants in the commercial launch industry.
As Russia makes a greater push toward Angara rockets, it is sidelining development of Proton Medium, a vehicle ILS hoped would compete head on with SpaceX's Falcon 9. https://t.co/BD6AOusalK
— Caleb Henry (@ChenrySpace) August 30, 2018
The (probable) death of a rocket
In an extraordinary feat of double-speak, freshly appointed Roscosmos director general Dmitry Rogozin – likely a primary source of Proton Medium’s paused development – explained that Russia’s national rocket program would likely experience the “financial collapse of [its] enterprise” if it chose to build “both old and new heavy-duty rockets” simultaneously. Rogozin clearly implied that Angara – a Russian rocket that has flown once (successfully) in 2014 and has a commercial demand about as close to near-zero as possible – was the “new” rocket that Roscosmos ought to solely pursue.
Indeed, upon analyzing the public specifications of Angara A5 and Proton Medium, the two rockets have near-identical theoretical performance characteristics, with higher geostationary transfer orbit payload capabilities (5-6 tons) roughly comparable to Falcon 9 in the SpaceX rocket’s drone ship recovery configuration. As a result, it certainly would make very little sense for Russia to fund and build two rockets with nearly indistinguishable utility – Rogozin certainly is correct in that regard.
However, the space agency director is dumbfoundingly off-base in his suggestion that Angara – not Proton Medium or other proposed alternatives – is the way forward to a financially sustainable Roscosmos. As he himself notes, “eternal state support [of launch vehicles] is impossible and inefficient,” seemingly indicating that he believes any viable state-funded rocket must eventually become a serious commercial competitor, a necessity for a launch vehicle if it’s to sustain itself beyond subsidies (i.e. guaranteed government launch contracts).
https://twitter.com/runnymonkey/status/1030356053882544129
The “old” versus the “new”
The Proton family of rockets – past and present – may not have the most reliable track record or a consistent launch cadence, but nearly any rocket on Earth can lay claim to a more storied launch career when placed next to Angara. Despite the fact that the Russian government itself has funded the development and production of Angara rockets, just a single orbital mission has been launched, and only with a mass simulator (dead weight) as its payload. Since that one-off 2014 launch debut, not even the Russian government itself has chosen to fly state satellites on Angara, instead siding with other successful vehicles in the country’s fleet, including Proton Breeze M and Soyuz-2.
This is almost without a doubt because Angara A5 is the most expensive rocket Russia currently operates, reportedly 30-40% more expensive than Proton M, estimated in 2017 by the US Government Accountability Office to cost roughly $65 million per launch. At roughly a third more than that, an Angara A5 launch presumably costs ~$90 million in a best-case scenario, given that the manufacturing apparatus required to construct the rocket has been maintained on a manifest of exactly zero launches since 2014. In fact, the vehicle was estimated by Russia itself to cost roughly $95 to $105 million per launch back in 2015.
https://twitter.com/runnymonkey/status/1032371653668261888
In an interview with SpaceNews in late 2017, the president of the commercial wing of Russia’s space launch program (known as ILS) frankly stated that “[ILS] needs to target something between $65 [million] and $55 million as the price point [for Proton Medium], and the Angara 5 vehicle will not be able to do that.” In the same interview, the ILS president even went so far as to imply that “Proton Medium was being designed as a purely commercial competitor to SpaceX’s Falcon 9.”
While there is a very slim chance that Proton Medium’s development will be revived after Roscosmos’ internal review, it’s far safer to presume that the vehicle is dead, thus killing Russia’s only tenuous hope of fielding a rocket capable of competing with the likes of SpaceX and Blue Origin. While Roscosmos’ goal is to make Angara (an entirely expendable rocket, might I add) more affordable, it anticipates that the rocket would become cost-competitive with Proton no earlier than 2025.
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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 brough up included allowing speding 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 measure 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
