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SpaceX wins new Falcon Heavy launch contract as rocket’s prospects stabilize

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SpaceX has won a new Falcon Heavy launch contract from Swedish telecommunications company Ovzon, which hopes to procure a large geostationary communications satellite in time for launch in the fourth quarter of 2020.

Excluding two pending contracts, a consequence of the many years of delays suffered since SpaceX first began marketing the rocket, Ovzon’s commitment is now the fourth commercial contract secured by Falcon Heavy in 2019 and 2020, solidifying enough demand to sustain – on average – biannual launches over the next two or so years.

Speaking at IAC 2018, SpaceX VP of Reliability Hans Koenigsmann was by no means wrong when he described the latent demand seen for Falcon Heavy launches, stating that “there aren’t too many customers for it”. Indeed, just three firm launch contracts over the next two years did not bode particularly well for Falcon Heavy as a competitive complement to SpaceX’s commercial launch business – without regular demand and assuming a competitive and fixed-price market, the cost of maintaining the infrastructure needed to build and fly a distinct launch vehicle will inevitably end up cannibalizing profitability or even the ability to break even.

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For vehicles like ULA’s Delta IV Heavy, NASA’s SLS, or the late Space Shuttle, the unique capabilities offered by certain low-volume rockets or even just the risk of faltering can lead to situations where anchor customers will swallow huge cost premiums for the sake of simply preserving those capabilities. In non-competitive markets, it does not take much for nearly any capability to become essentially priceless. SpaceX, however, paid for Falcon Heavy’s development without seeking – and even actively turning down – most government development funding or guaranteed launch contracts.

A tough life for big birds

As such, Falcon Heavy’s utility and existence are in a far more precarious position than most rockets, owing to the fact that SpaceX would likely not hesitate to kill the vehicle if commercial demand rapidly withered to nothing, far from impossible with just three total launches contracted over a period of fewer than two years. Prior to the USAF announcing a new Falcon Heavy launch contract in June 2018, that number was just two secured launches. Combined with the USAF purchase, Ozvon’s new contract suggests that prospects for the super-heavy-lift rocket may be at least warm enough to sustain its useful existence.

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There is also a decent chance that, once Falcon Heavy has proven itself with one or two real satellite launches, commercial launch customers will warm to its impressive capabilities. Most notably, Ozvon may have sided with Falcon Heavy solely because the powerful rocket can place its Ozvon-3 communications satellite directly into geostationary orbit (GEO), compared to the far more common process of launching the satellite roughly halfway there and letting it finish the journey on its own, known as geostationary transfer orbit (GTO) insertion.

There is undoubtedly significant commercial upside for geostationary communications satellites to arrive at their operational orbits as quickly as possible, rather than spending weeks or even months slowly making their way uphill from GTO. The cost of dedicated launches of Delta IV Heavy or Ariane 5 have far outweighed the benefits of earlier operability for as long as the rockets have been flying, though, and smaller and more affordable vehicles like Falcon 9, Atlas 5, or dual-manifested Ariane 5s simply aren’t powerful enough to launch traditionally-sized commsats directly to GEO.

 

In that regard, Falcon Heavy launches could become a commercial game changer and a distinct competitive advantage for companies that select it. Now with at least four launch contracts secured over the next ~24 months, Falcon Heavy will have a much better chance at demonstrating its true capabilities, potentially enabling military-premium launch services (~$250m+) at commercial-premium prices (~$90-150m). If it performs as intended in its next few launches, expected sometime in H1 2019, Falcon Heavy will be a strong contender for at least five additional USAF contracts as well as certain NASA missions scheduled to launch in the 2020s.

Experience with Falcon Heavy may only be tangentially beneficial at best to SpaceX’s greater BFR ambitions, but commercially, competitively, and reliably operating a rocket as large as FH for customers like the USAF and NASA would go a long, long way towards solidifying SpaceX’s perception as a ULA-equivalent launch provider for roughly half the cost.

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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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Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence

The Tesla CEO shared his recent insights in a post on social media platform X.

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Credit: Tesla

Tesla’s next-generation AI5 chip is nearly complete, and work on its successor is already underway, as per a recent update from Elon Musk. 

The Tesla CEO shared his recent insights in a post on social media platform X.

Musk details AI chip roadmap

In his post, Elon Musk stated that Tesla’s AI5 chip design is “almost done,” while AI6 has already entered early development. Musk added that Tesla plans to continue iterating rapidly, with AI7, AI8, AI9, and future generations targeting a nine-month design cycle. 

He also noted that Tesla’s in-house chips could become the highest-volume AI processors in the world. Musk framed his update as a recruiting message, encouraging engineers to join Tesla’s AI and chip development teams.

Tesla community member Herbert Ong highlighted the strategic importance of the timeline, noting that faster chip cycles enable quicker learning, faster iteration, and a compounding advantage in AI and autonomy that becomes increasingly difficult for competitors to close.

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AI5 manufacturing takes shape

Musk’s comments align with earlier reporting on AI5’s production plans. In December, it was reported that Samsung is preparing to manufacture Tesla’s AI5 chip, accelerating hiring for experienced engineers to support U.S. production and address complex foundry challenges.

Samsung is one of two suppliers selected for AI5, alongside TSMC. The companies are expected to produce different versions of the AI5 chip, with TSMC reportedly using a 3nm process and Samsung using a 2nm process.

Musk has previously stated that while different foundries translate chip designs into physical silicon in different ways, the goal is for both versions of the Tesla AI5 chip to operate identically. AI5 will succeed Tesla’s current AI4 hardware, formerly known as Hardware 4, and is expected to support the company’s Full Self-Driving system as well as other AI-driven efforts, including Optimus.

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Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025.

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Credit: ANCAP

The Tesla Model Y recorded the highest overall safety score of any vehicle tested by ANCAP in 2025. The Tesla Model 3 also delivered strong results, reinforcing the automaker’s safety leadership in Australia and New Zealand.

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025. ANCAP’s 2025 tests evaluated vehicles across four key pillars: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist technologies.

The Model Y posted consistently strong results in all four categories, distinguishing itself through a system-based safety approach that combines structural crash protection with advanced driver-assistance features such as autonomous emergency braking, lane support, and driver monitoring. 

This marked the second time the Model Y has topped ANCAP’s annual safety rankings. The Model Y’s previous version was also ANCAP’s top performer in 2022.

The Tesla Model 3 also delivered a strong performance in ANCAP’s 2025 tests, contributing to Tesla’s broader safety presence across segments. Similar to the Model Y, the Model 3 also earned impressive scores across the ANCAP’s four pillars. This made the vehicle the top performer in the Medium Car category.  

ANCAP Chief Executive Officer Carla Hoorweg stated that the results highlight a growing industry shift toward integrated safety design, with improvements in technologies such as autonomous emergency braking and lane support translating into meaningful real-world protection.

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“ANCAP’s testing continues to reinforce a clear message: the safest vehicles are those designed with safety as a system, not a checklist. The top performers this year delivered consistent results across physical crash protection, crash avoidance and vulnerable road user safety, rather than relying on strength in a single area.

“We are also seeing increasing alignment between ANCAP’s test requirements and the safety technologies that genuinely matter on Australian and New Zealand roads. Improvements in autonomous emergency braking, lane support, and driver monitoring systems are translating into more robust protection,” Hoorweg said.

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Tesla Sweden uses Megapack battery to bypass unions’ Supercharger blockade

Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery.

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Credit: Tesla Charging/X

Tesla Sweden has successfully launched a new Supercharger station despite an ongoing blockade by Swedish unions, using on-site Megapack batteries instead of traditional grid connections. The workaround has allowed the Supercharger to operate without direct access to Sweden’s electricity network, which has been effectively frozen by labor action.

Tesla has experienced notable challenges connecting its new charging stations to Sweden’s power grid due to industrial action led by Seko, a major Swedish trade union, which has blocked all new electrical connections for new Superchargers. On paper, this made the opening of new Supercharger sites almost impossible.

Despite the blockade, Tesla has continued to bring stations online. In Malmö and Södertälje, new Supercharger locations opened after grid operators E.ON and Telge Nät activated the sites. The operators later stated that the connections had been made in error. 

More recently, however, Tesla adopted a different strategy altogether. Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery, as noted in a Dagens Arbete (DA) report. 

Because the Supercharger station does not rely on a permanent grid connection, Tesla was able to bypass the blocked application process, as noted by Swedish car journalist and YouTuber Peter Esse. He noted that the Arlandastad Supercharger is likely dependent on nearby companies to recharge the batteries, likely through private arrangements.

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Eight new charging stalls have been launched in the Arlandastad site so far, which is a fraction of the originally planned 40 chargers for the location. Still, the fact that Tesla Sweden was able to work around the unions’ efforts once more is impressive, especially since Superchargers are used even by non-Tesla EVs.

Esse noted that Tesla’s Megapack workaround is not as easily replicated in other locations. Arlandastad is unique because neighboring operators already have access to grid power, making it possible for Tesla to source electricity indirectly. Still, Esse noted that the unions’ blockades have not affected sales as much.

“Many want Tesla to lose sales due to the union blockades. But you have to remember that sales are falling from 2024, when Tesla sold a record number of cars in Sweden. That year, the unions also had blockades against Tesla. So for Tesla as a charging operator, it is devastating. But for Tesla as a car company, it does not matter in terms of sales volumes. People charge their cars where there is an opportunity, usually at home,” Esse noted. 

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