News
DeepSpace: Virgin Galactic and Blue Origin banter about the fine print of suborbital tourism
Welcome to the sixth edition of our new newsletter, DeepSpace! Each Tuesday, I’ll be taking a deep-dive into the most exciting developments in commercial space, from satellites and rockets to everything in between. If you’d like to receive DeepSpace and all of our newsletters and membership benefits,
Just shy of two months into 2019, the new year has been marked by a distinct focus on human spaceflight. Most of that focus has centered (as it should) on the relatively imminent launch debut of both SpaceX’s Crew Dragon and Boeing’s Starliner, crewed spacecraft designed and built to carry astronauts into orbit for NASA.
However, beyond SpaceX and Boeing, a considerable amount of noise is being made about the labors and relative progress of companies like Blue Origin and Virgin Galactic, both primarily focused on building a suborbital tourism market with their New Shepard and SpaceShipTwo launch vehicles. Coming as no surprise from companies aiming to create a sustainable market for a very expensive consumer product, both products have been dragged through a torturous maze of marketing hype in a process that has not really done the serious endeavor of human spaceflight any favors.
The Shepard and the Ship
- Virgin Galactic’s launch vehicle provider The Spaceship Company has been working to develop a suborbital platform to launch humans since the early 2000s, incorporated after billionaire Paul Allen funded a group of companies that ultimately won the Ansari X Prize in 2004.
- The Virgin/TSC approach involves a carrier aircraft (Known as White Knight Two) and a much smaller rocket plane (SpaceShipTwo) that is carried up to ~30,000 feet (9 km) before dropping and igniting its engine.
- SpaceShipTwo is meant to reach a maximum altitude of around 300,000 feet (~90 km) at a top speed of roughly Mach 3 (1000 m/s, 2200 mph) before gliding back to land on the same runway.
- In 2014, a combination of bad aeronautical design and pilot error triggered the in-flight failure of the first SpaceShipTwo, killing one of its two pilots. A member of the NTSB board that investigated the failure stated that Scale Composites (one of TSC’s parent companies) “put all their eggs in the basket of the pilots [flying the vehicle] correctly.”
- In a February 2019 video, Virgin Galactic CEO George Whitesides noted that “many aircraft are moving to being less piloted over time [but] our vehicle really is piloted to space.”
- SpaceShipTwo most recently launched on February 22nd.
- Blue Origin has yet to launch an actual human on New Shepard, a small, reusable single-stage rocket designed to loft a separate passenger capsule to approximately 100 km (330,000 ft).
- New Shepard has conducted ten launches since its 2015 debut, most of which saw the crew capsule and booster approximately reach that nominal 100 km apogee and nine of which concluded with a successful landing of the rocket’s booster.
- Capable of carrying up to six passengers, the Crew Capsule features a built-in abort motor that has been successfully tested, as well as a parachute system for a relatively soft landing at end-of-mission.
“Spacecraft” and “astronauts”
- Aside from the generally impressive technology itself and the undeniable challenges and risks of launch humans on fueled rockets, both Blue Origin’s New Shepard and Virgin Galactic’s SpaceShipTwo exist – albeit with different weights – to cater to a new market, suborbital or “space” tourism.
- While NASA is taking advantage of the opportunities to test small experiments with both vehicles as a partial platform, the real goal of both vehicles is to routinely launch paying customers.
- While Blue Origin has yet to announce ticket pricing, Virgin Galactic has priced their offering at $250,000 per person. In both cases, the end result will likely be a six-figure sum in return for an experience that should last no more than 10-60 minutes from start to finish, excluding buildup from screening and whatever training is deemed necessary.
- In other words, short of cases involving charity, tickets on New Shepard and SpaceShipTwo will almost indefinitely be reserved for less than 1% of humanity, those with income around $1M or more per year. This is by no means a bad thing and is, in fact, a proven first or second step in the direction of democratizing exotic or expensive technologies like air travel, computers, and even electric cars (namely Teslas).
- However, both companies are laser-focused on branding their vehicles as spacecraft and their passengers as astronauts, with Virgin Galactic being the worst offender in this regard.
- Aside from literally calling its 600+ prospective customers “Future Astronauts”, Virgin Galactic uses every chance it gets to hammer home its claim that SpaceShipTwo is a commercial spacecraft and its pilots true licensed, “wing”-ed astronauts.
- While passengers are not eligible for official FAA ‘astronauts’ wings’, it appears that Virgin will continue to market its passenger experience as one where customers will get to ‘travel to space’ and more or less become astronauts.
- Blue Origin describes its commercial offering as a “reusable suborbital rocket system designed to take astronauts and research payloads past the Kármán line – the internationally recognized boundary of space.”
- Both Blue and Virgin flights offer about ~4 minutes of weighlessness between launch and landing.
- Virgin Galactic Makes Space for Second Time in Ten Weeks with Three On Board
- For context, Alan Shepard – the US test pilot and namesake of New Shepard – was launched to an altitude of almost 190 km (120 mi) for what was recognized as the first US “spaceflight” and spent something like 5-10 minutes in microgravity and above the Karman Line (100 km).
- Used as a rough measure for a sort of fixed, arbitrary boundary between “Earth” and “Space”, reasonable arguments have been made in the last few years that the 100 km Karman Line could more accurately be placed around 70-90 km, in which case Virgin Galactic might actually be technically correct when saying that SpaceShipTwo and its passengers are traveling to space.
- Fewer than 570 humans in all of history have visited space (> 100 km), around 99.5% of which were astronauts that reached orbit. To call pilots of a spaceplane as distinctly suborbital as SpaceShipOne “astronauts” is palatable, particularly given the risks they face as test subjects and test pilots.
- However, to even hinting that tourists riding New Shepard or SpaceShipTwo to altitudes of ~80-100 kilometers are astronauts would do an immense disservice to those that pushed the limits of technology, risked their lives, or even died in pursuit of orbital spaceflight, the only kind of spaceflight with any significant utility.
- Much like cruise ship customers are not under the impression that they are coming along to ‘become sailors’, suborbital tourists are not astronauts. That being said, it’s not inaccurate to describe the experience they will have the privilege of being part of as something truly extraordinary, given that they will become one of a very select few humans to have actually launched on a rocket or seen the exaggerated curvature of Earth’s limb against the blackness of space.
- SpaceX’s first attempted orbital launch of Crew Dragon – a spacecraft designed to transport astronauts to and from the International Space Station – is set to occur as early as 2:49 am EST/07:49 UTC on March 2nd.
- This is the first truly serious date, thanks to the successful completion of a critical pre-launch review conducted by NASA and SpaceX.
- The second launch of Falcon Heavy could occur as early as late March
- Aside from DM-1 and Falcon Heavy Flight 2, it’s unclear what SpaceX mission will happen next, although a West Coast launch (the Radarsat Constellation Mission) is a strong candidate.
Mission Updates |
Photos of the Week:
After successfully sending the world’s first commercial lunar lander on its way to the Moon and placing Indonesian communications satellite PSN-6 in a high-energy Earth orbit, Falcon 9 B1048 completed its third launch and landing and returned to port on February 24th. The booster’s fourth mission, a Crew Dragon in-flight abort test, will likely destroy B1048, making this its last successful recovery. (c. Tom Cross)
News
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.
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.
🚗 Tesla Killers Graveyard:
Sony-Honda AFEELA
The sleek, AI-packed luxury sedan with PlayStation integration. Officially cancelled in March 2026 after Honda scaled back its EV plans.Fisker Ocean
Stylish SUV with solar roof promises. Company filed for bankruptcy in 2024 amid… https://t.co/Om14UhISOy— TESLARATI (@Teslarati) March 26, 2026
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.
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.”
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.
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.
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.
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.
Elon Musk
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.
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.
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.”
Gwynne is awesome https://t.co/tiXtMWJmPE
— Elon Musk (@elonmusk) September 28, 2024
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.
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.
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.
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.
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.