News
SpaceX caps major Falcon 9 Block 5 reuse with spectacular Port of LA recovery
SpaceX has completed what might be its most important Falcon 9 reuse yet after successfully launching and recovering booster B1046 for the third time in just six months. Prior to this launch, the company had never before flown a reused Falcon 9 booster more than once.
Making way for a probable fourth launch in the near future, B1046’s Port of Los Angeles return was marked by a stream of spectacular visuals as seasoned SpaceX recovery technicians transferred the booster from drone ship to land, performed initial inspections, and prepared it for transport back to Hawthorne, where it will undergo (hopefully minimal) refurbishment.
Falcon 9 B1046.3 went horizontal this afternoon after spending 6 days at port of LA. #spacex @Teslarati pic.twitter.com/QqTpMFvl0F
— Pauline Acalin (@w00ki33) December 11, 2018
Displaying inspiring dedication, Teslarati photographer Pauline Acalin managed to stick with B1046 for a major portion of the six days it spent on the docks, despite a rare spate of rainy and downright stormy days in Los Angeles. Her patience was awarded with a number of beautiful photos documenting nearly every significant aspect of any given Falcon 9 booster recovery, ranging from the lift from drone ship to dockside and the removal of all four titanium grid fins to the rocket’s flip from a vertical to a horizontal orientation ahead of road transport back to SpaceX’s Hawthorne factory.
Above all else, the most noteworthy aspect of Falcon 9 B1046’s third return to port is just how unharmed the rocket appears, at least from an external perspective. The booster has grown a fairly healthy triple coating of kerosene soot from its three reentry and landing burns, thick enough that Falcon 9’s mirror-shiny white skin is barely visible on the lower (RP-1) propellant tank. At this point, it seems that SpaceX has concluded that any possible performance loss from those soot layers are small enough to be negligible.
-
- Falcon 9 B1046 stands proud and sooty after its third successful launch. (Pauline Acalin)
-
- Goodbye, grid fin! (Pauline Acalin)
-
- Falcon 9 is lifted from drone ship JRTI to SpaceX’s Port of LA dock space. (Pauline Acalin)
-
- Shiny(ish)! (Pauline Acalin)
-
- It’s unclear what exactly causes it, but Falcon 9 Block 5’s newly heat-shielded legs turn a rather bright white after being scorched during booster landings. (Pauline Acalin)
-
In an operational sense, SpaceX’s Falcon 9 recovery procedures and the technicians that perform the actual task of recovery seem to be approaching the work with an attitude that fits better in the realm of commercial aviation than in what is perceived as modern rocketry (clean rooms, surgical precision, etc.). Both the procedures and technicians seem to have been refined into what now runs like a well-oiled machine, wrapping up the complex and pathfinding task of recovering a thrice-flown Falcon 9 booster in less than a week from its drone ship landing to Hawthorne arrival.
The condition of B1046 could well make or break the future of the Falcon 9 family, as any significant departure from Block 5’s design intentions could cut the operational lifetime of the ~10 boosters already produced by dozens of fleet-wide flights.
-
- Falcon 9 B1046’s flight-proven titanium grid fins are carefully removed. (Pauline Acalin)
-
- Legs, too! (Pauline Acalin)
-
- With any luck, B1046’s nine Merlin 1D engines may well see another orbital-class launch in the near future. (Pauline Acalin)
-
- Never forget your aerospace-grade pool noodles, kids. (Pauline Acalin)
On the other hand, a rapid and relatively painless post-recovery inspection and a general bill of nominal health could – pending customer comfort and SpaceX pricing it right – open the floodgates for the company’s fleet of (optimally) reusable rocket boosters. Even if it turns on that Falcon 9 Block 5 boosters almost invariably demand $10M+ in extensive refurbishment after every launch and can only manage a max of 10 launches before heading to the scrapyard, SpaceX could quite literally become untouchable on the global launch market and remain so for a minimum of 5+ years.
First grid fin has been removed from the 3x flown Falcon 9 standing at port of LA. Been wanting to see this happen for years. So NEAT! #spacex @Teslarati pic.twitter.com/iICf7Pypn8
— Pauline Acalin (@w00ki33) December 8, 2018
So long as the company can preserve the Falcon family’s impressive and ever-growing heritage of reliability alongside industry-leading reusability, there isn’t a company or country in the world that could beat SpaceX’s business model if it ever came down to a contract competition death-match, so to speak, not for another 5-10 years. It may never come to that, but that capability will – at the bare minimum – give SpaceX a nearly unbeatable upper hand for launching its own global constellation of internet satellites, known as Starlink.
-
For prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket recovery fleet check out our brand new LaunchPad and LandingZone newsletters!
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
-
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
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.
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.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
