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SpaceX vs. Blue Origin: The bickering titans of new space

Close up of SpaceX Falcon 9 ahead of SES-11 mission from Cape Canaveral. (Tom Cross/Teslarati)

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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.

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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.

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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.

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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.

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.

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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.

 

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.

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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.

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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 ‘Killer’ heads to the graveyard as AFEELA taps out

SHM has officially discontinued development of its highly anticipated AFEELA electric vehicles. On March 25, the joint venture between Sony and Honda announced it would halt the AFEELA 1 luxury sedan and a planned SUV model.

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Credit: AFEELA/X

There have been many Tesla “Killers” over the years, all of which have either failed to dethrone the automaker from its dominance in the United States, or even make it to the market altogether.

The Sony Honda Mobility (SHM) project, known as AFEELA, is the latest to make it to the grave, as the company announced its intentions to abandon the project earlier this week, Bloomberg reported.

SHM has officially discontinued development of its highly anticipated AFEELA electric vehicles. On March 25, the joint venture between Sony and Honda announced it would halt the AFEELA 1 luxury sedan and a planned SUV model.

The decision follows Honda’s March 12 reassessment of its electrification strategy, which scrapped several upcoming EV programs amid slowing demand, high costs, and shifting market conditions.

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SHM stated that it could no longer rely on key Honda technologies and manufacturing assets, leaving “no viable path forward.” Reservation fees for early buyers in California are being fully refunded, and the joint venture’s future is now under review.

Launched with fanfare in 2022, the AFEELA was positioned as a tech-forward premium EV blending Honda’s engineering reliability with Sony’s entertainment and AI expertise.

Prototypes featured advanced autonomous driving systems, immersive in-cabin displays, and even PlayStation integration, earning it early media labels as a potential “Tesla Killer.”

No more “Tesla Killers:” It’s becoming increasingly difficult to distinguish the “EV market” from the mainstream auto segment

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Priced around $90,000, the sedan was slated for limited production at Honda’s Ohio plant with deliveries targeted for late 2026. Industry watchers saw it as a serious challenger to Tesla’s dominance in software, connectivity, and premium appeal.

Yet, like many ambitious EV projects, it fell victim to broader industry headwinds: softening consumer demand, persistent high interest rates, and intense competition from established players.

The AFEELA joins a long list of vehicles once hyped as “Tesla Killers” that failed to deliver. In the late 2010s, Fisker’s second act, the Ocean SUV, promised stylish design and solid-state battery tech but collapsed into bankruptcy in 2024 after production delays, quality issues, and financial shortfalls.

Faraday Future poured billions into the FF 91 luxury sedan, touting it as a hyper-tech rival with unmatched performance and features; the company delivered fewer than 100 vehicles before fading into obscurity.

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Lordstown Motors’ Endurance electric pickup generated massive pre-order buzz and Wall Street excitement but imploded after exaggerated range claims, a factory sale, and eventual bankruptcy.

Even Lucid Motors’ Air sedan, frequently called a Tesla slayer for its superior range and luxury, has struggled with sluggish sales and missed growth targets despite strong reviews.

Lucid unveils Lunar Robotaxi in bid to challenge Tesla’s Cybercab in the autonomous ride hailing race

Rivian’s R1T and R1S trucks enjoyed similar early acclaim and a blockbuster IPO, yet production ramp-up challenges and profitability woes have prevented it from dethroning Tesla.

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The AFEELA’s quiet demise underscores a harsh reality in the EV sector. While Tesla’s first-mover advantage in software, charging infrastructure, and brand loyalty remains formidable, legacy automakers and tech newcomers alike continue to underestimate the complexities of scaling affordable, desirable electric vehicles.

As market realities force tough choices, the graveyard of “Tesla Killers” grows longer, another reminder that innovation alone is rarely enough to topple an established leader.

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TIME honors SpaceX’s Gwynne Shotwell: From employee No. 7 to world’s most valuable company

Time Magazine honors Gwynne Shotwell as SpaceX reaches a $1.25 trillion valuation and eyes its IPO.

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TIME Magazine has put SpaceX President and COO Gwynne Shotwell on its cover, and the timing could not be more fitting. Published today, the profile of Shotwell arrives at a moment when the company she has quietly run for more than two decades stands at the center of the most consequential developments in aerospace, artificial intelligence, and the future of human civilization.

Shotwell joined SpaceX in 2002 as its seventh employee and has never stopped expanding her role. She oversees day-to-day operations across multiple executive teams spanning Falcon, Starlink, Starship, and now xAI following SpaceX’s February 2026 merger with Elon Musk’s artificial intelligence company, a deal that made SpaceX the world’s most valuable private company at a reported valuation of $1.25 trillion. A highly anticipated IPO is expected in the second quarter of 2026.

Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI

Her track record is historic. She oversaw the first landing of an orbital rocket’s first stage, the first reuse and re-landing of an orbital booster, and the first private crewed launch to Earth orbit in May 2020. She built the Falcon launch manifest from nothing to more than 170 contracted missions representing over $20 billion in business. Under her operational leadership, SpaceX completed 96 successful missions in 2023 alone and has now flown more than 20 crewed Falcon 9 missions. Starlink, which she championed as a financial pillar of the company long before it was a mainstream topic, now connects tens of millions of users worldwide and provided a critical communications lifeline to Ukraine following the 2022 invasion.

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Elon Musk has never been shy about what Shotwell means to him and to SpaceX. When she shared her vision for worldwide internet connectivity through Starlink, Musk responded on X with a simple statement, “Gwynne is awesome.” It is a sentiment that has been echoed across the industry. NASA Administrator Bill Nelson once said of Musk: “One of the most important decisions he made, as a matter of fact, is he picked a president named Gwynne Shotwell. She runs SpaceX. She is excellent.”


Now, with Starship targeting its first crewed lunar landing under the Artemis program by 2028, an xAI integration underway, and a pending IPO that could reshape capital markets, Shotwell’s mandate has never been larger. She told Time that 18 Starships are already in various stages of construction at Starbase. “By 2028,” she said, gesturing across the factory floor, “these should be long gone. They better have flown by then.” If Shotwell’s history at SpaceX is any guide, they will.

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Elon Musk

SpaceX’s IPO might arrive sooner than you think

Musk has hinted for years that an eventual public offering was inevitable, though he has stressed the need to maintain operational focus. Insiders have told outlets that the CEO is pushing for a significant retail investor allocation, reportedly more than 20 percent of shares, and tighter lock-up periods to limit early selling pressure.

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Credit: SpaceX | X

Elon Musk’s SpaceX is on the verge of one of the most anticipated Initial Public Offerings (IPO) in history.

However, a new report from The Information indicates the rocket and satellite giant is aiming to file its IPO prospectus with U.S. regulators as soon as this week, or early next week at the latest.

People familiar with the plans told The Information that advisers involved in the process expect the IPO could raise more than 75 billion dollars, potentially making it the largest stock market debut ever and eclipsing Saudi Aramco’s 29.4 billion dollar offering in 2019.

The filing would mark the formal start of what has long been rumored: SpaceX’s transition from a closely held private powerhouse to a publicly traded company.

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The timing aligns with earlier signals.

In late February, Bloomberg reported that SpaceX was targeting a confidential IPO filing in March and a possible public listing in June, with a valuation north of 1.75 trillion dollars. At the time, the company’s private valuation hovered around 1.25 trillion dollars.

SpaceX considering confidential IPO filing this March: report

Starlink, SpaceX’s satellite internet constellation, has been the primary driver of that surge, now serving millions of customers worldwide and generating steady revenue. Recent Starship test flights and a record pace of Falcon launches have further bolstered investor confidence.

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Musk has hinted for years that an eventual public offering was inevitable, though he has stressed the need to maintain operational focus. Insiders have told outlets that the CEO is pushing for a significant retail investor allocation, reportedly more than 20 percent of shares, and tighter lock-up periods to limit early selling pressure.

A June listing would give SpaceX immediate access to public capital markets at a moment when demand for space-related stocks remains high. It would also allow early employees and long-time investors to cash out portions of their stakes while giving everyday shareholders a chance to own a piece of the company behind reusable rockets, global broadband, and NASA contracts.

Of course, nothing is certain until the SEC filing appears. Market conditions, regulatory reviews, and Musk’s own schedule could still shift timelines.

Yet the latest word from The Information suggests the window has opened. If the filing lands this week, SpaceX’s roadshow could begin in earnest within weeks, setting the stage for what many analysts already call the IPO of the decade.

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