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Rocket Lab to resume launches following in-flight anomaly investigation
Less than a month after the complete loss of customer payload due to an in-flight anomaly, Rocket Lab has announced that it is ready to return its small-class Electron rocket to flight. Company CEO, Peter Beck, during a media briefing Friday (July 31) said that the Electron second-stage “re-entered the atmosphere and burned up” resulting in a failed July 4 launch of the Electron and complete loss the customer payload of seven small satellites. Beck went on to state that through a collaborative investigation with the Federal Aviation Administration Rocket Lab was “able to quickly reconstruct what happened and the AIB board (Accident Investigation Board) was able to confidently narrow down the issue to a single electrical connection.”
The thirteenth flight of the Electron carried seven small satellites, all Earth-imaging inspiring the “Pics Or It Didn’t Happen” mission name. The rocket initially experienced a flawless launch from the company’s Launch Complex-1A on New Zealand’s Mahia Penninsula and everything seemed like it was going to plan until the video feed cut out unexpectedly shortly after the nominal ignition of the second-stage which was intended to carry the payloads to orbit.
The launch was completely event free during the first-stage ascent, stage separation, second stage ignition, and payload fairing jettison, then trouble occurred. Beck stated that the electrical connection that went bad during the second-stage of the flight was “incredibly unusual because it was able to evade all of the pre-flight acceptance testing.” Beck went on to explain that “while all of the testing showed no issues, after a period of time one of the joints had high resistance and that high resistance led to heating. That heating then led to thermal expansion of one of the components. That thermal expansion and heating enabled some of the potting components – that are around that joint to keep it secure from vibration – to flow.”
Once the potting compound used to secure electrical connections was able to heat up and essentially melt – or began to flow – the electrical connection become unsecured and led to the interruption in electrical current throughout the second-stage. Beck stated that “when the video stops (in the webcast) is exactly the point (of failure).” Although the video cut out, Rocket Lab ground stations continued to receive telemetry data of the flight’s progress due to the amount of redundancy with the systems aboard Electron “telemetry is the only way you can reconstruct this stuff so we have a very high priority of those (data) channels” Beck said.
With the immense amount of data that was received during the flight and throughout the second-stage shutdown Rocket Lab was able to quickly determine the cause of the error and perform tests to determine exactly what occurred during the failed flight. “The vehicle as it flies every flight has just a huge amount of instrumentation. That coupled with a graceful shutdown coupled with full telemetry stream throughout the whole anomaly, we were really able to quickly reconstruct what happened” Beck said.
The vast amount of data and the ability to sufficiently replicate the incident now means that Rocket Lab has a plan of action in place to mitigate any failures – of this nature – on future missions. “We can actually mitigate (the anomaly) very easily through a slight change in production processes, but more importantly we can screen for it in our current vehicles and stock through more in-depth testing procedures.”
To that end, the Rocket Lab Electron is set to return to flight in August, an impeccable turn around time following an anomaly investigation.”I’m very proud of the way the team has been able to identify this issue and rectify it so quickly” Beck said. He gave high praise to the entire Rocket Lab team for relentlessly working toward determining, not only the cause of the anomaly but working toward a solution for a quick return to flight. “Literally ten minutes after we saw some anomalous behavior during the flight, the team already started to work it and they haven’t stopped. They’ve been relentless” Beck said.
The customer payload that will fly aboard the return to flight and fourteenth mission of Electron launch is expected to be announced very soon. Rocket Lab did state that following a successful launch from the LC-1A complex in New Zealand, the following mission would be the first to take place from the brand new Launch Complex 2 located at the Mid-Atlantic Regional Spaceport at NASA Wallops in Virginia. Although an American private company, Rocket Lab predominately launches from New Zealand. The upcoming mission will be the first Electron flight to occur from American soil.
Beck closed the media briefing by stating that Rocket Lab looks forward to returning to operational status and launching Electrons every month, if not bi-weekly. He expressed that Rocket Lab is looking to the future and hopes to achieve a full recovery effort of the first stage booster via a helicopter and a specially designed grappling hook with the seventeenth flight of Electron. He also hinted that “there’ll be a couple of other little surprises as well, as we execute some other programs that have been cooking up in the background.”
Elon Musk said weeks ago during SpaceX’s third-quarter earnings call that the company’s Grok Bot, its autonomous AI Agent platform, was showing “the fastest growth of a product” that he’d ever seen in his life.
Now, SpaceXSI is scaling back Grok Bot users’ weekly limits, much to the surprise of those who have relied on it to take away monotonous tasks in their lives.
Elon Musk’s terse November 1 reply on X captured a sharp tension in the early days of agentic AI. Responding to a user who asked for a Grok Bot usage reset after hitting 100 percent with four days still left on the weekly cycle, Musk wrote: “The cost of serving Grok Bot was unsustainably high relative to revenue.”
@DogecoinNorway The cost of serving Grok Bot was unsustainably high relative to revenue
— Elon Musk (@elonmusk) November 1, 2026
The post arrived amid a wave of similar complaints from paying subscribers whose meters had jumped unexpectedly toward or to the limit, sometimes overnight and with little corresponding activity. It also stood in clear contrast to statements Musk had made only days and weeks earlier.
On the SpaceX third-quarter earnings call in mid-to-late October, Musk had described Grok Bot in almost the opposite terms. He called it “the fastest growth of a product that I’ve ever seen in my life” and said he had “never seen anything grow this fast.”
Company figures put paid weekly users at roughly 800,000 earlier in the month, more than doubling over the prior period. Daily active users had climbed from under 100,000 in early September to over 600,000 by late October.
Musk emphasized that the product has no free tier and that users appear to be getting real value beyond what they pay. In other remarks, he noted that usage per user was rising rather than declining, the opposite of the usual decay pattern for new software.
Grok Bot, launched around August, functions as an always-available agent with its own persistent cloud computer; it can schedule, research, shop, browse, and execute multi-step workflows even after the user steps away. Access is bundled into X subscription tiers (roughly $30, $100, and $200 per month) and certain Cursor plans, drawing from shared weekly usage pools whose exact sizes have not been publicly detailed.
The economics of that model are what Musk’s November 1 post put in the spotlight. Agentic systems burn far more compute than ordinary chatbot exchanges. Each task can trigger repeated model calls, tool use, web actions, and sustained background work.
When growth is as rapid as Musk celebrated, the absolute compute bill scales quickly even if average revenue per user stays fixed under flat monthly subscriptions. Industry observers noted the opportunity cost as well: the same GPUs can be rented to other AI labs at higher rates.
A simple back-of-the-envelope comparison circulating after the post illustrated the gap: if every reported daily user paid the top tier, annualized subscription revenue would still be modest relative to the scale of compute infrastructure SpaceX is building and leasing to companies like Anthropic.
Some users also reported possible dashboard anomalies around the same period, though Musk’s framing treated the underlying cost-revenue imbalance as the core issue rather than a pure metering glitch.
The juxtaposition is the core of this exchange. Within roughly two weeks of publicly framing Grok Bot as an unprecedented success with strong unit economics and no free tier, Musk acknowledged that serving the same product had become unsustainable relative to the revenue it generates.
For the broader industry, the episode underscores a structural challenge of the agent era: demand is real and growing faster than many expected, yet the cost of fulfilling that demand through always-on, multi-step agents can outrun subscription pricing before companies can adjust limits, introduce metered billing, or raise prices.
Musk’s reply did not promise an immediate reset or higher allowances; it simply stated the constraint. In doing so, it supplied a rare, explicit public data point on the unit economics of a high-profile AI agent just as adoption numbers were still being celebrated as the fastest in Musk’s experience.
The tension between rapid, paid growth and the compute required to deliver it is now on the record.
News
Tesla owners who tap Emergency Drive Away for fun are in for a surprise
Tapping Activate on Tesla’s Emergency Drive Away reportedly triggers a $539 service bill without moving.
Tesla owners who press Activate on Emergency Drive Away may be on the hook for a service bill even if their car never leaves the Supercharger stall.
Yaro, who posts about Tesla service cases on X as @Tutrifour, said a customer called after tapping Activate while still plugged into a Supercharger. The owner was about to pull away, remembered the cable was still connected and stopped. The car never moved, but the touchscreen showed a red alert reading “Emergency Drive Away has been activated” with “Service is required” underneath. A Service Mode screenshot showed the active alert BMS_a228_EmergencyDriveAwayServiceRequired, which Yaro said only Tesla Service can clear.
Here is a lesson to Tesla owners. Don’t press Activate on the new Emergency Drive Away feature on your Tesla because service charges $539 to inspect the charge port and to clear the alert. Yes, even if you didn’t move the car an inch. https://t.co/NZJENw4SQv
— Yaro (@Tutrifour) October 30, 2026
The cost of clearing it was the bigger surprise. “Don’t press Activate on the new Emergency Drive Away feature on your Tesla because service charges $539 to inspect the charge port and to clear the alert. Yes, even if you didn’t move the car an inch,” Yaro wrote. The $539 figure comes from that single case, and Tesla has not published a set price for the inspection or commented on the post. Yaro also noted that the car would still charge with the alert on screen.
Tesla launched Emergency Drive Away on October 1 with software update 2026.38.3, letting drivers pull away from a U.S. Supercharger with the cable still attached, as Teslarati reported. To use it, a driver shifts into Drive while connected, holds the brake and taps Activate. The prompt warns that driving with the cable connected will damage the vehicle and the Supercharger, and that short camera recordings will be shared with Tesla.
Tesla Charging has been clear about what follows a real activation. Repairs to a Supercharger stall can run up to $25,000 depending on the site, a service visit for the car’s charge port is mandatory, and deliberate misuse “will invoke additional penalties.” What the company had not spelled out is that the service requirement is triggered the moment Activate is pressed, not the moment the cable breaks away.
From an engineering standpoint, that is the cautious choice. Once Activate is pressed, the car cannot be sure the charge port latch was not stressed, so flagging it for inspection removes the guesswork. It also means the button carries a price on its own, which is a stronger deterrent against casual use than any warning screen.
Customer called because they have an active alert after tapping ACTIVATE on the new Emergency Drive Away feature. They didn’t actually drive away but were about to until they “remembered” they had the charge cable connected.
This alert can only be cleared by Tesla Service. https://t.co/SkHyJJPFwU
— Yaro (@Tutrifour) October 28, 2026
The report follows the feature’s first known real world use, when a driver in Austin during F1 weekend appeared to trigger it by accident and dragged the Supercharger cable along with the car. The Reddit user who filmed it said the driver seemed to have only half read the prompts.
For owners, the takeaway is to treat the red prompt as a stop sign. If it appears after shifting out of Park by mistake, shift back and unplug the normal way from the touchscreen, the Tesla app or the button on the charge handle. Activate is meant for moments when staying at the stall is the bigger risk, and Tesla is now pricing it that way.
Elon Musk
Elon Musk calls Earth’s data centers “peanuts” next to what SpaceX is planning in orbit
Elon Musk says SpaceX capex efficiency is underestimated as orbital data centers loom by 2028.
Elon Musk is pushing back on one of the biggest worries hanging over SpaceX stock. In a reply on X on Sunday, Musk said the company’s capital expenditure efficiency is severely underestimated. He was responding to a Milk Road Stocks post citing analyst Kyle Reidhead, who estimates SpaceX will need to spend roughly $470 billion over the next five quarters.
Reidhead built that figure around the target SpaceX set on its third quarter earnings call: 13 gigawatts or more of compute by the end of 2027. In his breakdown, Nvidia captures 83 to 89 percent of the spending. SpaceX ended the quarter with 1.7 GW of nameplate compute and guided to $35 billion to $40 billion in fourth quarter capex, as Teslarati reported.
Musk did not attach a number to his claim, but the earnings call shows the argument. CFO Bret Johnsen said new compute currently pays for itself in under a year at today’s pricing, and Musk said that window could shrink to six months next year. Using that pace, Reidhead argues about $230 billion of the $470 billion could come from operating cash flow and about $60 billion from SpaceX’s roughly $90 billion cash pile, leaving around $180 billion to borrow. Musk confirmed last week that SpaceX had already closed a new $40 billion debt raise to buy GPUs.
The ground buildout is not the end goal. It is what is meant to pay for the move to orbit. Replying on Friday to charts built from Sequoia partner Shaun Maguire’s SpaceX model, Musk wrote that “Terrestrial compute will be peanuts compared to orbital compute,” adding that orbital compute deployed per month “probably exceeds terrestrial around the end of 2028 and then far exceeds it in 2029.”
Maguire’s model shows how steep that path is. It has capex climbing from $88 billion this year to $290 billion in 2027 and $369 billion in 2028, with SpaceX burning $77.8 billion in cash this year and $122.6 billion next year before turning $114.9 billion cash positive in 2028. Musk’s response to the model was, “I think we can do better.”
The orbital half runs through Starmind. SpaceX plans to operate up to 1 million AI satellites flying in clusters of about 10, linked by roughly 10 terabits of bandwidth, with deployment of thousands of units starting as soon as late 2027 out of its Gigasat factory in Bastrop, Texas, according to SpaceX’s space safety page. Musk has said each Starmind spacecraft will carry more than 250 kW of solar power.
Getting there depends on launch volume. Maguire’s model assumes 250 Starship flights in 2028, up from two this year and 38 next year. The nearer test is financial: SpaceX guided to $33 billion to $37 billion in first quarter 2027 revenue, more than double the $14.58 billion it booked in Q3, and Musk reposted that guidance again on Sunday morning.
Grok Bot users hit with weekly limits early, Elon Musk explains what happened
Tesla owners who tap Emergency Drive Away for fun are in for a surprise
