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Relativity Space’s first 3D-printed rocket goes vertical for launch debut
Relativity Space’s first 3D-printed Terran 1 rocket has rolled out to the startup’s Florida pad and been raised vertical ahead of its launch debut.
Founded in 2015, the private Los Angeles-based spaceflight company shipped its first complete rocket prototype to Florida in June 2022. Prior to that major milestone, Relativity qualified Terran 1’s orbital second stage at leased facilities located at NASA’s Stennis Space Center in southwest Mississippi, and – alongside a nosecone and interstage – arrived at Cape Canaveral Space Force Station (CCSFS) more or less ready to fly.
The last six months have been almost exclusively dedicated to testing Terran 1’s larger and more powerful first stage (booster) as thoroughly as possible. Instead of building a dedicated booster test stand in Mississippi, Relativity chose to modify Terran 1’s lone LC-16 launch pad for the crucial task. Ultimately, the startup was able to complete a large amount of booster testing on the ground, significantly increasing the odds that Terran 1 will perform as expected when it lifts off for the first time.
The update that's rolling out to the fleet makes full use of the front and rear steering travel to minimize turning circle. In this case a reduction of 1.6 feet just over the air— Wes (@wmorrill3) April 16, 2024
Beginning with cryogenic proofing, propellant loading, ‘spin starts,’ and several shorter static fire tests, Relativity’s first Terran 1 booster test campaign culminated with two long-duration static fires in September 2022. The final 57 and 82-second static fires weren’t quite the “full mission duration” tests Relativity had hoped for, but the company concluded that the data gathered was enough to clear the booster for flight.
According to Ellis, one of the most important insights gained from those tests was into Terran 1’s uncharacteristically complex autogenous pressurization system – unprecedented for such a small rocket. Generally speaking, orbital-class rockets store helium gas in small ultra-high-pressure tanks (COPVs) and use helium to pressurize their propellant tanks as they are drained of propellant. Autogenous pressurization refers to an alternative in which a portion of a rocket’s liquid oxidizer and fuel are turned into hot gas and injected back into their respective tanks to pressurize them.
Helium is extremely expensive and an unrenewable resource. In theory, autogenous pressurization – at the cost of being significantly more complex and finicky – can also reduce the amount of dry mass reserved for tank pressurization. While Terran 1 wasn’t able to complete a full-duration static fire, the tests it did complete showed Relativity that its autogenous pressurization systems are unlikely to be a problem in flight, mostly eliminating a major source of uncertainty.
Following the final 82 or 88-second static fire, Relativity returned Terran 1’s booster to LC-16’s hangar and shifted its focus to fully assembling the two-stage rocket and finishing the launch pad. In early December, the company announced that it had fully assembled the first Terran 1. Days later, the rocket was installed on the pad’s “Transporter Erector.” The T/E responsible for transporting the rocket and raising it vertical, but it also needs to connect the rocket to ground systems (propellant, power, comms, etc.) and hold it down before liftoff.
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On or around December 6th, Terran 1 rolled out to the pad and was raised vertical soon after. According to Ellis, all that stands between Terran 1 and its first launch is a short integrated static fire test and a launch license from the Federal Aviation Administration (FAA). It’s impossible to say how long the FAA will take, but it’s likely that Relativity will be technically ready to launch just a handful of weeks from now.
Beyond building a relativity impressive rocket, Relativity’s claim to fame is large-scale 3D printing. The startup says that the first Terran 1 rocket – booster, upper stage, fairing, engines, and all – is 85% 3D-printed by mass and the largest single 3D-printed object ever built. Terran 1 reportedly weighs around 9.3 tons (20,500 lb) empty; will measure around 33 meters (110 ft) tall and 2.3 meters (7.5 ft) wide; and will produce around 90 tons (~200,000 lbf) of thrust at liftoff. The rocket is designed to launch 1.25 tons (~2750 lb) to low Earth orbit for $12 million
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
