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ISSR&D: NASA praises SpaceX and commercial partners, looks towards the future
Robert Lightfoot, the current Acting Director of NASA, began the third day of ISS R&D with a rousing keynote on the roles of NASA and the ISS in the future of public and private space exploration.
ISS R&D’s keynote venue. (Teslarati/Eric Ralph)
Lightfoot began the timely statement that those creating new platforms often completely fail to fully predict how those platforms will eventually be used. The ISS is a prime example, with an array of commercial endeavors having come into existence for reasons that were undoubtedly less than prominent in discussions of the use of the ISS around the time it was be theorized and later constructed.
Another shining example, Lightfoot admitted that those involved with ensuring the survival of the ISS may have never imagined or predicted that the Station would act as a catalyst for programs like COTS, CRS, and CCtCap, which have encouraged considerable competition and led to a range of successes in a now-burgeoning commercial space market. In fact, NASA’s willingness to take risks, particularly in the development of the ISS and other platforms, has arguably enabled SpaceX to completely revitalize American participation in the commercial launch industry, and to do so in less than five years.
While not fully accurate, given that Ariane 5 carries two satellites per launch, this chart is still a profound demonstration of the rapid progress SpaceX has made in ensuring a more competitive commercial launch industry. (SpaceX)
Lightfoot went on to praise NASA’s commercial partners, and said that “[NASA will] be able to get four crew on station [once SpaceX, Boeing, and possibly Sierra Nevada are launching crew]”. He offered a brief overview of the past several trunk-loads of scientific instruments SpaceX Dragons have brought to the ISS, enabling it to remain “a vital platform for earth observation, [both hands-on and hands-off]”. A great deal of the experiments and cargo that have enabled such a burgeoning low Earth orbit economy aboard the ISS have been brought there in part by SpaceX’s Falcon 9 launch vehicle and Dragon spacecraft, which marked the first commercial spacecraft to reach orbit and later visit the International Space Station in 2010 and 2012 respectively.
Lightfoot actively asked himself and the audience what the future of the ISS may be or ought to be, and clearly had every desire to ensure the future of the vibrant LEO economy that the ISS has enabled. Whether this means that the ISS continues to function indefinitely or is replaced with a commercial platform, it will be necessary for NASA to eventually decrease or cut completely their funding burden of the ISS if NASA wishes to better develop the hardware and create the knowledge necessary for manned Mars exploration.
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- A prototype of Dragon 2 being tested in an anechoic chamber. (SpaceX)
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- Boeing’s CST-100 Starliner. (Boeing)
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- Orbital ATK’s Enhanced Cygnus, the second CRS partner that delivers cargo to the ISS. (NASA)
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- Sierra Nevada Corporation’s Dream Chaser Cargo, which received investment from NASA for their CRS-2 program. (SNC)
Undertaking all that is necessary, and doing it successfully, will require a great deal of cooperation in the development of space policy in the present and near future. Jeff Bingham, once a Republican aide in Congress and a crucial voice in gathering the votes to ensure the continued existence of the ISS more than a decade ago, noted that his past colleague, Ann Lukowksi, was a Democratic aide, and that “didn’t matter”. Together, with the help of numerous other crucial members, they arguably ensured that the House successfully passed a resolution to pursue the creation of the ISS with a margin of a single vote out of more than 400.
Bipartisan cooperation has long been a standout feature of space policy and decision-making, and is more obvious and crucial than ever in a time of increased polarization. Public investment in private space endeavors, whether direct or indirect, has ensured the existence of SpaceX and a thriving community of commercial space providers and users, and will soon allow the U.S. to rid itself of a reliance upon non-American launch vehicles for access to the ISS.
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In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
