News
SpaceX wins OneWeb launch contracts, demonstrating extreme flexibility
Demonstrating a level of flexibility that no other commercial launch provider on Earth can likely match, SpaceX and OneWeb have entered into a major launch contract barely three weeks after Russia kicked the satellite internet company off of its Soyuz rockets.
Beginning in early 2020, OneWeb has launched approximately 430 operational small internet satellites – about two-thirds of its first constellation – on a dozen different Russian Soyuz 2.1b and ST-B rockets, including a mission completed as recently as February 10th, 2022. That nominal – albeit slow – deployment ground to a violent halt alongside Russia’s second unprovoked invasion of Ukraine on February 24th, 2022. Within a week, extraordinary Western economic sanctions pushed the unstable head of Russia’s Roscosmos space agency to retaliate by both ending the practice of European-owned Soyuz launches and holding OneWeb’s 13th operational launch hostage.
Another three weeks later, outside of increasingly tense and reluctant cooperation on the International Space Station, the relationship between Russian and Western spaceflight programs has effectively ceased to exist. That includes all 6-7 of OneWeb’s remaining Soyuz launch contracts, each of which the company had already paid more than $50 million for. Though OneWeb technicians were able to escape the increasingly hostile country, Russia effectively repossessed (i.e. stole) OneWeb’s remaining rockets and its 13th batch of operational satellites.
That left OneWeb in an unsurprisingly precarious situation. Having already gone bankrupt once, a major delay could be financially catastrophic for the company. Normally, procuring half a dozen near-term launch contracts at the last second would be virtually impossible. Indeed, ignoring a certain US company, no other launch provider on Earth could even theoretically find or build enough capacity to launch the last third of OneWeb’s constellation without at least a one or two-year delay. Luckily for OneWeb, SpaceX does exist.
As discussed in a March 2nd Teslarati newsletter, SpaceX is extraordinarily unique in a sea of expendable, outdated rockets.
“SpaceX – a direct competitor that is far more vertically integrated than OneWeb and has suffered no major issues from Russian sanctions – may be OneWeb’s only near-term option for its orphaned satellites. The only obvious alternative would be to self-inflict what could be years of delays to avoid SpaceX purely out of spite and instead wait for space to open up on the manifests of companies like Arianespace and ULA or for even less available rockets from India or Japan.
SpaceX has plans for as many as 52+ Falcon launches in 2022, many of which are Starlink missions that the company might be willing to partially replace with a handful of lucrative launches for OneWeb.”
Teslarati – March 2nd, 2022
Because of SpaceX’s exceptional vertical integration and decision to launch its own Starlink internet satellites, which directly compete with OneWeb, the company has dozens of flexible launches planned over the next year or two that it can feasibly convert into commercial missions. No other international launch provider on Earth has the ability to scavenge its own internal manifest to effectively create capacity for last-second commercial demand out of thin air.
At the cost of a handful of Starlink launches, of which SpaceX already has close to 2100 working satellites in orbit, the company will be able to almost heroically step in and complete OneWeb’s constellation, allowing the company to avoid a potential multi-year delay if forced to use other providers.
In fact, due to Europe’s chronic lack of domestic launch capacity as a result of years of Ariane 6 delays, even some institutional European satellites orphaned by Russia’s actions may ultimately be moved to SpaceX Falcon 9 rockets to avoid lengthy launch delays. All told, OneWeb has offered no specific details about the cost, the number of total missions procured, or any other changes implemented in its new SpaceX contract, but the company says it could begin launches as early as this summer – a truly extraordinary demonstration of flexibility from both OneWeb and SpaceX.
Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
