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Rocket Lab aces first Electron rocket launch from US soil
After many delays, Rocket Lab has successfully launched an Electron rocket from US soil for the first time.
The company’s small Electron rocket lifted off at 6 pm EST (23:00 UTC), January 24th, from a pad built at NASA’s Wallops Flight Facility. About nine minutes later, the Electron upper stage reached low Earth orbit (LEO) and shut down its Rutherford Vacuum engine. 90 minutes after liftoff, the rocket finished deploying three new Hawkeye 360 Earth observation satellites, marking the successful completion of Rocket Lab’s first American launch.
Rocket Lab’s workhorse rocket is relatively unique. Electron is the only rocket in the world to successfully reach orbit with structures built almost entirely out of carbon fiber composites. It’s also the only orbital-class rocket in the world that uses engines with battery-powered pumps. Electron measures 18 meters (59 ft) tall, 1.2 meters (4 ft) wide, and weighs about 13 tons (~28,500 lbs) at liftoff, making it one of the smallest orbital rockets ever. It sells for about $7.5 million and can launch up to 200 kilograms (440 lb) to a sun-synchronous orbit or 300 kilograms (660 lb) to LEO.
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
Electron is by far the cheapest widely-available option for a dedicated rocket launch. Although a fully-utilized Electron costs more than $25,000 per kilogram, Rocket Lab has found a decent number of customers that find the benefits worth the cost premium. SpaceX currently offers rideshare launch services for just $5,500 per kilogram. But a dedicated Electron launch buys customers white-glove service and control over the exact timing and target orbit, among other perks.
Many companies are developing orbital transfer vehicles (space tugs) to combine the affordable cost of rideshare launches with customized orbits and deployment timing, but rideshare payloads will always have to grapple with inflexible launch timing. SpaceX will not delay a launch carrying 50-100+ other payloads because one satellite is running behind schedule.
Rocket Lab’s history shows that plenty of companies are willing to pay far more for the convenience of a direct launch. Electron’s first launch from US soil was the rocket’s 30th successful launch and 33rd launch since its May 2017 debut. In 2022, Rocket Lab managed to launch eight times in eight months and nine times overall. Had bad winter weather not conspired to delay its first US launch, the company would have broken into the double digits for the first time and likely kept its monthly launch streak alive.
Sisyphean delays
Rocket Lab’s first American launch is no stranger to delays. The company announced plans to build a US launch site in October 2018. At the time, Rocket Lab hoped to launch its first Electron out of Virginia’s NASA Wallops Flight Facility as early as Q3 2019. For a number of reasons, many of which were outside of Rocket Lab’s control, that didn’t happen.
Rocket Lab began constructing its Launch Complex 2 (LC-2) pad in Virginia in February 2019 and finished construction by the start of 2020. At that point, the then-private company stated that LC-2 was on track to host its first Electron rocket launch as early as Q2 2020. In Q2, Rocket Lab even shipped an Electron to Virginia and completed a range of pad shakedown tests, including a wet dress rehearsal (WDR) and static fire test.
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Rocket Lab isn’t entirely free of fault. However, nearly all of the blame for that delay appears to lie with NASA, who required that Rocket Lab use the agency’s own software for a new kind of “flight termination system.” Rocket Lab had already successfully developed and repeatedly flown its own autonomous flight termination system for use at its New Zealand launch site. AFTS replaces a human-in-the-loop with software that monitors a rocket and decides if it needs to protect populated areas by triggering explosive charges that will destroy the vehicle.
NASA’s software was plagued by years of delays, causing the payload assigned to Electron’s US launch debut to change repeatedly. In 2019, it was supposed to be a Space Test Program (STP) mission for the US Air Force. From 2020 to 2021, it was supposed to be NASA’s CAPSTONE mission to the Moon. Both missions were ultimately launched at Rocket Lab’s primary launch site in New Zealand.
Only in January 2023, almost three years after Rocket Lab was first ready to go, did Electron finally lift off from US soil with a trio of Hawkeye 360 radio surveillance satellites in tow. The mission was the first of Electron launches purchased by Hawkeye 360 to launch 15 satellites. Rocket Lab intends to launch again from LC-2 in the near future and has already shipped a second Electron rocket to Virginia.
Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?'”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
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.
Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
