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NASA has good news after SpaceX Crew Dragon parachute test accident
NASA has good news after SpaceX suffered an accident that destroyed a Crew Dragon mockup before it could complete a parachute test, indicating that the anomaly could have minimal impact on the spacecraft’s Demo-2 astronaut launch debut.
According to NASA, SpaceX and the space agency are still working to launch astronauts on Crew Dragon as early as “mid-to-late May”. While two recent challenges – the loss of the spacecraft’s most important parachute testing mockup and an unrelated in-flight rocket engine failure – could both singlehandedly delay Demo-2 in certain scenarios, NASA continues to state that a May timeframe is still in the cards. This is an excellent sign that both issues – as previously speculated on Teslarati – are probably much less of a problem than they otherwise could be.
As of now, all Demo-2 hardware – including Falcon 9 booster B1058, a new Falcon upper stage, Crew Dragon capsule C206, and an expendable Dragon trunk – are all believed to be in Florida and technically ready for flight. Waiting for launch at and around Kennedy Space Center (KSC) Launch Complex 39A, the long straw for SpaceX’s inaugural astronaut launch is most likely the completion of formal paperwork and reviews, most of which must be done primarily by NASA employees. SpaceX’s latest technical challenges certainly toss some uncertainty into the mix and serve as a reminder that nothing can or should be taken for granted in human spaceflight but on the whole, there is reason for optimism.
“To date, SpaceX has completed 24 tests of its upgraded Mark 3 parachute design they are working to certify for use on the Crew Dragon spacecraft that will fly NASA astronauts to the International Space Station. The system was used during the SpaceX in-flight abort test in January.
On March 24, SpaceX lost a spacecraft-like device used to test the Crew Dragon Mark 3 parachute design. The test requires a helicopter to lift the device suspended underneath it to reach the needed test parameters. However, the pilot proactively dropped the device in an abundance of caution to protect the test crew as the test device became unstable underneath the helicopter. At the time of the release, the testing device was not armed, and a test of the parachute design was not performed.
Although losing a test device is never a desired outcome, NASA and SpaceX always will prioritize the safety of our teams over hardware. We are looking at the parachute testing plan now and all the data we already have to determine the next steps ahead of flying the upcoming Demo-2 flight test in the mid-to-late May timeframe.”
NASA.gov — March 26th, 2020
While the challenges SpaceX and NASA still have to surmount are thus significant, it’s safe to say that Crew Dragon’s track record more than earns it some optimism as the spacecraft nears the T-1 month mark for what will arguably SpaceX’s most significant launch ever.
Following a successful Pad Abort test in May 2015, the company spent several years working head down. In mid-2018, SpaceX’s first finished Crew Dragon spacecraft successfully passed through electromagnetic interference (EMI) and thermal vacuum (TVac) testing, arriving at the launch site for preflight processing by July. Unfortunately, for unknown reasons, it took more than half a year more for NASA to finally permit Crew Dragon to launch.
A month and a half after completing an integrated static fire test at Pad 39A, Falcon 9 and Crew Dragon lifted off for the first time ever on March 2nd, 2019. A flawless launch was followed by an equally flawless International Space Station (ISS) rendezvous and docking, completed autonomously and without issue on SpaceX’s first try. Crew Dragon capsule C201 spent five days at the station before autonomously departing, reentering Earth’s atmosphere, and gently splashing down in the Atlantic Ocean under four healthy parachutes.
Altogether, Crew Dragon’s orbital launch debut was such a flawless success that SpaceX’s own director of Crew Dragon mission management stated that he could barely believe how perfectly it went – likely expecting at least something to go slightly awry. That near-perfection certainly didn’t come easily for SpaceX. Boeing – NASA’s second Commercial Crew Program (CCP) partner – has had a far rougher go of things despite the fact that the company does technically have extensive experience building aircraft and rockets.
In November 2019, Boeing completed Starliner’s first fully integrated ‘flight’ test in the form of a pad abort. While the spacecraft was able to perform a soft landing, mishandling and bad quality control caused one of its three main parachutes to fail to deploy in an unintentional stress test. A little over a month later, a separate Starliner spacecraft performed its inaugural orbital launch on a ULA Atlas V rocket. From the moment Starliner separated from Atlas V, things began to go wrong. It would ultimately become clear that extremely shoddy software and an almost nonexistent integrated testing regime caused the spacecraft to waste most of its propellant and resulted in an extremely delayed orbital insertion.
While NASA and Boeing both managed to forget a second partial failure until media reporting shed light on it months later, it also turned out that another entirely separate instance of incomplete software may have nearly destroyed Starliner a matter of hours before it was scheduled to reenter Earth’s atmosphere. The spacecraft was ultimately prevented from even attempting a space station rendezvous, one of the major purposes of the test flight.
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In simpler terms, Crew Dragon – even with the challenges it has and will soon face – is just shy of primed and ready for flight. As always, it’s better to be safe (and late) than sorry in human spaceflight, particularly the first such mission for SpaceX, but it’s looking increasingly likely that Crew Dragon will be on the launch pad and preparing to lift off with NASA astronauts just two or so months from now.
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Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …”
The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
This marks the second such message from Musk in under three weeks.
On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.
Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.
SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.
Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.
As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX reports beat in first earnings while minimizing losses
