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SpaceX will launch its Mars spaceship into orbit as early as 2020
First spaceship prototype already under construction
Speaking on a launch industry round-table at the Satellite 2018 conference, SpaceX President and COO Gwynne Shotwell revealed that the company intends to conduct the first orbital launches of BFR as early as 2020, with suborbital spaceship tests beginning in the first half of 2019.
Only six months after CEO Elon Musk first debuted the Interplanetary Transport System in Adelaide, Australia, a flood of recent comments from both executives have made it overwhelmingly clear that SpaceX intends to have its first spaceship ready for short suborbital test flights at the beginning of 2019. Considering Musk’s unprovoked acknowledgment at SXSW 2018 of his tendency towards overly optimistic timelines, the repeated affirmations of BFS test flights beginning in 2019 and now an orbital launch of the full BFR booster and ship in 2020 hold a fair deal more water than they did in 2017.
SpaceX’s subscale Raptor engine conducting a 40-second test in Texas. This engine will power both BFR and BFS. (SpaceX)
Breaking it down
These past few weeks have been filled with a number of similar statements from SpaceX executives like Shotwell, Musk, and others; all focused in part on the company’s next-generation launch vehicle, BFR (Big __ Rocket). Composed of a single massive booster and an equally massive second stage/spaceship (BFS), the rocket is meant to enable the affordable expansion of permanent human outposts on Mars and throughout the inner solar system by making good on the decades-old promise of fully reusable launch vehicles.
In order to succeed, the company will need to solve the problems that NASA and its Shuttle contractors never could.
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- The relatively cylindrical BFS reduces complexity and lowers weight. (SpaceX)
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- BFS (circa 2017) shows off its complement of SL and Vacuum Raptor engines. SpaceX is moving back to something similar to this. (SpaceX)
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- SpaceX’s 2017 BFS (now Starship) delivers cargo to a large lunar base. (SpaceX)
To an extent, SpaceX has already matured the principles and technologies needed to reliably recover and reuse the booster stage of two-stage rockets, demonstrated by their incredible success with Falcon 9.
BFR is a whole different animal, partly owing to its massive size, huge thrust, and new propellant and tankage systems, but those problems are more technical than conceptual. SpaceX already knows how to reuse boosters, and that will apply to BFR once its several technological hurdles have been overcome. Designing and building the orbital spaceship (BFS), however, will undoubtedly be the most difficult task SpaceX has yet to take on. The safety and cost records of the only other orbital-class reusable second stage in existence, the Space Shuttle, are at least partially indicative of the difficulty of the challenges ahead of SpaceX.
In order to succeed, the company will need to solve the problems that NASA and its Shuttle contractors never could – they will need to build an orbital, crewed spaceship that can be reused with minimal refurbishment, can launch for little more than the cost of its propellant, and does so with safety and reliability comparable to the records of modern commercial airliners – perhaps the safest form of transport humans have ever created.
Space Shuttle Atlantis docked with the beginnings of the International Space Station. The Shuttle suffered several deadly failures and cost more than the expendable Saturn V moon rocket it replaced. (NASA)
Rockets do not easily lend themselves to such incredible standards of safety or reliability – airliners average a single death per 16 million flights – but SpaceX will need to reach similar levels of reusability and reliability if they hope to enable even moderately affordable spaceflight or Earth-to-Earth transport by rocket. Still, there can be little doubt that SpaceX employs some of the absolute best engineering expertise to have ever existed in the US, and their extraordinary personal investment in the company’s goal of making humanity multi-planetary bode about as well as could be asked for such an ambitious endeavor. According to Musk and Shotwell, the first spaceship is already being built and suborbital tests will begin as soon as 2019, while full-up orbital launches – presumably involving both the booster and spaceship – might occur just a single year later in 2020.
SpaceX's Shotwell: BFR will probably be orbital in 2020, but you should start seeing hops in 2019. (Grasshopper reference?) #satshow
— Caleb Henry (@ChenrySpace) March 12, 2018
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Musk: People have told me that my timelines historically have been optimistic. I am trying to recalibrate. What I do know is we are building the first ship. We will be able to do do short flights in the first half of next year. It's a big booster and ship. Saturn V thrust x2.
— Michael Baylor (@MichaelBaylor_) March 11, 2018
It appears that we will find out sooner, rather than later, if SpaceX has truly found a way to lower the cost to orbit by several orders of magnitudes. Follow us for live updates, behind-the-scenes sneak peeks, and a sea of beautiful photos from our East and West coast photographers.
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Eric Ralph – Twitter
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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.
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.
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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.
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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.
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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
