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DeepSpace: Virgin Galactic and Blue Origin banter about the fine print of suborbital tourism

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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, you can become a member for as little as $3/month here.


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.

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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.
  •  

    • 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.

    Mission Updates 

    • 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.

    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)

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 puts Giga Berlin in Plaid Mode with new massive investment

The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.

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Credit: Tesla

Tesla is pushing forward with significant upgrades at its Gigafactory Berlin-Brandenburg in Grünheide, Germany, signaling renewed confidence in its European operations despite past market challenges.

The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.

In April, plant manager André Thierig announced a 20 percent increase in Model Y production starting in July, following a record Q1 output of more than 61,000 vehicles. To support the ramp-up, Tesla plans to hire approximately 1,000 new employees beginning in May and convert 500 temporary workers to permanent positions.

The move is expected to lift weekly production significantly, addressing rebounding demand in Europe after a challenging 2025.

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The expansion builds on earlier progress. In 2025, Tesla secured partial approvals to add roughly 2 million square feet of factory space, raising potential annual vehicle capacity from around 500,000 toward 800,000 units, with longer-term ambitions approaching one million vehicles per year. Logistical improvements, new infrastructure, and battery-related facilities are already underway on company-owned land.

Battery production is the latest major focus. On May 12, Thierig revealed an additional $250 million investment in the on-site cell factory. This more than doubles the planned 4680 battery cell capacity to 18 gigawatt-hours annually—up from the 8 GWh target set in December 2025—while creating over 1,500 new battery-related jobs.

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Total cell investments at the site now exceed previous figures, bringing the factory closer to full vertical integration: cells, packs, and vehicles produced under one roof. Tesla describes this as unique in Europe and a step toward stronger supply chain resilience.

The plans come amid regulatory and community hurdles. Earlier expansion proposals faced protests over environmental concerns and water usage, leading to phased approvals beginning in 2024. Tesla has navigated these by emphasizing sustainable practices and economic benefits, including thousands of local jobs in Brandenburg.

With nearly 12,000 employees already on site and production steadily climbing, Gigafactory Berlin is poised for growth. The combined vehicle and battery expansions position the plant as a key hub for Tesla’s European ambitions, potentially making it one of the continent’s largest manufacturing complexes if local support continues.

As EV demand recovers, these investments underscore Tesla’s commitment to scaling efficiently in Germany while addressing regional supply chain needs.

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Honda gives up on all-EV future: ‘Not realistic’

Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.

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honda logo with red paint
Ivan Radic, CC BY 2.0 , via Wikimedia Commons

Honda has given up on a previous plan to completely changeover to EVs by 2040, a new report states. The company’s CEO, Toshihiro Mibe, said that the idea is “not realistic.”

Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.

Mibe said (via Motor1):

“Because of the uncertainty in the business environment and also the customer demand, is changing beyond our expectation and, therefore, we have judged that it’ll be difficult to achieve. That ratio [100-percent electric in 2040] is not realistic as of now. We have withdrawn this target.”

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Instead of going all-electric, Honda still wants to oblige by its hopes to be net carbon neutral by 2050. It will do this by focusing on those popular hybrid powertrains, planning to launch 15 of them by March 2030.

Honda will invest 4.4 trillion yen, or almost $28 billion, to build hybrid powertrains built around four and six-cylinder gas engines.

There are so many companies abandoning their all-electric ambitions or even slowing their roll on building them so quickly. Ford, General Motors, Mercedes, and Nissan have all retreated from aggressive EV targets by either cancelling, delaying, or pausing the development of electric models.

Hyundai’s 2030 targets rely on mixed offerings of electric, hybrid & hydrogen vehicles

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Early-decade pledges from multiple brands proved overly ambitious as infrastructure lags, battery costs remain high in some markets, and many buyers prefer hybrids for their convenience and range. Toyota has long championed hybrids, while others have quietly extended internal-combustion timelines.

For Honda—historically known for reliable gasoline engines—this shift leverages its core strengths while buying time to refine electric technology. Whether the hybrid-heavy strategy will protect market share in an increasingly competitive landscape remains to be seen, but one thing is clear: the gas engine is far from dead at Honda, unfortunately.

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Delta Airlines rejects Starlink, and the reason will probably shock you

In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.

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Delta Airlines Airbus photographed April 2024 Delta-owned. No expiration date, unrestricted use.

SpaceX frontman Elon Musk explained on Wednesday why commercial airline Delta got cold feet over offering Starlink for stable internet on its flights — and the reason will probably shock you.

In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.

Delta rejected Starlink because it insisted on routing all connectivity through its branded “Delta Sync” portal rather than allowing a simple Starlink experience.

Instead, the airline partnered with Amazon’s Project Kuiper—rebranded as Amazon Leo—for high-speed Wi-Fi on up to 500 aircraft, with rollout targeted for 2028. At the time of the announcement, Kuiper had roughly 300 satellites in orbit, while Starlink operated more than 10,400.

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The use of the “Delta Sync” portal would not work for SpaceX, as Musk went on to say that:

“SpaceX requires that there be no annoying ‘portal’ to use Starlink. Starlink WiFi must just work effortlessly every time, as though you were at home. Delta wanted to make it painful, difficult and expensive for their customers. Hard to see how that is a winning strategy.”

Musk doubled down in a follow-up post:

“Yes, SpaceX deliberately accepted lower revenue deals with airlines in exchange for making Starlink super easy to use and available to all passengers.”

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SpaceX has structured its airline agreements to prioritize zero-friction access—no captive portals, no SkyMiles logins, no paywalls or ads blocking basic connectivity.

While this means forgoing higher-margin deals that would let carriers monetize the service more aggressively, it ensures Starlink feels like home broadband at 35,000 feet. Passengers on partner airlines such as United, Qatar Airways, and Air France have already praised the service for enabling seamless video calls, streaming, and work mid-flight without interruptions.

Delta’s choice reflects a different philosophy. By keeping Wi-Fi behind its Delta Sync ecosystem, the airline aims to drive loyalty program engagement and control the digital passenger journey. Yet, critics argue this short-term control comes at the expense of immediate competitiveness.

Airlines already installing Starlink are pulling ahead in customer satisfaction surveys, while Delta passengers face years of reliance on slower, legacy systems until Leo launches.

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SpaceX’s decision to trade revenue for simplicity will pay off in the longer term, as Starlink is already positioning itself as the default high-speed option for carriers that value passenger satisfaction over incremental fees.

Musk’s focus on creating not only a great service but also a reasonable user experience highlights SpaceX’s prowess with Starlink as it continues to expand across new partners and regions.

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