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ICBM rocket shopping: Elon Musk did it in Russia, so why not do it in the United States?

The ultimate goal of launching rockets is to get us exploring and building in space, not picking winners and losers. Simply put, if you can’t compete with the mousetraps on the market, you haven’t actually built a better mousetrap. Repurposed ICBM motors for rocket engines are not the problem.

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Gemini 10 launches using a modified TItan ICBM motor.
Gemini 10 launches using a modified TItan ICBM motor.

Gemini 10 launches on a modified Titan ICBM motor. Credit: NASA on The Commons.

A Disagreement Among Star Travelers

There’s a debate going on among the government “powers that be” and commercial space companies over the use of excess intercontinental ballistic missile (ICBM) motors to launch rockets. Currently, these motors are banned from being used for commercial purposes, although military and civil launches are okay.

One side argues that the ban should be lifted because

  • the missile parts provide a reliable, cost-effective means for space access; and
  • it benefits taxpayers through recouped monies from private sales.

The other side wants the ban maintained because

  • flooding the market with cheaper, “off-the-shelf” rocket parts could hinder the innovation and development of new rocket technologies by lowering demand for them; and
  • larger companies will take away their market share through easy access to cheaper motors.

This same debate created the ban in the 1990s, and it should be mentioned that the main proponent of lifting the ban was a big part of passing it in the first place. It is also only fair to mention that this main proponent is a very large, established rocket company while the opponents are mostly smaller competitors.

Putting It All Into Perspective

First, it’s important to consider a reality-based context before taking a position on this. Absent another world war, globalization is here to stay, meaning that if a company in the United States cannot offer launch services at a Lawmakers cannot make the ICBM problem just go away through legislation. competitive price point, their potential customers will go elsewhere. Since these customers are not exclusively American companies, U.S. lawmakers cannot simply make the problem go away through legislation by restricting the nationality of launch providers.

Second, it’s important to frame this issue using marketplace case studies relevant to the situation found here. Old technology is constantly giving way to updated and new technology, demonstrating that innovation is driven by a variety of factors, not just the pure need for a technology to exist.

Finally, it’s important to fully understand the motives of all parties involved. The commercial space industry is, by definition, business-oriented. At a fundamental level, all parties involved are concerned primarily with their own best interest, i.e., their ability to make a profit.

Space Access Should Be More Affordable

In my opinion, the ban should be lifted, as my position on issues like this will always tend towards expanding access rather than restricting it. Achieving democratized space travel will require affordable accessibility to space, and one of the best ways to drive costs down is to not spend valuable resources “reinventing the wheel” if existing resources work well for current needs. This isn’t to say that innovation isn’t necessary, but rather that different Don't reinvent the wheel when ICBM engines are available.missions have different needs, and the existence of one option doesn’t preclude the need for other options.

The car industry is a good case study to compare to. The fact that older cars
exist does not prevent newer, generally improved cars from being developed and sold each year. Gasoline is a proven standard to fuel vehicles, but the demand for electric vehicles is getting louder. It’s the demand for better technology that moves this process of innovation forward.

The companies involved in this debate are profit-driven. What would motivate a company to keep inexpensive, proven technology out of a market they were competing in? In my opinion, the question itself contains the answer. Competition is a proven way to drive development, and the argument that a market flooded with competition would hurt competition has somewhat circular logic.Arguing against ICBM engines is circular logic.

I do think it is fair to be concerned that the nature of competing against government for a product undermines the concept of a fair market; however, the global nature of launch services and the expanding need for more innovative solutions, i.e., more powerful rocket engines for the upcoming long-distance space missions, mitigate this concern.

The government is an ICBM retailer, not a competitor.In the current environment, American launch providers are losing business to non-American launch providers, most of which are either heavily subsidized by their governments or are the governments themselves. In order for American launch providers to afford the costs of innovation and development, they need to be able to fairly compete in the global market for a customer base. It is also important to note that the rocket motor is only one part of the process of providing launch services. In that light, opening the ICBM market to American launch providers doesn’t make the American government the competitor as much as it is a retailer selling certain parts which make up a whole rocket product.

Elon Musk, Russians, and ICBM Engines (Oh, my!)

To frame this debate in another light, recall that Elon Musk’s initial space dreams involved purchasing ICBM motors from Russia to send dehydrated plant seeds to Mars. He wanted to accomplish something inspirational without diving head first into the business of building rockets. Fortunately for us, SpaceX was born through that process; however, Quote_Elon10Percentimagine a future, space-inspired millionaire looking to make a similar contribution except the purpose would ultimately be commercial. Why deny the option of a rocket built with “off-the-shelf” parts? There aren’t many Elon Musk types out there willing to invest most of their own personal fortune for a ten percent chance of success at building a rocket engine from scratch, but every time technology is sent into space, it moves us forward.

Elon Musk’s ICBM story isn’t the only thing worth noting in this debate. Unfortunately for supporters of the ban, SpaceX essentially renders their argument moot because SpaceX’s innovation and resulting lower launch price tag are what’s making Russian space authorities somewhat cranky about the business they’re usurping from them. Clearly, innovation is still possible even with other ICBM-based rockets on the market.

In Summary

The ultimate goal of launching rockets is to get us exploring and building in space, and this is hindered when the regulatory environment has the effect of hand picking winners and losers. Restricting ICBM motors from being on the commercial market does exactly that. This doesn’t advance the long term goals of space exploration. It only interferes with getting technology into orbit and beyond by restricting the capital available to develop better technology.

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Don't let ICBM engines be your excuse not to build a better engine.The argument that innovation is hurt by a market full of ICBM motors is one based on a desire to control market forces in an unfair way. Simply put, if you can’t compete with the mousetraps on the market, you haven’t actually built a better mousetrap, and there’s nothing to prevent you from selling existing mousetraps in service packages while you develop better ones.Banning ICBM rocket engines doesn't help further space exploration.

Granted, as Elon Musk has reminded us in several interviews, rockets are hard, making the business of rockets even harder. Imagine, however, if the government banned access to all major highways, an existing tax-funded resource, because there was a need for a surface material that was resistant to pot holes and existing asphalt mixes hindered its development. It doesn’t take a rocket scientist to see what a bad idea that would be and what type of impact it would have on those needing the highways to conduct their business, especially while other countries still had their road systems up and running.

Autobahn, anyone?

Accidental computer geek, fascinated by most history and the multiplanetary future on its way. Quite keen on the democratization of space. | It's pronounced day-sha, but I answer to almost any variation thereof.

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Investor's Corner

Tesla has one big financial question to answer for investors: Morgan Stanley

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Credit: Tesla

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.

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Investor's Corner

SpaceX AI investment gamble will make it a big winner, firm says

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Credit: SpaceX

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.

SpaceX is charging Anthropic massive money for its compute

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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.

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Tesla headlights cause recall of over 20,000 Model 3 and Model Y

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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.

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.

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