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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.
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Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
SpaceX has solved Starship’s biggest challenge, Elon Musk says
SpaceX is coming for wireless giants with Starlink Mobile
