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NASA says SpaceX's Crew Dragon abort test is go for launch on doomed Falcon 9 rocket
NASA has formally given SpaceX permission for Crew Dragon’s second launch – a crucial test flight that should be the last before SpaceX launches NASA astronauts to the International Space Station (ISS) for the first time ever.
Known as its In-Flight Abort (IFA) test, Crew Dragon will attempt to escape a Falcon 9 rocket while airborne, a feat that CEO Elon Musk says will almost certainly destroy the rocket in the process. Technically speaking, NASA and SpaceX completed what is known as a Launch Readiness Review (LRR) sometime on Thursday, allowing SpaceX to proceed with launch preparations. By all accounts, Crew Dragon’s IFA test will likely be one of the most spectacular SpaceX launches ever, given that it is all but guaranteed to result in the intentional in-flight failure of a massive Falcon 9 rocket – “destroyed in Dragon fire” according to Musk.
Thanks to a much smoother launch flow compared to Crew Dragon’s Demo-1 orbital launch debut on Falcon 9, SpaceX’s newest Crew Dragon capsule is scheduled to lift off from Kennedy Space Center Launch Complex 39A (KSC LC-39A) as early as 8 am EST (13:00 UTC), Saturday, January 18th. The In-Flight Abort test will likely be one of Crew Dragon’s most challenging hurdles yet but success would be a major boon for the spacecraft’s demonstrated safety. While both Boeing and SpaceX will ultimately ferry NASA astronauts to and from the ISS, only SpaceX chose to prove Crew Dragon’s in-flight abort capabilities in the real world.
Effectively condemned to destruction to support a greater cause after a productive life, Falcon 9 Block 5 booster B1046 rolled out to Pad 39A – Crew Dragon mounted atop it – on January 16th after successfully performing its last routine static fire on the 11th. As previously discussed on Teslarati, B1046 is the first Falcon 9 Block 5 booster completed by SpaceX and is thus also the oldest flightworthy rocket in the company’s substantial fleet.
“After becoming the first SpaceX booster to launch three times in December 2018, B1046 spent several months at SpaceX’s Hawthorne, CA factory undergoing inspections and refurbishment. At some point, SpaceX assigned the thrice-flown booster to support Crew Dragon’s In-Flight Abort (IFA) test – effectively a death sentence – and shipped the booster to Florida, where it publicly appeared for the first time in months on October 3rd, 2019. Given that four more Falcon 9 boosters have now successfully performed three (or even four) orbital-class launches each, B1046’s now-imminent demise is certainly disappointing but remains extremely pragmatic.”
Teslarati.com — January 15th, 2020
As such, there is arguably no better booster for SpaceX to expend even if its loss is still less satisfying than a successful post-launch landing. In fact, aside from NASA’s prematurely-retired Space Shuttle, the entire history of orbital-class rocketry has effectively operated on the assumption that it’s both normal and necessary for rockets to be almost entirely expendable.
Only by sheer force of will has SpaceX turned that assumption on its head, making the act of expending Falcon 9 or Falcon Heavy boosters feel suddenly morose. Even then, the practice of propulsively landing orbital-class boosters is scarcely four years old, while reusing those boosters has been ongoing for less than three years. As such, B1046’s demise should be enjoyed for what it ultimately is: the spectacular retirement of a rocket that has already helped launch three separate payloads to orbit.
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Perhaps even more importantly, B1046’s sacrifice should – if things go as planned – also pave the way for Crew Dragon to launch its first NASA astronauts into orbit just a few months from now. For the test to be successful, however, Crew Dragon will have to perform an extremely precise string of maneuvers – the failure of any one of which could potentially lead to the spacecraft’s destruction.
“Traveling as fast as Mach 2.5 (860 m/s) at an altitude of 28 kilometers (17 mi), Crew Dragon will ignite its abort thrusters and attempt to escape, the very act of which will likely hammer the spacecraft’s windward surfaces with an extra dozen or so metric tons (~25,000 lb) of aerodynamic pressure. Crew Dragon C205 could thus find itself traveling almost Mach 3 (more than a kilometer per second) moments after separating from Falcon 9, eventually reaching an apogee of almost 75 km (45 mi), after which it will reenter the bulk of Earth’s atmosphere and have to deploy an array of parachutes to ensure a gentle Atlantic Ocean splashdown.”
Teslarati.com — January 13th, 2020
Unfortunately, Crew Dragon escaping a supersonic Falcon 9 also means that that same Falcon 9 – basically a thin, flexible tube designed to be as light as possible – will meet a supersonic blast of air the moment Dragon’s SuperDraco abort thrusters ignite. A bit like if a hurricane on all kinds of meteorological steroids just sort of punched a soda can for fun, that airstream will almost certainly obliterate Falcon 9’s sacrificial upper stage into a sort of aluminum snow, quickly revealing – and likely then destroying – B1046’s carbon fiber interstage.
The rest of the thrice-flown Falcon 9 booster is also liable to break up after that supersonic punch. In fact, SpaceX engineers are so confident in B1046’s imminent demise that the booster will have neither landing legs or grid fins come launch. In a best-case scenario, if, against all odds, B1046 survives Dragon’s escape, the intact booster will subsequently impact the Atlantic Ocean at terminal velocity and become a nice, artificial reef off the coast of Florida. Stay tuned for updates from Teslarati and photographers Jamie Groh and Richard Angle as Falcon 9 B1046’s demise inches ever closer.
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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
