Tag: commercial

SpaceX initiates new round to obtain from $500 to $750 million in additional private investment capital

8:45 am

SpaceX has opened another tender round to obtain from $500 to $750 million in additional private investment capital, with the company now valued at $175 billion, up from the previous valuation of $150 billion.

With this new capital, the company will have raised at a minimum around $12 billion from private sources, not including the undisclosed investment in October from Italy’s biggest bank.

Why are private investors willing to do commit so much cash to this company? This quote from the article says it all:

SpaceX is on track to book revenues of about $9 billion this year across its rocket launch and Starlink businesses, Bloomberg News reported last month, with sales projected to rise to around $15 billion in 2024. The company is also discussing an initial public offering for Starlink as soon as late 2024 — a bid to capitalize on robust demand for communications via space.

In other words, SpaceX is already earning enough to pay for the development of Starlink/Starship/Superheavy, with even bigger profits expected because it has such a lead on its competitors in the satellite broadband business.

These investors realize that SpaceX has captured the majority of this market share, and because of this it will be difficult for late arrivals like Amazon to enter the market. Amazon could charge less to gain market share, but SpaceX could then do the same. And SpaceX will already be in the black when it does so, while Amazon will instead be increasing its red ink.

This situation underlines the wisdom of Musk’s decision in 2018 to shake-up the management in SpaceX’s Starlink division because the management then was setting too slow a pace. As I wrote then:

Musk’s desire for speed here actually makes very good economic sense. There are other companies developing similar internet satellite constellations, and if SpaceX’s launches late they will likely lose a significant market share.

His concern about the slow pace seems to me also justified. This technology, while cutting edge, shouldn’t require as much testing and prototype work as it appears the fired managers wanted. Better to get something working and launched and making money, introducing upgrades as you go, as SpaceX has done so successfully with its Falcon 9 rocket.

Time has now proven Musk right.

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SpaceX launches more Starlink satellites

11:53 pm

SpaceX tonight successfully launched another 23 Starlink satellites, its Falcon 9 rocket lifting off from Cape Canaveral in Florida.

The first stage successfully completed its ninth flight, landing on a drone ship in the Atlantic.

The leaders in the 2023 launch race:

90 SpaceX
56 China
16 Russia
7 Rocket Lab
7 India

American private enterprise now leads China in successful launches, 102 to 56, and the entire world combined 102 to 90. SpaceX by itself is once again tied with the rest of the world (excluding other American companies) 90 to 90. The fast pace in launches continues, however, with five launches scheduled in the next five days.

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Pentatonix – Mary, Did You Know?

6:01 pm

An evening pause: When I posted a different version of this song last year, I said this:

This song honoring Jesus I think really speaks of every child born on Earth, and how every parent should see them. As Wordsworth said, they come “trailing clouds of glory.”

Did you know that your baby boy has walked where angels trod?
When you kissed your little baby then you kissed the face of god.

Still applies, to my way of thinking. That there are people in the world that think it good to kill such things means only that those people need to be removed from human existence as quickly as possible, as they represent the worst evil anyone can conceive.

Hat tip Alton Blevins.

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Jerry Granelli Trio – Linus and Lucy

6:01 pm

An evening pause: The music from the soundtrack of the Charlie Brown television specials, with sections from “A Charlie Brown Christmas.” The man playing the drums, Jerry Granelli, is the last surviving member of the original group that played Vince Guaraldi’s music for the television show itself.

Hat tip Wayne DeVette.

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Stratolaunch completes first test captive carry flight with powered Talon hypersonic vehicle

9:34 am

Test engineering vehicle attached below Roc
Test engineering vehicle attached to Roc during
a flight in October 2022

Stratolaunch has successfully completed the first test captive carry flight with its prototype Talon hypersonic vehicle fueled and powered, carried by its giant Roc airplane.

The flight was the twelfth for the company’s launch platform Roc and the first in which the aircraft carried a Talon vehicle with live propellant as part of a buildup approach for Talon-A’s first powered flight.

The flight lasted a total of three hours and 22 minutes and represented a significant step forward in the company’s near-term goal of completing a powered flight with the Talon-A vehicle, TA-1. A primary objective was to evaluate Talon-A’s propulsion system and the Talon environments while carrying live propellant. A second objective was to verify Roc and TA-1’s telemetry systems, which provides the situational awareness to ensure all systems are ready for powered flight during the release sequence.

The company has two contracts to do hypersonic test flights using flightworthy Talon vehicles, one with the Air Force and the second with the Navy. It is not clear however when those flights will occur.

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Melinda Kathleen Reese – O Come O Come Emmanuel

6:01 pm

An evening pause: This was first posted in February 2019. As I noted then,

The video replays her singing the same thing three times. There is a good reason, as she almost appears to have begun singing as a lark, and the acoustics of the church astonish her. The repeats help bring out this amazing quality.

I think I shall always want to open the Christmas-Hannukah holiday season with it, as it speaks to both religions. And it is one magnificent song, sung here magnificently.

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Boeing dropped from competition for Air Force “doomsday” plane

6:09 pm

It appears that by mutual agreement the Air Force has eliminated Boeing in the competition to build a new replacement for the E-4B Nightwatch, what the military calls its “doomsday” airplane, designed to survive a nuclear war.

Sources told Reuters that Boeing – the incumbent manufacturer of the E-4B Nightwatch – could not agree with the USAF on data rights and contract terms for the replacement plane that began flying in the 1970s. In other words, the planemaker did not want to sign a fixed-price agreement.

…”Rest assured, we haven’t signed any fixed-price development contracts nor (do we) intend to,” Brian West, Boeing’s chief financial officer, told investors in October.

With Boeing out of the competition, Sierra Nevada (the parent company of Sierra Space) is left as the only bidder. It is also quite willing to operate under a fixed price contract.

As I noted in a comment thread after a reader first posted a link to this story,

Boeing is signing its own death warrant. The entire federal defense and space agencies are steadily switching to fixed-price, and will simply go to others if Boeing refuses to accept those terms.

In fact, those agencies will want to go to others, because Boeing is making it clear it can’t meet its contractual obligations.

This decision also tells us a great deal about Boeing as a company. Its inability to fulfill any contract under a fixed price means it no longer has the discipline to do anything right. It seems buying products from it at this point might be a very foolish proposition.

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Amazon signs launch contract with SpaceX

9:32 am

Amazon on December 1, 2023 announced it has signed a three-launch contract with SpaceX to place its Kuiper satellites into orbit, supplementing the launch contracts it presently has with ULA, Arianespace, and Blue Origin. From the Amazon press release:

SpaceX’s Falcon 9 is a reusable, two-stage launch vehicle designed for the reliable and safe transport of people and payloads into Earth orbit and beyond, and it has completed more than 270 successful launches to date. Project Kuiper has contracted three Falcon 9 launches, and these missions are targeted to lift off beginning in mid-2025.

In 2022 Amazon had signed contracts with the other three launch companies, with ULA getting 38 Vulcan launches (in addition to 9 already signed for its Atlas-5), Arianespace getting 18 Ariane-6 launches, and Blue Origin getting 12 New Glenn launches.

The problem however is that, except for the Atlas-5, none of these rockets has yet completed its first flight. Since Amazon’s FCC license requires it to get half of its constellation of 3,200+ satellites into orbit by 2026 or face penalties, the uncertainty of these rockets has probably forced Amazon management to consider SpaceX, despite likely hostility to such a deal from Jeff Bezos (owner of Blue Origin and founder of Amazon).

Amazon management also probably decided to sign this deal because of a lawsuit filed in September 2023 by company stockholders, accusing the management of neglience because it never even considered SpaceX in earlier contract negotiations while giving favoritism to Bezos’s company Blue Origin. At that time Amazon had already paid these launch companies about $1.7 billion, with Blue Origin getting $585 million, though not one rocket has yet launched, with Blue Origin showing no evidence that a launch coming anytime soon.

The impression of a conflict of interest by Amazon’s board of directors appeared very obvious. This new SpaceX contract weakens that accusation.

More important the deal will help Amazon actually get its satellites into orbit. It appears that reality is finally biting at Amazon, and its management has realized that the three companies they have been relying on might not be up to the job (especially Blue Origin).

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SpaceX again launches 23 Starlink satellites

10:02 pm

The beat goes on: SpaceX tonight successfully launched another 23 Starlink satellites, its Falcon 9 rocket lifting off from Cape Canaveral.

The first stage successfully completed its sixth flight, landing on a drone ship in the Atlantic.

The leaders in the 2023 launch race:

89 SpaceX
53 China
16 Russia
7 Rocket Lab
7 India

American private enterprise now leads China in successful launches, 101 to 53, and the entire world combined 101 to 85. SpaceX by itself now leads the entire world (excluding other American companies) 89 to 85.

The next two weeks will be extremely busy in the launch business, as it appears there are launches scheduled for practically single day during that period, with some days having two launches scheduled.

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Angola signs Artemis Accords, becoming the 33rd nation to join the alliance

12:34 pm

Angola today officially signed the Artemis Accords, becoming the 33rd nation to join this space alliance conceived during the Trump administration as a way to get around the limitations of the Outer Space Treaty.

The full list of signatories is as follows: Angola, Argentina, Australia, Bahrain, Brazil, Bulgaria, Canada, Columbia, Czech Republic, Ecuador, France, Germany, Iceland, India, Israel, Italy, Japan, Luxembourg, Mexico, the Netherlands, New Zealand, Nigeria, Poland, Romania, Rwanda, Saudi Arabia, Singapore, South Korea, Spain, the United Kingdom, the United Arab Emirates, the Ukraine, and the United States.

The competing alliance of communist nations, led by China, includes only Russia, Venezuala, Pakistan, Belarus, Azerbaijan, and South Africa. That former deep Soviet bloc nations like Bulgaria and Romania, as well as previously very Marxist Angola, went with the west rather than China illustrates the international distrust of China and its authoritarian methods.

As bilateral agreements between the U.S. and each nation. the accords were designed to create for the U.S. a strong political alliance focused on protecting private property and capitalism in space, something the Outer Space Treaty essentially forbids. As I think it was conceived, the plan had been to use this alliance to eventually either force changes to the Outer Space Treaty, or abandon it entirely. Whether that plan will continue under Biden is unclear, and in fact there have been indications it will not.

These trends could all change should a different president take over after 2024.

Hat tip to BtB’s stringer Jay for cluing me in to this story.

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SpaceX launches 25 payloads, including South Korea’s first five homebuilt surveillance satellites

11:43 am

SpaceX today successfully used its Falcon 9 rocket to launch 25 payloads into orbit, including first five homebuilt surveillance satellites by South Korea, lifting off from Vandenberg in California.

The first stage successfully completed its seventeenth flight, landing back at Vandenberg. The fairings completed their fifth and sixth flights respectively. As of posting not all the payloads had been deployed.

The leaders in the 2023 launch race:

88 SpaceX
53 China
16 Russia
7 Rocket Lab
7 India

American private enterprise now leads China in successful launches, 100 to 53, and the entire world combined 100 to 85. SpaceX by itself now leads the entire world (excluding other American companies) 88 to 85.

SpaceX still has one more launch scheduled for today, from Cape Canaveral at 11 pm (Eastern). The link goes to the live stream.

This launch was significant for the United States. For the first time the U.S. has reached 100 launches in a single year, something that only the Soviet Union previously achieved, with 100 launches in 1982. With SpaceX’s launch tonight the U.S. will thus set a new record for the most launches in a single year by any nation.

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