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Merlin 1D's kerolox exhaust is a blindingly bright, opaque yellow-orange. (Tom Cross) Merlin 1D's kerolox exhaust is a blindingly bright, opaque yellow-orange. (Tom Cross)

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SpaceX tracks towards first launch of 2019 with flight-proven Falcon 9 static fire

Pictured here during its debut launch, Falcon 9 B1049 will support SpaceX's final Iridium launch in January 2019. (Tom Cross)

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SpaceX has completed a Falcon 9 static fire test ahead of the company’s first launch of 2019, kicking off what is looking to be a truly jam-packed year for Falcon 9 and BFR. Most important, of course, is SpaceX’s primary business and main sources of revenue – safely and reliably launching customer satellites, payloads, and – soon – astronauts into orbit.

Previously tasked with launching heavy communications satellite Telstar 18V in September 2018, Falcon 9 B1049 is now set to launch an arguably historic mission for both SpaceX and customer Iridium, the eighth and final contracted launch of the upgraded Iridium NEXT satellite communications constellation.

Struck all the way back in June 2010, Iridium’s decision to award the full NEXT constellation launch contract to SpaceX less than two weeks after Falcon 9’s first and only launch may well be the greatest calculated leap of faith in the history of commercial spaceflight. SpaceX did admittedly offer an unbeatable price ($492M for eight launches, $61.5M per launch) that may have allowed Iridium to afford a new constellation in the first place, but the risk Iridium took was truly immense at the time.

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Originally launched between 1997 and 1998, the first Iridium constellation became and still remains the only satellite communications constellation in history to offer global and persistent coverage anywhere on Earth, allowing those with Iridium devices to guarantee connectivity no matter where they are. To some extent, the original constellation has become a subtle but omnipresent backbone of a huge variety of ventures, companies, and services, ranging from marine vessel tracking and emergency response to the go-to solution for those heading far off the beaten path. As just one small example, SpaceX’s large fleet of sea-going vessels and its cross-country transport infrastructure both rely on Iridium for streamlined company-wide movement tracking, making life considerably easier for logistics and planning teams.

Iridium’s decision to use SpaceX for its NEXT constellation likely also gave SpaceX a massive stature boost, taking it from the company with just a handful of commercial contracts that had failed three of its last five launches to the company that secured what was at the time the largest single commercial launch contract in history. Alongside NASA’s Commercial Orbital Transport Services (COTS) and Resupply Services (CRS) commitments (~14 launches as of 2010), Iridium NEXT raised SpaceX’s commercial manifest from perhaps 2 missions to ~10 while also taking the value of those contracts from an almost negligible sum to well over half a billion dollars.

Although SpaceX and Iridium originally planned for launches to take place over a roughly 24-month period stretch from 2015 to 2017, unplanned technical delays and a duo of catastrophic Falcon 9 failures (CRS-7 and Amos-6) in 2015 and 2016 ultimately pushed Iridium NEXT’s launch debut back several years. Despite those immense hurdles and a range of smaller issues, SpaceX and Iridium were finally able to begin launching satellites in January 2017 and have continued to consistently do so every 3-4 months since then. Aside from one partial NASA rideshare mission that featured five NEXT satellites in May 2018, all seven launches have placed ten NEXT satellites (weighing approx. 10,000 kg or 22,000 lb total) in a variety of low polar orbits without a single known hitch.

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Falcon 9 enters the era of reusability

Closely following SES, NASA, and SSL (BulgariaSat), Iridium also became the fourth commercial entity to launch on a flight-proven Falcon 9 rocket for the launch vehicle’s fourth flight-proven mission ever. Iridium-8 will become the fourth constellation launch to fly aboard a sooty Falcon 9 rocket, meaning that a full 50% of the next-gen satellites will have launched on reused rockets, easily one of the coolest bragging rights ever. Currently standing at 65 NEXT satellites in orbit and rapidly nearing operational status, Falcon 9 B1049 and a fresh upper stage will (fingers crossed) place the last ten satellites in orbit to complete the constellation’s last plane and seal the last gap in its perfect global coverage.

Although NEXT would have been valuable for the sole reason that its predecessor satellites are now 5-10 years past their designed lifespans, NEXT will also serve to dramatically increase Iridium’s overall bandwidth, slash concurrent user bottlenecks, and provide a platform for new services like Aireon, which hopes to become the first operator of a truly commercial aircraft tracking service with global satellite-based coverage.

 

All things considered, it will be hugely bittersweet to watch Iridium and SpaceX’s direct relationship come to a close with the launch of Iridium-8. Aside from nine additional on-orbit spares once all 75 are launched, Iridium will also have a complement of six more spares that will be kept in storage on the ground until they are required in orbit. If or when those times come, SpaceX will be able to compete with other launch providers for the opportunity to carry maybe one or two Iridium satellites – likely as rideshare payloads – into orbit sometime in the future.

In the meantime, stay tuned for Iridium-8’s official launch time and date, likely to be announced by SpaceX sometime within the next 24-48 hours.


For prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket recovery fleet check out our brand new LaunchPad and LandingZone newsletters!

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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How Tesla’s Standard models will help deliveries despite price disappointment

“What a giant miss,” one person said.

“With all due respect, no way is this what y’all have been hyping for 6 quarters…” another one claimed.

“So…where are the affordable models?” another reply read.

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Credit: Tesla

When Tesla unveiled its Standard versions of the Model 3 and Model Y this week, reactions were mixed. Many liked the addition of two new models, but they were also concerned about the price.

“What a giant miss,” one person said.

“With all due respect, no way is this what y’all have been hyping for 6 quarters…” another one claimed.

“So…where are the affordable models?” another reply read.

Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings

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There’s no arguing it: $36,990 and $39,990 for the Model 3 Standard and Model Y Standard were not what consumers had in mind.

But, despite Tesla getting its new offerings to a price that is not necessarily as low as many expected, the two cars still have a chance to assist with quarterly deliveries.

Here’s how:

First-time Tesla buyers will lean toward Standard models

Tesla owners have become accustomed to expecting all the bells and whistles in their cars. Heated seats, ventilated seats, acoustic glass, vegan leather, industry-leading performance, world-class range, and a glass roof are all expected by current or past owners.

But what about new owners?

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New owners do not have these high expectations, so to many of those who have not sat in a Tesla or driven one before, they are going to be blown away by the minimalistic looks, capabilities, and features of the Standard models.

The Premium models will feel like the high-end offerings that other automakers also have for sale, except they’ll only be a few thousand dollars more than Tesla’s base models. With other companies, the price for these higher-end trims is $10,000 or more.

The more affordable Standard models will be there, but if buyers want the extra features, they’ll likely be able to justify the extra few thousand dollars.

Tesla’s Standard Models fall under the U.S. Average Transaction Price

Kelley Blue Book releases a new report each month showing the average transaction price (ATP) of all vehicles sold in the U.S. for that month.

The latest report, released on September 10 for the month of August, revealed an ATP of $49,077. This was up 0.5% from July ($48,841) and higher year over year by 2.6%.

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Technically, Tesla’s new Standard models fall well under that ATP, meaning they technically do qualify as “affordable.” However, realistically speaking, affordable does not mean “under the national average.”

It means accessible for low-income families, single-parent households, and other groups. This would likely be under $30,000.

Déjà Vu with the Cybertruck Rear-Wheel-Drive

When Tesla offered the Cybertruck RWD, it stripped out many of the best features of the Cybertruck, such as the adjustable air suspension, powered tonneau cover, and interior materials, just to name a few.

It was $10,000 less than the Cybertruck AWD, but many people essentially viewed it as a way to push consumers toward the more expensive variants, since the discount was a better value than missing out on features.

Tesla released the Cybertruck RWD to make the AWD look like a deal

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Something similar could happen with the Standard models. With it only being a few thousand dollars less than the Premium Model 3 and Model Y, some consumers will see it as a better option to go with the more expensive trim levels.

Even if they don’t, many car buyers will see it as a deal to grab the Standard versions.

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Tesla bull sees a new path to 600,000 deliveries per quarter

“We believe the launch of a lower cost model represents the first step to getting back to a ~500k quarterly delivery run-rate, which will be important to stimulate demand for its fleet with the EV tax credit expiring at the end of September.”

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Credit: Tesla

Tesla (NASDAQ: TSLA) bull Dan Ives of Wedbush Securities published a new note to investors on Thursday evening, which seemed to open up the possibility of the automaker returning to a growth rate in terms of deliveries.

After nearly two years of leveling off with deliveries, which was expected, Tesla is now slated to potentially return to growth, Ives says, as it has introduced new, more affordable models. It launched its Standard offerings for the Model 3 and Model Y this week, a strategy to bring cheaper cars to customers amid the loss of the $7,500 tax credit.

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In his note to investors, Ives said:

“We believe the launch of a lower cost model represents the first step to getting back to a ~500k quarterly delivery run-rate, which will be important to stimulate demand for its fleet with the EV tax credit expiring at the end of September.”

Although these cars come in only slightly under $40,000, there is some belief that they will do two things: attract car buyers looking for an under-$40k EV with Tesla’s technology and infrastructure, or push those on the fence to the now-Premium models, which are simply the Long Range Rear-Wheel-Drive and Long Range All-Wheel-Drive.

Ives said in the note that Tesla’s plans for a $25,000 car are “on hold,” but it seems as if that vehicle will be the Cybercab, which the company unveiled a year ago today.

That project seems to be moving forward as well, based on what we saw at both Fremont and Gigafactory Texas yesterday. At Fremont, the Cybercab was spotted on the Test Track, while crash-tested units were spotted at the factory in Austin.

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After the Standard models were rolled out and the Cybercab or another $25,000 unit arrives, Ives believes Tesla could actually get closer to 600,000 deliveries per quarter, he said on CNBC this morning:

Moving forward, Tesla has much more going for it than its potential growth in quarterly deliveries. Ives recognizes that a majority of what Tesla’s value will come from in the future: AI and autonomy.

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Ives said:

“The AI valuation will start to get unlocked in the Tesla story and we believe the march to an AI driven valuation for TSLA over the next 6-9 months has now begun in our view with FSD and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose for Musk & Co. We believe Tesla could reach a $2 trillion market cap early 2026 in a bull case scenario and $3 trillion by the end of 2026 as full scale volume production begins of the autonomous and robotics roadmap.”

Ives and Wedbush maintained their $600 price target and ‘Outperform’ rating on Tesla stock.

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The Tesla Model Y Standard is actually a great deal in Europe

A €10,000 delta could very well prove to be a meaningful difference for numerous consumers.

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Credit: Tesla

It’s no secret that the Model Y Standard proved polarizing to numerous Tesla watchers in the United States. At just a few thousand dollars less than the Model Y Premium, the entry-level variant seemed like a subpar deal considering all the features that are missing from the vehicle.

In Europe, however, the story might be different, and the Model Y Standard might actually end up being a pretty good deal for numerous car shoppers. 

Model Y Standard

Perhaps the biggest complaint against the Model Y Standard in the United States was its price. Listed at $39,990, it was only $5,000 less than the Model Y Premium Rear Wheel Drive (RWD), which starts at $44,990 before options. Considering the list of features and functions that are absent in the Model Y Standard, a good number of Tesla community members noted that the vehicle should have been priced lower, perhaps around $34,990, for it to truly be a good deal. 

Otherwise, the entry-level Model Y could end up following in the footsteps of the Cybertruck Rear Wheel Drive, which was priced just below $70,000, but was missing a long list of features that were included on the Cybertruck AWD. The Cybertruck RWD has since been discontinued, likely because of low orders. 

Different story in Europe

While the Model Y Standard may not make much sense in the United States, its pricing actually makes it a very good deal in Europe. A look at the order page for the Model Y in The Netherlands, for example, shows that the Model Y Standard is priced at €39,990 before options, €10,000 less than the Model Y Premium Rear Wheel Drive, which is priced at €50,990 before options. 

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As noted by Tesla watcher @KamermanMenno on social media platform X, a €10,000 delta is a meaningful difference for numerous consumers. Given the significant price difference, the Model Y Standard could become the ideal entry-level vehicle for drivers looking to join the Tesla ecosystem at the lowest possible cost. The fact that the Model Y Standard is a crossover SUV bodes well for the vehicle, given the segment’s popularity as well.

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