News
SpaceX’s Crew Dragon spaceship nears first orbital launch test
After roughly five years of concerted development, SpaceX CEO Elon Musk has released the first official photo of the company’s Crew Dragon, a version of their orbital spacecraft designed and optimized to reliably return humans to orbit from United States soil.
Traceable back to the very beginning of SpaceX’s first Dragon development program, where the company hoped to easily modify the Cargo Dragon capsule design to support crewed missions, the results of the years of work that followed instead focused on an extensive redesign originally intended to be capable of powered landings similar to Falcon 9 boosters. However, likely the result of an immense certification burden to ever hope to have NASA okay its operational usage, SpaceX chose to kill the landing program in favor of a more traditional ocean splashdown style of return. Extendable leglets were thus removed from the design’s heat shield, a change that also ended any hopes of SpaceX’s plans to partner with NASA and land an unprecedented payload on the surface of Mars, known as Red Dragon.
-
- Elon Musk: “SpaceX Crew Dragon ship in anechoic chamber for EMI [electromagentic interference] testing before being sent to @NASA Plum Brook vacuum chamber” (SpaceX)
-
- CRS-14’s flight-proven Cargo Dragon captured on orbit in April 2018 by astronaut Oleg Artemyev. (NASA/Oleg Artemyev)
-
- A reused orbital spacecraft, Cargo Dragon, back on Earth after its second successful resupply mission. (SpaceX)
That announcement came in the summer of 2017. Ten quiet months later, Musk confirmed April updates from NASA’s Commercial Crew Program managers with a photo of the first flight-worthy Crew Dragon in SpaceX’s anechoic chamber, ahead of shipment to NASA’s Plum Brook facility for full-up spacecraft testing in vacuum conditions.
While it may look like a completely different design, much of Crew Dragon has a significant level of heritage with the readily flight-proven Cargo Dragon spacecraft, including avionics, parachutes, heat shield expertise, and Draco maneuvering thrusters. The most obvious difference can be found in the four black bays spaced evenly around the edge of the capsule – these contain two SuperDraco thrusters each (eight total) that together act as an integrated launch abort system, capable of launching the capsule and trunk to safety in fractions of a second in the event of Falcon 9 failure at any point during launch. A test of this hardware was first completed almost exactly three years ago, demonstrating acceleration from stand-still to 100 mph in less than a single second.
The hardware shown in Elon Musk’s photo is not intended to carry humans (not on its first flight, at least), instead aiming to be the first Crew Dragon article to make it into Earth orbit, where SpaceX technicians and engineers will conduct and observe a vast fleet of tests with the intent of proving the craft’s capabilities. If successful, this mission (known as DM-1) will be the final step SpaceX needs to complete before DM-2, the upgraded spacecraft’s first real crewed mission.
As of now, DM-1 and DM-2 are officially scheduled for no earlier than (NET) August 31 and December 31 respectively. However, those dates are very unlikely to hold. Per sources with knowledge of Crew Dragon’s progress, DM-2 is currently scheduled for launch NET 2019, likely sometime in the first or second quarter. DM-1, while certainly not ready for an August 31 launch, does appear to be tracking towards a launch later this year, most likely in Q4 2018. SpaceX technicians are working around the clock to ready this groundbreaking hardware for its trip to Plum Brook and eventually to space, spending long shifts in the belly of the Dragon to ensure everything is working as intended.
-
-
- Falcon 9 Block 5 completed its first launch on May 11, carrying the Bangabandhu-1 communications satellite to geostationary transfer orbit. (Tom Cross)
-
- SpaceX’s first successfully launched and landed Block 5 Falcon 9, May 2018. (Tom Cross)
-
- B1046 returned to Port Canaveral shortly after its May 4 debut, and is now being carefully analyzed as pathfinder hardware. (Tom Cross)
Falcon 9 Block 5, which successfully completed its inaugural launch earlier this month, is another critical path for SpaceX’s first crewed mission (DM-2). As of now, NASA’s Aerospace Safety Advisory Panel (ASAP) has advised NASA to require seven full-up successful launches of the Block 5 iteration before allowing crew to fly on the rocket. In order for SpaceX to achieve that milestone in time for a crewed launch in early 2019, Falcon 9 Block 5 will need to fly (and refly) flawlessly over the course of the second half of 2018. While unclear if ASAP will accept flight-proven launches of the upgraded rocket for its fairly arbitrary “seven launches” requirement, SpaceX will need to rely heavily on Block 5 reflights if they hope to complete as many as 30 launches total this year.
As of now, the next launch of Falcon 9 Block 5 is likely to occur sometime in June, with three total Block 5 flights tentatively scheduled before mid-July. If SpaceX can pull those launches off, it will act as a huge bode of confidence for the future of the rocket, as well as the future of Crew Dragon.
Crew Dragon tests its SuperDraco-powered launch abort system. (SpaceX)
Follow us for live updates, behind-the-scenes sneak peeks, and a sea of beautiful photos from our East and West coast photographers.
Teslarati – Instagram – Twitter
Tom Cross – Twitter
Pauline Acalin – Twitter
Eric Ralph – Twitter
-
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
