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SpaceX slashes base price of smallsat rideshare program, adds “Plates”

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SpaceX has rolled out an upgraded version of its Rideshare program that will allow even more small satellite operators to send their spacecraft to orbit for extremely low prices.

SpaceX threw its hat into the growing ring of smallsat launch aggregators in August 2019 with its Smallsat Program. Initially, the company offered a tiered pricing scale with multiple rates for the different sizes of ports a satellite operator could attach their spacecraft to. For customers purchasing their launch services more than 12 months in advance, SpaceX aimed to charge a minimum of $2.25 million for up to 150 kilograms (~330 lb) and a flat $15,000 for each additional kilogram. Customers placing their order 6-12 months before launch would pay a 33% premium ($20,000/kg).

SpaceX may have sorely misjudged the market, however, because the company introduced a simpler, reworked pricing system just a few months later. SpaceX slashed prices threefold, removed most of the tier system, and added a portal that allowed customers to easily reserve launch services online. Compared to the first attempt, the new pricing – $1 million for up to 200 kilograms (~440 lb) and $5000 for each extra kilogram – was extraordinarily competitive and effectively solidified SpaceX as the premier source of rideshare launch services overnight. Save for an inflation-spurred increase to $1.1 million and $5500/kg, that pricing has remained stable for almost three years, and SpaceX’s Smallsat Program has become a spectacular success.

SpaceX, however, was unable to sit idle and has introduced several significant improvements to its rideshare services. While it technically hasn’t reduced its prices, SpaceX will now allow satellites as small as 50 kilograms to book directly through the company at its virtually unbeatable rate of $5500 per kilogram. Before this change, customers with small satellites would either have to pay for all the extra capacity they weren’t using, boosting their relative cost per kilogram, or arrange their launch services with a third-party aggregator like Spaceflight or Exolaunch.

Aggregators purchase slots on SpaceX’s rideshare missions and then seek out numerous small satellites (usually well under 50 kilograms each) to try to reach their 200-kilogram minimum, thus ensuring that even the smallest satellites can launch for close to the advertised rate of $5500 per kilogram. As is always the case, a subcontractor has its own bills to pay and profit margins to seek, so aggregators likely charge customers quite a bit more than SpaceX’s base price.

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If price-gouging was a problem, SpaceX reducing its base price to $275,000 for up to 50 kilograms (~110 lb) will effectively lower the aggregator price ceiling fourfold. In general, it will also make purchasing rideshare launch services easier and cheaper for more prospective satellite operators. To ensure that, SpaceX also appears to be willing to book and integrate individual ‘containerized’ cubesats without the need for an aggregator’s dispenser.

SpaceX’ has retired its old cylinder-style dispenser for a “Plates” system that should substantially increase the amount of flexibility future rideshare customers will have.

That’s largely thanks to the biggest technical change to the Smallsat Program, which will see SpaceX replace its old cylindrical payload dispenser tower with a new “Rideshare Plate” system. Seemingly derived from the machined aluminum plates SpaceX uses to add rideshare payloads to Starlink launches, the plates should offer customers a more modular and flexible platform capable of supporting all kinds of payload adapters and dispensers.

These changes will likely help SpaceX continue to dominate the global satellite launch rideshare market. Since its Smallsat Program first took flight in January 2021, five dedicated Transporter rideshare launches and eight Starlink rideshare launches have delivered approximately 450 customer satellites and payloads to low Earth orbit (LEO). Seven more Transporter missions are scheduled between December 2022 and Q4 2024.

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 rolls out most aggressive Model Y lease deal in the US yet

With the promotion in place, customers would be able to take home a Model Y at a very low cost.

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(Credit: Tesla)

Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.

Zero downpayment leases

The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment. 

Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.

Premium freebies included

Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.

A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing. 

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Tesla is looking to phase out China-made parts at US factories: report

Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.

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(Source: Tesla)

Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.

The update was initially reported by The Wall Street Journal.

Accelerating North American sourcing

As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.

The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.

Industry-wide reassessments

Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report. 

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General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration. 

@teslarati 🚨 Tesla Full Self-Driving v14.1.7 is here and here’s some things it did extremely well! #tesla #teslafsd #fullselfdriving ♬ You Have It – Marscott
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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

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Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi

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