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SpaceX vs. Blue Origin: The bickering titans of new space
In the past three years, SpaceX has made incredible progress in their program of reusability. In the practice’s first year, the young space company led by serial tech entrepreneur Elon Musk has performed three successful commercial reuses of Falcon 9 boosters in approximately eight months, and has at least two more reused flights scheduled before 2017 is out. Blue Origin, headed and funded by Jeff Bezos of Amazon fame, is perhaps most famous for its supreme confidence, best illustrated by Bezos offhandedly welcoming SpaceX “to the club” after the company first recovered the booster stage of its Falcon 9 rocket in 2015.
Blue Origin began in the early 2000s as a pet project of Bezos, a long-time fan of spaceflight and proponent of developing economies in space. After more than a decade of persistent development and increasingly complex testbeds, Blue Origin began a multi-year program of test flights with its small New Shepard launch vehicle. Designed to eventually launch tourists to the veritable edge of Earth’s atmosphere in a capsule atop it, New Shepard began its test flights in 2015 and after one partial failure, has completed five successful flights in a row. The space tourism company has subtly and not-so-subtly belittled SpaceX’s accomplishments over the last several years, and has engendered a fair bit of hostility towards it as a result.
Admittedly, CEO Elon Musk nurtured high expectations for the consequences of reuse, and has frequently discussed SpaceX’s ambition to reduce the cost of access to orbit by a factor of 10 to 100. However, after several reuses, it is clear that costs have decreased no more than 10-20%. What gives?
Well, Musk’s many comments on magnitudes of cost reduction were clearly premised upon rapid and complete reuse of both stages of Falcon 9, best evidenced by a concept video the company released in 2011.
The reality was considerably harder and Musk clearly underestimated the difficulty of second stage reuse, something he himself has admitted. COO Gwynne Shotwell was interviewed earlier this summer and discussed SpaceX’s updated approach to complete reusability, and acknowledged that second stage reuse was no longer a real priority, although the company will likely attempt second stage recovery as a validation of future technologies. Instead of pursuing the development of a completely reusable Falcon 9, SpaceX is instead pushing ahead with the development of a much larger rocket, BFR. BFR being designed to enable the sustainable colonization of space by realizing Musk’s original ambition of magnitudes-cheaper orbital launch capabilities.
Competition on the horizon?
Meanwhile, SpaceX’s only near-term competitor interested in serious reuse has made gradual progress over the last several years, accelerating its pace of development more recently. Blue Origin’s second New Shepard vehicle, designed to serve the suborbital space tourism industry, conducted an impressive five successful launches and landings over the course of 2016 before being summarily retired. NS2’s antecedent suffered a failure while attempting its first landing and was destroyed in 2015, but Blue learned quickly from the issues of Shepard 1 and has already shipped New Shepard 3 to its suborbital launch facilities near Van Horn, Texas. While NS3 is aiming for an inaugural flight later this year, NS4 is under construction in Kent, Washington and could support Blue’s first crewed suborbital launches in 2018.
More significant waves were made with an announcement in 2016 that Blue was pursuing development of a partially reusable orbital-class launch vehicle, the massive New Glenn. On paper, New Glenn is quite a bit larger than even SpaceX’s Falcon 9, and appears to likely be more capable than the company’s “world’s most powerful rocket” while completely recovering its boost stage. In a completed, manufactured, and demonstrably reliable form, New Glenn would be an extraordinarily impressive and capable launch vehicle that could undoubtedly catapult Blue Origin into position of true competition with SpaceX’s reusability efforts.
- The New Shepard booster. (Blue Origin)
- Blue Origin’s New Shepard capsule could carry passengers as high as 100km in 2018. (Blue Origin)
- A render of Blue Origin’s larger New Glenn vehicle. (Blue Origin)
However, while Blue Origin executives brag about “operational reusability” and tastelessly lampoon efforts that “decided to slap some legs on [to] see if [they] could land it”, the unmentioned company implicated in those barbs has begun to routintely and commercially reuse orbital-class boosters five times the size of Blue’s suborbital testbed, New Shepard.
Apples to oranges
The only point at which Blue Origin poses a risk to SpaceX’s business can be found in a comparison of funding sources. SpaceX first successes (and failures) were funded out of Elon Musk’s own pocket, but nearly all of the funding that followed was won through competitive government contracts and rounds of private investment. To put it more simply, SpaceX is a business that must balance costs and returns, while Blue Origin is funded exclusively out of billionaire CEO Jeff Bezos’ pocket.
As a result of being completely privately funded, Bezos’ deep pockets could render Blue more flexible than SpaceX when pricing launches. If Blue chooses to aggressively price New Glenn by accounting for booster reusability, it could pose a threat to SpaceX’s own business strategy. If SpaceX is unable to recoup its investment in reusability before New Glenn is regularly conducting multiple commercial missions per year, likely no earlier than 2021 or 2022, SpaceX’s Falcon 9 pricing could be rendered distinctly noncompetitive.
However, this concern seems almost entirely misplaced. SpaceX has half a decade of experience mass-producing orbital-class (reusable) rockets, (reusable) fairings, and propulsion systems, whereas Blue Origin at best has minimal experience manufacturing a handful of suborbital vehicles over a period of a few years. Blue has a respectable amount of experience with their BE-3 hydrolox propulsion system, and that will likely transfer over to the BE-3U vacuum variant to be used for New Glenn’s third stage. The large methalox rocket engine (BE-4) that will power New Glenn’s first stage also conducted its first-ever hot-fire just weeks ago, a major milestone in propulsion development but also a reminder that BE-4 has an exhaustive regime of engineering verification and flight qualification testing ahead of it.
First hotfire of our BE-4 engine is a success #GradatimFerociter pic.twitter.com/xuotdzfDjF
— Blue Origin (@blueorigin) October 19, 2017
Perhaps more importantly, the company’s relative success with New Shepard’s launch, recovery, and reuse has not and cannot move beyond small suborbital hops, and thus cannot provide the experience at the level of orbital rocketry. New Shepard is admittedly capable of reaching an altitude of 100km, but the suborbital vehicle’s flight regime does not require it to travel beyond Mach 4 (~1300 m/s). The first stage of Falcon 9, however, is approximately four times as tall and three times the mass of New Shepard, and boosters attempting recovery during geostationary missions routinely reach almost twice the velocity of New Shepard, entering the thicker atmosphere at more than 2300 m/s (1500-1800 m/s for LEO missions). Falcon 9’s larger mass and velocity translates into intense reentry heating and aerodynamic forces, best demonstrated by the glowing aluminum grid fins that can often be seen in SpaceX’s live coverage of booster recovery. Blue Origin’s New Glenn concept is extremely impressive on paper, but the company will have to pull off an extraordinary leap of technological maturation to move directly from suborbital single-stage hops to multi-stage orbital rocketry. Blue’s accomplishments with New Shepard are nothing to scoff at, but they are a far cry from routine orbital launch services.
SpaceX’s future fast approaches
Translating back to the new establishment, Falcon 9 will likely remain SpaceX’s workhorse rocket for some five or more years, at least until BFR can prove itself to be a reliable and affordable replacement. This change in focus, combined with the downsides of second stage recovery and reuse on a Falcon 9-sized vehicle, means that SpaceX will ‘only’ end up operationally reusing first stages and fairings from the vehicle. The second stage accounts for approximately 20-30% of Falcon 9’s total cost, suggesting that rapid and complete reuse of the fairing and first stage could more than halve its ~$62 million price. Yet this too ignores another mundane fact of corporate life SpaceX must face. Its executives, Musk included, have lately expressed a desire to at least partially recoup the ~$1 billion that was invested to develop reuse. Assuming a partial 10% reduction in cost to reuse customers and profit margins of 50% with rapid and total reuse of the first stage and fairing, 20 to 30 commercial reuses would recoup most or all of SpaceX’s reusability investment.
Musk recently revealed that SpaceX is aiming to complete 30 launches in 2018, and that figure will likely continue to grow in 2019, assuming no major anomalies occur. Manufacturing will rapidly become the main choke point for increased launch cadence, suggesting that drastically higher cadences will largely depend upon first stage reuse with minimal refurbishment, which just so happens to be the goal of the Falcon 9’s upcoming Block 5 iteration. Even if the modifications only manage a handful of launches without refurbishment, rather than the ten flights being pursued, each additional flight without maintenance will effectively multiply SpaceX’s manufacturing capabilities. More bluntly: ten Falcon 9s capable of five reflights could do the same job of 50 brand new rockets with 1/5th of the manufacturing backend.
- BulgariaSat-1 was successfully launched 48 hours before Iridium-2, and marked the second or three successful, commercial reuses of an orbital rocket. (SpaceX)
- SpaceX’s Hawthorne factory routinely churns out one to two complete Falcon 9s every month. (SpaceX)
- Falcon 9 B1040 returns to LZ-1 after the launch of the USAF’s X-37B spaceplane. (SpaceX)
Assuming that upcoming reuses proceed without significant failures and Falcon 9 Block 5 subsumes all manufacturing sometime in 2018 or 2019, it is entirely possible that SpaceX will undergo an extraordinarily rapid phase change from expendability to reusability. Mirroring 2017, we can imagine that SpaceX’s Hawthorne factory will continue to churn out at least 10 to 20 Block 5 Falcon 9s over the course of 2018. Assuming 5 to 10 maintenance-free reuses and a lifespan of as many as 100 flights with intermittent refurb, a single year of manufacturing could provide SpaceX with enough first stages to launch anywhere from 50 to 2000 missions. The reality will inevitably find itself somewhere between those extremely pessimistic and optimistic bookends, and they of course do not account for fairings, second stages, or expendable flights.
If we assume that the proportional cost of Falcon 9’s many components very roughly approximates the amount of manufacturing backend needed to produce them, downsizing Falcon 9 booster production by a factor of two or more could free a huge fraction of SpaceX’s workforce and floor space to be repurposed for fairing and second stage production, as well as the company’s Mars efforts. Such a phase change would also free up a considerable fraction of the capital SpaceX continually invests in its manufacturing infrastructure and workforce, capital that could then be used to ready SpaceX’s facilities for production and testing of its Mars-focused BFR and BFS.
“Gradatim ferociter”
It cannot be overstated that the speculation in this article is speculation. Nevertheless, it is speculation built on real information provided over the years by SpaceX’s own executives. Rough estimates like this offer a glimpse into a new launch industry paradigm that could be only a year or two away and could allow SpaceX to begin aggressively pursuing its goal of enabling a sustainable human presence on Mars and throughout the Solar System.
Blue Origin’s future endeavors shine on paper and their goal of enabling millions to work and live space are admirable, but the years between the present and a future of routine orbital missions for the company may not be kind. The engineering hurdles that litter the path to orbital rocketry are unforgiving and can only be exacerbated by blind overconfidence, a lesson that is often only learned the hard way. Blue Origin’s proud motto “Gradatim ferociter” roughly translates to “Step by step, ferociously.” One can only hope that some level of humility and sobriety might temper that ferocity before customers entrust New Glenn with their infrastructural foundations and passengers entrust New Shepard with their lives.
Elon Musk
ARK’s SpaceX IPO Guide makes a compelling case on why $1.75T may not be the ceiling
ARK Invest breaks down six reasons SpaceX’s $1.75 trillion IPO valuation may be justified.
ARK Invest, which holds SpaceX as its largest Venture Fund position at 17% of net assets, has published a detailed investor guide to why a SpaceX IPO may be grounded in a $1.75 trillion target valuation.
The financial case starts with Starlink, SpaceX’s satellite internet constellation, which has surpassed 10 million active subscribers globally as of early 2026, with 2026 revenue projected to exceed $20 billion. ARK’s research puts the total satellite connectivity market opportunity at roughly $160 billion annually at scale, and Starlink is adding customers faster than any telecom network in history. That growth alone would justify a substantial valuation.
Additionally, ARK notes that SpaceX has reduced the cost per kilogram to orbit from roughly $15,600 in 2008 to under $1,000 today through reusable Falcon 9 hardware. A fully operational Starship targeting sub-$100 per kilogram would represent a significant cost decline and open markets that do not currently exist. SpaceX executed a staggering 165 missions in 2025 and now accounts for approximately 85% of all global orbital launches. That infrastructure position took decades to build and would be nearly impossible to replicate at comparable cost.
SpaceX officially acquires xAI, merging rockets with AI expertise
The February 2026 merger with xAI added a layer to the valuation that straightforward financial models struggle to capture. ARK argues that at sub-$100 launch costs, orbital data centers could deliver compute roughly 25% cheaper than ground-based alternatives, without power grid delays, permitting friction, or land constraints. Musk has stated a goal of deploying 100 gigawatts of AI computing capacity per year from orbit.
The $1.75 trillion figure itself is not a conventional earnings multiple. At roughly 95x trailing revenue, it prices in Starlink’s adoption curve, Starship’s cost trajectory, and the orbital compute thesis together. The public S-1 prospectus, due at least 15 days before the June roadshow, will give investors their first complete look at the financials to test those assumptions. ARK’s position is that the track record earns the benefit of the doubt. Fully reusable rockets were considered unrealistic for years. Starlink was considered financially unviable. Both happened on timelines that surprised skeptics.
Elon Musk
Ford CEO Farley says Tesla is not who to look at for EV expertise
Interestingly, Farley has been one of the most hellbent CEOs in terms of a legacy automaker standpoint to push the EV effort. It did not go according to plan, as Ford took a $19.5 billion charge and retreated from its EV push in late 2025.
Ford CEO Jim Farley said in a recent podcast interview that Tesla is not who Americans should look at to beat Chinese carmakers.
The comments have sparked quite a bit of outrage from Tesla fans on X, the social media platform owned by Elon Musk.
Farley said that Chinese automakers are better examples of how to beat competitors. He said (via the Rapid Response Podcast):
“If you’re an American and you want us to beat the Chinese in the car business, you’re all going to want to pay attention, not necessarily to Tesla. Nothing against Tesla—they’ve been doing great—but they really don’t have an updated vehicle. The best in the business for us, cost-wise and competition-wise, supply chain, manufacturing expertise, and the I.P. in the vehicle, was really BYD. In this next cycle of EV customers in the U.S., they want pickups and utilities and all these different body styles. But they want them at $30,000, not $50,000. Like the first inning, they want them affordably.”
Despite Farley’s synopsis, it is worth mentioning that Tesla had the best-selling passenger vehicle in the world last year, and in China in March, as the Model Y continued its global dominance over other vehicles.
Musk responded to Farley’s comments by stating:
“This is before Supervised FSD is approved in China. Limiting factor is production output in Shanghai.”
This is before supervised FSD is approved in China. Limiting factor is production output in Shanghai.
— Elon Musk (@elonmusk) April 19, 2026
Interestingly, Farley has been one of the most hellbent CEOs in terms of a legacy automaker standpoint to push the EV effort. It did not go according to plan, as Ford took a $19.5 billion charge and retreated from its EV push in late 2025.
Ford cancels all-electric F-150 Lightning, announces $19.5 billion in charges
Instead, Ford is “doubling down on its affordable” EVs and said it would pivot from its previous plans.
Reaction from Tesla fans was pretty much how you would expect. Many said they have lost a lot of respect for Farley after his comments; others believe he is the last CEO anyone should be taking advice on EVs from.
Nevertheless, Farley’s plans are bold and brash; many consider Tesla the most ideal company to replicate EV efforts from. It will be interesting to see if Ford can rebound from this big adjustment, and hopefully, Farley’s plans to replicate efforts from BYD work out the way he hopes.
Elon Musk
SpaceX wins its first MARS contract but it comes with a catch
NASA awarded SpaceX a $175 million Mars rover contract while the White House proposes cutting the mission.
NASA just signed a $175.7 million contract with SpaceX to launch a Mars rover that the White House is simultaneously trying to defund. The contract, awarded on April 16, 2026, tasks SpaceX’s Falcon Heavy with launching the European Space Agency’s (ESA) Rosalind Franklin rover from Kennedy Space Center in Florida, no earlier than late 2028. It would mark the first time SpaceX has ever sent a payload to Mars.
Under NASA’s Rosalind Franklin Support and Augmentation project, known as ROSA, the agency is providing braking engines for the rover’s descent stage, radioisotope heater units that use decaying plutonium to keep the rover warm on the Martian surface, additional electronics, and a mass spectrometer instrument, as noted by SpaceNews.
Those nuclear heating units are the reason an American rocket was required at all. U.S. export controls on radioisotope technology mean any payload carrying them must launch on a domestic vehicle, which narrowed the field to SpaceX and United Launch Alliance. Falcon Heavy’s pricing made it the practical choice.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
Falcon Heavy debuted in February 2018 and has 11 launches to its record. The rocket has not flown since October 2024, when it sent NASA’s Europa Clipper toward Jupiter. The three-core design, built from modified Falcon 9 first stages, gives it the lift capacity needed for deep space planetary missions that a single Falcon 9 cannot reach.
The Rosalind Franklin rover has been sitting in storage in Europe for years. It was originally due to launch in 2022 as a joint mission with Russia, but Russia’s invasion of Ukraine ended that partnership, leaving the rover built but stranded without a launch vehicle or landing hardware. NASA stepped back in through a 2024 agreement with ESA to rescue the mission. The rover is designed to drill up to two meters below the Martian surface in search of evidence of past life, a science objective no previous mission has attempted at that depth.
The contradiction at the center of this story is hard to ignore. The White House’s fiscal year 2027 budget proposal included no funding for ROSA and did not mention the mission at all in the detailed congressional justification document released April 3.
Musk has long argued that reaching Mars is not optional. “We don’t want to be one of those single planet species, we want to be a multi-planet species.” Whether this particular mission survives Washington’s budget fight, the Falcon Heavy contract means SpaceX is now formally on record as the rocket that could get humanity’s next Mars science mission off the ground.
The timing of this contract carries extra weight given that SpaceX filed confidentially with the SEC in early April and is targeting an IPO roadshow in the week of June 8. It would be the largest public offering in history.





