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Elon Musk Weekly News Update: Tesla, SpaceX, Neuralink, and More · Elon Musk Podcast

0:01
Hey everybody, welcome back to the Elon Musk Podcast.
0:05
This is a show where we discuss the critical Crossroads, The
0:08
Shape, SpaceX, Tesla X, The Boring Company, and Neuralink,
0:13
and I'm your host, Will Walden. If you want uninterrupted
0:17
episodes of the Elon Musk podcast, please go to
0:20
clubelon.supercast.com to find out how there's a link in the
0:26
show notes NASA has recently addressed claims about SpaceX
0:29
CEO Elon Musk's alleged illegal drug use, stating that they have
0:33
no evidence of non compliance regarding drug and alcohol free
0:36
workplace regulations. Now, this statement was a direct
0:40
response to inquiries about Elon Musk's behavior, which has been
0:43
under scrutiny, especially following his on air weed use in
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2018 and his public endorsements of substances like ketamine and
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psychedelics for public mental health treatments are the
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allegations against Musk include unverified insider claims of his
1:00
use of substances ranging from cocaine to LSD.
1:04
Now, these reports have raised concerns about his leadership
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and behavior, and in response, NASA, which has significant
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contracts with his rocket company SpaceX, has had to
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examine these allegations closely due to federal
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government standards regarding drug use, and according to NASA,
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it's contracted companies like SpaceX are responsible for
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ensuring their employees comply with drug free workplace
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regulations. This includes employees in
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sensitive positions, which would presumably include Musk given
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his high profile role and influence within SpaceX.
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Now there's speculation about the process SpaceX uses to
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collect and test Musk drug samples, though the speculation
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includes questions about the reliability and the integrity of
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the testing processes, essentially considering Musk's
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high status within the company. Now, Business Insider had a
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report last month, and a further investigation revealed that NASA
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has been somewhat secretive about the findings of their drug
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use probe as SpaceX. This secrecy has led to more
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speculation that if Musk is using drugs, he's managing to do
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so without detection by government authorities.
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Now, NASA spent three months reviewing Spacex's adherence to
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a drug free workplace following Musk's appearance on Joe Rogan's
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podcast in 2018, where he is seen smoking marijuana.
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Results of this investigation, obtained by Business Insider
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through the Freedom of Information Act, were heavily
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redacted, leaving the findings very unclear.
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The Organizational Safety Assessment by NASA was initiated
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after reports surfaced that Musk was micro dosing ketamine, and
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the Wall Street Journal's report in this matter prompted new
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questions about Musk's drug use. NASA initially denied having
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records of the assessment's results.
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However, after Business Insider pointed out the $5,000,000
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taxpayer funded probe, NASA released some documents related
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to the investigation, but they were heavily censored and the
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probe, which included interviews with 296 SpaceX employees,
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covered SpaceX facilities across the United States.
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Despite its extensive nature and the high cost, the results were
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kept confidential with NASA concerns over harming Spacex's
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competitive posture or business interests.
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Now William Gerstenmeyer, the NASA administrator who requested
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the review, emphasized the importance of safety in the
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United States based program and the need for SpaceX to maintain
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a drug free workplace. Now, Gerstenmeyer later joined
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SpaceX as the Vice President of Build and Flight Reliability,
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and Elon has publicly responded to allegations of drug use,
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particularly in light of the Wall Street Journal report.
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He stated that three years of random testing found no traces
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of drug use in his system. Musk criticize the Wall Street
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Journal report, dismissing it as very inaccurate, and concerns
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over Musk's drug use are not just limited to external
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reports. Senior figures within Musk's own
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companies have expressed worries, with a Tesla board
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director reportedly stepping down due to these concerns, and
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incidents like Musk's tweet about taking Tesla private have
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also raised questions about his state of mind during significant
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business decisions. Musk's appearance on Joe Rogan's
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podcast where he smoked weed led to a $5,000,000 NASA
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investigation at a drug use at SpaceX in the results, and the
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implications of the investigation remain largely
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unknown to the public. And following the Rogan
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incident, Musk and SpaceX employees were now subject to
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random drug tests for a year. This was in compliance with
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federal requirements for companies working with the
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government, highlighting the strict, very strict standards
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that federal contractors must adhere to.
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And Musk has maintained that he does not engage in illegal drug
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use, emphasizing his dislike for such substances.
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This claim stands in contrast to the various reports and
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allegations that have surfaced over the years, creating a
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dichotomy between Musk's public persona and the rumors
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surrounding his personal life. The controversy surrounding
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Musk's alleged drug use and NASA's response illustrates the
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complex relationship between high profile individuals, their
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personal conduct, and their professional responsibilities,
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especially when government contracts and public safety are
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involved in the on growing scrutiny of Musk's behavior in
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NASA's investigation into Spacex's drug free workplace
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compliance continue to be subjects of interest both within
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the space industry and among the general public and reporters as
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well. And the outcome of these
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investigations and Musk's responses will likely have
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significant effects on Spacex's future operations and its
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relationships with NASA. As of right now, Elon and the
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rest of the SpaceX crew are free and cleared to continue doing
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what they do now. While NASA's statement and the
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subsequent investigations have not definitively resolved
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questions about Elon Musk's alleged drug use, they've
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highlighted the importance of maintaining stringent standards
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and high stakes industries like space exploration.
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The issue remains a topic of public and professional debate,
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reflecting the challenges of balancing personal freedoms with
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professional responsibilities in highly regulated sectors.
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So SpaceX had a recent Starship System test and it marks an
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important, albeit very complex point in its development
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journey. Despite the loss of the Super
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heavy booster and the Starship spacecraft during the IFT 2
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flight, SpaceX remains optimistic, viewing the event as
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a valuable learning opportunity for advancing its multi
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planetary ambitions. Now SpaceX in a statement
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emphasizes the significance of the test for gaining crucial
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data to enhance starships reliability.
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This incident underscores the challenges of SpaceX faces and
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perfecting the technology needed for future space missions,
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including colonization of other planets like Mars and beyond.
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Now the Starship system is not only a key player in Spacex's
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grand vision for space travel, but also a critical component in
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NASA's Artemis program. This program aims to return US
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astronauts to the moon, a feat not achieved in over 50 years or
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five decades. And this one's different.
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They're going to establish permanent lunar outpost, the
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Artemis 3 mission scheduled for late 2025 but possibly being
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pushed on even further Plans to utilize the Starship spacecraft
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and the recent test flight failure has raised concerns
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about meeting this deadline, although the NASA officials
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maintained an optimistic outlook, valuing the lessons
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learned from each one of these tests.
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IFT 1, IFT 2 and soon, probably February of 2024 IFT 3.
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Let's go back to the second test flight of the Starship.
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The system demonstrated significant improvements over
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its first attempt. The successful ignition of all
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33 engine and the survival of the launchpad against immense
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thrust are notable achievements. However, this mission also faced
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critical failures that hindered its full execution.
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Now the Super heavy booster is unexpected explosion after
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detaching from the Starship and the subsequent loss of signal
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from the Starship capsule highlight key areas for
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improvement. These events prevented SpaceX
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from testing vital landing and reusability maneuvers.
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Now Elon Musk, the SpaceX CEO, has acknowledged the complexity
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of ensuring safe re entry and landing for the Starship.
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This aspect remains one of the most challenging hurdles in the
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vehicle's development. Reusability is a cornerstone of
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all of Spacex's strategy, but essentially the Starship system
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needs this in order to complete the goal to get to the lunar
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surface. Now successfully recovering and
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reusing both the Starship spacecraft and the Super Heavy
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booster is crucial for frequent and cost effective lunar
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missions. The orbital refueling of
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Starship is also a critical step for lunar missions.
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Given the immense fuel consumption during loss, over a
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dozen tanker missions may be required to refuel a single
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Starship for its lunar journey. Just recently, in a talk with
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NASA, a SpaceX representative said it would take about 10
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refuels for the Starship and the lunar mission.
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Now, achieving a moon landing with Starship involves multiple
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development milestones, including hundreds of satellite
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missions, tanker version testing, and an uncrewed lunar
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landing. Spacex's approach to edit this
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out, Spacex's approach to development embraces the risk of
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explosive failures as a path to rapid learning and also
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improvement of the Starship system.
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Comparatively, NASA's traditional development
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approach, characterized by extensive ground testing,
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contrasts with Spacex's more experimental and cost effective
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method. The difference in approach
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reflects the varying priorities and methodologies of government
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and now private sector space exploration with SpaceX now in
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the broader context of lunar Landers, SpaceX Starship
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competes with Blue Origins Blue Moon, another contender for
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future Artemis missions. Each company faces unique
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challenges in the respective designs and strategies for Moon
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landings. Now, the current initiatives to
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send humans back to the moon through programs like Artemis
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mark a shift from NASA's historic Apollo missions.
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Unlike Apollo, which was primarily focused on achieving
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the first lunar landing and established American dominance
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in space during the Cold War, the Artemis program aims for a
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sustainable and long term presence on the moon.
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This new era in lunar exploration is not about
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repeating the past, but about laying the new groundwork for
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future space endeavors, including potential missions to
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Mars. And a key difference between the
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Apollo program and current lunar missions is the emphasis on
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sustainability and also reusability in space travel.
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While Apollo missions were essentially one off ventures,
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the Artemis program, with the help of technologies like
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Spacex's Starship, seeks to establish a continuous human
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presence on the Moon. This approach involves
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developing infrastructure for repeated trips, permanent lunar
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bases, and technologies that can be adapted for future Mars
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missions, representing a significant advancement from the
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Apollo era. Apollo basically sent humans to
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the moon and brought them back to Earth.
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We're going to set up an infrastructure for future
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generations with the Artemis program, and the Artemis
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missions also differ in their collaborative nature.
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The Apollo program was a largely national effort, driven by the
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geopolitical context of the 1960s, the Cold War, and in
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contrast, Artemis is more international and commercial,
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involving partnerships with various countries and also
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various private companies like SpaceX and Blue Origin.
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This collaborative approach not only spreads the financial
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burden, but also brings together a diverse range of expertise in
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technology, making the mission more robust and inclusive.
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The technological advancement since the Apollo era also play a
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critical role in shaping the Artemis missions.
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Today's spacecraft, lunar Landers, and other space
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technologies benefit from decades of innovation in
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material science, computing, and engineering.
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These advancements enable more ambitious missions, such as
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establishing a permanent base on the Moon and eventually sending
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humans to Mars, which were beyond the scope of the Apollo
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program. The Artemis missions therefore
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stand as an important milestone in the ongoing evolution of
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space exploration. Now, looking ahead, SpaceX plans
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to ready the Starship system for another test flight within
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weeks, should be about mid January, late January.
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For this, however, the timeline is uncertain given the need for
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a thorough analysis of the recent test data and regulatory
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approvals from the FAA and the FAAA Involvement in
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investigating the recent test flight and its role in approving
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future launches adds another layer of complexity to Spacex's
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timeline. The duration of these regulatory
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processes remains unclear, but SpaceX is hoping to get FAA
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clearance by February. Spacex's recent Starship test
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represents a significant but mixed step in the journey
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towards advanced space exploration.
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The successes and setbacks of this test provide vital insights
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for SpaceX as it continues to develop technology that could
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shape our approach to exploring and inhabiting space from the
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Moon to Mars and beyond. So Elon Musk recently shared
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insights into the second full scale Starship test flight,
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which ended unexpectedly, and the starship's upper stage
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exploded due to a fire ignited during the venting of liquid
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oxygen propellant. Musk clarified this.
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He said the reason that it actually didn't quite make it to
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orbit was we vented the liquid oxygen and the liquid oxygen
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ultimately led to a fire and an explosion.
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Now looking ahead, SpaceX has set very ambitious targets for
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the next Starship test. Objectives include reactivating
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the Raptor engines in space, conducting an in flight
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propellant transfer and also operating the payload Bay door
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potentially as early as February of 2024.
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Now the in flight propellant transfer is possibly for an
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upcoming NASA Artemis mission. The payload door is for Starlink
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satellite deployment and reigniting.
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The Raptor engines in space propels the Starship spacecraft
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all the way to Kauai near Hawaii and that's where it will splash
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down in the ocean now. Meanwhile, the Falcon 9 and the
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Falcon Heavy rockets remain in Spacex's operations and these
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rockets will continue their service into the late twenty 20s
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and possibly beyond 20-30 carrying satellites, cargo and
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also astronauts. Now significant enhancements are
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planned for the Falcon series. Musk aims to certify Falcon
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first stage boosters for up to 40 flights and reduce turn
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around times for launchpads to under 24 hours.
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And a key event for SpaceX has the launch of the private
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mission to the International Space Station.
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With four individuals on board, this mission, facilitated in
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collaboration with Axiom Space, is a huge step for commercial
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Space Flight. Now funded by Axiom Space
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itself. This mission represents the
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third group of paying passengers to the International Space
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Station. Axiom Space, aspiring to build
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its own space station similar to the International Space Station,
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is using these missions as fundamental experiences now.
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The mission faced A slight delay for additional pre launch
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checks, particularly focusing on the Parachute Systems Energy
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Modulator. Once resolved, SpaceX confirmed
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readiness for the rescheduled launch and during their two week
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stay at the ISS, the crew will engage in around 30 experiments
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encompassing microgravity research, technological
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administrations and educational activities.
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The mission, dubbed AX3, saw the crew Dragon spacecraft freedom
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making its third journey to space.
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Leading the crew was Axiom's Chief astronaut, Michael Locev
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Allegra, accompanied by three international astronauts.
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Now there's a Turkish astronaut on board, and this mission
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represents the commencement of an expansive space exploration
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journey, he said. This Space Flight is not a
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destination, but it's a journey. This is just the beginning of
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our journey for a long growing space journey in our future.
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And Spacex's collaboration with Axiom Space led to the
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successful launch of the AX 3 mission to the International
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Space Station. The Falcon 9's rocket launch
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from Kennedy Space Center was a key moment in this partnership
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and the missions delay was partly attributed to issues with
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parachute strap known as Energy Modulators detected during the
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CRS 29 Cargo Dragon mission. These were rectified in time for
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the AX3 launch. Now following a smooth docking
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process, the AX3 crew commenced their scientific and technical
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word inside of the International Space Station and their two week
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tenure will contribute significantly to ongoing Space
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Research. AX3 plays a vital role in Axiom
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Space's long term vision of establishing commercial modules
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on the ISS, eventually transitioning into a stand alone
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commercial space station post ISS retirement.
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The diverse crew of AXE 3, representing various European
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governments, highlights the increased international
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collaboration in space missions as well.
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This includes astronauts from Italy, Turkey, and Sweden.
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In alignment with NASA's broader strategy, Private astronauts
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missions like AX3 are instrumental in the development
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of commercial space habitats, which is a key focus of NASA as
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they pivot to lunar and eventually to Mars missions.
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The repeated use of these Falcon 9 boosters and the Crew Dragon
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spacecraft in the AX 3 mission shows that SpaceX is committed
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to sustainability and reusability in space travel.
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That's their mantra. They have to reuse every single
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booster and possibly every single upper stage, and that's
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what they're working for with the Starship system now.
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All of the Axiom 3 astronauts successfully docked at the ISS
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at 5:42 AM Eastern Time on January 20th, 2024.
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This is achieved as Dragon seamlessly docked to the space
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station orbiting approximately 262 miles above the Pacific
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Ocean West of South Africa, or, sorry, South America.
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Now this successful docking is a significant achievement for both
18:15
SpaceX Axiom Space and for the International Space flight
18:18
community. The precision and the
18:20
coordination demonstrating this operation show the advanced in
18:25
capabilities of Spacex's technology and the growing
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potential of commercial space missions.
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Spacex's Starlink has recently conducted its first successful
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live test of the new global direct to sell or the DTC mobile
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roaming service. This is a huge test.
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It's conducted with standard, unmodified smartphones comes
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just days after the launch of the first batch of DTC capable
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satellites on top of a Falcon 9 rocket.
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Currently the service is limited to sending and receiving texts
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only, but in the future they want to do phone calls and send
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data too. Now the Starlink network with
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approximately 5311 low Earth orbit satellites, or Leo, is set
19:10
to expand by roughly 7500 by the end of 2027.
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Now in the UK, Starlink offers packages starting at about
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$75.00 a month, and in the US it's about the same.
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And that's you also have to buy the equipment as well for the
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ground services. Now the service promises fast
19:28
Internet with low latency times and considerable download and
19:32
upload speeds in rural areas. Globally, Starlink boasts 2.3
19:38
million customers with 42,000 of them in the UK and more in the
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US, primarily in rural areas. In the addition of 4G mobile
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capability to the satellite constellation aims to enable
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global roaming communications with regular smartphones, a
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significant step beyond traditional satellite phone
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services. Now Starlink's DTC satellites
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feature in advance E node B modem functioning like a cell
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phone tower in space. Now this innovation allows for
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network integration akin to standard roaming services in the
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first technological test of this capability.
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Was conducted in the USA in partnership with T-Mobile.
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The test demonstrated the capability of these satellites
20:21
to facilitate the sending and receiving of text messages via
20:25
an unspecified smartphone. This marks a huge achievement in
20:29
satellite based communication technologies and Starlight's
20:33
statement highlighted the challenges and breakthroughs of
20:35
this tech. They noted the difficulties of
20:37
connecting cell phones to moving satellites and the innovative
20:40
solutions involving custom silicone phased array antennas
20:45
and advanced software algorithms to overcome those challenges.
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And SpaceX plans to launch additional DTC capable
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satellites to introduce a basic text service by 2024, and with
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the aim to expand to voice data and IoT services by 2025.
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Now currently in the UK, they lack a mobile operator partner
21:06
for the service, but in the US they have T-Mobile and pricing
21:09
details for global roaming plans are yet to be disclosed.
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Elon Musk has stated that the first DTC capable satellites
21:17
offer limited data speeds, suggesting that while beneficial
21:20
for areas without cell connectivity, they're not
21:23
competitive with terrestrial networks.
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Yet. System aims to provide basic
21:27
communication needs, particularly in remote areas,
21:30
say if you're hiking in the woods, or if you're up on a
21:33
mountain, or if you're skiing someplace where there's no cell
21:36
service. Well, this could possibly be at
21:39
least a lifeline with a text service and possible data in the
21:43
near future. Now, a recent update from
21:46
Starlink revealed their successful test with T-Mobile
21:49
using network spectrum to send and receive text messages
21:52
through their new satellites. And this is a major advancement
21:55
in integrating satellite and cell communications because
21:58
currently we have cell towers and the service described as
22:01
cell phone towers in space plans to offer text messages later
22:06
this year for T-Mobile customers in the US in a broader range
22:09
with voice and data services expected to commence in 2025.
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And the connectivity of these cell phones to satellites was
22:16
also outlined by SpaceX. And they said that the
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challenges of terrestrial stationary networks versus fast
22:23
moving satellites is remarkable. The company showed that
22:27
technological advancements enabled standard LTE services to
22:31
cell phones on the ground. T-mobile's collaboration with
22:34
Spacex's Starlink is a huge advancement in the cellular
22:38
coverage for space tech now, particularly in areas
22:43
traditionally underserved by conventional network
22:45
infrastructure. Its partnership is not just
22:47
about enhancing existing services, but also moving
22:50
forward with a novel approach to connectivity.
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The field test plans with Starlink satellites show a
22:56
crucial step in this joint adventure.
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Now these tests aim to demonstrate the practicality and
23:01
effectiveness of using satellites to bridge coverage
23:03
gaps in regions where geographical challenges such as
23:07
rugged terrain or stringent land use restrictions impede the
23:10
establishment of ground based cellular towers.
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Now this network could provide a much needed solution.
23:17
This approach promises to extend T-mobile's reach, offering
23:20
connectivity to customers in even the most remote locations.
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Now the significance of this development lies in its
23:26
potential to redefine the scope of mobile network coverage.
23:29
By integrating satellite technology into their network,
23:32
T-mobile's not only looking to enhance their service in remote
23:35
areas, but also to ensure reliability and continuous
23:38
connectivity in emergency situations where terrestrial
23:42
networks might fail. This initiative could transform
23:45
the way we think about mobile coverage, especially in disaster
23:48
prone regions where communication is critical.
23:51
The collaboration is poised to offer a unique combination of
23:54
terrestrial and extraterrestrial network capabilities, creating a
23:58
more robust and versatile communication network.
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The anticipation around the field testing phase reflects the
24:04
industry's growing recognition of the need for more innovative
24:07
solutions to address connectivity challenges in
24:09
diverse environments. This T-Mobile and Spacex's
24:12
startling venture into this new territory.
24:15
They're setting the stage for more connected future.
24:17
The success of this partnership could encourage other mobile
24:20
operators to explore similar satellite based solutions,
24:23
potentially leading to a more interconnected and accessible
24:26
world. A Starling satellites, once
24:28
fully operational, could provide a more complementary layer to
24:32
existing cell networks, ensuring that people stay connected all
24:35
the time regardless of the location.
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Now, it's not just a technological leap though.
24:40
It's a commitment to bridging the digital divide between land
24:44
based and space based Internet and all corners of the globe.
24:50
The plan is to launch D2D text service this year and expand to
24:55
include voice data in Internet of Things services by 2025.
24:59
The expansion of the Starlink Internet service to a network of
25:03
over 5000 satellites serving more than 2.3 million customers
25:07
worldwide shows that they want to scale this.
25:09
And in the broader context, several smartphone
25:12
manufacturers, service providers, and satellite
25:14
companies are collaborating to roll out direct to device
25:18
services. Apple, for instance, has
25:20
launched its Emergency SOS with satellite service in partnership
25:24
with Global Star, while Iridium recently introduced Project
25:28
Stardust, aiming to test its D2D service in 2025.
25:32
Now, Qualcomm's dissolved partnership with Iridium and the
25:35
latter's new initiative highlight the dynamic nature of
25:38
collaborations in the sector. Iridium planned to begin rolling
25:41
out its D2D service by 2026 adds another layer to the landscape
25:46
of satellite based communication services.
25:48
The series of developments underscores the technological
25:50
strides being made by satellite companies and the ability to
25:54
connect regular smartphones directly to satellites open up
25:57
some new possibilities for global connectivity,
26:00
particularly in these remote and underserved areas that we were
26:04
talking about earlier. This is a huge, huge
26:07
development, especially for regions lacking traditional
26:09
cellular network infrastructure, and as this technology evolves,
26:13
we'll be here to let you know about everything that happens.
26:17
Tesla Inc has witnessed a sharp decline in market value, losing
26:21
over $94 billion in the early weeks of 2024.
26:26
Now this downturn marks a stark contrast to the company's
26:29
success in 2023, where its stock value more than doubled.
26:33
Now the slump is attributed to a series of adverse developments,
26:36
including reduced demand for E VS in the United States, price
26:40
cuts in China, and increasing labor costs.
26:44
Now, the electric vehicle industry is currently
26:46
experiencing A slowdown altogether, particularly in the
26:49
US market. Investors main concern on Tesla
26:52
is stagnating growth, said Jeffrey Osborne, an analyst from
26:55
Cohen, highlighting concerns about Tesla's performance,
26:59
especially in light of the price reductions in the competitive
27:01
Chinese market. Now these factors have fueled
27:04
investor apprehension, contributing to the company's
27:07
recent financial setbacks. Tesla's recent market
27:10
capitalization loss is unprecedented.
27:13
Since its public debut in 2010, the company's stock has plunged
27:17
by 12% since January 2024, the most significant drop since a
27:21
14% decline over the first nine trading days of 2016.
27:26
The outlook for a rapid recovery seems bleak given the current
27:29
market conditions, and the company has been aggressively
27:32
cutting prices since early of 2023 to stimulate demand.
27:36
But this strategy has led to a substantial erosion of profit
27:39
margins. The third quarter of the
27:41
previous year saw Tesla's automotive gross margin excluded
27:45
regulatory credits fall to 16.3% from 27.9% a year earlier.
27:51
And additionally, Tesla is facing increased financial
27:54
pressure due to pay raises for production workers at its US
27:58
plants. We are going through a cyclical
28:01
downturn for EVs, but competitive dynamics are
28:04
exacerbating the cyclical pressures, said Ivana Deleskva,
28:08
senior chief investment officer at Spear Invest.
28:12
She noted that the combination of price cuts and shrinking
28:15
margins are consequences of these challenging market
28:18
conditions now adding to Tesla's challenges.
28:21
The company has had to redirect shipments intended for its
28:24
Berlin plant and suspend most production there from January
28:27
29th to February 11th due to security concerns and Western
28:32
military actions in the red scene.
28:34
This disruption further complicates the company's
28:37
operational landscape. Tesla first raised alarms about
28:40
slow EV demand during its third quarter earnings report in
28:44
October. Following this, several
28:46
automakers and suppliers worldwide expressed similar
28:48
concerns, leading to a scaling back of expansion plans across
28:52
the industry in recent development.
28:55
Tesla's fourth quarter delivery numbers, though better than
28:58
expected, positioned the company behind China's BYD company in
29:02
global electric car sales. This shift has been a wake up
29:05
call for investors, particularly after Tesla's stock was among
29:09
the top performance in the S&P 500 last year.
29:13
Tesla CEO Elon Musk, the world's richest person as of last year,
29:17
has seen a significant decrease in his net worth by $23 billion
29:21
in the early part of 2024. His wealth, primarily derived
29:25
from his stakes and Tesla and SpaceX, has been affected by the
29:28
recent downturn in Tesla's market value.
29:31
And despite these setbacks, Tesla remains A crucial player
29:33
in the global shift towards electric vehicles.
29:36
While China's BYD has surpassed Tesla in unit sales, Tesla still
29:40
leads in revenue and profits, particularly in the US market.
29:43
However, Tesla's past success and inflated market
29:47
capitalization have made its stock particularly sensitive to
29:50
negative news. A major point of contention of
29:53
Tesla is its unfulfilled promise to fully autonomous driving and
29:58
AI advancements. Being simply another automotive
30:01
manufacturer is not going to cut it for a $750 billion valuation,
30:06
said to Levskip, emphasizing that Tesla's high valuation
30:10
hinges on these future technologies and the company's
30:13
failure to deliver on them. Thus far, in response to
30:16
industry trends, Tesla has announced pay increases for
30:19
workers at its US factories. This move follows similar
30:23
actions by non union automakers like Toyota, Volkswagen and
30:27
Hyundai coming in the wake of historic labor contracts
30:30
securing the United Auto Workers or UAW for employees at Ford,
30:34
General Motors and Solantis. Now the pay raises at Tesla,
30:39
which were not detailed in terms of amounts, apply to all US
30:43
production associates, material handlers and quality inspectors.
30:47
This decision aligns with broader industry trends where
30:50
automakers are increasing wages to remain competitive and
30:53
respond to unitization efforts. So Tesla's not doing anything
30:57
really out of the ordinary here. UAW President Sean Fain has
31:01
identified Tesla as a key target in the union's expansion efforts
31:05
following successful wage negotiations with the Big Three
31:07
automakers. And Fain attributed past
31:10
unization failures to internal corruption and unfavorable
31:14
contracts, or remains optimistic about UA WS future prospects.
31:19
Elon Musk, Tesla CEO, has historically been critical of
31:22
unions. He's emphasized cost cutting
31:24
measures in response to economic pressures and the need to make
31:27
Tesla's electric vehicles more affordable.
31:29
The increased wages for production workers, however, may
31:32
complicate these cost reduction efforts.
31:35
Tesla's Fremont factory, which employs over 20,000 workers, has
31:39
seen the formation of a UAW organizing committee.
31:43
The National Labor Relations Board previously ruled that
31:46
Tesla violated labor laws during past unionization efforts.
31:50
Tesla denies these allegation and is appealing the ruling in
31:53
federal court. The pay increases at Tesla's US
31:56
plans reflect A broader industry trend now following the UAW
31:59
successful strikes against the Big Three automakers.
32:02
Other major car companies including Hyundai, Honda, and
32:05
Toyota have also raised wages at their US factories in response
32:09
to the unions. Now, the wage hikes at Tesla and
32:12
other automakers show a significant shift in the
32:15
automotive industry's labor dynamics.
32:17
While these increases are a step toward addressing worker
32:20
demands, they also reflect the changing economic landscape and
32:23
the growing influence of Labor unions like the UAW.
32:27
Now, Tesla's substantial market value loss marks a challenging
32:31
start to 2024, contrasting sharply with its previous year's
32:34
huge success. And the company faces multiple
32:37
hurdles, including slowing EV demand, competitive market
32:41
dynamics and increased labor costs.
32:44
And despite these challenges, Tesla is a juggernaut in the EV
32:47
industry, and now it's under new pressures.
32:50
And the recent wage increases across the industry, including
32:53
at Tesla, could mean a significant shift in Tesla's
32:56
business. Elon Musk's X, previously known
33:00
as Twitter, is taking a significant step to enhance
33:02
brand safety for advertisers. Starting in February, the
33:06
company will offer US advertisers more control over
33:08
the vertical video ad placements through an expanded partnership
33:12
with Integral Ad Services. Now this move comes after the
33:15
platform faced criticism for its content moderation policies and
33:19
impact on its ad revenue and brand partnerships.
33:22
Now X collaboration with IAS involves classifying all
33:26
vertical video ad adjacencies to ensure they align with the
33:30
Global Alliance for Responsible Media Framework, or GARM.
33:34
The company aims to reassure advertisers that their vertical
33:37
video ads won't be placed next to harmful or offensive content.
33:41
Now this effort is a part of X's strategy to rebuild trust with
33:44
its advertising partners. The company's recent challenges
33:47
with brand safety and content moderation have led to a
33:50
significant loss in advertising revenue.
33:53
Major advertisers have reduced their spending on X and shifted
33:56
to other social media platforms and XS value has plummeted over
34:00
71% since Musk's takeover in April of 2022, as estimated by
34:05
Fidelity. And in an attempt to regain its
34:08
footing in social media arena and attract advertisers, X is
34:11
now positioning itself as a video first platform.
34:14
And the company claims that video content is integral to the
34:17
majority of user sessions, noting a nearly 30% year over
34:21
year increase in video views. However, it remains unclear if
34:24
this includes all video views or average video views.
34:28
A vertical video is reportedly the fastest growing feature on X
34:32
with over 100 million daily viewers and significant user
34:35
engagement. And despite these claims, there
34:38
are concerns about the accuracy of these numbers, especially
34:40
considering the platform's recent changes in content
34:43
moderation and leadership. X is actively expanding its
34:46
brand safety and content moderation teams too, which
34:49
reverses the downsizing trend initiated by Elon Musk in 2022.
34:54
This expansion aims to address ongoing concerns about the
34:58
platform's approach to managing harmful content and maintaining
35:01
a safe environment for advertisers and users alike.
35:05
And despite these efforts, experts remain skeptical about
35:08
X's ability to attract advertisers back.
35:11
The company's recent emphasis on video content, including new
35:14
formats like immersive video and enhanced video Calling Features,
35:19
is part of its strategy to become an Everything app.
35:22
And the platform's claims about user engagement with video
35:24
content, such as the high rate of video watching in user
35:28
sessions, are met with scepticism.
35:31
Analysts and industry experts question the clarity and
35:33
validity of these statistics, especially given the past
35:36
discrepancy and data released by Axe and Musk.
35:39
The expansion of video content on X is also seen as an attempt
35:43
to win backed advertisers who distance themselves following
35:46
must controversial actions and its statements.
35:49
Now. This shift in content strategy
35:50
reflects the broader effort to diversify the platform's appeal
35:54
and its revenue sources. Now, XS blog post highlighted a
35:58
22% increase in total ad engagements, suggesting that its
36:02
efforts to make advertising more relevant and impactful are
36:06
bearing fruit. However, there's criticism about
36:09
the decline quality of ads on the platform, with some users
36:12
noticing an influx of lower quality clickbait type ads.
36:16
Now, the company has established new partnerships with ad
36:18
verification and brand safety measurement firms, including
36:22
Double Verify and IAS, and these collaborations aim to reassure
36:26
advertisers that the platform's commitment to brand safety
36:29
following concerns about ads appearing next to inappropriate
36:32
content. Now there's a bit of report from
36:34
Media Matters which revealed inconsistencies in XS brand
36:37
safety measures with ads from major brands appearing next to
36:40
controversial content, and X challenged these findings and
36:44
responded with legal action against Media Matters.
36:46
The company's expanded partnership with IAS is a part
36:50
of its effort to bolster brand safety, particularly for its
36:53
growing vertical, video content. Now, despite these initiatives,
36:57
there's continuous skepticism about X's potential gain of lost
37:02
advertising revenue. And experts highlight that while
37:05
the focus on video content might appeal to advertisers, the
37:08
overarching issue related to content moderation and Elon
37:11
Musk's management style remained deterrent to those advertisers.
37:15
And industry leaders believe that the root of X's advertising
37:18
challenges lies in his leadership.
37:20
And Musk's actions and statements played a significant
37:23
role in this. And the platform's struggle to
37:25
retain and attract advertisers is compounded by the
37:28
availability of alternative social media platforms like
37:31
Tiktok, Instagram, Facebook, etc.
37:34
That are all perceived as safer and more reliable by marketers
37:38
now. X's recent efforts to promote
37:40
it's vertical video capabilities are part of a broader strategy
37:43
to compete directly with popular social media apps like TikTok.
37:47
A pitched act obtained by Ad Age reveals the platform's focus on
37:52
brand safety tools and efforts to combat misinformation.
37:55
Alongside initiatives to boost user engagement and AD revenue,
37:58
The platform claims a significant increase in monthly
38:01
active users and user engagement, particularly among
38:04
Gen. Z users.
38:06
And X's pitch deck highlights its new immersive media viewer
38:09
and various features designed to enhance user interaction with
38:12
video content and attract more advertisers.
38:15
One of their newest strategies includes a focus on major events
38:18
cultural movements. Leveraging these to appeal to
38:21
advertisers, the platform is reportedly offering significant
38:24
discounts to entice advertisers amidst efforts to broaden its
38:27
content offerings, including long form video and also live
38:30
streaming. Advertisers, however, remain
38:33
cautious about X's brand safety measures, especially given the
38:36
platform's recent challenges with misinformation and
38:39
controversial content. X emphasizes its commitment to
38:42
providing a safe and trusted environment for conversation,
38:46
advertising and also content. Elon Musk's X, previously known
38:51
as Twitter, is taking a significant step to enhance
38:53
brand safety for advertisers. Starting in February, the
38:56
company will offer US advertisers more control over
38:59
the vertical video ad placements through an expanded partnership
39:03
with Integral Ad Services. Now this move comes after the
39:06
platform faced criticism for its content moderation policies and
39:10
the impact on its ad revenue and brand partnerships.
39:13
Now, X collaboration with IAS involves classifying all
39:17
vertical video ad adjacencies to ensure they align with the
39:20
Global Alliance for Responsible Media Framework, or GARM.
39:25
The company aims to reassure advertisers that their vertical
39:28
video ads won't be placed next to harmful or offensive content.
39:32
Now this effort is a part of X's strategy to rebuild trust with
39:35
its advertising partners and the company's recent challenges with
39:38
brand safety and content moderation have led to a
39:41
significant loss in advertising revenue.
39:44
Major advertisers have reduced their spending on X and shifted
39:47
to other social media platforms and XS value has plummeted over
39:51
71% since Musk's takeover in April of 2022, as estimated by
39:56
Fidelity. And in an attempt to regain its
39:59
footing in social media arena and attract advertisers, X is
40:02
now positioning itself as a video first platform.
40:05
And the company claims that video content is integral to the
40:08
majority of user sessions, noting a nearly 30% year over
40:12
year increase in video views. However, it remains unclear if
40:15
this includes all video views or average video views.
40:19
Now. Vertical video is reportedly the
40:21
fastest growing feature on X, with over 100 million daily
40:24
viewers and significant user engagement.
40:27
And despite these claims, there are concerns about the accuracy
40:30
of these numbers, especially considering the platform's
40:32
recent changes in content moderation and leadership.
40:35
X is actively expanding its brand safety and content
40:39
moderation teams too, which reverses the downsizing trend
40:42
initiated by Elon Musk in 2022. This expansion aims to address
40:47
ongoing concerns about the platform's approach to managing
40:50
harmful content and maintaining a safe environment for
40:53
advertisers and users alike. And despite these efforts,
40:57
experts remain skeptical about X's ability to attract
41:00
advertisers back. The company's recent emphasis on
41:03
video content, including new formats like immersive video and
41:08
enhanced video Calling Features, is part of its strategy to
41:11
become an Everything app. And the platform's claims about
41:14
user engagement with video content, such as the high rate
41:17
of video watching in user sessions, are met with
41:20
skepticism. Analysts and industry experts
41:23
question the clarity and validity of these statistics,
41:26
especially given the past discrepancy in data released by
41:29
Axe and Musk. The expansion of video content
41:32
on X is also seen as an attempt to win backed advertisers who
41:35
distance themselves following must controversial actions and
41:39
his statements. Now this shift in content
41:41
strategy reflects A broader effort to diversify the
41:44
platform's appeal and its revenue sources.
41:47
Now, XS blog post highlighted a 22% increase in total ad
41:51
engagements, suggesting that its efforts to make advertising more
41:55
relevant and impactful are bearing fruit.
41:58
However, there's criticism about the decline quality of ads on
42:01
the platform, with some users noticing an influx of lower
42:04
quality clickbait type ads. Now, the company has established
42:08
new partnerships with ad verification and brand safety
42:11
measurement firms, including Double Verify and IAS, and these
42:15
collaborations aim to reassure advertisers of the platform's
42:18
commitment to brand safety following concerns about ads
42:21
appearing next to inappropriate content.
42:23
Now there's a bit of report from Media Matters which revealed
42:26
inconsistencies in XS brand safety measures with ads from
42:30
major brands appearing next to controversial content, and X
42:33
challenged these findings and responded with legal action
42:36
against Media Matters. The company's expanded
42:38
partnership with IAS is a part of its effort to bolster brand
42:42
safety, particularly for its growing vertical, video content.
42:46
Now, despite these initiatives, there's continuous skepticism
42:50
about X's potential gain of lost advertising revenue.
42:54
And experts highlight that while the focus on video content might
42:58
appeal to advertisers, the overarching issue related to
43:01
content moderation and Elon Musk's management style remained
43:04
deterrent to those advertisers. And industry leaders believe
43:08
that the root of X's advertising challenges lies in his
43:10
leadership. Then Musk's actions and
43:12
statements played a significant role in this.
43:15
And the platform's struggle to retain and attract advertisers
43:18
is compounded by the availability of alternative
43:20
social media platforms like Tiktok, Instagram, Facebook,
43:24
etcetera, that are all perceived as safer and more reliable by
43:27
marketers. Now, X's recent efforts to
43:30
promote its vertical video capabilities are part of a
43:33
broader strategy to compete directly with popular social
43:37
media apps like Tiktok. A pitch deck obtained by Ad Age
43:41
reveals the platform's focus on brand safety tools and efforts
43:44
to combat misinformation, alongside initiatives to boost
43:47
user engagement and AD revenue. The platform claims a
43:50
significant increase in monthly active users and user
43:53
engagement, particularly among Gen.
43:55
Z users. And X's pitch deck highlights
43:58
its new immersive media viewer and various features designed to
44:02
enhance user interaction with video content and attract more
44:05
advertisers. Now the strategy for the
44:08
upcoming holiday season, one of their newest strategies includes
44:11
a focus on major events, cultural movements.
44:13
Leveraging these to appeal to advertisers, the platform is
44:16
reportedly offering significant discounts to entice advertisers
44:20
amidst efforts to broaden its content offerings, including
44:23
long form video and also live streaming.
44:25
Advertisers, however, remain cautious about X's brand safety
44:29
measures, especially given the platform's recent challenges
44:32
with misinformation and controversial content.
44:35
X emphasizes its commitment to provide having a safe and
44:37
trusted environment for conversation, advertising, and
44:41
also content. Hey, thank you so much for
44:48
listening today. I really do appreciate your
44:51
support. If you could take a second and
44:52
hit the subscribe or the follow button on whatever podcast
44:55
platform that you're listening on right now, I'd greatly
44:58
appreciate it. It helps out the show
45:00
tremendously and you'll never miss an episode.
45:03
And each episode is about 10 minutes or less.
45:06
Get you caught U quickly and please if you want to support
45:09
the show even more, go to Patreon stage Zero and please
45:15
take care of yourselves and each other and I'll see you tomorrow.