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Boeing's astronaut capsule flies off course, fate uncertain after launch debut
Roughly 30 minutes after lifting off for the first time on a United Launch Alliance (ULA) Atlas V rocket, Boeing’s Starliner crew capsule suffered a major failure when it attempted to raise its orbit with onboard engines.
A few hours after the failure came to light, NASA and Boeing held a press conference to update members of the media on the situation, with the space agency offering some candid – if a bit odd – insight into Starliner’s anomalous launch debut. Before the spacecraft’s software threw a wrench into the gears, the plan was for Starliner to separate from ULA’s Atlas V Centaur upper stage and use its own thrusters to reach orbit and begin the trek up Earth’s gravity well to the International Space Station (ISS).
While it will likely take weeks or even months for Boeing and NASA to determine exactly what went wrong during the mission, preliminary information has already begun to paint a fairly detailed picture.
Around 15 minutes after liftoff, Starliner separated from the rocket as intended but it appears that things began to go awry almost immediately afterward. Most notably, according to NASA administrator Jim Bridenstine’s tweets and later comments, a very early look at the telemetry suggests that Starliner’s internal clock was somehow tricked into believing that the time was either earlier or later than it actually was.
Thinking that it was in the midst of a lengthy thruster firing meant to raise its orbit and send the spacecraft on its way to the space station, Starliner was thus focused on ensuring that it was pointed as accurately as possible. Although the space station is the size of a football field, in the vastness of space, rendezvousing with it is a bit like threading a needle. While firing thrusters to do so, spacecraft thus need to point themselves as accurately as possible.
While coasting before or after one of those orbit-boosting thruster firings, Starliner thought it was actually burning towards the space station and was thus very carefully controlling its orientation with a dozen or so smaller thrusters. In short, those unintentional thruster firings burned through a ton of Starliner’s limited propellant supply – enough to make it impossible (or nearly so) for the spacecraft to rendezvous and dock the ISS, a central purpose of this particular launch.
This ultimately means that Starliner is leaning heavily on the “test” aspect of this Orbital Flight Test (OFT), uncovering failure modes and bugs that Boeing was clearly unable to tease out with ground testing and simulation. While in a totally different ballpark, SpaceX similar Crew Dragon spacecraft suffered its own major failure earlier this year, although that capsule explosion occurred during intentional ground testing, whereas Starliner’s software failed during its high-profile launch debut and has severely curtailed the scope of the spacecraft’s first orbital flight test.
In fact, Bridenstine was unable to rule out the possibility that Boeing will have to attempt a second uncrewed orbital flight test (OFT) before Starliner will be qualified to launch the space agency’s astronauts. Although early signs suggest that Boeing will still be able to attempt to deorbit and recover the spacecraft a day or two from now, the fact that Starliner will not be able to perform critical demonstrations of its ISS rendezvous and docking capabilities will make it far harder for NASA to rationally certify the spacecraft for astronaut launches.
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SpaceX’s Crew Dragon, for reference, completed a more or less flawless launch, orbit raise, and rendezvous before docking with the ISS. It’s almost impossible to imagine NASA giving SpaceX permission to proceed immediately into its first astronaut launch if Crew Dragon had failed to reach the proper orbit or dock with the space station.
Regardless, it’s far too early to tell whether Boeing will have to repeat Starliner’s OFT. If Starliner performs absolutely perfectly between now and its planned soft-landing in New Mexico, there might be a chance that NASA will still allow Boeing to effectively cut corners to its astronaut launch debut, but only time will tell.
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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.”
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.
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.
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.
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
