Connect with us

News

SpaceX to receive $15m from Florida to build Falcon refurbishment facility

Published

on

The state of Florida’s Space Florida initiative is likely to award SpaceX nearly $15 million in support of the company’s recently-publicized plan to build a new Falcon rocket refurbishment facility and launch control center on Kennedy Space Center property.

All things considered, such an investment would be an extremely savvy move for the state, potentially speeding up an expansion that will pave the way – quite literally in terms of infrastructure — for SpaceX to support a dramatically larger launch cadence in Florida. Writing in an environmental assessment (EA) for the Richards Road project discovered in early June, the company provided a rough estimate for what that growth could look like:

“SpaceX estimates a possible 150 construction jobs associated with the initial development of the Proposed Action, and approximately 70 new SpaceX employees to support additional operations on KSC. SpaceX plans to launch more than 4,000 satellites with the intention that most of these satellites will be launched from LC-39A and LC-40.” (p. 39)

In the case of “most” of “more than 4,000 satellites” being launched from Florida, SpaceX is undoubtedly referring to the first phase of their Starlink internet constellation, a program that is also rapidly growing an R&D team to complete the system’s production-ready design and build a state-of-the-art factory for the vast majority of the network’s major components. For context, 70-90 additional new employees would grow SpaceX’s Florida presence by as much as 20-30% from 2018 levels.

Teslarati reached out to SpaceX for further clarification on the Starlink-related comments in the EA, but the company could not be reached for comment on the matter. However, SpaceX was later able to provide a statement on their prospective Richards Road expansion, reprinted below.

“As SpaceX’s launch cadence and manifest for missions from Florida continues to grow, we are seeking to expand our capabilities and streamline operations to launch, land and re-fly our Falcon family of rockets.”

It’s worth noting that SpaceX President and COO Gwynne Shotwell told CNBC reporters in May 2018 that the company expected 2019 to look more like 2017 (18 launches), suggesting that next year will likely be 30-50% slower than its busy 2018 launch schedule. Although the COO did state that “2019 [will] probably be closer to 2017 due to lower demand”, she didn’t explicitly include non-commercial launches in her figuring.

Combined with SpaceX’s official statement that its Florida manifest “continues to grow”, an observation that at face-value plainly contradicts the Chief Operating Officer’s on-record estimations, it seems almost impossible that that manifest growth is not largely a consequence of internal plans to dedicate a number of launches to Starlink satellites. As of June 2018, crowdsourced SpaceX launch manifests show a total of 20 possible launches in 2019 and 12 in 2020 – while plausible that a number of additional missions will be contracted or publicly announced as time marches on, it’s somewhat less plausible that those missions will push SpaceX’s commercial launch demand up to or above 2018 levels (24-28 launches).

https://twitter.com/elonmusk/status/875849793204928512

Advertisement
-
-

Starlink launches thus make sense as a gap-filler for the one or two demand-sapped years likely to follow 2018, too near for SpaceX’s reusability-associated launch price drops to make a difference and too early for the company’s full-reusable BFR to come online. Rather conveniently, the production of roughly 12 new Block 5 Falcon 9s and Heavies per year would almost certainly keep all of SpaceX’s rocket manufacturing facilities busy, while also leaving an unfathomably vast fleet of stagnant Block 5 boosters (and hopefully payload fairings) available for any internal missions required by the Starlink program. If Patricia Cooper’s late-2017 statements are still roughly true today, SpaceX plans to begin the first dedicated launches of operational Starlink satellites in 2019, perfectly coinciding with their publicly anticipated lull in commercial launch demand.

Although it does depend on an extraordinarily rapid and successful ramp of the Starlink program, the paradoxical opportunity presented to SpaceX by launch demand lulls in 2019 and 2020 is hard to deny. Around the same time, one would expect the market for launches to begin to seriously respond to the arrival of a new, more affordable paradigm of orbital access, potentially culminating in an unprecedented demand for commercial launches as the price of entry begins to drop appreciably.

 

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.

Advertisement
Comments

Elon Musk

The Boring Company’s newest tunnel vehicle runs on Tesla parts and no one is driving it

The Boring Company’s new tunnel vehicle runs on Tesla Model 3 batteries and drive units.

Published

on

By

The Boring Company just introduced a new piece of hardware, and it runs on parts pulled straight from a Tesla showroom. Liner Truck 3, unveiled in a post from the tunneling company’s official X account, is an all electric vehicle built around Tesla Model 3 battery packs and drive units, purpose built to move concrete tunnel segments to the boring machine face without a single person underground.

The job itself is unglamorous but critical. Each precast segment run weighs more than 22,000 pounds, roughly the load of a full cement mixer, and Liner Truck 3 hauls that weight repeatedly between the surface staging area and wherever the Prufrock machine happens to be cutting.

The Boring Company said Liner Truck 3 is piloted remotely out of its Global Operations Control Center in Texas, extending the Zero-People-In-Tunnel approach the company has spent years building toward. An earlier version of a ZPIT liner truck was already tested at the company’s Bastrop, Texas research tunnels, and a factory tour released last month showed an employee flying a fully loaded liner truck with a PlayStation controller. Liner Truck 3 looks like the production version of that same idea, cleaned up and pushed into daily use.

The timing lines up with a company digging in more places than it ever has before. The Boring Company now has multiple Prufrock machines active or arriving in Nashville, where Music City Loop construction has been accelerating since February, and its Vegas Loop network keeps adding tunnel mileage on a near monthly basis. Every one of those projects depends on getting concrete segments to the cutting face fast enough to keep the boring machine from idling, which is exactly the bottleneck Liner Truck 3 is designed to remove.

Advertisement
-
-

It also reinforces something Tesla owners have watched happen gradually across Musk’s companies: passenger car hardware finding a second life in heavy equipment. Model 3 drive units already move people through the Vegas Loop, and now the same components are hauling concrete underground in Nashville and wherever The Boring Company digs next. Whether that kind of component reuse extends further into TBC’s equipment lineup, or into other Musk owned industrial hardware, is the next thing worth watching.

Continue Reading

Elon Musk

Elon Musk and SpaceX shrugs off the trading day Wall Street feared most

Published

on

By

Rendering of Elon Musk overlooking a Starship fleet (Credit: Grok)

SpaceX stock did the opposite of what most of Wall Street expected this week, when the day designed to be its most dangerous turned into a rally, and the rally kept going.

Thursday marked the first major lockup expiration since SpaceX’s June IPO, making roughly 911.5 million insider held shares eligible to trade for the first time, more than doubling the company’s public float. Analysts and short sellers had spent weeks bracing for a flood of selling, especially after the stock fell 13 percent following its first earnings report as a public company on Tuesday. Instead, shares rose 6.1 percent Thursday to close at $114.92, and by Friday they were trading near $129, up more than another 12 percent on the day.

SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles

The setup made the outcome notable. Short interest had climbed to roughly 34 percent of the float heading into earnings, among the highest of any large cap stock, with about 95 percent of available shares to borrow already on loan. CEO Elon Musk warned short sellers twice in the weeks before the lockup, writing on X that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” then following up on the morning of earnings with “I try to warn them, but they just double down.”

When the newly unlocked shares hit the market and the selloff never showed up, some of that short position appears to have started unwinding. TipRanks reported that options activity shifted toward bullish strategies like put selling and risk reversals following the rally, with roughly $600 million in options premium trading Thursday alone. Retail buyers also stepped in during the earnings dip, according to Vanda Research.

The fundamentals behind the stock have not changed much in a week. SpaceX’s revenue nearly doubled year over year to $7.8 billion, with Starlink subscribers doubling to 12 million and the company’s AI segment growing 247 percent. What spooked investors on Tuesday was the spending side. Capital expenditures jumped to more than $18 billion for the quarter, up from $2.8 billion a year earlier, with AI investment alone rising from $749 million to $15.8 billion. Wall Street remains split on whether that spending is building infrastructure SpaceX needs or outrunning what the business can currently support, a debate Teslarati has tracked since shares first came under pressure.

None of that resolves the bigger question hanging over the stock. Thursday’s release was only the first of nine staggered lockup tranches, with roughly $800 billion worth of additional shares scheduled to become eligible through October, and Musk’s own stake stays locked until next June. If this week is any indication, the market is treating that supply as something it can absorb rather than something to fear, at least for now.

Advertisement
-
-
Continue Reading

News

The Boring Company’s newest Vegas Station has a permit quietly waiting behind it

Sahara Las Vegas opened a new Vegas Loop station, joining an exclusive two resort transit club.

Published

on

By

Sahara Las Vegas opened a new Vegas Loop station Thursday, giving The Boring Company’s underground transit system its northernmost stop yet on the Strip. The station sits at Sahara’s Paradise Road entrance, on the southeast corner of Las Vegas Boulevard and Sahara Avenue, and connects riders to the Las Vegas Convention Center, other Strip resorts on the network and, eventually, Harry Reid International Airport.

The addition makes Sahara the second resort, after Fontainebleau opened its own station in January, to get a stop built at street level rather than tucked into the property itself. Sahara now joins Westgate as the only two Strip resorts offering both a Vegas Loop station and a stop on the Las Vegas Monorail, giving guests two separate ways to get around without leaving the property.

The Boring Company just doubled its tunneling power in Nashville

The bigger news buried in Thursday’s announcement is what comes next. Boring Company has already secured its first permit to tunnel north of Sahara Avenue, extending the network beyond where it currently ends, even though permits to push the Loop toward downtown Las Vegas still haven’t been granted. Crews are also working on a two mile dual tunnel line running from Westgate to a planned station at 4744 Paradise Road, just north of Tropicana Avenue, that Las Vegas Convention and Visitors Authority CEO Steve Hill has said the company hopes to open in time for November’s Las Vegas Grand Prix.

Ridership has grown alongside the buildout. The Loop moved roughly 82,000 passengers during CONEXPO in early March, a total the company highlighted on its own X account at the time, and the system has now carried more than 4 million passengers through 11 open stations since it began running in 2021. The airport connector tunnels, meant to give the Loop a direct link to Harry Reid, have slipped past their original first quarter target and remain under construction, with Boring Company director Mike Baier saying that a full opening is still a few months out.

For Sahara, the calculation is straightforward. Convention traffic drives a large share of Loop ridership, and a station at the property’s front door gives conventiongoers one more reason to book rooms on the Strip’s north end instead of closer to the convention center itself.

Advertisement
-
-
Continue Reading