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SpaceX gears up for Crew Dragon’s first recovery with a giant inflatable cushion

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Paired with observations and comments from sources familiar with the company, all signs seem to indicate that SpaceX is planning to recover their first Crew Dragon spacecraft with a giant inflatable cushion, to be towed a hundred or so miles off the coast of California by one of the company’s Port of LA-stationed recovery vessels.

Despite a minor mishap during some sort of inaugural sea-trial of a custom Crew Dragon mass simulator, SpaceX technicians are pushing ahead with a test campaign intended properly characterize exactly how to best recover a Dragon while side-stepping around the problems caused by seawater immersion.

Why recover your Dragon?

First off, why would SpaceX choose to develop a new method of Dragon recovery – different than the company’s current experience with simply landing the capsules in the ocean – with the expectation that it will debut during the recovery of Crew Dragon after its very first demonstration mission (DM-1)? A huge number of unknowns and major questions remain, but the decision to attempt to avoid seawater immersion during the DM-1 Dragon recovery is very likely no coincidence.

Over the last several years, SpaceX engineers and technicians have learned a huge amount from recovering, refurbishing, and even reusing Cargo Dragons to resupply the International Space Station for NASA. Of all the lessons learned, the most unequivocal has to be a newfound appreciation for just how difficult it is to safely and reliably reuse spacecraft and rocket components after landing and being immersed in seawater. Despite SpaceX’s growing experience with reusing both Falcon 9 and Cargo Dragon, Dragons still typically require a bare minimum of 6-12 months of refurbishment before they are ready for another launch.

For Crew Dragon’s DM-1 debut, it thus makes sense that SpaceX wants to recover the spacecraft in such a way that it is exceptionally easy to rapidly refurbish. Perhaps just several months after that capsule returns to Earth, currently expected no earlier than December 2018, SpaceX’s first crewed Crew Dragon demonstration’s tentative April 2019 launch debut will depend entirely on the completion and review of an In-Flight Abort (IFA) test planned just one month prior, March 2019.

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The planned IFA test of Crew Dragon hinges entirely on DM-1 and Dragon refurbishment because the present plan (and launch schedule) absolutely depends on reflying DM-1’s Crew Dragon capsule, potentially recovered from orbit as few as three months prior.

Crew Dragon completed a successful pad-abort test in 2015. (SpaceX)

With a successful 2015 Pad Abort already under Crew Dragon’s belt, SpaceX voluntarily chose to conduct an additional complimentary in-flight abort not explicitly required by NASA, designed to demonstrate that Dragon will be able to safely extract astronauts from a failing rocket at the point of peak aerodynamic pressure (Max-Q). Essentially, a combination of successful aborts both on the launch pad and during Max-Q would theoretically demonstrate beyond any reasonable doubt that Crew Dragon really is capable of safely aborting a launch and protecting its astronauts at any point during launch.

Cargo Dragon has demonstrated that – apparently – no amount of heroics can refurbish the recovered spacecraft in just a small handful of months after seawater immersion, not without major changes to its design. As such, preventing that with some sort of inflatable cushion (or even Mr Steven’s net) would likely save many months of drying, cleaning, and requalification testing of all externally impacted components.

How to recover your Dragon

While the “why” is fairly obvious at this point, the “how” of actually making such a cushioned recovery happen is far less clear. Still, we at least know from several recent comments from SpaceX CEO Elon Musk and statements made in environmental impact analyses that the company has been considering such recoveries for some time.

Despite the fact that Crew Dragon’s original propulsive landing capability was nixed due to the unlikelihood of NASA ever certifying it for crewed landings and the expense required to attempt that certification, there is still clearly some latent interest (and value) in precisely landing Crew Dragon, even if only to speed up capsule and crew recovery after splashdown. A March 2018 preliminary environmental impact analysis of Gulf of Mexico Dragon recoveries – as a backup to bad weather in the Pacific and Atlantic – made the interest in precision exceptionally clear.

“The splashdown zone is a circle with a radius of approximately 5.4 nautical miles. … Dragon has been designed to perform precision landings in order to minimize the size of the splashdown zone and recovery time.”

Admittedly, a circle with a diameter of 10.8 nautical miles (20 km) does not exactly scream “precision” and ~20 km is likely around a thousand times less precise than what’s needed to land on the 30m-diameter inflatable structure present at Berth 240, but it’s probable that the splashdown zone as discussed is a worst-case scenario meant to give SpaceX’s recovery team plenty of wiggle room.

 

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Musk also took a few seconds of a Falcon Heavy post-launch press conference to briefly describe Mr Steven, and he just so happened to touch on fairing and Dragon recovery:

“And we’ve got a special boat to catch the fairing. … It’s like a giant catcher’s mitt in boat form. I think we might be able to do the same thing with Dragon. So…if NASA wants us to, we can try to catch Dragon. Literally, it’s meant for the fairing, but it would work for Dragon, too.” – Elon Musk

Mr Steven takes one for the team

Even more experimental than fairing recovery, SpaceX happened to experience a minor incident while attempting to test aspects of its prototype Dragon catcher apparatus in early August. Partially captured by Teslarati photographer Pauline Acalin, SpaceX technicians were lifting a Crew Dragon heatshield mass simulator with a healthy topping of buoys onto Mr Steven. Moments after it was lowered onto the deck, the whole setup disappeared below the vessel’s side rails in a massive boom.

 

According to sources familiar with SpaceX’s recovery fleet, the mishap was much less severe than the deafening noise it produced seemed to indicate from the sidelines. They described the aftermath as “an annoying accident” that was unlikely to take any significant amount of time to repair. More likely than not, Mr Steven’s wooden deck suffered some level of structural degradation after several years of active use, something that SpaceX technicians only discovered after loading (or maybe dropping) a heavy Dragon mass simulator aboard.

Regardless, one could certainly say that the test in question was more or less a success, as it most certainly demonstrated whether Mr Steven’s deck was actually capable of supporting the heavy test article (it was not). A few repairs and structural reinforcements later, the vessel is likely already back in working order, with photos taken on August 19th showing that the focus has returned to the vessel’s arms (two of which must have been removed earlier this week).

Mr Steven sans two arms, August 19th. (Pauline Acalin)

For prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket recovery fleet check out our brand new LaunchPad and LandingZone newsletters!

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Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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SpaceX reports beat in first earnings while minimizing losses

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Credit: SpaceX | X

SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.

After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.

Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.

SpaceX to report first-ever earnings today: here’s what to expect

Earnings Results

  • Revenues: $7.8 billion reported vs. $6.7 billion expected
  • Adjusted EBITDA: $3.5 billion vs. $2 billion expected
  • Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion

Additionally, CFO Bret Johnsen had these comments:

“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”

Space Business Highlights

SpaceX shared some of its biggest Space Business Highlights for Q2:

  • Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
  • Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
  • Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
  • Starship V3 development continued to advance towards full and rapid reusability:
    • Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
    • Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield

SpaceX will report its earnings today at 4:30 P.M. EDT.

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Elon Musk sends second warning to SpaceX shorts ahead of first earnings

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Credit: Grok Imagine

Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …

The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.

This marks the second such message from Musk in under three weeks.

On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.

Elon Musk sends first warning to SpaceX short sellers

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Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.

SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.

Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.

As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.

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Tesla’s AI lead doubles down on FSD’s speed strategy, and owners are confused

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Credit: Tesla

Tesla’s AI lead Ashok Elluswamy doubled down on the company’s strategy regarding Full Self-Driving’s speed settings, and owners are definitely confused.

Earlier versions of Full Self-Driving allowed owners to set a max speed that the vehicle could travel while operating under the semi-autonomous driver assistance platform. This allowed more customization for the driver, giving them the ability to experience FSD’s robust performance with their own personal preferences.

Speed is massively important for obvious reasons — it’s not only a question of keeping the vehicle occupants comfortable by traveling at a safe speed, but it’s also something that could contribute to a ticket or infraction from law enforcement.

With the release of FSD v14 last year, Tesla removed the ability to set a max speed and instead opted for five Speed Profiles, ranging from “Sloth,” the most conservative, to “Mad Max,” the most aggressive and spirited. These profiles not only control speed, but also how frequently the vehicle will execute passes, perform lane changes, and other contributing factors.

The removal of the Max Speed setting was a major complaint amongst the Tesla community because it left owners scrambling for a way to experience suitable behaviors while traveling at an appropriate speed. Most felt the driving profiles would be a good indicator of the behaviors, while speed would still be left up to the discretion of the driver.

Instead, Tesla’s Speed Profiles determine both, and the constant tinkering of how they behave has been a major bottleneck and point of confusion for both owners and the company. From update to update, the Speed Profiles will change, sometimes more drastically than others. Some owners have complained that the “Standard” profile is too fast, while others have experienced “Mad Max” traveling below the speed limit:

These things change with each update, but the big complaint is that owners are on the hook for any tickets that come from FSD’s infractions; that’s the caveat of the suite being named FSD (Supervised). It ultimately means the driver is responsible, and the automaker has no liability when it comes to speeding tickets or general traffic infractions.

It is the driver’s responsibility to take over or adjust based on this.

Elluswamy essentially confirmed that there are no plans to bring back Max Speed control, because it is what he referred to as “an anti pattern.” He then echoed something that CEO Elon Musk has started to really push with FSD, and that’s the idea that Tesla is really honing in on the preferences of the driver.

Owners were confused by Tesla’s decision, stating that there must be a better way, especially considering disengagements for incorrect speeds are common:

From personal experience and using FSD for over 72 percent of my driving miles since v14 was released late last year, I make Speed Profile adjustments constantly. If FSD is traveling a tad too quickly, I will scale it back, and if it’s too conservative, I’ll make it more aggressive.

I don’t complain about making the Speed Profile changes too frequently, but it would certainly be nice to have it happen less frequently. There are far too many times I am concerned about getting a ticket, even in Standard mode.

The biggest issue for me, personally, which seems to be echoed throughout the community, is the fact that Tesla’s goal is to minimize disengagements. Many drivers are stating that speed is a major reason for disengagements.

However, Tesla is not willing to bring back this one level of input because it would technically be a regression.

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Whether it’s right or wrong in your opinion, it is what Tesla is going with, and it seems like it has pivoted quite a bit from its other strategies for minimizing interventions by pushing its AI to behave in a way that would fit the occupant’s personal preferences.

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