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SpaceX’s response to Crew Dragon explosion unfairly maligned by head of NASA
In a bizarre turn of events, NASA administrator Jim Bridenstine has offered harsh criticism of SpaceX’s response to Crew Dragon’s April 20th explosion, suffered just prior to a static fire test of its eight Super Draco abort engines.
The problem? The NASA administrator’s criticism explicitly contradicts multiple comments made by other NASA officials, the director of the entire Commercial Crew Program, and SpaceX itself. Lest all three of the above sources were either blatant lies or deeply incorrect, it appears that Bridenstine is – intentionally or accidentally – falsely maligning SpaceX and keeping the criticism entirely focused on just one of the two Commercial Crew partners. The reality is that his initial comments were misinterpreted, but an accurate interpretation is just as unflattering.
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Follow along as our team gives you their take on the biggest stories of the week.Ultimately, Bridenstine responded to a tweet by Ars Technica’s Eric Berger to correct the record, noting that the criticism was directed at his belief that SpaceX’s “communication with the public was not [good]”, while the company’s post-failure communication with NASA was actually just fine. In fact, according to Commercial Crew Program (CCP) Manager Kathy Lueders, NASA team members were quite literally in the control room during the pre-static fire explosion and the failure investigation began almost instantly.
A blog post and official update published by NASA on May 28th further confirms Lueders’ praise for the immediate SpaceX/NASA response that followed the failure.
“Following the test [failure], NASA and SpaceX immediately executed mishap plans established by the agency and company. SpaceX fully cleared the test site and followed all safety protocols. Early efforts focused on making the site safe, collecting data and developing a timeline of the anomaly, which did not result in any injuries. NASA assisted with the site inspection including the operation of drones and onsite vehicles.”
— NASA, May 28th, 2019
Why, then, are Bridenstine’s comments so bizarre and unfair?
A trip down memory lane
Back in mid-2018, Boeing’s Starliner spacecraft suffered a major setback (albeit not as catastrophic as Crew Dragon’s) when a static fire test ended with a valve failing to close, leaking incredibly toxic hydrazine fuel all over the test stand and throughout the service module that was test-fired. The failure reportedly delayed Boeing’s Starliner program months as a newer service module had to replace the contaminated article that was meant to support a critical 2019 pad-abort test preceding Starliner’s first crew launch.
According to anonymous sources that have spoken with reporters like Eric Berger and NASASpaceflight.com, the anomalous test occurred in late-June 2018, followed by no less than 20-30 days of complete silence from both Boeing and NASA. If Boeing told NASA, NASA certainly didn’t breathe a word of that knowledge to – in Bridenstine’s words – “the public (taxpayers)”. Prior to Mr. Berger breaking the news, Boeing ignored at least one private request for comment for several days before the author gave up and published the article, choosing to trust his source.
After the article was published, Boeing finally provided an official comment vaguely acknowledging the issue.
“We have been conducting a thorough investigation with assistance from our NASA and industry partners. We are confident we found the cause and are moving forward with corrective action. Flight safety and risk mitigation are why we conduct such rigorous testing, and anomalies are a natural part of any test program.”
— Boeing, July 21st, 2018 (T+~30 days)
SpaceX, for reference, offered an official media statement hours after Crew Dragon capsule C201 suffered a major failure during testing, acknowledging that an “anomaly” had occurred and that SpaceX and NASA were already working closely to investigate the accident. Less than two weeks after that, Vice President of Mission Assurance Hans Koenigsmann spent several minutes discussing Crew Dragon’s failure at a press conference, despite the fact that it was off topic in an event meant for a completely different mission (Cargo Dragon CRS-17).
“Earlier today, SpaceX conducted a series of engine tests on a Crew Dragon test vehicle on our test stand at Landing Zone 1 in Cape Canaveral, Florida. The initial tests completed successfully but the final test resulted in an anomaly on the test stand. Ensuring that our systems meet rigorous safety standards and detecting anomalies like this prior to flight are the main reasons why we test. Our teams are investigating and working closely with our NASA partners.”
— SpaceX, April 20th, 2019 (T+several hours)
Within ~40 days, NASA published an official update acknowledging Crew Dragon’s accident and the ongoing mishap investigation. Meanwhile, a full year after Starliner’s own major accident, NASA communications have effectively never once acknowledged it, while Boeing has been almost equally resistant to discussing or even acknowledging the problem and the delays it caused. On May 24th, NASA and Boeing announced that Starliner’s service module had passed important propulsion tests (essentially a repeat of the partially failed test in June 2018) – the anomaly that incurred months of delays and required a retest with a new service section was not mentioned once.
On April 3rd, NASA published a Commercial Crew schedule update that showed Boeing’s orbital Starliner launch debut (Orbital Flight Test, OFT) launching no earlier than August 2019, a delay of 4-5 months. In the article, NASA’s explanation (likely supplied in part by Boeing) bizarrely pointed the finger at ULA and the technicalities of Atlas V launch scheduling.
In other words, NASA somehow managed to completely leave out the fact that Starliner suffered a major failure almost a year prior that likely forced the OFT service section to be redirected to a pad abort test.
Following SpaceX’s anomaly, the company (and NASA, via Kathy Lueders) have been open about the fact that it means the Crew Dragon meant for DM-2 – the first crewed test launch – would have to be redirected to Dragon’s in-flight abort (IFA) test, while the vehicle originally meant to fly the first certified astronaut launch (USCV-1) would be reassigned to DM-2. Thankfully, this practice can be a boon for minimizing delays caused by failures. Oddly, Boeing has not once acknowledged that it was likely forced to do the same thing with Starliner, albeit with the expendable service section instead of the spacecraft’s capsule section.
Again, although the slides of additional CCP presentations from advisory committee meetings have briefly acknowledged Starliner’s failure with vague mentions like “valve design corrective action granted” (Dec. 2018) and “Service Module Hot Fire testing resuming after new valves installed” (May 2019), NASA has yet to acknowledge the Service Module failure and its multi-month schedule impact.
So, if SpaceX’s moderately quiet but otherwise excellent communication of Crew Dragon’s explosion was unsatisfactory and worthy of pointed criticism straight from the head of NASA, the fact that Boeing and NASA have scarcely acknowledged a Starliner anomaly that caused months of delays must be downright infuriating, insulting, and utterly unacceptable. And yet… not one mention during Bridenstine’s bizarre criticism of SpaceX’s supposed communication issues.
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Elon Musk
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Tesla and SpaceX formed special committees to weigh a merger, and Elon Musk supports it.
Elon Musk confirmed Tuesday that Tesla and SpaceX have each formed special committees of independent directors to study a possible merger, the first formal step toward combining the two companies after months of speculation.
Musk made the disclosure during SpaceX’s third quarter earnings call. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders,” he said. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” He described the setup as “an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.”
Musk did not hide where he stands. “Do I think it would be a good idea? Yes,” he said, pointing to shared work on super intelligence software, chip design, the Terafab facility in Austin, robotics, mass to orbit and connectivity. “I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity.”
He also tried to cool expectations. The committees have not agreed on terms for any transaction, and Musk said assuming a merger is a certainty “would be overstating it.” Any deal would go to shareholders, and on the Tesla side it would need approval from 50 percent of all outstanding shares, not just the shares that are voted. Musk called that “quite a high hurdle.”
That bar has tripped Tesla up before. The company’s 2025 attempt to declassify its board won support from only 39.4 percent of outstanding shares and failed. Musk’s own voting stake sits near 20 percent after he exercised his 2018 options in June, so a deal would need broad backing from institutions and a retail base that often leaves votes uncast.
Timing is another open question. Tesla filed its proxy statement Monday for its December 3 annual meeting, and the ballot has only three items: director elections for Musk, Robyn Denholm and JB Straubel, a say on pay vote and auditor ratification. Barclays analyst Dan Levy had argued that an announcement would need to land by late October or early November to make the annual meeting, as Teslarati noted in its SpaceX earnings preview. With no terms agreed, any vote would likely require its own special meeting.
Elon Musk gives his most telling Tesla-SpaceX merger conversation yet
Musk has been edging toward this for weeks. At the All-In Summit in September, he asked “who can imagine what action one might take when there’s so much close collaboration,” Teslarati reported. Last week’s Roadster unveil, built around SpaceX derived cold gas thrusters, pushed the talk further. The two companies already share the Terafab chip project, and Tesla holds a small SpaceX stake that came from its earlier investment in xAI.
SpaceX brought strong numbers to the conversation. It reported Q3 revenue of $14.58 billion, up 161 percent year over year, with its Super Intelligence segment now its largest at $7.56 billion. A higher SpaceX valuation would shape any exchange ratio Tesla holders are offered.
Tesla reports its own third quarter results after the close on Wednesday, October 21. Investors had already ranked merger timing among the top retail questions for SpaceX’s call, and the committees will almost certainly come up again on Tesla’s.
SpaceX reported its third-quarter 2026 financial results on October 20, posting the company’s first solidly profitable quarter since going public earlier in the year under the ticker $SPCX.
Revenue reached $14.58 billion, up 161 percent year-over-year from $5.6 billion, and well ahead of consensus estimates in the $12.7 to $12.9 billion range. The results highlight a rapid shift in SpaceX’s center of gravity toward artificial intelligence/super intelligence, while Starlink and traditional space operations continue to show robust progress.
Here are the key financial results for the quarter:
- Revenue of $14.58 billion (+161% YoY)
- Adjusted EBITDA of $8.8 billion (+306% YoY)
- GAAP net income of $4.4 billion (versus a $1.1 billion net loss in the prior-year quarter)
- Adjusted EPS of approximately $0.35 (versus roughly $0.13–0.16 expected)
- Income from operations of $2.8 billion
The AI/SI segment generated $7.56 billion in revenue, an 830 percent year-over-year increase, making it the company’s largest segment for the first time. Growth was primarily driven by the activation of major cloud services agreements, the integration of Cursor (acquired earlier in 2026), and rising usage of Grok models and the newly introduced Grok Bot personal agent.
🚨 SpaceX just reported earnings! Here are some highlights:
Financial:
Revenue $14.58B (+161% YoY) vs. consensus ~$12.7–12.9B
Adjusted EBITDA $8.8B (+306% YoY)
GAAP net income $4.4B (vs. prior-year loss; first solidly profitable quarter post-IPO)
Adjusted EPS ~$0.35 vs. ~$0.13–0.16 expectedSegments:
Super Intelligence (SI, formerly AI): $7.56B (+830% YoY) — now the largest segment, driven by cloud contracts, Cursor, and Grok.
Connectivity (Starlink): $5.25B (+69% YoY).
Space: $1.77B.Other highlights:
Starlink subscribers: 13.6M (+89% YoY).
Nameplate compute: 1.7 GW.
Capex: $19.6B (majority AI infrastructure).
Cash & marketable securities: ~$90B.
First revenue-generating Starship mission (26 V3 Starlink satellites, ~10× Falcon 9 downlink capacity per launch).— TESLARATI (@Teslarati) October 20, 2026
SI adjusted EBITDA reached $5 billion, and nameplate compute capacity stood at 1.7 GW at quarter-end, up from 1.4 GW in June and 0.6 GW a year earlier. Capital expenditures totaled $19.6 billion, with the majority allocated to AI infrastructure, including continued expansion of the Colossus facilities.
The Connectivity segment, which primarily surrounds Starlink, produced $5.25 billion in revenue, a 69 percent year-over-year and 22 percent sequentially. These are pleasant results to see and expected, considering how many airlines have adopted Starlink over the past year.
Starlink consumer subscribers reached 13.6 million, an 89 percent increase from the prior year, and a sequential gain of 1.6 million. Consumer average revenue per user improved to $69. Meanwhile, Enterprise and Government revenue also grew strongly, and Starlink is now installed on more than 3,800 aircraft, making internet more accessible and better performing than previous options.
The Space segment also performed well and contributed $1.77 billion in revenue, up 6 percent year-over-year and 84 percent sequentially. A major milestone was the successful first revenue-generating Starship mission (Flight 14), which deployed 26 V3 Starlink satellites. Those satellites added roughly 10 times the downlink capacity of a typical Falcon 9 Starlink launch.
SpaceX completed 12 customer launches during the quarter, including NASA’s Nancy Grace Roman Space Telescope mission, and continued to grow its backlog of crewed, national security, and commercial flights.
CFO commentary noted that the combination of launch leadership, recurring Starlink revenue, and rapid SI expansion is producing meaningful operating leverage.
The company ended the quarter with roughly $90 billion in cash and marketable securities, providing substantial resources for ongoing investment while targeting an investment-grade balance sheet. Sequential revenue nearly doubled from the $7.81 billion reported in the second quarter, illustrating the pace of the AI-driven acceleration. Things are looking strong for SpaceX.
What’s incredibly striking is the fact that SI has grown to be larger than the rest of the company in such a short amount of time. CEO Elon Musk said on the earnings call that Grok Bot is the “fastest-growing product I’ve ever seen,” so it seems that it could be a true keystone of SpaceXSI over the next few years.
SpaceX (NASDAQ: SPCX) will report its second public earnings call today since its IPO earlier this year, and there are a few things we expect to hear about, as well as Wall Street analysts, who have already outlined their expectations for the call.
Wall Street analysts have a consensus of $12.72 billion in revenue and an earnings per share (EPS) of $0.13. These are broken down into three sectors: Space, Connectivity, and AI/SI, which are perceived in this way:
- Space: $1.41 billion
- Connectivity: $4.84 billion
- AI/SI: $6.47 billion
Other outlets cluster near $12.8 or $12.9 billion in revenue and $0.14 – $0.15 EPS. This implies a roughly 65 percent sequential growth from Q2’s $7.81 billion, driven mostly by AI/SI, with the first post-IPO positive EPS expected.
Here are the three things to watch for on the call:
AI Revenue Ramp and the $100B+ ARR target
AI is truly the swing factor for SpaceX, and analysts expect it to roughly double from Q2’s $2.56 billion and become about half of total revenue. Management previously guided to a $100 billion+ annualized run rate by December, including the Cursor acquisition, which was $60 billion, to close the quarter.
Listen for updates on SpaceX’s compute capacity, especially pertaining to its contracts with Google, Anthropic, and others, revenue per watt, any new deals, and Cursor’s early contribution.
Starlink/Connectivity Metrics and Mobile Expansion
Connectivity remains a main profit engine for SpaceX. Subscriber additions will be something to pay attention to, as Q2 ended at 12 million and previews are looking at 14 million for this quarter. Additionally, ARPU trends, enterprise and government growth, and any commentary on Starlink Mobile will be something to pay attention to, especially following the recent low-band spectrum deal and FCC-related constellation approvals.
Capex Trajectory, Cash Burn/FCF, and Starship/Operational Updates
Q2 capex of roughly $18.4 billion weighed on the stock. Investors will look to scrutinize Q3 spending levels, any guidance on the pace into Q4/2027, free cash flow, backlog, and liquidity. Operational color on Starship (Flight 14 milestones and Flight 15 timing/reusability progress), Falcon cadence, and government/NASA contracts are also in focus.
Of course, there will also be some speculation on the potential Tesla-SpaceX merger, but there was nothing mentioned in the company’s proxy it sent earlier this week.
SpaceX will report earnings after market close today and will stream the call on X.
Watch live as SpaceX discusses our Q3 2026 earnings at 3:30pm CT today → https://t.co/Qrb0qeVG15
— SpaceX (@SpaceX) October 20, 2026
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