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SpaceX competitor ULA CEO still questions the economic value of reusable rockets
SpaceX has made a name for itself for being one of the only private space companies today to deploy a fleet of rockets that are capable of being reused for multiple missions. Elon Musk has sworn by the economics of rocket reusability, and this is shown by SpaceX’s launch prices compared to competitors that use expendable rockets. Yet for Tory Bruno, the CEO of ULA, the economic sense behind reusable rockets like the Falcon 9 is still questionable.
Interestingly enough, the ULA is poised to use Blue Origin’s BE-4 engines for the first stage of its expendable Vulcan rocket. Like SpaceX, Blue Origin’s vision of spaceflight involves rockets that can be reused multiple times before they are retired. ULA, for its part, notes that it may decide to recover and reuse the Vulcan’s BE-4 engines down the road, using a system that disengages the units after launch and having them fall back through the atmosphere while being protected by an inflatable hypersonic shield.
A helicopter would then be positioned to catch the engine section midair while it makes its descent. ULA has come up with a noteworthy name for this system: the Sensible Modular Autonomous Return Technology, or SMART approach. In a statement to Aviation Week, ULA CEO Tory Bruno explained the strategy behind the company’s SMART strategy.
“It does not impact, in any significant way, the overall performance of the launch vehicle because you don’t have to save fuel to fly home with. You still get to burn up all your fuel, separate your engine, which is the most expensive piece, and recover it,” Bruno said.
Elaborating further, the ULA CEO mentioned that ultimately, he believes that the economics of reusable rockets is still up for question. Bruno argued that it is still difficult to ensure that using reusable rockets instead of expendable machines actually saves money.
“We have not really changed our assessment over the last couple of years because we have yet to see the other forms of reusability—flyback or propulsive return to Earth—demonstrate economic sustainability on a recurring basis. It’s pretty darn hard to make that actually save money… We’ve seen nothing yet that changes our analysis on that,” the ULA CEO said.
The ULA CEO’s points about the possible lack of savings on reusable rockets put him in stark contrast with other noteworthy leaders in the space industry. Apart from SpaceX CEO Elon Musk, fellow billionaire Jeff Bezos of Blue Origin is also intently focused on using reusable rockets. Even Rocket Lab CEO Peter Beck, whose company designs and launches small rockets, has embraced the idea of reusing previously-flown boosters.
In a statement in August 2019, for example, Beck noted that he actually had to “eat his hat” when it came to reusing his company’s rockets. “For a long time, I said we weren’t going to do reusability. This is one of those occasions where I have to eat my hat,” the Rocket Lab CEO said.
That being said, the fact that the ULA CEO is considering reusing the Vulcan’s BE-4 engines may be considered as a small win for reusable rockets. Perhaps in the near future, Bruno would see exactly why SpaceX has grown so much over the years, and why the company is practically launching its Starlink satellite internet system at a minimal cost.
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“We view (rocket reuse) as sort of a journey. We’re going to start with the engines because we’re pretty sure we can save money with that and pass those savings on right away. As we learn more by doing, we’ll continue to assess other valuable parts of the rocket, and we may discover that we can do that there as well.
“There is one funny thing about reusability. As you make your rocket less expensive, and you make parts of your rocket less expensive, it’s harder to close a business case on reuse because the thing you’re recovering isn’t as valuable. There’s a balance there,” Bruno said.
Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?'”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
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.
Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
