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NASA head hints that reusable rocket cos. like SpaceX will enable Moon return
In a series of thoroughly unexpected and impassioned introductory remarks at one of several 2018 Advisory Council meetings, NASA administrator Jim Bridenstine bucked at least two decades of norms by all but explicitly stating that reusable rockets built by innovative private companies like SpaceX and Blue Origin will enable the true future of space exploration.
Incredibly, over the course his fascinating hour-long prelude, Bridenstine effectively mentioned NASA’s own SLS rocket and Orion spacecraft – under development for the last decade at a cost of at least several tens of billions of dollars – a total of one time each. Instead, heavily emphasizing the absolute necessity that NASA’s next major human exploration project be sustainable, the administrator spoke at length about the foundational roles that international and domestic space agencies and private companies will need to take on in order to make NASA’s on-paper return to the Moon both real, successful, and useful.
Aside from his arguably brave (but spot-on) decision to all but ignore Boeing and Northrop Grumman’s SLS rocket and Lockheed Martin’s Orion spacecraft over the course of an hour spent speaking about the future of NASA’s human exploration of the Moon and on spaceflight more generally, Bridenstine had nothing but praise for recent successes in the American aerospace industry.
Most notably, he spoke about his belief – at least partially stemming from an executive order requiring it – that the only way NASA can seriously succeed and continue to lead the world in the task of human space exploration is to put an extreme focus on sustainability. Judging from his comments on the matter, the new NASA/Federal buzzword of choice is just a different way to describe hardware reusability, although it certainly leaves wiggle room for more than simply avoiding expendable rocket hardware.
“It’s on me to figure out how to [return to the Moon] sustainably. … And this time, when we go, we’re gonna go to stay. So how do we do go sustainably? Well, [we take] advantage of capabilities that didn’t exist in this country even five or ten years ago. We have commercial companies that can do things that weren’t possible even just a few years ago … to help develop this sustainable [Moon exploration] architecture.” – NASA Administrator Jim Bridenstine, 08/29/2018
While it might not look like much (aside from a “no duh” statement) to anyone unfamiliar with the trials and tribulations of NASA bureaucracy and politicking, this quote – directed at an audience of senior NASA scientists and managers and independent experts – is absolutely extraordinary in the context of NASA’s history and the formulaic eggshells NASA administrators have traditionally been forced to walk on when discussing American rocketry.
Not only is SLS/Orion utterly and conspicuously absent in a response to the “how” of starting a new wave of lunar exploration, but Bridenstine also almost explicitly names Blue Origin and SpaceX as torchbearers of the sort of exceptional technological innovation that might revolutionize humanity’s relationship with space. By referring specifically to “commercial companies that can do things that weren’t possible even just a few years ago”, the only obvious answers in the context of serious human exploration on and around the Moon are Blue Origin and SpaceX, both of which managed their first commercial rocket landings in late 2015.
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Bridenstine went even further still, noting that NASA will need not just reusable rockets for this sustainable lunar exploration, but also reusable orbital tugboats (space tugs) to sustainably ferry both humans and cargo to and from Earth and the Moon and reusable lunar landers capable of many trips back and forth from space stations orbiting the moon. At one point, he even used SpaceX CEO Elon Musk’s (in)famous and well-worn analogy of commercial airlines to emphasize the insanity of not using reusable rockets:
“We have reusable rockets [now]… Imagine if you flew here across the country to [NASA Ames] in a 737 and when the mission was over, you threw the airplane away. How many of you would have flown here?” – NASA Administrator Jim Bridenstine, 08/29/2018
At today's NASA Advisory Council (NAC) meeting, Administrator Jim Bridenstine says the next hop to the moon is going to be sustainable – and will require reusable spaceflight hardware. Uses the same airplane analogy @ElonMusk does when it comes to explaining advantages.
— Emre Kelly (@EmreKelly) August 29, 2018
Reusable rockets lead the charge
It may be generous to include Blue Origin side by side with SpaceX, given the fact that its New Shepard rocket is extremely small and very suborbital, but the company does have eyes specifically set lunar landers and outposts (a project called Blue Moon) and is developing a large and reusable orbital-class rocket (New Glenn) set to debut in the early 2020s.
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- Falcon Heavy’s side boosters seconds away from near-simultaneous landings at Landing Zones 1 and 2. (SpaceX)
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- We’re not here just yet, but SpaceX is pushing hard to build BFR and get humanity to Mars as quickly as practicable. (SpaceX)
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- Blue Origin’s aspirational future, the highly reusable BE-4 powered New Glenn rocket. (Blue Origin)
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- Blue Origin’s Blue Moon concept, set to begin experimental lunar landings as early as 2022 or 2023. (Blue Origin)
SpaceX, while focused on Mars colonization, has also expressed a willingness to participate in any sort of lunar exploration that NASA or other international space agencies might have interest in. Currently in the middle of developing its own massive and fully reusable rocket, known as the Big F_____ Rocket (BFR), SpaceX nevertheless already has a flight-tested, highly successfully, and unbeatably cost-effective family of reusable Falcon rockets capable of affordably launching significant mass to the Moon. In fact, both NASA and ESA (European Space Agency) are already seriously considering SpaceX’s Falcon Heavy as the launch vehicle of choice for several critical pieces of a Moon-orbiting space station, expected to launch no earlier than the early to mid-2020s.
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Whether or not Bridenstine’s incredible and eloquent statements translate into tangible changes to NASA’s long-term strategy, it’s quite simply refreshing to hear a senior NASA executive – let alone the administrator – speak freely and rationally about the reality of what is needed to enable a truly new era of human spaceflight and exploration.
For prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket recovery fleet check out our brand new LaunchPad and LandingZone newsletters!
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
