Even after adding President Donald Trump to his list of Tesla (TSLA) customers, Elon Musk is still having a tough month.
TSLA stock has fallen significantly over the past few weeks, raising concern among investors that Musk’s lack of presence at the automaker’s manufacturing facilities is causing problems. On top of that, Tesla sales across Europe have been falling steadily as negative sentiment toward Musk continues to spread.
Meanwhile, things aren’t going so well for one of Musk’s other companies. SpaceX has launched not one but two rockets so far this year that have exploded during test flights, causing problems both in the air and on the ground as falling debris has grounded flights.
But Musk recently got some news that could be even more alarming. His industries are already getting crowded, and now one of his competitors is about to have a powerful new leader.
Elon Musk has a new rival who is highly qualified to take him on
The electric vehicle (EV) market isn’t the only industry from which Musk is likely worried about mounting competition. Space exploration is also a fast-growing market, and things haven’t been going well for his company lately.
Now, the race to colonize the moon has a formidable new member. Eric Schmidt, the former longtime CEO of Google (GOOGL,) is taking the reins of Relativity Space. Founded in 2016, this space exploration and technology startup is based in Long Beach, California, similar to its rival Rocket Lab USA (RKLB) .
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However, unlike Rocket Lab, Relativity Space has a new leader who seems highly focused on helping it grow. On Monday, March 10, Schmidt reportedly informed the startup’s staff that he had taken a controlling stake in the company and would take over as CEO.
The specific amount that Schmidt has poured into Relativity Space remains unclear. But Schmidt’s experience speaks for itself. He served as CEO of Google from 2001 to 2011, doing much to make it into the industry-leading tech giant it is today.
Now Schmidt seems poised to do the same with Relativity Space, coming on board at a critical time for the startup. Outgoing CEO and co-founder Tim Ellis posted on X, stating “I know there’s no one more tenacious or passionate to propel this dream forward,” referring to Schmidt assuming control of the company.
Today marks a bold new chapter for @relativityspace – read below:
Some dreams are so audacious they’re worth dedicating significant years of your life to.
Nine years ago, we scribbled Relativity’s wild vision on the back of a Starbucks receipt, never imagining how many… pic.twitter.com/ARkJJ0fFGJ— Tim Ellis (@thetimellis) March 10, 2025
As Schmidt prepares to usher in a new era for the company, Relativity Space is gearing up to build the first “flight version” of its Terran R rocket, making what could be a turning point for it.
“It is not immediately clear why Schmidt is taking a hands-on approach at Relativity,” reports Ars Technica. “However, it is one of the few US-based companies with a credible path toward developing a medium-lift rocket that could potentially challenge the dominance of SpaceX and its Falcon 9 rocket. If the Terran R booster becomes commercially successful, it could play a big role in launching megaconstellations.”
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While Schmidt has made other investments in the aerospace industry, this marks the first time he has taken a controlling stake and assumed a position leading one. In fact, this will mark his first job since exciting Google.
The race to space is about to get more crowded
According to reports, Schmidt has provided substantial financial backing for Relativity Space over the past year as the company’s funding has dried up.
Despite initially raising $2 billion at an estimated $4-$6 billion valuation from investors such as Mark Cuban, BlackRock BLK and Fidelity, the company has been forced to pivot from its original plans for building rockets.
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“The start-up has moved away from focusing entirely on 3-D printed materials and has begun incorporating more traditionally made parts in building its rockets,” The New York Times reports.
The outlet also notes, though, that Schmidt has expressed strong passion for the company’s projects as he prepares to oversee day-to-day operations, such as scaling operations and “improving product and manufacturing execution,” likely with the goal of helping it advance toward new rocket launches.
Relativity Space is still a relative newcomer in its industry, but the company has ambitious goals, specifically ultimately reaching a flight rate of 50-100 rockets per year. That may be a long way off, but Elon Musk is likely worried. If the company can successfully launch the Terran R this year, it will not bode well for SpaceX.
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