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SpaceX Falcon 9 Block 5 will usher in a new era of rapid reuse rockets
Despite all missions being readily in the range of recovery, SpaceX has only attempted to recover its Falcon boosters after two of the company’s five 2018 launches. If anything, the attachment to Falcon boosters and the apparent melancholy felt by many observers when they are not recovered is a testament to the staggeringly abrupt success of SpaceX’s reusable rocketry program.
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- Falcon Heavy’s side boosters seconds away from near-simultaneous landings at Landing Zones 1 and 2. (SpaceX)
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- GovSat’s Falcon 9 1032 spotted in one piece by Elon Musk after a soft-landing in the Atlantic. (Elon Musk)
Aside from Falcon Heavy’s center core and 1044, each booster expended in the last several months (Iridium-4, GovSat-1, and PAZ) was aging, flight-proven, and nearing the end of its operational life: Block 3 and Block 4 Falcon 9s were simply not designed or expected to fly more than two or three times total. Their seemingly premature deaths were thus a necessary step along the path to Block 5 and truly rapid and cheap booster reuse; perhaps as pragmatic as quite literally making space for new and superior hardware at SpaceX’s many facilities. The demise of Falcon Heavy’s center core nevertheless made for a spectacular video (skip to 1:10, or watch the whole thing…).
The end (of old Falcons) is nigh
Despite the carnage in recent times, the next two weeks are likely to see several more flight-proven Falcon 9s meet their timely, watery demise, or at least complete their final flight in the case of CRS-14.
- Iridium-5 (NET March 29) will be flying atop Booster (B) 1041, previously used for Iridium-3 (Oct. 2017)
- CRS-14 (NET April 2) will make use of B1039, a booster that debuted with the launch of CRS-12 (Aug. 2017)
- Iridium-6/GRACE-FO (NET April 28) was confirmed just yesterday to be flying on B1043, the booster that launched the now-infamous Zuma spysat this January
- Lastly, SES-12 (NET April 30) will likely use B1040, which orbited the USAF’s secretive X-37B spaceplane in Sept. 2017
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- Booster 1041 arrives in Port of San Pedro, CA in Oct. 2017 after successfully completing its first launch. (Pauline Acalin)
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- Booster 1039 lands after successfully launching CRS-12’s Cargo Dragon into orbit. 1039 completed its final mission on Monday afternoon, April 2. (SpaceX)
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- After landing at LZ-1, B1043 was refurbished in approximately four months. (SpaceX)
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- Falcon 9 B1040 returns to LZ-1 after the launch of the USAF’s X-37B spaceplane. (SpaceX)
While more than a little hard to believe, this series of launches over the next 4-6 weeks may see SpaceX’s fleet of flight-proven boosters shrink to no more than two flightworthy cores – perhaps just a single Falcon 9. The launch of NASA’s exoplanet observatory TESS – set to use the brand new Falcon 9 B1045 – will likely see one additional flight after landing at LZ-1 or OCISLY in mid-April. The final flight-proven booster known to exist in a potentially flightworthy state is B1042, famous for its moderate attempt at self-immolation and Roomba-murder (correction: the Roomba murder attempt was actually a few weeks before, during the landing of SES-11’s flight-proven booster) after the successful launch of Koreasat-5A in Oct. 2017. B1042’s future is unknown at this point, however, as the post-landing fire may have damaged the booster beyond repair.
Rounding out SpaceX’s entire fleet of boosters, at least after SES-12, are the flight-proven B1045, the first-ever Block 5 booster (B1046) – flight-proven after Bangabandhu-1, and the second Block 5 booster (B1047). Assuming that Block 5’s first hot-fire testing has gone well at SpaceX’s McGregor, TX facilities, it’s probable that B1048 and perhaps B1049 will roll out of the Hawthorne factory and head to Texas for their own tests between now and then.
https://www.instagram.com/p/BgfboKIB17H/
TL;DR: SpaceX is betting heavily on Block 5
The purpose of this brief jaunt through the annals of SpaceX’s rocket fleet and production goals is to demonstrate just how aggressively SpaceX has bet on Block 5 – both on its success as a new and complex technological system and as an unprecedentedly reusable orbital-class rocket. If any design or manufacturing flaws are discovered in the first several Block 5 Falcon 9s, or if Block 5 turns out to be less reusable than SpaceX hopes, the company could well find its manifested launch dates slipping as flightworthy boosters – not satellites – become the bottleneck for access to orbit.
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Nevertheless, SpaceX has at least six full-up Falcon 9 boosters in various stages of integration and completion at their Hawthorne factory, as well as 1046 in (or departing) Texas and 1047 presumably on its way there. SpaceX certainly has a strong track record of introducing its many upgraded iterations of Falcon 9 in the past – fingers crossed that that trend continues with Block 5. If SpaceX’s confidence still rings true a month or two from today, a new era of access to space will have truly begun, and SpaceX will be able to quite rapidly refocus a considerable portion of its workforce on getting to Mars.
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- SpaceX Block 5 Falcon9 at McGregor, Texas [Credit: Chris G – NSF via Twitter, Reprinted with permission from NASASpaceflight.com]
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- SpaceX continues a cautious regiment of tests for the newest Falcon 9 upgrade, Block 5. (Reddit /u/HollywoodSX)
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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.”
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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.
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.
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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.
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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.
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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.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
