News
NASA’s SLS Moon rocket almost aces vital prelaunch test on 7th try
Following several incomplete attempts in April, June, August, and September, NASA’s first Space Launch System (SLS) Moon rocket has almost aced a vital prelaunch test on the seventh try.
NASA says that “all objectives were met” during the ten-hour test, which wrapped up around 4:30 pm EDT (20:30 UTC) on Wednesday, September 21st. Despite the rocket running into multiple additional issues, some old and others new, the agency was confident enough in the preliminary results of the wet dress rehearsal (WDR) – deemed a “cryogenic demonstration test” – to reaffirm that it’s still working towards a third launch attempt as early as September 27th.
That launch date is not set in stone, but NASA also hasn’t ruled out the window after the latest round of SLS testing. The agency will host a press conference on Friday, September 23rd, to provide its final decision and offer more details about the seventh wet dress rehearsal.
Despite NASA’s apparent confidence after the test, which was admittedly smoother than most previous SLS tests at the launch pad, it was far from smooth. The immediate story of the “cryogenic demonstration test” dates back to the SLS Artemis I rocket’s second so-called “launch attempt” on September 3rd. During that attempt, the launch was aborted well before SLS was ready when NASA detected a major hydrogen fuel leak around one of the quick-disconnect umbilical panels that fuels and drains the rocket. Remote troubleshooting was unable to solve the problem, forcing NASA to stand down.
Over the last few weeks, teams inspected, tested, and repaired the faulty Tail Service Mast Umbilical (TSMU), preparing for a cryogenic proof test meant to verify that the issue was fixed. During that September 21st test, the TSMU still leaked significantly for the whole duration, but it did so more predictably and – unlike prior leaks – never violated the limits that would trigger a launch abort.
But near the end, a different umbilical panel developed a significant hydrogen leak that did violate those launch constraints, meaning that NASA would have likely had to stand down yet again if it had attempted to launch before completing additional testing. The test was completed successfully, but its goals and constraints were not the same as those facing a launch.
A NASA-developed rocket leaking hydrogen is unfortunately a tale as old as time. That the agency that struggled with hydrogen leaks throughout the 30-year career of the Space Shuttle appears to be just as flabbergasted by nearly identical problems on a new rocket – SLS – that has Shuttle ‘heritage’ on almost every square inch is not surprising, even if it is somewhat embarassing.
-
Liquid hydrogen fuel always has been and likely always will be a massive pain to manage in any rocket, but especially in a large rocket. As the smallest element in the universe, it is fundamentally leak-prone. Combined with the fact that it only remains liquid below the extraordinarily low temperature of -253°C (-423°F), generates ultra-flammable hydrogen gas as it continually attempts to warm to a more stable temperature, and naturally embrittles most metals, it’s an engineering nightmare by almost every measure.
For all that pain, hydrogen does provide rocket engineers exceptional efficiency when properly exploited, but even that positive aspect is often diminished by hydrogen’s ultra-low density. For rocket stages that have already reached orbit, hydrogen-oxygen propellant offers unbeatable efficiency. But for a rocket stage that will never be used in orbit, like the SLS core stage, hydrogen fuel is rarely worth the tradeoffs – a reality that SLS is unfortunately providing a strong reminder of.
Demonstrating the Groundhog Day-esque nature of NASA rockets and hydrogen leaks, the same leaky TSMU panel that aborted SLS’ September 3rd launch attempt (sixth WDR) and had to be fixed and retested on September 21st also caused a hydrogen leak that partially aborted the rocket’s third wet dress rehearsal attempt in April 2022. NASA then rolled the rocket back to the Vehicle Assembly Building (VAB), where workers spent almost two months inspecting and reworking the fuel TSMU and fixing other issues. During its first test (WDR #4) after rolling back to the pad in June, the same fuel TSMU leaked and NASA had to return the rocket to the VAB again to fix the problem.
The fuel TSMU then leaked on the SLS rocket’s first launch attempt (really WDR #5), but the problem was resolved and was not what caused NASA to stand down. It was, however, a primary reason behind NASA’s second aborted launch attempt (WDR #6). With any luck, the eighth time will be the charm.
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
