Tesla rolls out improved Model S/X battery thermal management software amid HK fire investigation


Tesla is rolling out a software update that improves the longevity of the Model S and Model X’s batteries by optimizing the thermal management system of the flagship sedan and SUV’s battery packs.

The safety update is being rolled out to the Model S and X fleet as Tesla continues its investigation into an incident in Hong Kong, which involved a Model S catching fire. According to local media reports, the Model S was in a parking lot when its batteries ignited, resulting in a blaze that took firemen 45 minutes to extinguish. No injuries were reported in the incident. 

Below is a statement from a Tesla spokesperson about the company’s investigation into the Hong Kong fire.

“Our team was on site to offer support to our customer and establish the facts of this incident. We are glad that everyone is safe. While our investigation with authorities is ongoing, we have found that only a few battery modules were affected and the majority of the battery pack is undamaged.

“Tesla battery packs are engineered with a state-of-the-art design so that in the very rare instance a fire does occur, it spreads very slowly and vents heat away from the cabin, alerting occupants that there is an issue and giving them enough time to exit the vehicle. The safety of our customers is our top priority, and if we do identify an issue, we will do whatever is necessary to address it,” the Tesla spokesperson noted.

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The company added that the thermal management safety update is currently being rolled out as a precautionary measure for its flagship vehicles. While cases involving a Tesla fire are incredibly few compared to the number of internal combustion fires every year, the electric car maker noted that it is doing what it can to make its vehicles even less likely to catch fire. Below is a statement from a Tesla spokesperson.

“We currently have well over half a million vehicles on the road, which is more than double the number that we had at the beginning of last year, and Tesla’s team of battery experts uses that data to thoroughly investigate incidents that occur and understand the root cause. Although fire incidents involving Tesla vehicles are already extremely rare and our cars are 10 times less likely to experience a fire than a gas car, we believe the right number of incidents to aspire to is zero.

“As we continue our investigation of the root cause, out of an abundance of caution, we are revising charge and thermal management settings on Model S and Model X vehicles via an over-the-air software update that will begin rolling out today, to help further protect the battery and improve battery longevity,” the spokesperson said.

The safety update will be rolled out to the entire Model S and X fleet, which means even early-production vehicles like the Model S 40 and the Model X 60D should receive the optimizations. Tesla also noted that the thermal management updates will not have any effect on the peak charge rates for the flagship sedan and SUV. Thus, Model S and X owners could still enjoy charging their vehicles at peak rates of up to 150 kW from the Supercharger V2 network, which was made possible after Tesla introduced the On-Route Battery Warmup feature to the vehicles last month.

Tesla rolls out improved Model S/X battery thermal management software amid HK fire investigation


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Tesla’s solar cells being produced for roof tiles are mostly being exported by Panasonic: report


A recent report from Reuters has claimed that the “great majority” of solar cells currently being manufactured by Panasonic Corp at Tesla’s Gigafactory 2 in Buffalo, New York, are being exported to other countries. Citing an anonymous employee who reportedly works in the facility, the publication noted that Tesla is only sporadically buying the solar cells produced by its Japanese partner, resulting in Pansonic selling most of the cells it produces on the site to other solar module manufacturers.

Back in 2016, Tesla and Panasonic announced that they would be collaborating on cell and module production in the Buffalo, NY facility, with the electric car maker making a long-term commitment to purchase cells produced by the Japanese corporation. A principal aim for Gigafcatory 2 is the production of Tesla’s Solar Roof, which look like conventional roof tiles but function like solar panels. The tiles are a part of Elon Musk’s plan to encourage a low-carbon lifestyle among Tesla’s customers, since electric car owners can power their vehicles from the energy gathered by their Solar Roofs.

Unfortunately, the Solar Roof ramp has been slower than expected. Customer installations have begun, but only in small quantities. Musk explained this delay in the product’s ramp due to the long development cycle for the solar shingles. “That’s quite a long development cycle for — because anything that’s roof has got to last 30 years. So even if you do accelerate life testing as fast as possible, there’s still a minimum amount of time required to do that,” Musk said.

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Citing data from California, Reuters noted that only around 21 Solar Roof installations were connected by the state’s and investor-owned utilities as of the end of February. A former Tesla employee further claimed that only a few other installations had been completed in the northeastern United States. Tesla, for its part, declined to comment on its purchase of cells from Panasonic or the actual figures of its Solar Roof installations, though an official from the electric car maker has stated that “the number of solar roofs you cite in the story is low and unrepresentative as we are actively installing the Solar Roof in eight states currently.”

Elon Musk has pledged to increase Tesla’s efforts in its Energy business this year, remarking during the unveiling of the Model Y that 2019 will be the “Year of the Solar Roof and Powerwall.” With the first quarter over and the second quarter well underway, it would be an excellent idea for Tesla to ramp its activities in Gigafactory 2, whose output and operations greatly affect Tesla’s Energy business.

Gigafactory 2 currently employs 800 workers, though Tesla is required to have 1,460 employees by this time next year to avoid penalties. Despite the slower-than-expected ramp of the facility and the products that it manufactures, the state of New York remained optimistic about the factory, as noted by Pamm Lent, spokeswoman for Empire State Development, in a statement to Reuters. “We have two of the leading clean energy companies in the world in Buffalo at the RiverBend facility. Tesla produces their innovative solar roof tiles ‎largely for development and testing with the goal of full-scale launch in the future. Panasonic is now the largest producer and employer at RiverBend with a customer base independent of Tesla,” Lent said.

Tesla’s solar cells being produced for roof tiles are mostly being exported by Panasonic: report


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Tesla Gigafactory 3 workers are on overdrive as end-of-May target approaches


A flyover of Tesla’s Gigafactory 3 site in Shanghai shows that work on the upcoming electric car factory is continuing at an incredibly rapid rate. Based on the progress of the facility’s construction so far, it appears that Gigafactory 3’s workforce has all but shifted to overdrive as they attempt to finish the initial buildout of the site’s Phase 1 area by the end of May.

Comparing the drone footage captured on May 13 to those captured the week before, it is easy to see how much progress the Gigafactory 3 site has achieved. External walls have been installed over most of the facility, and even areas such as the rumored stamping section are getting their roofing done. There are also fewer cranes on the site, suggesting that a significant portion of the work has shifted to the interior of the upcoming general assembly building.

Also notable in the recent drone flyover was footage of what appears to be dormitories for the upcoming electric car factory’s workers. The units are two stories high and seemingly modular, which would likely make them easy to expand at a later time. The dorms look well-built and refined as well, suggesting that the units might be built to last. Perhaps Tesla will be housing some of Gigafactory 3’s employees on the site? Such a strategy could benefit the company, especially if the factory operates 24/7.

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One thing that is almost inevitable considering the speed of Gigafactory 3’s construction is the completion of the Phase 1 buildout, which includes a massive general assembly building for the Tesla Model 3 and Model Y. Shanghai official Chen Mingbo, who currently serves as the head of the city’s economic and information technology commission, announced during the annual parliamentary meeting back in March that the initial buildout of Gigafactory 3 should be done in May. That target date falls somewhere within the next couple of weeks.

If China’s workforce meets its target deadline for the completion of Gigafactory 3’s initial construction, it could accelerate the timeline for the electric car maker’s Model 3 trial production. During the facility’s groundbreaking event in January, Elon Musk stated that the first Model 3 could roll out of Gigafactory 3 by the end of the year. If China’s workforce completes the facility’s initial buildout this month, Model 3 trial production could start as early as September.

China is a country that specializes in rapid construction initiatives. But even among the impressively-quick buildouts that China has accomplished in the past, Gigafactory 3 could very well be on a completely different level. Chang Yan CY, Senior Editor of Tencent Auto, noted that China’s record for the fastest buildout of an industrial-grade facility like Gigafactory 3 had been 17 months. This is a record that Gigafactory 3 is on track of beating.

Watch Gigafactory 3’s progress as of May 13, 2019 in the video below.

Tesla Gigafactory 3 workers are on overdrive as end-of-May target approaches


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SpaceX reveals new Starlink satellite details 24 hours from launch


Less than 24 hours before SpaceX’s first dedicated Starlink mission is scheduled to lift off, the company revealed a handful of new details about the design of the 60 satellites cocooned inside Falcon 9’s fairing.

The Falcon 9 booster assigned to launch the Starlink v0.9 mission – B1049 – has already flown twice before in September 2018 and January 2019 and will likely take part in many additional launches prior to retirement. In support of B1049’s hopeful future, drone ship Of Course I Still Love You (OCISLY) arrived at its recovery location on May 13th, an impressive 620 km (385 mi) downrange relative to the launch’s low target orbit (440 km, 270 mi).

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(Extra) smallsats

The combination of a distant booster recovery and a low target orbit can only mean one thing: the Starlink v0.9’s satellite payload is extremely heavy. As it just so happens, that is exactly the case per details included in SpaceX’s official press kit (PDF).

“With a flat-panel design featuring multiple high-throughput antennas and a single solar array, each Starlink satellite weighs approximately 227kg, allowing SpaceX to maximize mass production and take full advantage of Falcon 9’s launch capabilities. To adjust position on orbit, maintain intended altitude, and deorbit, Starlink satellites feature Hall thrusters powered by krypton. Designed and built upon the heritage of Dragon, each spacecraft is equipped with a Startracker navigation system that allows SpaceX to point the satellites with precision. Importantly, Starlink satellites are capable of tracking on-orbit debris and autonomously avoiding collisions. Additionally, 95 percent of all components of this design will quickly burn [up] in Earth’s atmosphere at the end of each satellite’s lifecycle—exceeding all current safety standards—with future iterative designs moving to complete disintegration.”

SpaceX’s first two Starlink prototype satellites deploy from Falcon 9, February 2018. (SpaceX)

First and foremost, an individual satellite mass of around 227 kg (500 lb) is an impressive achievement, nearly halving the mass of the Tintin A/B prototypes SpaceX launched back in February 2018. For context, OneWeb’s essentially finalized satellite design weighs ~150 kg (330 lb) each and relies on a ~1050 kg (2310 lb) adapter capable of carrying ~30 satellites. Accounting for the adapter, that translates to ~180 kg (400 lb) per OneWeb satellite, around 25% lighter than Starlink v0.9 spacecraft.

However, assuming SpaceX has effectively achieved its desired per-satellite throughput of ~20 gigabits per second (Gbps), Starlink v0.9 could provide more than twice the performance of OneWeb’s satellites (PDF). These are still development satellites, however, and don’t carry the laser interlinks that will be standard on the all future spacecraft, likely increasing their mass an additional ~10%.

The second phase of Starlink testing – 60 advanced satellites – in a single fairing. (SpaceX)

Despite the technical unknowns, it can be definitively concluded that SpaceX’s Starlink satellite form factor and packing efficiency are far ahead of anything comparable. Relative to the rockets it competes with, Falcon 9’s fairing is actually on the smaller side, but SpaceX has still managed to fit an incredible 60 fairly high-performance spacecraft inside it with plenty of room to spare. Additionally, SpaceX CEO Elon Musk says that these “flat-panel” Starlink satellites have no real adapter or dispenser, relying instead on their own structure to support the full stack. How each satellite will deploy on orbit is to be determined but it will likely be no less unorthodox than their integrated Borg cube-esque appearance.

That efficiency also means that the Starlink v0.9 is massive. At ~227 kg per satellite, the minimum mass is about 13,800 kg (30,400 lb), easily making it the heaviest payload SpaceX has ever attempted to launch. It’s difficult to exaggerate how ambitious a start this is for the company’s internal satellite development program – Starlink has gone from two rough prototypes to 60 satellites and one of the heaviest communications satellite payloads ever in less than a year and a half.

[Insert Kryptonite joke here]

Beyond their lightweight and space-efficient flat-panel design, the next most notable feature of SpaceX’s Starlink v0.9 satellites is their propulsion system of choice. Not only has SpaceX designed, built, tested, and qualified its own Hall Effect thrusters (HETs) for Starlink, but it has based those thrusters on krypton instead of industry-standard xenon gas propellant.

Based on a cursory review of academic and industry research into the technology, krypton-based Hall effect thrusters can beat xenon’s ISP (chemical efficiency) by 10-15% but produce 15-25% less thrust per a given power input. Additionally, krypton thrusters are also 15-25% less efficient than xenon thrusters, meaning that krypton generally requires significantly more power to match xenon’s thrust. However, the likeliest explanation for SpaceX’s choice of krypton over less exotic options is simple: firm prices are hard to come by for such rare noble gases, but krypton costs at least 5-10 times less than xenon for a given mass.

Hall effect thrusters can typically operate on most noble gases, although they are usually optimized for one or a few options. (Nakles, Hargus, & Corey, 2011)

At the costs SpaceX is targeting ($500k-$1M per satellite), the price of propellant alone (say 25-50 kg) could be a major barrier to satellite affordability – 50 kg of xenon costs at least $100,000, while 50 kg of krypton is more like $10,000-25,000. The more propellant each Starlink satellite can carry, the longer each spacecraft can safely operate, another way to lower the lifetime cost of a satellite megaconstellation.

SpaceX’s dedicated Starlink launch debut is set to lift off no earlier than 10:30pm EDT (02:30 UTC), May 15th. This is not a webcast you want to miss!

Check out Teslarati’s newsletters for prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket launch and recovery processes

SpaceX reveals new Starlink satellite details 24 hours from launch


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Tesla Model X challenger Mercedes-Benz EQC to enter production at 100 units/day


Reports from a local German news agency have noted that Mercedes-Benz is set to ramp the production of its first all-electric SUV, the EQC, at a rate of about 100 units per day. The German carmaker will reportedly increase its production capacity over the following months, with the company doubling its target output to 200 units per day in the coming year.

The update about the EQC’s production was provided by a manager working for Mercedes-Benz, according to news agency Automobilwoche. The carmaker opened the order books for the EQC a few days ago, but just like its competitor, the Audi e-tron, the initial production of the all-electric SUV is reportedly limited as well. While the German carmaker is reportedly not having issues with the supply of cells themselves, the complex design of the EQC’s battery, which is comprised of six packages with 384 cell modules, is becoming a factor in the vehicle’s limited rollout.

Mercedes-Benz opted to use pouch cells from LG Chem for the EQC, just like fellow veteran carmakers Audi and Jaguar, who also utilize the South Korean company’s cells for their respective electric cars. In contrast, electric car pioneer Tesla utilizes cells from Japanese firm Panasonic for its Model X SUV. Initial production of the EQC reportedly started last week, though only in very limited quantities.

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While Mercedes-Benz is yet to issue an official statement about the EQC’s reported production difficulties, it should be noted that the company is not the only veteran carmaker that is finding it challenging to ramp the manufacturing of an all-electric vehicle. The Audi e-tron, for one, is reportedly seeing delays in production due to the limited supply of cells from LG Chem.  A report from The Brussels Times even noted that Audi’s e-tron facility is only operating 6 hours a day due to the limited supply of the SUV’s components.

Overall, the struggles reportedly being faced by Audi, and now Mercedes-Benz all but show that performing a production ramp of an electric vehicle is no joke. Electric car maker Tesla has received various criticisms over the years due to the company’s delays in producing its vehicles like the Model X and Model 3. These reports concerning the Mercedes-Benz EQC and the Audi e-tron’s production ramps prove that Tesla is not the only carmaker that feels challenges when manufacturing an all-electric vehicle.

The Mercedes-Benz EQC is equipped with an 80 kWh battery pack, which is estimated to give a range of over 200 miles per charge. Performance-wise, the all-electric SUV boasts some decent specs, with two electric motors that produce 402 hp and 564 lb-ft of torque giving the vehicle a 0-60 mph time of 4.9 seconds and a top speed of 112 mph. Once released, the EQC will be competing in the same segment as the veteran Tesla Model X, as well as other premium EVs like the Jaguar I-PACE and Audi e-tron.

Tesla Model X challenger Mercedes-Benz EQC to enter production at 100 units/day


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Elon Musk’s insurance plans could be a difference-maker for Tesla’s brand


During Tesla’s first-quarter earnings call, Elon Musk noted that the company would be offering a “compelling insurance product” for its vehicles. Musk even provided an estimated timeframe for the service’s launch, stating that Tesla’s insurance would be rolled out within a month.

While the idea of an in-house insurance program might seem like an unnecessary distraction for the electric car maker at this point, the service could very well become a critical factor in Tesla’s pursuit of sustained profitability. This is according to Eddie Yoon, a director at The Cambridge Group, a firm that specializes in growth strategy. According to Yoon, a well-rounded, properly-released insurance program could help make Tesla into one of the industry’s most influential brands.

In an article on the Harvard Business Review, Yoon notes that companies which become multi-billion-dollar mega-brands usually meet several critical success factors. The first of these involves picking the right first adjacency to enter. Since breaching an untried market is difficult, companies that succeed generally go for an adjacency that has a similar go-to-market model, or at least one where a strong partner could be leveraged. Tesla appears to be doing the latter by partnering with Markel to provide insurance to its customers.

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The first adjacency must also have attractive economics that could be measured, among other things, by how it could improve the company’s core business. This is pertinent for Tesla, since the company’s vehicles are generally cheaper to run than an internal combustion car. If Tesla can reduce the price of its vehicles’ insurance through its own service, the company could make the idea of owning an electric car more attractive and practical to a wider spectrum of customers.

Coupled with Tesla’s continued optimizations in the production of its vehicles, a solid, reasonable insurance program could result in more electric car sales for the company. This, of course, gives Tesla a better chance at becoming profitable in the long-term.

If Tesla proves successful in rolling out its auto insurance service, the company could potentially expand the program to other areas of its business. Tesla is currently aiming to ramp its Energy business, with Elon Musk dubbing 2019 as the “Year of the Solar Roof and Powerwall.” Musk has also hinted at a “Tesla smart home” in the past. Perhaps these products could pave the way for a Tesla home insurance program in the future? Such a possibility is not too farfetched.

These ideas and initiatives could seem drastic in light of Tesla’s business today, but Yoon noted that other mega-brands are adopting similar strategies. Gerber baby foods, for example, generated $900 million in life insurance premiums in 2017. That’s equal to about 75% of its core baby food business during the year. With this in mind, it appears that Elon Musk’s idea for Tesla’s insurance service not be too farfetched at all.

Elon Musk’s insurance plans could be a difference-maker for Tesla’s brand


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DeepSpace is a weekly newsletter sent to Teslarati members, giving a break down of what’s happening in the space industry and what you need to watch.

This week, the only rational option for DeepSpace is to focus on SpaceX’s imminent Starlink milestone, a dedicated launch that will attempt to deliver an unprecedented 60 development satellites to low Earth orbit (LEO).

Assigned to the milestone launch is twice-flown Falcon 9 booster B1049, most recently launched in January 2019 on Iridium’s 8th and final NEXT mission. Around 10 pm EDT on May 13th, SpaceX successfully completed a static fire test of the flight-proven booster and fresh upper stage, additionally keeping the satellite payload (SpaceX’s own spacecraft) installed on the rocket for the first time in almost three years.

Although having the payload attached during a static fire adds risk, that risk is almost entirely SpaceX’s to do with as it sees fit. The attached payload also cuts down on a few dozen hours of processing. Known as Starlink v0.9, SpaceX’s first dedicated launch is thus scheduled for liftoff as early as 10:30 pm EDT (02:30 UTC), May 15th, a little over 48 hours after static fire.

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Like all SpaceX launches, Starlink v0.9 will include a live webcast hosted by SpaceX engineers. By all appearances, Wednesday’s webcast is likely to be quite the event, including a number of first-looks at SpaceX’s Starlink satellite hardware and factory, as well as official details on the company’s strategy, goals, and timelines.

Additionally, viewers may get a live view of what is bound to be a spectacular process of deploying 60 bizarrely flat satellites, stacked so efficiently that Starlink v0.9 will become the heaviest payload SpaceX has ever launched.

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Tesla’s self-driving patent application hints at faster collision response


A recently published Tesla patent application titled “Autonomous Driving System Emergency Signaling” describes a method of quickly communicating emergency information from vehicle sensors feeding into autonomous driving software. The new communication method will improve Autopilot’s response in emergency situations, thereby reducing the probability of accidents.

Tesla’s invention takes latency in data transmission into account as an area of improvement. In general, critical information can get stuck waiting to be processed by a computer after non-critical information that’s ahead of it. Under Tesla’s US Patent Application No. 2019/0138018, critical emergency situations detected by sensors are moved to the front of the line for priority processing and response. Tesla’s invention achieves this using two main approaches.

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First, the transmission from sensors that detect an emergency sends their findings to the main computer at a higher transmit power than other messages. Other signals at lower power transmissions are then interpreted as ‘background noise’ compared to the emergency signal. This process is described in the patent application as follows:

When an autonomous driving emergency event is detected by an autonomous driving sensor…the [sensor] transmits the autonomous driving emergency message in a non-assigned time slot at a higher transmit power level than a transmit power level of an autonomous driving sensor…Because the autonomous driving emergency message is transmitted at a higher power level than the transmission from the autonomous driving sensor, the transmission from the autonomous driving sensor may be treated as background noise by the autonomous driving controller to thereby receive and decode of the autonomous driving emergency message.

In a second approach, the autonomous driving sensors that encounter an emergency message are programmed to stop sending signals, and the vehicle’s main computer will direct them to resume communications after receiving the emergency message. This process is described in the patent as follows:

…if an emergency transmission is detected…the autonomous driving sensor ceases transmitting autonomous driving data. Such cessation may continue for one assigned time slot, for more than one assigned slots, and/or until the autonomous driving sensor receives direction from the autonomous driving controller to continue transmitting autonomous driving data or receives a new…bus time slot assignment from the autonomous driving controller. During this time period…the autonomous driving sensor continues to collect and buffer autonomous driving data.

Several variations of achieving these two main concepts are also described in the application and invention claims, including managing the specifics of the transmit power level differences and reassigning time slots for sensors to communicate on the data bus. Overall, this recent patent application is yet another indicator of Tesla’s continued improvement of its autonomous driving capabilities.

Tesla’s advances in the autonomous driving arena have been touted by CEO Elon Musk and industry experts alike. ARK Invest analyst James Wang recently estimated that the all-electric car maker’s decision to develop its Full Self-Driving computer chip in-house put the company four years ahead of the competition. Musk, for his part, declared the chip the best in the world at Tesla’s Investor Autonomy Day. “It seems improbable. How could it be that Tesla, who has never designed a chip before, would design the best chip in the world? But that is objectively what has occurred,” Elon touted.

While Tesla has yet to roll out the total capabilities of its Full Self-Driving suite, Musk has said on several occasions that the software will be “feature complete” by the end of 2019 with only regulatory hurdles left for full release.

Tesla’s self-driving patent application hints at faster collision response


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SpaceX is constructing a second Starship prototype


SpaceX CEO Elon Musk has confirmed that the company’s second orbital Starship prototype is already in the early stages of integration at a parallel Florida facility, piggybacking on ongoing work in South Texas.

SpaceX’s plans to simultaneously build Starship prototypes in Texas and Florida have been public for some time. However, photos taken by forum members of NASASpaceflight.com offer the first direct confirmation that hardware is already being assembled in Florida. Likely unique in the annals of full-scale heavy-lift rocket development, SpaceX’s strategy of building largely identical prototypes in separate locations – and with separate teams – could be an ingenious method of speeding up development.

https://twitter.com/elonmusk/status/1128448308970541056
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Around the tail end of 2018, SpaceX began to rapidly expand its presence in Boca Chica, Texas and started building what would eventually become Starhopper. Effectively a testbed for SpaceX to gain experience building an operating rockets made out of steel, Starhopper is unlikely to ever move beyond low-speed, low-altitude hover tests.

The prototype exists as more of a flying testbed for SpaceX’s Raptor engine and its associated avionics and software, as well as an excellent opportunity to practice welding steel. Starhopper performed its first two hop tests in the first week of April and is expected to begin its second round of powered flights as early as late May.

Starhopper completed its first successful (tethered) hop test and Raptor ignition on the evening of April 3rd. (NASASpaceflight – bocachicagal)
Pending the arrival and installation of its lone Raptor engine, Starhopper will likely be ready to return to hop testing before the end of May. (NASASpaceflight – bocachicagal)

In March 2019, SpaceX’s Boca Chica team began to assemble and weld together much thinner sheets of stainless steel to form the structure of the first (potentially) orbit-capable Starship prototype. Including metal nose and tank sections that have yet to be installed, the Boca Chica prototype would stand around 32.5m (~105 ft) tall today, with the bulk of the work remaining likely centered around Starship’s aft section. In simpler terms, the more complex of the tasks at hand still lay ahead, including Starship’s actuating tripod fins/legs, actuating canards, the bulk of the spacecraft’s tankage, and a thrust structure capable of handling up to seven Raptors.

At full power, seven Raptors would produce more than 1.5 times the thrust of an entire Falcon 9 booster, likely demanding a new variation (dare I say hexaweb?) on the Falcon family’s proven octaweb thrust structures.

SpaceX’s orbital Starship prototype is starting to look much more like its renders. (NASASpaceflight – bocachicagal; SpaceX)

In short, the small cylindrical section of SpaceX’s first Florida Starship is just the first step or two of many, many more to come. Many questions remain, including exactly how SpaceX plans to transport 9m-diameter rocket segments from its new Florida facility to Cape Canaveral, at least 20-30 miles by road. Regardless, with two similar groups working on the same problem simultaneously, SpaceX’s rate of learning is about to jump even higher than it already is.

Time will tell if the parallel development strategy ends up paying off, but CEO Elon Musk stated in December 2018 that he was 60% confident that SpaceX would be ready to attempt the first orbital Starship launch before the end of 2020.

Check out Teslarati’s newsletters for prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket launch and recovery processes

SpaceX is constructing a second Starship prototype


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Baillie Gifford praises Tesla’s new leadership, says new CFO is great fit for Elon Musk


Tesla’s (NASDAQ:TSLA) second-largest shareholder, Baillie Gifford, has been consistent with its support of the electric car maker, with James Anderson, a senior partner at the firm, even calling out the unethical activities of the company’s critics last year. Anderson spoke about Tesla again recently during an interview with Barron’s, where he discussed his insights on the company’s current leadership.

Anderson is among the investment world’s most prominent players, overseeing about half of the $37 billion Vanguard International Growth Fund (VWIGX), together with Baillie Gifford’s Tom Coutts and a team from Schroders. During his interview with the publication, Anderson talked about a meeting he had with Tesla Chair Robyn Denholm, whom he met following another interview where he stated that he wouldn’t be against Elon Musk leaving the CEO post and taking another role in the company.

“I went to see Tesla and met with the new chair. You can imagine we discussed this. It was plain to me that Tesla needed to strengthen some of the other voices on the board and encourage a greater degree of understanding on the part of Mr. Musk about his responsibilities. The new chairman made it clear she regards him as a good chief executive,” he said.

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Anderson emphasized that Tesla is being led by a stronger team today. He took particular note of Amazon alumnus Sanjay Shah, who has a clear view of the company’s battery and energy front. The Baillie Gifford senior partner also praised Tesla’s new CFO, Zach Kirkhorn, for his close working relationship with Elon Musk. “I like the chief financial officer, who, although young, has the kind of relationship with Musk that allows him to tell Musk things,” Anderson said. 

Kirkhorn took over the CFO duties of Deepak Ahuja, who announced his retirement (for the second time) following the company’s fourth-quarter earnings call. The 34-year-old Kirkhorn’s appointment as Tesla’s CFO proved polarizing, with Tesla critics taking issue with his age and supporters of the company praising him for his years of experience with the company. Despite his age, Kirkhorn has worked for Tesla for years, starting since the days of the original Roadster.

Since his appointment, the new CFO has been visible, participating in Tesla’s first quarter earnings call and joining Elon Musk in an investor call following the company’s announcement of a capital raise. During these sessions, Kirkhorn proved active, responding to inquiries directly in the Q1 earnings and explaining Tesla’s guidance during the investor call.

Apart from providing his insights on Tesla’s leadership, Anderson also noted that Tesla could have raised capital during a far more ideal position. Despite Tesla holding its capital raise at a time when its stock is significantly down, the Baillie Gifford senior partner noted that they remain supportive of Tesla nonetheless. “Ideally, we prefer companies to raise capital when confidence and share prices are high; otherwise they have to issue more shares to raise the same amount of capital. Obviously, Tesla’s share price today is considerably lower than it was eight or nine months ago, but we remain supportive shareholders,” he said.

As of writing, Tesla stock is trading +2.35% at $232.35 per share.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Baillie Gifford praises Tesla’s new leadership, says new CFO is great fit for Elon Musk


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