Connect with us

Published

on

Margins — Chris Kemp unpluggedAstras CEO dishes on the space companys struggles “Im a public company, I cant make this shit up.”

Stephen Clark – Aug 21, 2023 9:31 pm UTC Enlarge / Chris Kemp, founder and CEO of Astra.David Paul Morris/Bloomberg via Getty Images reader comments 28 with

Chris Kemp is a fighter. That’s the price of admission if you want to compete in the brutal small launch industry. He is the co-founder, chairman and CEO of Astra, founded in 2016 with a goal of essentially commoditizing small satellite launch services, or at least getting a lot closer to that than anyone else.

But there are a lot pressure points for Astra in 2023. The company abandoned its first orbital rocket design, called Rocket 3, last year after a string of failures. With higher interest rates, raising money in 2023 isn’t as easy as it was a few years ago. And calling Astra’s competition stiff is definitely an understatement.

Kemp argues that Astra finds itself in a different position than, say, Virgin Orbit, a small satellite launch company that went bankrupt earlier this year. Astra has diversified, and can lean on a separate source of revenue in a promising business building electric thrusters for small satellites. This business, which Astra calls spacecraft engines, was made possible by the acquisition of a company called Apollo Fusion in 2021.

SpaceX is achieving great success in aggregating large numbers of small satellites onto its Falcon 9 rocket, significantly bigger than vehicles like Rocket Lab’s Electron launcher or anything on Astra’s drawing board.

That has pushed Rocket Lab and Relativity Space to prioritize developing larger rocketsthe Neutron and Terran Rthat are partially reusable to better compete with SpaceX’s Falcon 9. Astra, on the other hand, is still betting what an inexpensive, mass-produced, expendable small rocket can be successful in winning business to haul lightweight satellites into orbit, either one at a time, or in small groups. The argument there is that a small rocket can deliver payloads to optimal orbits, instead of releasing them at an undesirable altitude or inclination.

Whether or not that’s the right business strategy, the predicament that Astra currently finds itself in is that the first iteration of its small launch vehicle, Rocket 3, failed to become a reliable option for customers. In seven orbital launch attempts, Rocket 3 failed five times. To be fair, Kemp points out that some of these launches were test flights without functioning satellites on board. Astra moved on from Rocket 3 after a launch failure in June 2022 destroyed two NASA hurricane research satellites. Advertisement

Ars published a story last week about the headwinds facing Astra, which recently announced layoffs of about 25 percent of its workforce. It is now staffed at between 200 and 250 employeesquite a lean operation compared to peers in the small launch industry. Around 50 of those employees were shifted from working on Astra’s new rocket, called Rocket 4, to devote their time to satellite propulsion systems.

Astra has a big challenge ahead, but it’s obvious Kemp isn’t ready to throw in the towel. Hespoke with Ars on Friday from Astra’s rocket factory in Alameda, California. Here are some highlights. Is it fair to say Astra is in a fight for survival?

Chris Kemp: “It is a little unfair … We have a very profitable source of revenue, which is our spacecraft engine. Weve sold hundreds of them at great margins.

“This is our rocket facility. This is a quarter of a million square feet. You can see the rocket production line behind me. There are people down there making rocket stuff. Its real. Thats a Rocket 4 stage on the production line … I could characterize the launch business at Astra as fighting for its survival, but I wouldnt characterize Astra as fighting for its survival. Astra has always had the option of just stopping the launch business. The reason why we havent is we have already largely completed the development and the capex [capital expenditures] required to manufacture the vehicles two years ago, when we started the Rocket 4 program, hundreds of millions of dollars ago, before we had engines and stages and a giant $100 million production line. Weve now done so much work toward this program that the next step is just testing things and going out and doing some test flights. Then the Space Force has some flights. We have some NASA flights. We have a backlog of launch contracts. In the case of the Space Force contract, thats an $11.5 million contract, millions of dollars of cash comes in, in advance of launch, because of the milestones were achieving.

“So I look at it and I say, well, if I were not to do launch, we simply wouldnt be able to bill the Space Force for these milestones. So what it does it cost me to continue running launch versus what would it cost me to shut down launch? Its kind of a wash, honestly, if we continue to get contracts and government support for launch, and the government has said that they really want to support it. I mean, there are three (private or venture-backed) companies right now operating that have put satellites in orbitSpaceX, Rocket Lab, and Astrafull stop. Fireflys stuff deorbited in a few days. ABL blew up everything, Relativity failed and scrubbed the program and wont fly again until 2027 [Relativity says Terran R’s first flight is scheduled for 2026]. Advertisement Enlarge / Astra revealed a prototype of its Rocket 4 launch vehicle in May.Astra

“The way I look at it is there are three launch companies that can point to the sky and say weve put satellites in orbit, and were one of them. And were the only one of them that has already invested hundreds of millions of dollars in a production line. Were the only one of them that has a mobile system that we have already demonstrated. We can go to Cape Canaveral and set up in under a week. We have some Space Force people here right now walking the production line … We have folks that view what Astra has built and demonstrated, and they say, ‘This has value to us, you guys have a mission control with two people in it, you guys have a system that last year deployed at Cape Canaveral in six days.’

“Its only going to get better from here with a 600-kilogram class vehicle (Rocket 4’s planned payload capacity to low-Earth orbit), and I think that puts Astra in a position where just killing launch, given we have customers and cash and revenue coming into that business, isnt an obvious choice for us. Its a risky choice for us.

“But weve got this public company now with stock trading at 25 cents per share. That makes it nearly impossible for us to raise any meaningful amount of capital in public markets. So that basically means that we need to take the revenue coming in, the cash coming in from our spacecraft engines business, and whatever cash comes in from our launch business, and kind of make it work.” Page: 1 2 3 Next → reader comments 28 with Stephen Clark Stephen Clark is a space reporter at Ars Technica, covering private space companies and the worlds space agencies. Stephen writes about the nexus of technology, science, policy, and business on and off the planet. Advertisement Channel Ars Technica ← Previous story Next story → Related Stories Today on Ars

Continue Reading

Business

Jaguar Land Rover cyber attack: No discussions’ on taxpayer aid to suppliers

Published

on

By

Jaguar Land Rover cyber attack: No discussions' on taxpayer aid to suppliers

There are “no discussions around taxpayers’ money” to prop up Jaguar Land Rover’s (JLR) suppliers, according to the prime minister’s official spokesman, as the carmaker grapples a lengthening production shutdown following last month’s cyber attack.

JLR factories fell silent more than two weeks ago. While it is damaging for the company, it represents a perilous loss of business for the supply chain which has also been forced to send workers home.

Some have already lost their jobs.

Unions and the business and trade committee of MPs were among those to request the possibility of aid to prevent job losses and employers going bust as the disruption drags on.

Money latest: Tax warning over state pension

What happened?

It was revealed on 1 September that global production at JLR had been stopped following a cyber attack.

More from Money

IT systems were taken offline by the company under efforts to limit penetration and damage.

The company appeared confident initially that manufacturing could resume but restart dates have been consistently put back.

What damage was done?

Jaguar Land Rover has said very little about the extent of the attack.

But it admitted last week that some data had been accessed. It gave no further details.

Who is to blame?

A criminal investigation is continuing.

A group of English-speaking hackers claimed responsibility for the JLR attack via a Telegram platform called Scattered Lapsus$ Hunters, an amalgamation of the names of hacking groups Scattered Spider, Lapsus$ and ShinyHunters.

Scattered Spider, a loose group of relatively young hackers, were behind the Co-Op, Harrods and M&S attacks earlier in the year.

It is widely believed that M&S paid a sum to regain control of its systems after it was targeted with ransomware though it has refused to confirm if this was the case.

How is this affecting JLR as a business?

The business was highly profitable last year but 2025 has seen new trade war challenges in addition to the cyber attack: File pic: Reuters
Image:
The business was highly profitable last year but 2025 has seen new trade war challenges in addition to the cyber attack: File pic: Reuters

JLR typically produces about 1,000 vehicles a day.

Production staff are being paid but kept away from plants at Halewood on Merseyside, Solihull in the West Midlands, and its engine factory in Wolverhampton. It is the same story for workers at sites in Slovakia, China and India.

JLR revealed on Tuesday that production lines would now remain shut until at least 24 September.

David Bailey, professor of business economics at the Birmingham Business School, told the PA news agency: “The value of cars usually made at the sites means that around £1.7bn worth of vehicles will not have been produced, and I’d estimate that would have an initial impact of around £120m on profits.”

JLR achieved a pre-tax profit of £2.5bn for the financial year ending 31 March 2025, so should be able to absorb such a hit.

Sales and service operations continue as normal at its retail partners but the longer the disruption goes on, so do the risks to its inventories and bottom line.

Why does its supply chain need help?

JLR's supply chain includes everything from components to paint. Pic: Reuters
Image:
JLR’s supply chain includes everything from components to paint. Pic: Reuters

This is the part of the operation that was always bound to suffer most in the event of a global JLR production shutdown.

No manufacturing means no need for parts.

The company usually depends on a ‘just in time’ supply chain to feed its factories and keep production lines running smoothly.

The Unite union has appealed for a COVID-style furlough scheme to prevent job losses and the risk of affected companies, often small or medium-sized firms, being forced out of business.

JLR’s operations are understood to directly support more than 100,000 jobs in the UK though that sum doubles through indirect roles.

The loss of any major supplier would risk further production delays once JLR’s IT systems are back online.

It is currently understood that the vast majority of directly affected workers remain in their jobs but have either been sent home or are on restricted tasks.

JLR suppliers Evtec, WHS Plastics, SurTec and OPmobility have had to temporarily lay off roughly 6,000 staff while a growing number of other firms are cutting workers, with temporary or contracted workers most likely to be affected.

What has the government said?

In addition to the remarks by the PM’s official spokesman, minister for industry Chris McDonald told Sky News: “We know this is a worrying time for those affected by this incident and our cyber experts are supporting JLR to help them resolve this issue as quickly as possible.

“I met the company today to discuss their plans to resolve this issue and get production started again, and we continue to discuss the impact on the supply chain.”

Continue Reading

Politics

Investigation launched into ex-Reform MP over ‘racial abuse’ against Sky News journalist

Published

on

By

Investigation launched into ex-Reform MP over 'racial abuse' against Sky News journalist

An investigation has been launched into a former Reform MP over alleged racial abuse against a Sky News journalist.

The parliamentary standards commissioner is investigating James McMurdock, who was elected as a Reform MP last year but suspended himself after allegations emerged over loans he claimed during the pandemic.

Ben Obese-Jecty, the Conservative MP, wrote to the watchdog in August to urge an investigation into Mr McMurdock’s “use of social media to apparently facilitate racial abuse” against Sky News political correspondent Mhari Aurora.

Politics Live: Speaker grants emergency debate on Mandelson

The standards commissioner has now confirmed it will consider allegations that Mr McMurdock started an “N-Tower” on social media by posting the single letter “N” under an X post that was critical of Aurora.

This was described by Mr Obese-Jecty as “a means of using a racial slur against an individual on an online platform whilst circumventing moderation that would remove racially abusive content”.

He added: “The practice involves spelling out a racial slur vertically with each individual posting a single letter of the word in order to spell it vertically” as the posts appear below each other.

More from Politics

Mr McMurdock is under investigation for potentially breaching rule 11 of the House of Commons Code of Conduct.

This states: “Members shall never undertake any action which would cause significant damage to the reputation and integrity of the House of Commons as a whole, or of its Members generally.”

Ben Obese-Jecty. Pic: Parliament
Image:
Ben Obese-Jecty. Pic: Parliament

Mr Obese-Jecty said in his complaint that the alleged actions of the former Reform MP “reflect a lack of adherence” to the seven principles of public life.

He said by “deleting the post without challenging the subsequent spelling” that was started by him, Mr McMurdock showed a “failure to challenge poor behaviour” and “absence of moral courage”.

Mr Obese-Jecty added: “Having repeatedly experienced this specific type of online racial abuse myself I am horrified that a fellow member of parliament would apparently see this as a legitimate means of challenging a Westminster lobby journalist in a public forum.

“I sincerely hope that there is a coherent and believable explanation for this horrendous action.”

At the time, Mr McMurdock appeared to deny he made the post, sharing a screenshot of X’s AI assistant Grok claiming he never posted the letter N, based on a screenshot of the N-Tower.

Grok is a large language model, which is known to be inaccurate.

He added that Mr Obese-Jecty’s “complaint regarding the alleged posting of a single letter is beyond ridiculous”.

Mr McMurdock has been contacted for comment.

Continue Reading

Politics

Former Tory minister Maria Caulfield defects to Reform UK

Published

on

By

Former Tory minister Maria Caulfield defects to Reform UK

Another former Conservative MP has defected to Reform UK.

Maria Caulfield, who served as the MP for Lewes for nearly a decade, as well as a government minister, is the 13th ex-Tory to join Nigel Farage’s party, which continues to gather momentum.

The announcement of her move on Tuesday follows sitting MP Danny Kruger’s decision to defect yesterday and head up Reform’s work to prepare for government.

Politics latest: MPs to debate Mandelson appointment and Epstein links

Ms Caulfield, a former health minister, told GB News: “If you are Conservative right-minded, then the future is Reform. The country is going to change a lot.

“The same people who thought that Brexit would not happen think that Reform will not happen. They are in for a shock.”

She added: “I have joined. My husband joined a few months ago and I joined a month ago.”

More on Conservatives

Reacting to the defection, Tory leader Kemi Badenoch admitted her party is having a “tough and bumpy time”, but reiterated her argument that it takes time to develop policies, and called on the public and her party to be patient.

Ms Caulfield is a former nurse, and her first ministerial job came in 2021, when she joined the Department for Health in Boris Johnson’s government.

After a spell on the backbenches during the brief premiership of Liz Truss, she was brought back into government under Rishi Sunak, becoming the minister responsible for mental health and women’s health.

She lost her seat at the 2024 general election to the Liberal Democrats, with her vote share having plummeted by nearly 22%.

‘We need to hold our nerve’

Her announcement follows that of Danny Kruger, the MP for East Wiltshire, who announced his move at a press conference alongside Nigel Farage on Monday.

He said the Conservative Party is “over”, and Reform is now the primary vehicle for conservatism.

Please use Chrome browser for a more accessible video player

Sitting MP Danny Kruger defects to Reform UK.

But shadow chancellor Sir Mel Stride said his analysis was “profoundly wrong”.

He told BBC Radio 4’s Today programme: “It is certainly the case that we had a devastating defeat about a year ago, that we lost that connection with the electorate, that trust with the electorate, and it is also true that it will take us time to rebuild that.”

He added: “We need to hold our nerve.”

Continue Reading

Trending