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SpaceX operational astronaut launch debut back on track after “nail polish” delay
In a new NASA briefing, SpaceX vice president of build and flight reliability Hans Koenigsmann was able to explain in far more detail why a recent last-second Falcon 9 launch abort happened and how it wound up delaying the company’s first operational astronaut launch.
Now scheduled to lift off no earlier than (NET) 7:49 pm EST (00:49 UTC) on Saturday, November 14th, SpaceX’s Crew Dragon Crew-1 mission was originally expected to launch in late September, October 23rd, and October 31st. On October 2nd, however, a new Falcon 9 booster – sibling to Crew-1’s own new booster – automatically aborted its GPS III SV04 satellite launch attempt just two seconds before liftoff. The rare last-second abort was quickly blamed on “unexpected pressure rise in the turbomachinery gas generator” by CEO Elon Musk.
Likely built side-by-side with faulty GPS III SV04 Falcon 9 booster B1062 at SpaceX’s Hawthorne, California factory, Crew-1 Falcon 9 booster B1061 was almost immediately inspected to search for any commonality once the cause of the abort was better understood.
Just one week before the latest briefing, NASA human spaceflight program administrator and former Commercial Crew Program manager Kathy Lueders revealed in a statement on Twitter that SpaceX was still analyzing the cause of the abort but had already determined that at least one Crew-1 booster engine would need to be replaced, as well as one engine on Falcon 9 booster B1063.
Now, during NASA’s October 28th Crew-1 briefing, SpaceX’s Koenigsmann revealed that the company had ultimately decided to replace not one but two of Crew-1 booster B1061’s nine Merlin 1D engines. Thanks to Falcon 9’s namesake nine-engine booster design and SpaceX’s prolific rocket factory, that process was completed extraordinarily quickly, simply requiring the redirection of already qualified Merlin 1D engines from a fairly large pool. Based on Koenigsmann’s phrasing, SpaceX has already installed both replacement engines on the Crew-1 booster.
What, though, caused GPS III SV04’s launch abort and how did that affect Crew-1?
Rocket engine vs. “nail polish”
According to Koenigsmann, in the course of the rapid and complex mechanical and electrical ballet preceding Falcon 9 first stage ignition, the rocket’s autonomous flight computer observed that two of the GPS III SV04 booster’s nine Merlin 1D engines appeared to be running ahead of schedule, so to speak. The computer immediately halted the ignition process to avoid what could have otherwise been a “hard” (i.e. stressful or damaging) start. SpaceX quickly began inspecting the rocket within 24 hours but was unable to detect anything physically or electrically wrong with Falcon 9’s Merlin 1D engines and engine section.
Out of an abundance of caution, SpaceX removed both misbehaving engines and shipped them to its McGregor, Texas development and test facilities where – somewhat miraculously – the same premature startup behavior was replicated on the test stand. After a great deal of increasingly granular inspections, SpaceX finally narrowed the likely cause down to a tiny plumbing line feeding one of the engine’s gas generator relief valves. In a seemingly random subset of relatively new Merlin 1D engines, SpaceX eventually discovered that a supplier-provided relief valve line was sometimes clogged by a protective lacquer Koenigsmann likened to “red nail polish.”
Used to selectively exclude parts of the engine tubing during a surface finishing process known as anodization, the lacquer was either unsuccessfully removed on a random selection of engine parts or was accidentally channeled into a blockage by over-enthusiastic cleaning. Ultimately, for whatever, reason that miniscule blockage was enough to cause affected Merlin 1D engines to consistently attempt to ignite a tiny fraction of a second early.
Crucially, when SpaceX discovered the possible cause and cleaned out the blocked plumbing, each previously affected Merlin 1D engine performed perfectly, all but directly confirming both the cause and the cure for Falcon 9’s October 2nd abort.
Astronauts enter quarantine
In anticipation of SpaceX seemingly simple solution to the gas generator problem, NASA Commercial Crew Program manager Steve Stich revealed that SpaceX’s Crew-1 mission astronauts – Shannon Walker, Victor Glover, and Mike Hopkins, and JAXA (Japanese) astronaut Soichi Noguchi – had begun routine prelaunch quarantine procedures in anticipation of a November 14th launch.
Stich also offered a more specific Crew-1 schedule, beginning with an integrated Falcon 9 and Crew Dragon static fire test NET November 9th and a full dry dress rehearsal on November 11th before the first launch attempt on November 14th. Notably, thanks to coincidental orbital dynamics, a successful launch on November 14th would enable Crew Dragon to raise its orbit and rendezvous with the International Space Station a brisk eight and a half hours after liftoff – three times quicker than the more common 27.5-hour transit.
Stay tuned for updates as the mission’s launch date approaches.
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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.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
SpaceX AI investment gamble will make it a big winner, firm says
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
