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SpaceX Starship blew its top during rocket fueling test (updated)
Update: SpaceX has released an official statement indicating that Starship Mk1’s November 20th failure came after a decision to intentionally pressurize the rocket prototype to its limits. This likely means that the test was to max flight pressures and not an intentional burst test, so Starship’s dome failure is still a significant concern and was definitely not planned.
More importantly, SpaceX says that it had already decided to retire Starship Mk1 before any kind of flight testing, treating the vehicle as a pathfinder. Instead, SpaceX will build and use Starship Mk3 – the next Boca Chica prototype – for Starship’s first attempted skydiver-style landing and 20 km (12 mi) flight test.
SpaceX statement on the above test and incident: pic.twitter.com/r1ReRYhUhz— Michael Sheetz (@thesheetztweetz) November 21, 2019
SpaceX’s first full-scale Starship prototype has suffered a significant failure during testing, destroying or severely damaging large sections of the rocket. However, SpaceX CEO Elon Musk has already commented on the anomaly and is not all that concerned.
On November 20th, SpaceX – having canceled a planned road closure the day prior – unexpectedly requested a last-second road closure and entered into a much more serious round of testing with Starship Mk1, the rocket’s first full-scale prototype. This followed testing on November 18th that concluded with Starship Mk1’s very first ‘breath’ – some venting activity near the end of a tank proof test. SpaceX technicians spent the next 36 or so hours inspecting and working on Mk1, presumably looking for and patching minor leaks along its tank section.
The November 20th testing progressed far faster than the previous round of tests and Starship Mk1 was quickly venting again. Soon after that, frost began to appear on the exterior of its steel liquid oxygen and methane tanks, a telltale sign that some form of cryogenic testing was ongoing. Based on a distinct lack of activity at the nearby flare stack, SpaceX was using liquid oxygen (LOX) or liquid nitrogen (LN2) to verify that Starship performs as expected when filled with supercool propellant.
After initial venting and visible frost formation, SpaceX appeared to push forward, rapidly loading Starship Mk1 with LOX or LN2. This progress was easily visible thanks to the fact that the mass and pressure of all that cryogenic liquid made quick work of the slight imperfections on the exterior of Starship’s steel hull, turning the vehicle’s reflection from a speckled patchwork to an almost mirror-like finish. Roughly half an hour later, the otherwise peaceful scene was interrupted by the rapid failure of Starship Mk1’s upper LOX tank dome, instantly thrown several hundred feet into the air.
Seconds later, the crumpled upper half of Starship Mk1’s tank section appeared out of the clouds created and began hemorrhaging a huge volume of liquid oxygen, immediately boiling and vaporizing as it was exposed to the Earth’s comparatively white-hot atmosphere. Impressively, Starship appeared to remain functional after its top quite literally blew off, and the vehicle rapidly detanked and appeared to safe itself. Some ten minutes after the overpressure event, the freed liquid oxygen had boiled to nothing and Starship appeared to be quiet.
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By all appearances, Starship Mk1 appeared to perform extremely well as an integrated system up to the point that its upper tank dome failed. The first frame from LabPadre’s stream with anything visibly amiss explicitly implicates the weld connecting the LOX dome to the cylindrical body of Starship’s LOX tank, point to a bad weld joint as the likeliest source of the failure. Although that hardware failure is unfortunate, Mk1’s loss will hopefully guide improvements in Starship’s design and manufacturing procedures.
Moving forward
Minutes after the anomaly was broadcast on several unofficial livestreams of SpaceX’s Boca Chica facilities, SpaceX CEO Elon Musk acknowledged Starship Mk1’s failure in a tweet, telegraphing a general lack of worry. Of note, Musk indicated that Mk1 was valuable mainly as a manufacturing pathfinder, entirely believable but also partially contradicting his September 2019 presentation, in which he pretty clearly stated that Mk1 would soon be launched to ~20 km to demonstrate Starship’s exotic new skydiver landing strategy.
Musk says that instead of repairing Starship Mk1, SpaceX’s Boca Chica team will move directly to Starship Mk3, a significantly more advanced design that has benefitted from the numerous lessons learned from building and flying Starhopper and fabricating Starship Mk1. The first Starship Mk3 ring appears to have already been prepared, but SpaceX’s South Texas focus has clearly been almost entirely on preparing Starship Mk1 for wet dress rehearsal, static fire, and flight tests. After today’s failure, it sounds like Mk1 will most likely be retired early and replaced as soon as possible by Mk3.
Above all else, the most important takeaway from today’s Starship Mk1 anomaly is that the vehicle was a very early prototype and SpaceX likely wants to have vehicle failures occur on the ground or in-flight. As long as no humans are at risk, pushing Starship to failure (or suffering unplanned failures like today’s) can only serve to benefit and improve the vehicle’s design, especially when the failed hardware can be recovered intact (ish) and carefully analyzed.
A step further, SpaceX is simultaneously building a second (and third) Starship prototype at its companion Cocoa, Florida facilities, and Starship Mk2 is nearly finished. Coincidentally, technicians installed its last tank dome – the same dome that failed on Mk1 – just days ago, and any insight that the Boca Chica team can gather from Mk1’s troubles will almost certainly be applied to Mk2, whether that means reinforcing its existing domes or fully replacing the upper dome with an improved design.
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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.”
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
