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Topline
SpaceX, the private rocket producer run by billionaire Elon Musk, has reached a deal with the European Space Agency to launch four navigation and communications satellites into orbit, the Wall Street Journal reports, marking the first time the European Union has partnered with the Musk-led company on a satellite containing classified information.
Key Facts
SpaceX will launch four of the EU’s Galileo satellites from the U.S. next year in two rounds, using the company’s Falcon 9 rocket, Javier Benedicto, the European Space Agency’s director of navigation, told the Journal.
The satellites enable encrypted communications between European governments and handle the bloc’s satellite navigation system.
The launches will mark the first time the Galileo satellites have been sent into orbit from outside the EU in 15 years, and the Journal reports EU and U.S. officials are working together on the handling of classified information.
European officials were initially opposed to using SpaceX for Galileo launches, the Journal reports, believing the bloc “shouldn’t depend on a U.S. company, launching from the U.S., to deliver critical infrastructure into space.”
The change in thinking was affected by several factors, including European operators cutting ties with Russian rockets amid the war in Ukraine and technical issues with several other European rockets, according to the Journal.
SpaceX has not yet responded to a request for comment, and a spokesperson for the European Space Agency told the Journal the agency is “taking all necessary steps to ensure that the Galileo constellation continues to provide outstanding services in the coming months and years.”
What To Watch For
The SpaceX deal will still have to be approved by the EU’s executive arm, the European Commission, as well as its member states, which officials cited by the Journal predicted would happen by the end of the year.
Crucial Quote
“It is a matter of robustness,” Benedicto told the Journal, noting that Galileo satellites in space right now aren’t at risk of any near-term failures. “We have 10 satellites that are ready to be launched, and those satellites should be in space, not on the ground.” Benedicto added the space agency does not believe it will use SpaceX for future Galileo launches beyond the four in this deal, however.
Forbes Valuation
$225.2 billion. That’s Musk’s estimated net worth as of Monday, according to Forbes’ real-time tracker, making him the richest person in the world. Forbes values SpaceX as being worth nearly $150 billion.
Tangent
The SpaceX deal comes as the EU has been fighting with X, one of Musk’s other companies. The bloc announced October 13 it had launched an investigation into the social media company, formerly known as Twitter, over concerns about how it’s handled misinformation and violent content around the war in Israel since Hamas launched an attack earlier in October. The bloc has concerns that X is in violation of the EU’s Digital Service Act, which could result in serious sanctions, such as fines of up to 6% of the company’s global turnover or even having X suspended. Insider reported last week that Musk has discussed the possibility of blocking X in Europe as a result of the EU’s regulations.
Key Background
SpaceX, which Musk founded in 2002, has so far emerged as the biggest player in the billionaire space race, making inroads over competitors Jeff Bezos’ Blue Origin and Richard Branson’s Virgin Galactic. While its manned space missions have faced larger issues, with its Starship rocket—which aims to one day transport astronauts to the moon—now under federal review after it exploded during a test launch in April, SpaceX has had greater luck launching satellites into orbit. The company has launched rockets containing satellites nearly every week since 2019, the New York Times reported in July, largely thanks to Starlink, SpaceX’s satellite internet offshoot consisting of satellites operating in “low-earth orbit” that now provides internet services in more than 50 countries. The company’s satellites account for more than 50% of all active satellites in orbit, according to the Times. SpaceX and Starlink have worked with a number of governments as a result, including the Department of Defense and providing internet coverage in Ukraine since its war with Russia began. The Times notes other governments have been wary about working with the company amid concerns about Musk, however, including his business ties to China and being “beholden to his whims and desires”—as evidenced by Musk reportedly restricting Starlink access in Ukraine (which he denies).
Further Reading
SpaceX Signs Deal to Launch Key European Satellites (Wall Street Journal)
Elon Musk’s Unmatched Power in the Stars (New York Times)
EU Investigates Musk’s X Over Handling Of Israel-Hamas Disinformation (Forbes)
SpaceX’s Starlink Revenue Jumps To $1.4 Billion But Falls Short Of Early Targets, Report Says—As Musk-Ukraine Controversy Brews (Forbes)
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