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SpaceX loses record-breaking rocket booster after sixth successful Starlink launch
SpaceX has suffered its second rocket landing failure of 2020 despite the fact that both lost Falcon 9 boosters successfully launched 60 Starlink satellites, an anomaly that CEO Elon Musk says will need a “thorough investigation”.
After a rare last-second launch abort on March 15th and a three-day range-related delay, Falcon 9 booster B1048 lifted off with 60 upgraded Starlink v1.0 satellites on its fifth orbital-class mission. At least for the first two and half minutes, the booster performed precisely as intended, carrying a fueled upper stage and its ~16 metric ton (36,000 lb) payload to an altitude of 55 km (34 mi) and a velocity of 1.8 km/s (1.1 mi/s). However, about 10 seconds before the booster reached main engine cut-off (MECO) and stage separation, something went wrong.
While there is some ambiguity in his response, according to Musk, at least one of Falcon 9 B1048’s nine Merlin 1D engines performed an early shutdown before MECO. The rocket’s computer immediately accounted for the anomaly, extending the remaining eight-engine booster burn 5-7 seconds beyond the nominal timeline to ensure mission success. While the booster’s loss is still disappointing and the premature engine shutdown more than a little concerning, it’s critical to remember that mission success was ensured. Just 15 minutes after liftoff, the rocket’s upper stage successfully spun up and deployed another 60 Starlink satellites, bringing SpaceX’s operational constellation to an incredible ~350 satellites.
Based on live views available from SpaceX’s launch webcast, it appears that Falcon 9’s “early engine shutdown” is more of a euphemism for a fairly violent engine failure that triggered an instantaneous cutoff, preventing damage elsewhere. While SpaceX would certainly rather avoid in-flight engine failures, Falcon 9’s nine Merlin 1D booster engines are installed inside an aluminum ‘octaweb’ structure that transmits their thrust to the rest of the rocket but also effectively quarantines each engine in a blast-proof bunker.
Nevertheless, the rocket’s highly-attuned software and affected octaweb engine bunker did their jobs, instantly shutting the failing engine down while also preventing the explosion and resulting shrapnel from damaging the rest of the rocket. More likely than not, B1048’s autonomous decision to always put mission success before booster recovery lead the booster to expend a majority of the propellant needed for its landing attempt to make up for the 10 or so seconds operating at only ~89% thrust.
As a result, B1048 may have simultaneous subjected itself to a much more extreme atmospheric reentry and run out of propellant before it could complete (or maybe even start) its drone ship landing burn. There’s also a chance that the engine that failed was one of the three engines required for reentry and landing burns, an asymmetry that would be impossible to overcome on the fly. Ultimately, the booster likely impacted the ocean at a near-supersonic velocity, smashing it into aluminum confetti. Thankfully, the late B1048 had a record-breakingly productive career as an orbital-class booster, placing dozens of tons of payload into orbit over five successful launches. Its loss is regrettable but the booster has more than earned its keep.
Aside from two twice-flown Falcon Heavy Block 5 side boosters of unknown status and 2-3 new boosters assigned to critical NASA and US Air Force missions, SpaceX’s fleet is now down to just three flightworthy Falcon 9 boosters. This could dramatically limit its options for near-term commercial flights, as none of those rockets – even assuming flawless launch and landing debuts – will likely be ready for their first reuses until May or June. Meanwhile, B1051 and B1049 have three and four missions under their respective belt and both completed their last launches just 50-70 days ago, while B1059 flew for the second time just two weeks ago. Despite the fact that it successfully completed its fifth mission, B1048’s in-flight engine failure will almost certainly delay upcoming launches, although the degree of those delays is up for debate.
Up next for SpaceX is SAOCOM 1B, an Argentinian radar satellite set to become the first payload launched into a polar orbit from the US East Coast in half a century. Before B1048’s anomaly, the mission was scheduled to launch no earlier than March 30th and could use any of unassigned boosters described above
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Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
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 Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
