Musk settles with SEC, pays fine, reduces control at Tesla for 3 years

Elon Musk and Tesla have negotiated a settlement with the SEC, agreeing to each pay a fine of $20 million while Musk reduces his role with the company for the next three years.

Musk and Palo Alto-based Tesla agreed to pay a total of $40 million to settle the case, and he will give up his chairmanship for at least three years. The electric-car maker also is required to install an independent chairman and two new board members, though Musk will remain on the board, according to terms of the settlement.

Musk and Tesla will each pay $20 million to settle the case; both reached the deal without admitting wrongdoing.

I suspect this will not reduce Musk’s influence on Tesla very much. To me, this whole kerfuffle was the SEC acting like a bunch of mobsters, pulling its weight against someone it apparently doesn’t like. “Nice business you have there, Elon. Sure would be a shame if something happened to it.”

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UAE astronaut flight to ISS tentatively scheduled for April

Russia has now tentatively scheduled the flight to ISS of the United Arab Emirates first astronaut.

The first astronaut from the United Arab Emirates (UAE) will fly to the International Space Station (ISS) on April 5, 2019, and will return to Earth on April 16, 2019, the ISS launch schedule, shared with Sputnik, has shown. According to the document, an astronaut will fly to the ISS on board the Russian Soyuz MS-12 spacecraft.

It has not been determined yet if Hazza Mansouri or Sultan Nayadi will take part in the mission. Both astronauts have qualified for it and have begun their training in Russia earlier in September.

Though the goal of this mission by the UAE government is to encourage a private space industry in their country, the mission remains wholly a government creature. What has not been released is how much UAE is paying the Russians for their flight.

Had the launch of the U.S. commercial crew spacecraft not been slowed by NASA and had been operational, either SpaceX or Boeing could have competed for this business. Expect them to do so in the future.

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China launches smallsat

One of China’s claimed-to-be private companies, Expace, today launched a smallsat into orbit using the Kuaizhou-1A solid-fueld rocket. .

Exspace, like OneSpace and Ispace, is considered private by the Chinese. I find it interesting however that all these private companies have remarkably similar names, and all appear to be doing military work. Even if they get private financing from Chinese investors and their management is formed independent of the government, we should not be fooled. These are wholly owned and controlled by the Chinese government. They do nothing without its knowledge and support.

The leaders in the 2018 launch race:

26 China
16 SpaceX
8 Russia
7 ULA
6 Europe (Arianespace)

China has widened its lead over the U.S. in the national rankings, 26 to 24.

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Roscosmos head meets with Chinese

The head of Russia’s Roscosmos space agency, Dmitry Rogozin, held meetings this week with China, discussing possible future space cooperation.

Russia can’t really afford to do much right now on its own, but it also wants to negotiate the best deal it can with anyone it works with in space. These discussions are therefore specifically designed to give Rogozin some negotiating leverage when he meets with NASA’s head Jim Bridenstine on October 10.

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Next Long March 5 launch delayed again?

There are indications in the Chinese press that suggest the next launch of China’s largest rocket, the Long March 5, will be delayed from its present November launch into 2019.

An online report by People’s Liberation Army Daily, a military newspaper, reports Lin Xiqiang, deputy director of the China Manned Space Engineering Office (CMSEO), as saying at a press conference in Beijing on Wednesday that the Long March 5B will not make its planned test launch in the first half of 2019.

“Due to the failure of the launch of the Long March 5 remote launch vehicle, the first flight of the Long March 5B carrier rocket will be postponed. The specific implementation time needs to be clarified after coordination with relevant departments,” Xiqiang said.

The November launch was to put up a test communications satellite. Should it slip into 2019, this would likely also cause delays in the launch of China’s first lunar sample return mission, Chang’e-5 (originally scheduled for 2017), the launch of China’s first Mars planetary mission in 2020, and finally the launch of the first module of China’s space station, also set for 2020.

All this once again indicates that the problems with Long March 5 were very serious, and might not yet have been addressed, even with a redesign of its engines.

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SEC goes after Musk

The Securities and Exchange Commission today filed a complaint against Tesla in an effort to force Elon Musk out as head of the company.

The complaint filed by the Securities and Exchange Commission came after a last-minute decision by Mr. Musk and his lawyers to fight the case rather than settle the charges.

The filing by the SEC in federal court in Manhattan threatens to deal a severe blow to the Palo Alto, Calif., electric car maker. Its brand and Mr. Musk are closely intertwined, and analysts have said the company’s roughly $50 billion market value is driven by Wall Street’s appreciation for Mr. Musk’s vision and skill as an innovator.
SEC Sues Elon Musk for Fraud, Seeks Removal From Tesla

Tesla wasn’t named in the suit as a defendant, but the SEC is seeking to bar Mr. Musk, Tesla’s largest shareholder and its top executive, from serving as an officer or director of any U.S. public company. Tesla shares, which have been under intense pressure amid questions about the firm’s financial strength and Mr. Musk’s behavior, tumbled 9.9% to $277 in after-hours trading Thursday on Nasdaq.

This is very bad news for Tesla. However, it might be good news for SpaceX, as Musk has admitted to being very overworked. If he is forced from Tesla, he will have an enormous load removed from him.

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Local Texas city council votes to keep spaceport

The Midland, Texas city council today voted to renew its contract with the company managing its spaceport there.

The council voted 6-1 to renew its contract with SilverWing Enterprises, an aerospace consulting company that manages Midland’s spaceport license. The one vote came from Spencer Robnett, who has been public with his belief that the spaceport needs to be shut down.

“Yeah I don’t think it would ever have a chance in Midland,” Robnett said. “I do think the space business and space technology and aerospace sector is evolving. There’s a lot of money being invested in it by billionaires, Bezos, Musk, and Branson. Unfortunately we don’t have a billionaire in Midland chasing aerospace investment. We’ve got a small economic development corporation that takes direction from the city council.”

Robnett might have a point. Midland’s spaceport had been the base of operations for XCOR’s Lynx, and with XCOR bankrupt and gone there doesn’t seem to be a lot of interest by anyone else in flying any rockets from there. Part of their problem is their location, which is far from the coast and would likely limit the launch options in order to avoid populated areas.

The question has to be: What does Midland offer to rocket companies that other spaceports don’t? Until they can provide an answer to that question, the money the council is spending on this spaceport is probably going to waste.

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Australian agency pushes Australia to join NASA Gateway project

The new colonial movement: An Australian government agency, the Commonwealth Scientific and Industrial Research Organisation (CSIRO), has put forth a space roadmap for that nation that includes a push for them to participate in NASA’s lunar orbiting Gateway project.

“And when you look at a moon base, the support systems of oxygen, water, food – and the general support systems around it – is something that nobody has ever done before,” he said. “When we looked around Australia, these are areas where Australia has as much skill as anyone else. Things like dry farming capabilities, remote mining capability, the fact that CSIRO perfected the titanium dust that you can 3-D print from … there are a whole range of things where we can potentially contribute.” It is an interesting fact that Australia has exceptional expertise in 3D printing titanium. This is even more interesting when you consider that on the moon – according to Dave Williams – there is an oxide that is very similar to titanium that could be reduced to a titanium dust, with oxygen as a by-product.

“Realistically, NASA will lead the whole thing. But they will be looking for partners, and the idea will be to identify which niche areas Australia should try to push its industry into, and try to get support for and to make it work,” he said.

Essentially, they are proposing that Australia get in on the Gateway boondoggle by focusing on and then offering to provide peripheral support services.

Much of this is bureaucratic twaddle, not to be taken too seriously. At the same time, it does outline for Australia areas where there are needs, and where their private space companies could make money.

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Has Aerojet Rocketdyne lost engine race with Blue Origin?

Aerojet Rocketdyne financial documents suggest that it has given up the bidding competition with Blue Origin to supply a rocket engine for ULA’s Vulcan rocket.

The latest financial release from aerospace manufacturer Aerojet Rocketdyne reveals that the company spent none of its own money on development of the AR1 rocket engine this spring. Moreover, the quarterly 10-Q filing that covers financial data through June 30, 2018 indicates that Aerojet may permanently stop funding the engine with its own money altogether—a sign the company has no immediate customers.

Although Aerojet will continue to receive some funding from the US military through next year to develop its large, new rocket engine, this money won’t be enough to bring it to completion. Instead of having a flight-ready engine for use by the end of 2019, the filing indicates that Aerojet now intends to have just a single prototype completed within the time frame.

Essentially this means ULA will have no choice but to pick Blue Origin’s engine, unless the Air Force pulls its weight and demands it take Aerojet rocketdyne, even if that means a significant delay before Vulcan can launch.

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Bill increases funding to FAA space office, adds other provisions

A bill about to be approved by Congress increases funding to the FAA Office of Commercial Transportation while also requiring that office to create several new regulatory positions.

The bill authorizes a significant increase in spending for the FAA’s Office of Commercial Space Transportation, or AST, from the $22.6 million it received in fiscal year 2018 to a little more than $33 million in 2019, growing to nearly $76 million in 2023. Appropriators, though, have not matched that authorized increase for 2019, with House and Senate versions of spending bills funding the FAA offering just under $25 million for AST.

The reauthorization bill includes several policy provisions associated with commercial spaceflight as well. One would require the FAA to designate an official within its air traffic organization to serve as the single point of contact for working with the head of AST on airspace issues associated with commercial launch activity.

Another provision establishes an “Office of Spaceports” within AST intended to support commercial licensing of launch sites and develop policies to promote infrastructure improvements at such facilities. It also requires AST to develop a report within one year of the bill’s enactment on spaceport policies, including recommendations on government actions to “support, encourage, promote, and facilitate greater investments in infrastructure at spaceports.” It directs the Government Accountability Office to prepare a separate report on ways to provide federal support for spaceports.

The bill creates a category of commercial spaceflight vehicles known as “space support vehicles” that cover parts of launch vehicles systems flying for other purposes, such as training or testing. Such vehicles would include the aircraft used by air-launch systems. The bill allows commercial flights of space support vehicles without the need for a full-fledged airworthiness certificate from the FAA.

It is hard to say if these provisions will help or hurt the growth of commercial space. It does appear that Congress’s goal was to help, but their methods always include more spending and greater bureaucracy.

The article also reviews a number of bills not yet agreed to by Congress that would address the regulation of Earth observation satellites as well as satellite servicing. It quotes a number of industry experts supporting the laws being proposed, but once again, it is unclear if those laws would help or hurt. My previous review of one of these laws presently working its way through the House was decidedly mixed. It will clarify and simplify many of the regulatory problems that presently exist, while creating more bureaucracy.

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Russia considering getting out of Gateway

The new colonial movement: In expressing a desire not to play a secondary role in its next space station, Roscosmos head Dmitry Rogozin said today that Russia might pull out of its partnership with NASA in building its Gateway lunar station.

Russia agreed last year to work with the U.S. National Aeronautics and Space Administration (NASA) on plans for the moon-orbiting Deep Space Gateway, which will serve as a staging post for future missions.

But the head of Russian space agency Roscosmos, Dmitry Rogozin, said Russia might exit the joint program and instead propose its own lunar orbit space station project. “The Russian Federation cannot afford to play the second fiddle role in it,” he was quoted as saying by the RIA news agency, without much further elaboration.

A spokesman for Roscosmos said later that Russia had no immediate plans to leave the project.

Russia’s problem is that they simply don’t have the cash to build their own lunar station. They could build a new station of their own in Earth orbit, and that might be what they end up doing. In fact, based on the knowledge they gained from both Mir and ISS, they might be able to design that station for short interplanetary flights, such as to the Moon and back, once built.

If I was Rogozin, that is exactly what I would do. Get out of NASA’s boondoggle, and build something in Earth orbit that will really demonstrate interplanetary travel.

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NOAA awards three more experimental commercial weather contracts

Capitalism in space: NOAA this week awarded three commercial companies contracts to provide the agency weather data in its expanding effort to get this data not from government satellites but from private sources.

In the Sept. 17 announcement, NOAA said it was issuing contracts to GeoOptics, PlanetIQ and Spire to provide GPS radio occultation weather data from satellites currently in orbit or planned for launch in the coming months. That technique measures the refraction of GPS signals as they pass through the atmosphere and are received by the companies’ satellites, which can provide temperature and pressure profiles to support weather forecasting models.

The awards represent round two of NOAA’s Commercial Weather Data Pilot program, an effort by the agency to experiment with buying data from commercial providers to determine its usefulness, as well as to examine various technical and programmatic issues with such data buys.

NOAA’s management bureaucracy has resisted this transition to private enterprise, much as NASA’s bureaucracy has. Nonetheless, NOAA’s inability to built and launch weather satellites at a reasonable cost and in a practical timeframe is forcing it to change.

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More details about Sunspot Observatory closure confirms child porn investigation

News stories this morning provide further confirmation that the closure of the Sunspot Observatory in New Mexico occurred in connection with a child porn investigation. The key quote that explains why the FBI closed the facility:

The search warrant provided to a judge the justifications for agents to search computers, cellphones or tablets owned by the janitor, Joshua Lee Cope, and the house trailer where he lives. An FBI agent seized the laptop at the observatory on Aug. 21, 2018, and took it to the FBI office in Las Cruces, court documents said. FBI spokesman Frank Fisher said Thursday that no one has been charged and the investigation is ongoing.

Cope, 30, lives on property owned by his parents in La Luz, the search warrant said. A phone message left for Cope at a telephone number listed for his parents seeking comment was not immediately returned.

After Cope could not find his laptop, the court documents said, he began to act frantically and told the chief observer that there was a “serial killer in the area, and that he was fearful that the killer might enter the facility and execute someone.”

The observatory closed, without consulting FBI agents, after Cope’s comments about the serial killer and his erratic behavior, the warrant said.

My guess is that the observatory became concerned about Cope’s behavior, and closed to protect itself and its other employees, forcing everyone to leave. This also explains the cryptic nature of their closure announcement, as they also did not want to implicate anyone and risk a lawsuit.

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Sunspot observatory shut down for child porn investigation?

According to one New Mexico television station, the Sunspot Observatory was shut down last week in connection with a investigation into child porn.

A federal search warrant reveals that Sunspot Solar Observatory was shut down as FBI agents conducted computer forensic searches for child pornography.

The source of child pornography was traced to an IP address used at the observatory and a source within the building observed a computer with “not good” images on it, the warrant states.

An investigation by the FBI revealed that a janitor is the main suspect in the search, however he has not been charged with a crime even though his name in on the warrant.

This might also explain why the post office was searched, assuming they were trying to trace further porn material there.

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China’s Long March 3B rocket successfully launches two GPS-type satellites

The new colonial movement: China today successfully launched two more of its Beidou GPS-type satellites, using its Long March 3B rocket.

The rocket launched from the Xichang Satellite Launch Center in southwest China, and almost certainly dropped its stages near habitable regions, as happened in June. The question is whether China has successfully clamped down on the distribution of any images of such events, taken by local residents. It failed to do so in June.

The leaders in the 2018 launch race:

25 China
16 SpaceX
8 Russia
7 ULA
5 Europe (Arianespace)

This launch puts China once again in the lead over the U.S. in the national rankings, 25 to 24. Moreover, with every launch this year China extends its new record for the most launches by that nation in a year.

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Republican wins special election in black/Hispanic district in Texas

Is this significant? A Republican today won a special election for a Texas state senate seat in a predominately black and Hispanic district that was won by Hillary Clinton by 12% and hasn’t been held by a Republican for more than a hundred years.

It is dangerous to extrapolate the results from a single state legislative district to the wider nation. Nonetheless, for a Republican to win such a seat in a district whose two biggest demographics are Hispanic and black suggests we might yet see a historic shift this coming election. If the Democrats can no longer depend on these voters, they will find it difficult to win any national elections.

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Air Force estimates Space Force cost at $13 billion for first 5 years

Pork! Air Force has now released its first estimate for establishing a Space Force, with an estimated cost of $13 billion for first five years.

A copy of the Air Force memo was obtained Monday by The Associated Press. The memo says the first-year cost of a Space Force would be $3.3 billion, and the cost over five years would be an estimated $12.9 billion.

As I have said, this is nothing more than pork. At this stage all that needs to happen is a reorganization that would put all space activities in a single office in the Air Force. This is also what the Air Force has wanted to do. Creating a whole new military branch at this time is overkill, and will merely result in too much bureaucracy, for only one reason, to spend money.

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Kenya creates space agency

The new colonial movement: Kenya today announced the official establishment of its own space agency, the Kenya Space Agency Board (KSAB).

KSAB was established by President Uhuru Kenyatta through a March 2017 gazette notice and will be headed by the Kenya Defence Forces’ Major General (Rtd) James Aruasa.

The array of KSAB’s responsibilities include co-ordinating space-related activities, recommending national space policies and establishing centres of excellence in space science.

It appears to me that there a power struggle is going on in Kenya over space, with the wrong people winning. A university team recently built the nation’s first cubesat, getting it launched as a secondary payload. This space board however seems entirely run by the government and its military. I fear that this turf war is going to squelch any future Kenyan space development.

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