News
SpaceX President updates schedule for Starship’s orbital launch debut
SpaceX COO and President Gwynne Shotwell says that the company now expects Starbase to be ready for Starship’s first orbital launch attempt as early as June or July, pushing the schedule back another month or two.
To accomplish that feat, SpaceX will need to more or less ace a wide range of challenging and unproven tests and pass a series of exhaustive bureaucratic reviews, significantly increasing the odds that Starship’s orbital launch debut is actually closer to 3-6 months away. While SpaceX could technically pull off a miracle or even attempt to launch hardware that has only been partially tested, even the most optimistic of hypothetical scenarios are still contingent upon things largely outside of the company’s control.
Will FAA or won’t FAA?
Both revolve around the Federal Aviation Administration (FAA), which – in SpaceX’s case – is responsible for completing a ‘programmatic environmental assessment’ (PEA) of orbital Starship launches out of Boca Chica, Texas and issuing a launch license for the largest and most powerful rocket ever built. In some ways, both tasks are unprecedented, but the bureaucratic processes involved are still largely the same as those SpaceX has successfully navigated over the last two decades.
First up, the FAA’s environmental review. Until very recently, the fate of Starbase’s PEA was almost completely indeterminable and could have gone any number of ways – most of which would not be favorable for SpaceX. However, just a few days ago and about a week after the FAA’s latest one-to-two-month PEA delay announcement, the agency updated an online dashboard to show that the fourth of five main PEA processes had been completed successfully. The most important part of the update is the implication that SpaceX and the FAA have now completed almost every aspect of the PEA that requires cooperation with other federal agencies and local stakeholders.
Only one more cooperative process – ensuring “Section 4(f)” compliance – still needs to be completed. Without delving into the details, there is no convincing evidence to suggest that that particular step will be a showstopper, though SpaceX might have to compromise on certain aspects of Starbase operations to complete it. Once Section 4(f) is behind them, the only thing standing between the FAA and SpaceX and a Final PEA is the completion and approval of all relevant paperwork. In other words, for the first time ever, the FAA’s targeted completion date – currently May 31st, 2022 – may actually be achievable.
Still, as the FAA itself loves to repeatedly point out, “the completion of the PEA will not guarantee that the FAA will issue a launch license – SpaceX’s application must also meet FAA safety, risk, and financial responsibility requirements.” Even if the PEA is perfect, SpaceX still has to secure an FAA launch license for the largest and most powerful rocket in history. It’s unclear if SpaceX and the FAA have already begun that painful back-and-forth or if some tedious fine print prevents it from starting before an environmental review is in place. Without knowing more, launch licensing could take anywhere from a few days to several months.
A series of tubes
Without the FAA’s launch license and environmental approval, any Starship SpaceX builds cannot legally launch from Starbase. On the other side of the coin, though, it’s just as true that the FAA’s nods of approval are worth about as much as the paper they’re written on without a rocket that’s ready to launch. In a perfect world, SpaceX would have a Starship and Super Heavy booster fully qualified, stacked, and sitting at Starbase’s orbital launch site when the FAA finally gives a green light. However, that’s not quite what SpaceX’s reality is today.
First Starship orbital flight will be with Raptor 2 engines, as they are much more capable & reliable. 230 ton or ~500k lb thrust at sea level.
We’ll have 39 flightworthy engines built by next month, then another month to integrate, so hopefully May for orbital flight test.— Elon Musk (@elonmusk) March 21, 2022
SpaceX has made a significant amount of progress in the last month and a half, but contrary to CEO Elon Musk’s hopes as of March 21st, the company will absolutely not be ready to attempt an orbital launch by the end of May. Nonetheless, Shotwell’s estimate of “June or July” may not be completely out of reach. Since Musk’s tweet, SpaceX finished assembling Super Heavy Booster 7, rolled the rocket to the launch site on March 31st, and completed several major tests in early April. However, during the last test, an apparent operator error significantly damaged a large part installed inside the booster, forcing SpaceX to return Super Heavy B7 to Starbase’s build site. After two and a half weeks of repairs, Booster 7 returned to the launch site on May 6th and completed another ‘cryoproof’ test, seemingly verifying that those quick repairs did the job.
Had Booster 7 not required repairs, it’s not impossible (but still hard) to imagine that SpaceX could have had a Super Heavy booster ready to launch by the end of May. Still, the static fire testing Booster 7 needs to complete is almost entirely unprecedented and could take months to complete. To date, SpaceX has never ignited more than six Raptors at once on a Starship prototype, while Super Heavy will likely need to complete multiple 33-engine tests before it can be safely considered ready for flight. Worse, there is no guarantee that SpaceX actually wants to fly Booster 7 after the damage it suffered. If Booster 8 carries the torch forward instead, Starship’s orbital launch debut could easily slip to late Q3 or Q4 2022.
Meanwhile, Super Heavy is only half of the rocket. When Musk tweeted his “hopefully May” estimate, SpaceX was nowhere close to finishing the Starship – Ship 24 – that is believed to have been assigned to the orbital launch debut. However, SpaceX finally accelerated Ship 24 assembly within the last few weeks and ultimately finished stacking the upgraded Starship on May 8th. A great deal of work remains to truly complete Ship 24, but SpaceX should be ready to send it to a test stand within a week or two. Even though the testing Ship 24 will need to complete has been done before by Ship 20, making its path forward less risky than Booster 7’s, Ship 24 will debut a number of major design changes and likely needs at least two months of testing to reach a basic level of flight readiness.
Last but not least, there’s the question of the orbital launch site (OLS) itself. Is the launch mount ready to survive a full Super Heavy static fire? Is the pad’s tank farm ready to fill Starship and Super Heavy with several thousand tons of flammable, explosive cryogenic propellant? If it’s a goal of the test flight, is the launch tower ready for a Super Heavy booster to attempt to land in its arms? While there are reasons to believe that the answer to some of those questions is “yes,” plenty of uncertainty remains and plenty of work is still incomplete.
Ultimately, Shotwell’s June goal is almost certainly unachievable. Late July, however, might be within the realm of possibility, but only in the unlikely event that all Booster 7 and Ship 24 testing is completed almost perfectly and without further delay. For the pragmatic reader, August or September is a safer bet. Thankfully, at least one thing is certain: activity at Starbase is about to get significantly more exciting.
Investor's Corner
Tesla has one big financial question to answer for investors: Morgan Stanley
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.
Investor's Corner
SpaceX AI investment gamble will make it a big winner, firm says
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.
News
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
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.
