LNG: TESLARATI

Will automotive giant Volkswagen have the same fate as Finnish cellphone manufacturer Nokia? VW CEO Herbert Diess says that the carmaker is heading that way if it doesn’t do anything soon and quickly.

Even for a tried and tested automotive brand such as Volkswagen, things can be overwhelming. Frightening, in fact, if its chief executive compares it to a once-dominant phone brand that was not able to keep up with the times.

Germany who wants to switch to greener vehicles and lower its emissions footprint implemented tighter rules following Volkswagen’s admission in 2015 that it cheated with emission tests. The “Dieselgate” problem though is just the tip of the iceberg. The carmaker has no choice but to comply with the stringent guidelines and needs to develop electric vehicles and this requires the company to revamp its assets, cut costs, and catch up with needed technologies.

“The big question is: Are we fast enough? If we continue at our current speed, it is going to be very tough. In summary, this is probably the most difficult challenge Volkswagen has ever faced,” Deiss told his senior managers during a global board meeting as reported by Reuters.

Last September, the environment committee of the European parliament pushed to cut carbon dioxide emissions by 45 percent from 2021 through 2030 and to have 20 percent quota of electric vehicles come 2025 and by 50 percent in 2030. If Volkswagen misses these quotas in 2021, PA Consulting firm estimates that Volkswagen might face a fine of as much as 4.5 billion euros.

Just like what Diess emphasized, it is not an easy task and the brand needs to improve its productivity and lower its costs. It’s a massive overhaul that will push the German carmaker to refocus so they can produce EVs and batteries to comply with set emission rules and while keeping profit margins.

Analysts from consulting firm Wood Mackenzie predicts that Volkswagen could be the biggest EV manufacturer by 2030, producing 14 to 16 million green cars. However, this will be a long shot since Volkswagen would need to take a 53 percent share of the global market for electric cars from now and through the next eight years. It also needs to produce about 57 percent of battery packs for EVs.

There’s another problem for Volkswagen. One that might force them to be a Nokia — Tesla.

Tesla has been pushing the right buttons across markets. It became the most valuable car brand in the world eclipsing other American automotive predecessors and has been converting naysayers to believers of late.

The Silicon Valley-based electric car manufacturer has set its foot on Volkwagen’s backyard. It’s moving fast to start building its Gigafactory 4 in Brandenburg that will produce 150,000 EVs initially and will eventually ramp up to 500,000 units per year. Once Model Ys and Model 3s roll out of GF4, it will surely bite a good chunk of Volkswagens market share in Germany and the rest of the region. Tesla would have thrown a ton of punches to knockdown (or knockout) Volkswagen and other German car brands before they even know it. Elon Musk and his team already have the technologies to dominate the EV market.

Likewise, Tesla has established a strong presence in China with its Gigafactory 3 in Shanghai and the Chinese government has been pouring its support to Tesla, seeing the brand as a catalyst for the EV industry. Recently, Tesla was able to cut the price of locally-made Model 3s and the mass-produced sedan will most likely be a cash cow for Musk’s car brand. It has also pushed the gear to design Chinese-style Teslas, perhaps entry-level cars that it needs to even get a better share of the pie. And as the Tesla chief said, these cars will not be only for China but for the rest of the globe.

If Volkswagen doesn’t want to be a Nokia, it has to be smart and lightning-quick to catch and outplay Tesla in a game that the latter knows by heart. Volkswagen has no room to commit errors in the EV game. But for now, Tesla is in a very strong position and Deiss and the rest of his team can only look and scratch their heads.

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NASA has formally given SpaceX permission for Crew Dragon’s second launch – a crucial test flight that should be the last before SpaceX launches NASA astronauts to the International Space Station (ISS) for the first time ever.

Known as its In-Flight Abort (IFA) test, Crew Dragon will attempt to escape a Falcon 9 rocket while airborne, a feat that CEO Elon Musk says will almost certainly destroy the rocket in the process. Technically speaking, NASA and SpaceX completed what is known as a Launch Readiness Review (LRR) sometime on Thursday, allowing SpaceX to proceed with launch preparations. By all accounts, Crew Dragon’s IFA test will likely be one of the most spectacular SpaceX launches ever, given that it is all but guaranteed to result in the intentional in-flight failure of a massive Falcon 9 rocket – “destroyed in Dragon fire” according to Musk.

Thanks to a much smoother launch flow compared to Crew Dragon’s Demo-1 orbital launch debut on Falcon 9, SpaceX’s newest Crew Dragon capsule is scheduled to lift off from Kennedy Space Center Launch Complex 39A (KSC LC-39A) as early as 8 am EST (13:00 UTC), Saturday, January 18th. The In-Flight Abort test will likely be one of Crew Dragon’s most challenging hurdles yet but success would be a major boon for the spacecraft’s demonstrated safety. While both Boeing and SpaceX will ultimately ferry NASA astronauts to and from the ISS, only SpaceX chose to prove Crew Dragon’s in-flight abort capabilities in the real world.

Effectively condemned to destruction to support a greater cause after a productive life, Falcon 9 Block 5 booster B1046 rolled out to Pad 39A – Crew Dragon mounted atop it – on January 16th after successfully performing its last routine static fire on the 11th. As previously discussed on Teslarati, B1046 is the first Falcon 9 Block 5 booster completed by SpaceX and is thus also the oldest flightworthy rocket in the company’s substantial fleet.

“After becoming the first SpaceX booster to launch three times in December 2018, B1046 spent several months at SpaceX’s Hawthorne, CA factory undergoing inspections and refurbishment. At some point, SpaceX assigned the thrice-flown booster to support Crew Dragon’s In-Flight Abort (IFA) test – effectively a death sentence – and shipped the booster to Florida, where it publicly appeared for the first time in months on October 3rd, 2019. Given that four more Falcon 9 boosters have now successfully performed three (or even four) orbital-class launches each, B1046’s now-imminent demise is certainly disappointing but remains extremely pragmatic.”

Teslarati.com — January 15th, 2020

As such, there is arguably no better booster for SpaceX to expend even if its loss is still less satisfying than a successful post-launch landing. In fact, aside from NASA’s prematurely-retired Space Shuttle, the entire history of orbital-class rocketry has effectively operated on the assumption that it’s both normal and necessary for rockets to be almost entirely expendable.

Only by sheer force of will has SpaceX turned that assumption on its head, making the act of expending Falcon 9 or Falcon Heavy boosters feel suddenly morose. Even then, the practice of propulsively landing orbital-class boosters is scarcely four years old, while reusing those boosters has been ongoing for less than three years. As such, B1046’s demise should be enjoyed for what it ultimately is: the spectacular retirement of a rocket that has already helped launch three separate payloads to orbit.

Perhaps even more importantly, B1046’s sacrifice should – if things go as planned – also pave the way for Crew Dragon to launch its first NASA astronauts into orbit just a few months from now. For the test to be successful, however, Crew Dragon will have to perform an extremely precise string of maneuvers – the failure of any one of which could potentially lead to the spacecraft’s destruction.

“Traveling as fast as Mach 2.5 (860 m/s) at an altitude of 28 kilometers (17 mi), Crew Dragon will ignite its abort thrusters and attempt to escape, the very act of which will likely hammer the spacecraft’s windward surfaces with an extra dozen or so metric tons (~25,000 lb) of aerodynamic pressure. Crew Dragon C205 could thus find itself traveling almost Mach 3 (more than a kilometer per second) moments after separating from Falcon 9, eventually reaching an apogee of almost 75 km (45 mi), after which it will reenter the bulk of Earth’s atmosphere and have to deploy an array of parachutes to ensure a gentle Atlantic Ocean splashdown.”

Teslarati.com — January 13th, 2020

Unfortunately, Crew Dragon escaping a supersonic Falcon 9 also means that that same Falcon 9 – basically a thin, flexible tube designed to be as light as possible – will meet a supersonic blast of air the moment Dragon’s SuperDraco abort thrusters ignite. A bit like if a hurricane on all kinds of meteorological steroids just sort of punched a soda can for fun, that airstream will almost certainly obliterate Falcon 9’s sacrificial upper stage into a sort of aluminum snow, quickly revealing – and likely then destroying – B1046’s carbon fiber interstage.

The rest of the thrice-flown Falcon 9 booster is also liable to break up after that supersonic punch. In fact, SpaceX engineers are so confident in B1046’s imminent demise that the booster will have neither landing legs or grid fins come launch. In a best-case scenario, if, against all odds, B1046 survives Dragon’s escape, the intact booster will subsequently impact the Atlantic Ocean at terminal velocity and become a nice, artificial reef off the coast of Florida. Stay tuned for updates from Teslarati and photographers Jamie Groh and Richard Angle as Falcon 9 B1046’s demise inches ever closer.

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

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Elon Musk’s Boring Company has made plenty of progress with its Las Vegas Convention Center people mover. The underground tunnel is now about 50% complete and around six football fields in length, according to the Las Vegas Convention and Visitors Authority.

The Boring Company officially started tunneling for the people mover after a ceremonial groundbreaking event on November 15. In just two months, the project is nearly halfway completed.

The company’s Tunnel Boring Machine (TBM) has been 40 feet underground for months and is working to drill two, one-mile-long tunnels. Boring Company began shipping portions of the TBM to the site in Las Vegas in September. Since then, the project has really started to take shape.

Credit: Mark Damon/Las Vegas News Bureau

Credit: Mark Damon/Las Vegas News Bureau

Musk’s dream of solving the common everyday riddle of traffic birthed the idea of the underground tunnel. The Boring Company has already completed a private tunnel for Tesla vehicles in Los Angeles. But the Las Vegas tunnel will be the first publicly available transportation system that the Boring Company will complete.

The project cost the Boring Company $52.5 million and is expected to connect the Las Vegas Convention Center to popular Las Vegas hot spots. Downtown Las Vegas, the Strip, and McCarran International Airport will all be destination options for riders. The mover is expected to transport an estimated 4,400 people per hour.

The Las Vegas project is just one of five projects the Boring Company has listed on its website. Boring Co. locked up the deal with the LVCVA after blowback from some members of the board who felt the company did not have enough background to trust with a large project like this.

LVCVA board member Michele Fiore was one of the most vocal and she opposed the Boring Company’s involvement in the project from its initial stages. “They already have projects here that are operating successfully. The Boring Co. is three years old and has yet to deliver a final package on anything,” she wrote. Fiore was more interested in an above-ground project that would be completed by an Austria-based company known as Doppelmayr Garaventa Group who has a rich, 125-year history.

The Boring Company’s progress on the project is sure to have the doubting board members of the LVCVA thinking twice. The project is due to be finished in January 2021 and will be unveiled at the Consumer Electronics Show in Las Vegas.

A Livestream of the Boring Company’s Las Vegas Tunnel Project is available for viewing here.

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While there have been forest walk demonstrations to raise concerns about Tesla’s Gigafactory 4, there’s a group of locals who will picket at Grunheide community park on Saturday to show their support for the electric vehicle manufacturer.

A certain Martin Hilderbrandt is organizing the demonstration aptly called “Grunheide for Future.” He is encouraging those who support the Tesla project to go to the park at 11 a.m. local time.

“A high number of Grünheide residents are happy about the development of Tesla becoming a part of this region and creating possibilities that are innovative and forward-thinking. We don’t want to build borders and obstacles for projects that can build up to a new future. We want to become an equal partner for Tesla to discuss the execution in detail and find sustainable ways to create a partnership where both worlds can benefit from each other and don’t act against each other,” the Facebook events page read.

On Thursday, Tesla opened an information center in the community in the hopes of opening a dialogue with local citizens. The minister of Economic Affairs of Brandenburg Jorg Steinbach welcomed the development as he hopes both parties will be open to dialogues.

The protesters, mostly from the environmental group Nature and Biodiversity Conservation Union (NABU) are primarily worried about the possible water issues that may arise. Tesla proposed to solve the issue by using a water pump but the locals are not too keen about the idea saying Elon Musk’s car brand will dry up the area and make it prone to forest fires.

The agriculture minister of the state Axel Vogel remained optimistic despite the protests in the past week

“The offer to compensate the pine forest to be cleared three times came from Tesla itself. Tesla’s offensive strategy should be style-setting for other projects. And overall, Tesla does not only want to build a CO2-neutral factory, but also to manufacture products that the German automotive industry has missed the time for 100 percent electrical,” Vogel said.

While there might be two opposing views among locals with regard to Gigafactory 4, what’s important is that all concerns of the community are addressed by Tesla while staying focused on the next steps so they can lay the first brick of its first car factory in Europe as scheduled. Amid all the demonstrations, workers at the Grunheide forest are busy clearing trees and preparing an access road to the build site.

The Gigafactory 4 is dealing with a tight timeline as Tesla wants to begin construction by mid-March, but the car manufacturer promised to solve all issues within legal framework and it has been coordinating with authorities and the local community to take care of even the tiniest creatures in the Grunheide forest where the factory will rise.

The Gigafactory 4 will create 12,000 jobs in Germany and nearby countries and will likely be a key element for the brand who wants to dominate the electric car market in Europe. The facility is expected to initially produce the electric crossover Model Y and targets to roll out 150,000 units during the first phases of production, and will eventually ramp up to 500,000 vehicles a year.

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Tesla’s Supercharger Network just undercut one of its biggest competitors by over three times, and the company did not even have to lower its prices. In a recent announcement, IONITY, the rapid charging network that is considered as VW, BMW, Daimler, and Ford’s answer to the Tesla Superchargers, revealed that it would be updating its pricing structure by the end of the month — and what an update it is. 

In a press release, IONITY stated that it would be launching a kilowatt-hour-based pricing scheme for customers across its established pan-European network starting January 31, 2020. The new rate is simple, with the company charging customers per kWh. The only issue is that IONITY will be charging electric car drivers 0.79 EUR ($0.88) per kWh.

That’s a substantial premium compared to the Tesla Supercharging Network, which has a rate of about 0.25 EUR ($0.28) per kWh. Thus, with this new pricing structure in place, an Audi e-tron or Porsche Taycan owner would end up paying about $80 to charge the all-electric SUV from zero to 100%. Considering that these vehicles are capable of traveling just over 200 miles on a charge, IONITY’s updated prices will make long trips on electric cars far more expensive than before.

IONITY boss Michael Hajesch, for one, noted that he does not think the new pricing strategy will turn customers away from using the network. In an interview with Handelsblatt‘s EV publication Edison Media, the IONITY executive explained that the rapid charging network’s advantages would likely be worth it for electric car drivers. 

“I don’t have that fear. It is important to mention that the connected mobility service providers – and in this case, also include the Porsche charging service and BMW ChargeNow – offer attractive end customer offers. Direct customers without a contract benefit from the IONITY service promise, such as high availability, a Europe-wide HPC charging network, top locations directly on the motorway, and responsible operation of the charging stations with green electricity.”

He also argued that such price adjustments would likely not deter the advent of electric mobility. While he admitted that IONITY’s new pricing is high compared to its rivals in the market, Hajesch stated that the decision to raise the network’s prices was not difficult at all, even among its owners, VW, BMW, and Daimler. 

“The discussion was not fierce or difficult at all. The price will not deter customers from buying, on the contrary. The overall service promise of the European IONITY HPC network already gives an answer to the key criticisms of the past regarding availability, charging power, green electricity supply, and range anxiety. We are therefore convinced that we are making a significant contribution to the market acceptance of electromobility. 

“The purchase decision will not only depend on the IONITY price point on the long-haul route, which only accounts for five to ten percent of the annual charging needs. You also have to take into account the other use cases at home/work and public charging, which can already result in advantages over diesel and gasoline,” he said. 

Despite the IONITY boss’ arguments, the fact remains that EV owners now need to pay far more to charge their vehicles using the rapid charging network. This will likely deter electric car owners who are budget conscious, and it might very well incentivize the ownership of internal combustion cars once more. After all, why buy an Audi e-tron that takes about $80 to fill up when a comparable gas or diesel-powered SUV can fill up for far less? 

That being said, this update in IONITY’s pricing also highlights the practicality of Tesla’s Supercharger Network, which charges about $0.28 per kWh. Tesla’s Superchargers currently top out at 250 kW, which is less than IONITY’s peak of 350 kW, but considering the price difference, electric car owners will likely take the slightly slower charging speed and be charged a rate that is several times more affordable. 

It’s unfortunate, but for now, at least, it appears that the only rapid charging network that is seriously going for petrol’s jugular is Tesla and is Superchargers.

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Tesla opens a community office that will help address the concerns of the locals as the electric car manufacturer takes steps to prepare a portion of the 300-hectare building site and eventually start construction of its Gigafactory 4 in Grünheide.

The Tesla information office opens its doors Thursday to hear the side of citizens who might have questions for the electric vehicle carmaker. This step taken by the company comes after a forest walk demonstration over the weekend conducted by 50 locals who are members of the group Nature Biodiversity Conservation Union (NABU). According to the police, another peaceful demonstration of 50 to 100 people is set for Saturday from Grunheide to Schleuse, a nearby community.

“I hope that with this citizens’ office, the situation will relax a little now,” said Minister of Economic Affairs of Brandenburg Jorg Steinbach during the meeting of the state economic committee on Wednesday. With the information office, Steinbach said that there’s “continuously the possibility of dialogue” and that Tesla will be able to handle public relations work by itself without having to rely on the state government.

Tesla opening an information office in Grunheide just means it means business, and that it conducts business with the local community in mind too. Despite tight deadlines to handle matters such as relocating endangered species of bats and other animals from the forest in Grunheide, the Palo Alto, California-based electric vehicle manufacturer will take time to talk to the locals so they understand that all measures are in place to ensure that everything is done within the legal framework, including taking care of the environment.

Tesla plans to begin construction on a 90-hectare parcel of the property by mid-March. The timetable is tight for the Elon Musk’s car brand as it plans to initially produce 150,000 vehicles per year and ramp-up to 500,000 vehicles, most likely the Model Y and Model 3 that will be distributed in Germany and the rest of Europe.

The Gigafactory 4 deal is almost certain to push through with economic minister Steinback saying it’s 95 percent secure. Recently, the sales contract for the GF4 property was approved by the Financial Committee of Brandenburg. Tesla’s car factory will create about 12,000 jobs and open opportunities not only for young professionals in Germany but nearby countries such as Poland as well.

Green Agriculture Minister of Brandenburg Axel Vogel is also optimistic about Tesla’s Gigafactory 4.

“I do not think so. Tesla has tied a renowned office, for Grünheide practically copies an existing factory. So you do not have to make all the drawings again, the technical process is clear and also what by-products and waste products are created.,” he said when asked if there’s a chance for the project to fail in an interview with German publication Der Tagesspiegel.

“…because Tesla approached the conservationists early and aggressively. The offer to compensate the pine forest to be cleared three times came from Tesla itself. Tesla’s offensive strategy should be style-setting for other projects. And overall, Tesla does not only want to build a CO2-neutral factory, but also to manufacture products that the German automotive industry has missed the time for 100 percent electrical,” Vogel explained why he is so optimistic about Tesla’s project in Brandenburg.

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Since the Tesla Model 3 began initial deliveries in Summer 2017, figures show that the United States’ ten most popular petrol-powered luxury sedans have seen a decline in popularity. All ten of the sedans have experienced a drop in sales when comparing numbers from 2017 and 2019.

The sales figures for the Model 3 have shown a striking increase over the past two years since its release. But a report from wheelsjoint.com shows other automakers haven’t had the success Tesla has experienced.

The downswing in these vehicles can all be attributed to the beginning of Tesla’s mass production of the Model 3 in 2018. Tesla’s most affordable sedan has clearly caused a change in what appeals to the average consumer who is looking to purchase a luxury vehicle.

Tesla reported that it delivered 145,846 Model 3s in 2018 after its mass production phase for the vehicle began. But 2019 would prove to be the biggest year for Tesla yet. They delivered 92,550 Model 3s in 2019 Q4 alone or 63% of what they delivered in the previous year as a whole.

Increased Model 3 deliveries in 2019 only caused a sharper dip in sales for the group of internal combustion engine luxury vehicles. The popularity of the Model 3 has effected all of the vehicles negatively, but no car felt the effects more than the BMW 4-Series.

The 4-Series has seen a 53% drop in sales figures from 2017 to 2019. The car’s numerous variants were sold 39,634 times in 2017, but that number dropped to below 19,000 units in 2019. The 4-Series was first offered to the public in 2013 and was one of BMW’s best selling lines. However, sales of sharply dropped off and BMW is planning to release a new “2nd Gen” body style of the 4-series to hopefully revive its popularity.

The Mercedes-Benz C-Class also has watched its numbers crumble as a result of the Model 3. The C-Class is a car that has shown steady growth since its first model was released in 1993. While the car is the most popular on the list as Mercedes-Benz sold 77,446 C-Class units in 2017, it experienced the second sharpest drop on the list at 36%. It managed to only sell 40,739 units in 2019.

The Model 3’s popularity and appeal comes from a variety of things, it just depends on who you ask. Some may have decided to go electric because of the gas savings, the EV incentives, the environmental impact, or the proven performance of Tesla vehicles. One thing is for certain, the company is steadily making an impact on the automotive market. As the Model 3 quickly becomes one of the most popular cars in the world, the next question is: Will Tesla’s other cars begin to disrupt their respective sectors as well?

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Tesla CEO Elon Musk announced during the recent Gigafactory 3 event in Shanghai that the company plans to create a design and R&D center in the country and it appears the carmaker is now looking for designers to help come up with “China-style” Tesla vehicles.

China-focused news website Abacus first spotted the announcement of Tesla on its official WeChat account on Wednesday. Roughly translated, the ad says, “Tesla is waiting for you. Chinese-Style Tesla will sweep the world.”

The post stated that Tesla is looking for outstanding design talents to create original Chine-style Teslas. The company is encouraging those with bold ideas and welcomes even non-car designers since according to Tesla China, the new designers will not just design ordinary cars. Interested parties can email designer@tesla.com  until Feb. 1, 2020.

“Let the most beautiful Chinese art be integrated into the future-oriented Tesla,” the Tesla WeChat post read.

Chinese-Style Tesla Vehicles by Tesla China Design Center (Source: Tesla China WeChat)

Chinese-Style Tesla Vehicles by Tesla China Design Center (Source: Tesla China WeChat)

Chinese-Style Tesla Vehicles by Tesla China Design Center (Source: Tesla China WeChat)

Chinese-Style Tesla Vehicles by Tesla China Design Center (Source: Tesla China WeChat)

The latest move of Tesla in China is another big step to dominate the local market and preparation to conquer the rest of Asia. No one might have thought that hiring for car designers to make Chinese-style Teslas will come this soon, but Elon Musk believes in the concept that speed solves everything. The design and R&D center in China will not only create vehicles for the local market but for the rest of the globe as well.

Perhaps the comparison of Musk to renowned military general and The Art of War author Sun Tzu by venture capitalist Paul Holland holds water since Tesla has been pushing the right buttons to get a share of the pie in the largest automotive market in the world. It is doing things right and it’s striking with rapidity as the Chinese philosopher advised.

Tesla recently delivered its first batch of Made-in-China Model 3 to the public and Musk also formally launched the Model Y program in the country during the Gigafactory 3 event.  It also lowered the price of the locally-made electric sedans the resulted in a surge of orders in the country. If the local market already loves the Model 3, introducing  variants of Teslas that’s focused on the China market will definitely generate more interest and help increase sales even more.

As analysts from China-based equity firm Chuancai Securities put it, the Model 3 is a potential cash cow for the electric carmaker as it can localize the sourcing of parts that will lead to better margins and better conditions to even stimulate sales of its vehicles in China.

The story of Tesla in China has been amazing so far. Its Gigafactory 3 in Shanghai rose from a muddy field and produced its first vehicles in just 10 months and delivered its first vehicles to its employees in less than a year. At present, its production has hit a run rate of 3,000 units per week and plans to consistently ramp up production as more workers are added to the production frontline.

Tesla will likely get some market share from local EV manufacturers but the competition is welcomed in a car market that has slowed down in the last year or so. The Chinese government, who’s looking to improve the quality of air in the country, is also pouring support that will help Tesla entice more consumers to buy its new energy vehicles.

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SpaceX reportedly plans to build a massive mobile gantry – effectively a tower on wheels – at one of its two Florida launch pads, a bid to meet obscure military launch criteria needed to secure highly lucrative Falcon 9 and Falcon Heavy launch contracts from the US government.

Although this is not the first time that SpaceX and vertical integration have been thrown around in the same sentence, it is the first time that the company is reportedly close to actually finalizing its plans along those lines and constructing a real solution at one or more of its three orbital-class launch pads.

Throughout the entirety of its active launch operations, SpaceX has relied exclusively on horizontal integration for its Falcon 1, 9, and Heavy rockets and the satellites they launch. CEO Elon Musk and other executives have maintained a consistent rationale for that preference over the years: ensuring that rockets and payloads can be horizontally integrated is the best possible solution so long as SpaceX’s primary motivation is improving access to space and lowering the cost of launch. As such, SpaceX has one and only one major motivation to jerry-rig a vertical integration solution for its Falcon family of rockets: necessity by way of arcane US military launch contract requirements.

Spaceflight Now broke the latest news first on January 3rd, 2020, revealing that SpaceX was at long last taking a substantial step towards actually building its own vertical integration infrastructure at Kennedy Space Center (KSC) Launch Complex 39A – a step that was long anticipated but has taken years to transpire into anything concrete. The gist is this: for a variety of seemingly shoehorned and far-from-obvious reasons, the secretive, ultra-expensive spy satellites that contractors like Lockheed Martin and Boeing build for the US Air Force (USAF) and the National Reconnaissance Office (NRO) builds itself are designed in such a way that they apparently cannot be flipped horizontally in a rocket’s payload fairing.

Identical to the process depicted above for Blue Origin’s in-development New Glenn rocket, up to now, SpaceX has encapsulated all satellite payloads vertically, sealed the payload fairing, rotated that integrated fairing and payload, and then attached that assembly to horizontal Falcon 9 and Falcon Heavy rockets. The rocket is then transported to the launch pad on a transporter erector (T/E), which – as the name suggests – raises the rocket and payload vertical before propellant loading and launch.

For certain USAF and NRO launch contracts, breakover (horizontal flip) is unacceptable and their preference is that the launch vehicle be brought vertical before the payload – also still vertical – is stacked on top. While it sounds simple in principle (i.e. “Just stick a crane out by the pad!”), vertical payload integration is exceptionally tedious unless you already have the infrastructure in place. Competitor United Launch Alliance (ULA), for example, already has that infrastructure – having held a decade-long monopoly over US military launches that only ended 5-7 years ago, depending on how it’s measured.

Both ULA’s Atlas V, Delta IV, and soon-to-be Vulcan Centaur rockets and the infrastructure used to launch them have all been designed around vertical payload integration – essentially requiring massive, expensive, and complicated buildings-on-wheels at each launch facility.

Per Spaceflight Now, SpaceX has plans to build a similar mobile tower at Pad 39A, currently dedicated Falcon 9/Crew Dragon missions for NASA and the occasional Falcon Heavy launch. That tower will ultimately roll up to Falcon 9 or Heavy rockets on the pad, fully covering the vehicles and giving technicians an array of work platforms and tools to support vertical payload integration, among other uses. SFN says that the mobile tower will be even taller than the existing Fixed Service Structure (FSS) tower at Pad 39A, measuring some 30 stories (100m/330ft) tall.

In line with a recent FSS redesign that saw that existing tower modified for Crew Dragon and outfitted with semi-transparent black glass or plastic and a black-and-white color scheme, the new mobile tower will apparently be built with a similar design language.

Ultimately, all of SpaceX’s plans for Starship – a massive next-generation, fully-reusable rocket – have relied on some form of vertical integration for Super Heavy boosters, Starships, and tankers. In a best-case scenario, all of those vehicles may one day land in reach of a giant crane situated at the launch pad, allowing SpaceX to lift them back to the pad and install ships and tankers on Super Heavy boosters just hours (maybe even minutes) after touchdown – truly rapid reuse.

For now, it’s unclear when exactly SpaceX wants to start cutting metal for its new Falcon 9/Heavy gantry, but it’s safe to say the company will move fast as usual once it begins.

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

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