News
SpaceX will modify engine component after concerns raised over cracking
The Government Accountability Office is about to issue a report warning of a flaw it believes exists in the Merlin engines used to power the SpaceX Falcon 9 rockets. A report in the Wall Street Journal claims the GAO has determined there is a flaw in the turbopumps that pressurize the two fuels used in the Merlin engines — liquid oxygen and highly refined kerosene — and force them into the engines’ combustion chamber.
A draft of the report says turbine blades in the pumps are cracking under pressure. The GAO is concerned that the cracking problem makes the Falcon 9 unsafe for crewed space missions, which are scheduled to begin in 2018. For its part, SpaceX says it is aware of the problem and is taking steps to address the issue.
“We have qualified our engines to be robust to turbine wheel cracks,” SpaceX said in a statement made in response to an inquiry from Quartz. “However, we are modifying the design to avoid them altogether. This will be part of the final design iteration on Falcon 9. SpaceX has established a plan in partnership with NASA to qualify engines for manned spaceflight.”
No failures have occurred due to the cracked turbine blades. The Falcon 9 has completed 28 successful missions since its first flight in 2010. The two failures that did occur — one in 2015 and another in 2016 — were attributed to other causes.
Part of the concern is that SpaceX intends to be the first to re-use its rockets as part of its push to drive down the cost of space launches. There are fears that the cracking problem could lead to more failures when rockets are re-used, although it seems unlikely SpaceX would rely on rocket engines it knows have cracked turbine blades.
What is not known at this time is how long it will take SpaceX to complete and validate the changes to its rocket engine design. There are concerns the changes may delay the company’s ambitious 2017 launch schedule, which could have a negative effect on its profitability. Acting NASA administrator Robert Lightfoot told the Wall Street Journal, “we know how to fix” the SpaceX engines but did not suggest how long it will take to incorporate and test the design changes.
Boeing, which is SpaceX’s closest competitor in the space flight business, is experiencing its own problems of late. Aerodynamic turbulence between its spacecraft, the CST-100, and the Atlas rockets Boeing intends to use has caused serious vibrations during testing. The vibrations are powerful enough to cause concerns about the safety of the rocket and spacecraft combination. It is also experiencing problems with the parachutes that are supposed to return the spacecraft and the humans inside safely to earth at the conclusion of a mission.
Quartz reports that independent experts are concerned that neither company will have their rockets and space capsules ready in time to meet NASA 2018 manned flight schedule.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla has expanded the footprint of a massive safety feature worldwide with a recent Software Update labeled as 2026.20.6. The expansion of the “Blind Spot Warning While Parked” feature represents the more widespread availability of the feature, which aims to prevent “dooring.”
Dooring is when a driver or passenger opens a car door into the path of an oncoming road user, usually a cyclist or motorcyclist. It is among the most common types of cycling accidents, the League of American Bicyclists says.
For this reason, Tesla created a feature that warns occupants not to open the door because an object is approaching. The feature will sound a chime, and it will also delay the opening of the door to prevent an incident.
The release notes state (via Not a Tesla App):
“If you attempt to open a door while an approaching object is detected in your blind spot (for example, a bicyclist approaching from behind) a chime sounds, and your door will not open upon initial button press. Wait a short time and press the button a second time to override the warning.”
Tesla initially rolled out this feature back in 2024 with the Model 3 “Highland.” However, it remained with the Model 3 exclusively for over a year; that was until Tesla added it to the Cybertruck this past Spring.
Now, it is making its way to the new Model Y, 2021 and newer Model S, and 2021 or newer Model X.
The prevention of dooring incidents could eliminate many injuries to cyclists, especially in an urban setting. Dooring accounts for 10-20 percent of bike-related crashes in major cities, and over 17,000 dooring-related incidents were treated in the U.S. over the course of a decade. These usually involve fractures, contusions, and head trauma.
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
SpaceX gets initial stock coverage from Tesla’s biggest bull
