News
SpaceX, NASA batten down the hatches as another storm approaches Florida
SpaceX, NASA, and the rest of the Kennedy Space Center (KSC) and Cape Canaveral Space Force Station (CCSFS) are doing what they can to prepare for Tropical Storm Nicole’s imminent arrival.
The somewhat unexpected storm grew quickly in recent days and has become a system that could at least partially threaten the Space Coast and its tenants. After the likelihood of favorable weather conditions dropped to just 20% on November 7th, SpaceX announced later the same day that it would delay its next Falcon 9 launch from November 8th to no earlier than (NET) November 12th. Increasingly tight scheduling of one of SpaceX’s two Florida pads will likely trigger delays for at least two or three more November launches, magnifying the storm’s immediate impact.
In comparison, the situation facing NASA could become more serious. On November 4th, for the fourth time since April 2022, NASA rolled its first Space Launch System (SLS) rocket to KSC’s LC-39B pad for a third launch attempt. Due to a combination of the storm’s quick growth and the nature of the SLS rocket, the design of which was dictated more by political expediency than rational engineering, the agency was reluctant to roll the rocket back to shelter. By the time it was clear that Nicole would impact Cape Canaveral, it was too late for NASA to complete the multi-day rollback process.
In late September, Hurricane Ian created a similar situation. The threat of the tail-end of the storm bringing winds higher than the SLS rocket is rated to survive forced NASA to abandon a third launch attempt and instead roll SLS back to the Vehicle Assembly Building (VAB), which is rated to survive even a Category 5 hurricane. According to NASA, SLS is designed to withstand wind gusts as high as 137 km/h (85 mph). Even then, some senior officials were brazenly reluctant to stand down. Every round trip to and from the VAB guarantees weeks of delays before the next possible launch attempt. Additionally, while NASA has refused to offer more context, each crawler ride seemingly takes a toll on the SLS rocket, meaning that the vehicle can only handle a limited number of rollbacks before unspecified issues begin to arise.
As a result, even though high winds could apparently damage the first SLS rocket and orbit-capable Orion spacecraft, which represent 10-15 years of work and would cost a minimum of $4.1 billion to replace, NASA was nearly willing to play chicken with a hurricane. Ultimately, someone in the agency saw reason and took the threat seriously enough to return the rocket to the safety of the VAB. But just six weeks later, with no evidence that NASA seriously considered a rollback before it was too late, SLS is stuck at Pad 39B while an increasingly threatening tropical storm – verging on a Category 1 hurricane – approaches the Space Coast.
Because the rollback process (which takes about a day) requires days of preparation, NASA would have had to decide to return SLS to the VAB days in advance. Instead, even though NASA was already aware that a storm system was developing, the agency decided to roll the rocket out of the VAB to LC-39B late on November 3rd. Had NASA merely delayed rollout by a few days to allow forecasts of the storm system to become more confident, it’s unlikely that it would have moved forward with its rollout plans as the storm’s predicted impact worsened.
When Hurricane Ian threatened KSC, NASA decided to roll SLS back to the VAB after the odds of sustained hurricane-force winds grew to 6%. That makes NASA’s decision to roll SLS to the pad when it had a forecast showing a 4% chance of similar winds even stranger.
SLS will be forced to weather the storm while sitting unprotected at the launch pad. As of November 7th, NOAA models predicted a 7% chance of hurricane-force winds at Kennedy Space Center. The odds increased to 15% 12 hours later – briefly equivalent to Russian roulette. The latest forecast has dropped to a 10% chance of sustained wind speeds of 120 km/h (75 mph) or higher. It’s unclear what the SLS rocket’s tolerance for sustained winds is, but it’s likely lower than its tolerance for gusts of up to 85 mph.
With any luck, Nicole will fall on the right side of NASA’s gamble. In the meantime, to “provide sufficient logistical time to get back into launch status following the storm,” NASA has delayed its third SLS launch attempt from November 14th to November 16th. The bulk of Nicole’s impact will begin to be felt at KSC as early as November 9th and should last for several days.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
