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SpaceX urges Congress to expedite commercial spaceflight regulation reforms
Speaking in a Congressional hearing on the morning of June 26th, SpaceX Director of Government Affairs Caryn Schenewerk reaffirmed the company’s commitment to conducting “more than 25 [launches]” in 2018, a feat that will require a ~50% increase in launch frequency over the second half of the year.
Related to the focus of this particular hearing, namely regulatory reform, Representative Rick Larsen (WA-2) appeared to speak for everyone when he mirrored the four panelists’ sense of urgency for beginning the process of reforming federal space launch regulations by asking for an informal meeting outside the doors of the chamber once the session concluded, stating that “it’s that urgent.” In order for companies like SpaceX (and eventually Blue Origin) to be able to sustainably and reliably reach cadences of one launch per week in the near future, the currently cumbersome and dated launch licensing apparatus will almost invariably require significant reforms.
Pressure to remove artificial bottlenecks growing
Two primary problems were identified by the Air Line Pilots Association (ALPA), ULA, Blue Origin, and SpaceX officials present before the Congressional committee: the extreme sluggishness of licensing and the similarly obtuse brute-force integration of launch vehicle operations with the federal systems of air traffic control tasked with safely orchestrating tens of thousands of aircraft flights daily.
Whereas nominal orbital rocket launches result in vehicles like SpaceX’s Falcon 9 spending less than 90 seconds of real time within the bounds of that controlled airspace, the massive and disruptive “keep-out zones” currently required by the FAA for rocket launches frequently disrupt air traffic for more than 100 times as long. According to Ms. Schenewerk, SpaceX believes it already possesses the capabilities to integrate live Falcon 9 and Heavy telemetry with air traffic control, allowing those keep out zones to be dramatically compressed and highly responsive to actual launch operations, similar to how aircraft traffic is dealt with today.
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- Falcon 9 1046’s Block 5 upper stage shown on its May 11 debut launch with Bangabandhu-1. SpaceX’s rockets already provide rich telemetry live to the company’s launch controllers. (SpaceX)
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- After CRS-15, all orbital launches will be use Block 5 boosters and upper stages. The upgraded rocket’s next launch is NET July 20. (Tom Cross)
On the specific launch licensing side of this regulatory coin, SpaceX, Blue Origin, and ULA all expressed distaste for current standards, in which a worst-case scenario could see a launch provider forced to wait more than 200 days (up to eight full months) from the moment of filing to a launch license grant. Worse, even slight adjustments to a granted launch license require launch providers to resubmit themselves to that 200+ day process, effectively making timely modifications undependable exceptions to the rule.
Old rules, new rockets
The real barrier to these common-sense regulatory reforms is quite simply the extraordinary sluggishness of the FAA and those tasked with updating its guidelines and regulatory structures. Rep. Larsen was not exaggerating when he stated that he foresaw Congress choosing to delay those reforms by another 5+ years if given the opportunity, and it was thus likely a relief for the panel of witnesses (PDF) to hear him agree that these reforms must be pursued with the utmost urgency. In its current state, the FAA’s launch licensing is liable to be utterly swamped by the imminent introduction of multiple new smallsat launch providers on top of the already lofty launch cadence ambitions of SpaceX, ULA, and Blue Origin, as well as Orbital ATK to a lesser extent.
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With SpaceX leading the charge, the American launch industry is already a year or more into a true renaissance of American spaceflight, and the FAA is simply not equipped to handle it. If reforms can be completed with haste rarely seen in Congress, the federal government can at a minimum ensure that it does not become a wholly artificial and preventable bottleneck for that explosion of domestic spaceflight activity.
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- SpaceX’s Demo Mission-1 Crew Dragon seen preparing for vacuum tests at a NASA-run facility, June 2018. (SpaceX)
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- A Falcon 9 fairing during encapsulation, when a launch payload is sealed inside the fairing’s two halves. This small satellite is NASA’s TESS, launched in April 2018. (NASA)
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- A combination of scientific satellites and five Iridium NEXT communications satellites preparing for launch in May 2018. (NASA)
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- Telesat’s SSL-built Telstar 19V conducts testing in an anechoic chamber before launch, currently NET July 19. (SSL)
Speaking of that activity, SpaceX is scheduled to begin its H2 2018 manifest push with as many as six Falcon 9 launches (five with Block 5 boosters) over the next ~60 days. Barring an abrupt increase in rocket booster production speeds, sources have confirmed that those 2-3 summer months will likely also feature one of the first rapid Falcon 9 Block 5 reuses, potentially seeing one of SpaceX’s highly-reusable rockets complete two orbital launches in approximately one month (30-50 days). That will, of course, depend upon both customer agreeability and the availability of rockets and launch facilities, but the goal of a rapid Block 5 reuse before summer’s end still stands, at least for now.
Up next is CRS-15, which will see the last orbital Block 4 Falcon 9 launch a flight-proven Cargo Dragon to the ISS with several thousand pounds of supplies in tow, with liftoff scheduled for NET 5:42 am EDT, June 29.
Follow us for live updates, peeks behind the scenes, and photos from Teslarati’s East and West Coast photographers.
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Tom Cross – Twitter
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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
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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:
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“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
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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.”
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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
