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Rocket Lab Electron returns to flight as FAA approves launches from the US
Rocket Lab, the space systems company and small satellite launcher, returned to active launch status recently with the successful fourteenth launch of its Electron rocket. The “I Can’t Believe It’s Not Optical” mission marked Rocket Lab’s comeback after suffering an in-flight anomaly during Electron’s thirteenth flight on July 4, 2020.
Just nine weeks after the conclusion of the incident investigation, following its successful return to flight, Rocket Lab has announced that it has been granted a five-year Launch Operator License – permission to launch multiple missions a year – by the Federal Aviation Administration (FAA) for its new Launch Complex 2 in Virginia.
“I Can’t Believe It’s Not Optical,” Electron’s Return to Flight
The thirteenth flight of Electron “Pics or It Didn’t Happen” on July 4 began with a flawless launch from Launch Complex – 1A (LC-1A) in Mahia, New Zealand. During the flight of the second stage, there were indications that Electron had experienced a critical malfunction. Telemetry data confirmed that Electron had encountered an in-flight anomaly that ultimately resulted in the company’s first mission failure and loss of seven customer payloads.
The root cause of the anomaly was quickly tracked down to a single bad electrical connection on the second stage. Less than a month after the incident, Rocket Lab announced that it was able to reconstruct what occurred, make the necessary corrective measures, and ready to return Electron to flight.
Just a few short weeks later on August 24, Electron was on pad LC-1A in New Zealand for pre-flight testing ahead of its fourteenth – and return to flight – mission “I Can’t Believe It’s Not Optical.” The dedicated mission for San Francisco-based information services company, Capella Space, carried a single microsatellite called “Sequoia” to a circular orbit at approximately 500km.
According to a statement provided by Rocket Lab, Sequoia is the “first synthetic aperture radar (SAR) satellite to deliver publicly available data from a mid-inclination orbit over the U.S., Middle East, Korea, Japan, Europe, South East Asia, and Africa.” Sequoia is the first microsatellite in a constellation series that Capella Space says will “provide insights and data that can be used for security, agricultural and infrastructure monitoring, as well as disaster response and recovery.”
The success of “I Can’t Believe It’s Not Optical” marks the thirteenth successful mission and the deployment of Sequoia makes a total of 54 satellites delivered to orbit since Rocket Lab began operation in 2017. Rocket Lab founder and chief executive officer, Peter Beck, congratulated Capella Space on the successful deployment of its first microsatellite and celebrated the entire Rocket Lab team stating that “I’m also immensely proud of the team, their hard work, and dedication in returning Electron to the pad safely and quickly as we get back to frequent launches with an even more reliable launch vehicle for our small satellite customers.”
FAA certifies Electron launches from the US
In addition to LC-1A in New Zealand, Rocket Lab broke ground on a second launchpad located in the United States in late 2018. The launchpad was declared complete in December 2019.
Although operational, Launch Complex 2 located at the Mid-Atlantic Regional Spaceport within NASA’s Wallops Flight Facility on Wallops Island in Virginia still had a few milestones to achieve ahead of the first scheduled launch. In April 2020 an Electron rocket arrived at the pad for integrated systems tests. Two major hurdles left to clear ahead of launching an Electron from LC-2 was receiving a launch operator license from the Federal Aviation Administration (FAA) and receiving NASA certification of the Electron’s Autonomous Flight Termination System (AFTS).
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On Tuesday, September 1, Rocket Lab announced that it had received a new 5-year Launch Operator License from the FAA. The license permits California-based launcher and space systems company to launch the Electron rocket from LC-2 multiple times a year without applying for a new license with every launch. This in addition to the Launch Complex 1 license means that Rocket Lab is now licensed to support up to 130 flights of Electron per year.
In addition, LC-1 is expected to expand and bring a second launchpad online, launch complex – 1B, sometime before the end of the year. Beck said, “Having FAA Launch Operator Licenses for missions from both Rocket Lab launch complexes enables us to provide rapid, responsive launch capability for small satellite operators. With 14 missions already launched from LC-1, Electron is well established as the reliable, flight-proven vehicle of choice for small sat missions spanning national security, science and exploration.”
Launch Complex 2 was specifically designed to support responsive missions for NASA and the United States government. The first mission from LC-2 is slated to lift the microsatellite STP-27RM for the United States Air Force as part of the Space Test Program. In 2021 Electron will send NASA’s CAPSTONE mission to a “Near Rectilinear Halo Orbit” (NRHO) around the Moon in support of NASA’s Artemis program.
Even more news…
On Thursday, September 3, Rocket Lab founder Peter Beck will host a webcast to provide an “exciting update” and discuss “the next chapter” of Rocket Lab. The webcast will go live at 2:00 pm ET (18:00UTC).
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
