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SpaceX seeks licenses for BFR spaceship prototype hop test campaign
Recent filings confirm that SpaceX has begun the process of applying for permits and licenses that will eventually allow the company to legally conduct hop and flight tests of a BFR spaceship prototype at its prospective South Texas development facilities.
While the FAA’s Office of Commercial Space Transportation does not provide public access to pending applications, the FCC’s Experimental Licensing System published a summary of SpaceX’s request, briefly describing a series tests to be performed with a “Vertical Takeoff, Vertical Landing (VTVL) vehicle” in the near future.
While official plans to perform Grasshopper-style hop tests with a full-scale prototype of the BFR’s upper stage – known as BFS (Big Falcon Spaceship) – have been public knowledge in some form for over a year, SpaceX’s short description of the initially planned hop test activities offers a much more accurate view of the actual scope of those tests.
Most notably, SpaceX describes a campaign “divided into low‐altitude and higher‐altitude tests” that range from a ceiling of 500m (~1650 ft) to 5000m (~16,500 ft) and an overall length of ~100 to 360 seconds (1.5 to 6 minutes).
“The tests themselves are divided into low‐altitude and higher‐altitude tests. The low‐altitude tests stay below 500 meters in altitude and last approximately 100 seconds. These tests will be run approximately three times per week during the initial portion of the program. The higher‐altitude tests can go as high as 5 km and will occur approximately once per week. These tests last approximately 6 minutes.” – SpaceX, 11/20/2018, FCC File 0931-EX-CN-2018
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- A BFS attempts a Mars landing in this official updated render. (SpaceX)
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- It’s unclear just how high-fidelity the first spaceship prototype will be, but it could look similar to this. (SpaceX)
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- Eventually, SpaceX may graduate into high-speed, high-altitude flight tests of the prototype spaceship to fully test the design of its its control surfaces and “ultra-lightweight heat shield”. (SpaceX)
Tireless local (and not so local) observers continue to cover SpaceX’s and the company’s contractors’ day-to-day activities in Boca Chica, Texas and have recently played witness to the erection of part of a massive tent at an adjacent lot, appearing to be about the same scale as the tent SpaceX technicians and engineers are currently building the first prototype spaceship inside. They might not have the appeal of a big, shiny, expensive factory, but tents are extremely convenient, flexible, scalable, and affordable, lending themselves perfectly to long-term but inherently temporary projects like SpaceX’s BFR prototype development.
Meanwhile, roughly 2.5 km East of SpaceX’s newly raised tent, antennas, and propellant storage tanks, the company has begun in earnest the removal and repurposing of several hundred thousand tons of soil that have been sat atop a prospective launch pad and hangar site for 3+ years. The task of using its sheer mass and the force of gravity to help settle and strengthen the otherwise marshy, sandy ground now complete, the massive dirt pile can be repurposed to support the construction of causeways, access roads, landing pads, and more. By all appearances, SpaceX has begun to do just that and the dirt pile is rapidly shrinking as it is redistributed across the company’s local property.
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There is activity. pic.twitter.com/A8JYw6vdW6
— Nehkara (@Nehkara) October 13, 2018
Once complete, the area will be transformed from flat marshland into a group of facilities capable of supporting critical flight tests of BFR’s spaceship/upper-stage, if not eventual orbital launches of integrated boosters and spaceships. According to recent public statements from CEO Elon Musk and COO Gwynne Shotwell, SpaceX is targeting the start of those hop tests as early as late-2019.
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.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
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SpaceX AI investment gamble will make it a big winner, firm says
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
