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SpaceX talks Moon mission as strategic stepping stone for Mars colony
Josh Brost, Senior Director of SpaceX’s Government Business Development was in attendance at a civil spaceflight conference in Washington D.C. yesterday, January 18, and provided a number of interesting details about SpaceX’s upcoming activities in 2018. Perhaps most intriguingly, he reiterated SpaceX’s interest in enabling exploration of the Moon and Mars, while also clarifying that the upcoming Falcon 9 upgrade will be the last major change to the vehicle for the indefinite future.
Although the audience may have been more focused on SpaceX’s potential lunar prospects, Brost provided a vision similar to CEO Elon Musk’s common-knowledge goal of Martian (and interplanetary) colonization. This lunar focus was in part evidenced by a pointed question from an audience member that triggered Brost’s subsequent suggestion that the Moon could be a more logical starting place for the company as it ramps up its deep space efforts and gradually slips beyond Earth orbit. This strategic and calculated extension of the aspirations of the launch company’s famous founder is a rational attempt to position SpaceX in ways that allow the company to derive as much value as possible from the US government’s recently revived interest in returning the US and its astronauts to the Moon.
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- SpaceX’s 2017 BFS (now Starship) delivers cargo to a large lunar base. (SpaceX)
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- Starship and a Martian city, circa 2017. (SpaceX)
To a large extent, his comments mesh with the vision Elon Musk reiterated at 2017’s September IAC.
SpaceX’s next-generation heavy-lift rocket and spaceship (BFR and BFS) are being designed to carry 150 metric tons into low Earth orbit while still recovering both the first and second stages, and will be purpose-built for rapid and complete reusability. BFR and BFS are also being intentionally designed to be relatively destination-agnostic. In other words, BFS will be capable of transporting cargo and eventually crew to a number of destinations in the solar system, be it the Moon, Mars, or beyond. The outer planets are almost certainly off limits for crew due to the sheer length of any journey beyond the orbit of Mars, but BFR, as it was discussed last year, would be capable of transporting unprecedented amounts of cargo almost anywhere in the solar system. Reusability is, of course, paramount to SpaceX’s operational intent with BFR/BFS; unless a very lucrative offer is made, it is highly unlikely that SpaceX will even consider expendable missions, thus partially limiting what the next-gen vehicle will be capable of.
Still, it will be an incredibly capable rocket even with full reusability. Add in the potential promise of mature in-situ resource utilization (ISRU), more simply the production of methane and oxygen propellant at the destination, and it will open a hundred entirely new worlds to serious scientific, exploratory, and economic prospecting throughout the solar system.
SpaceX’s massive BFR visualized taking to the sky. (SpaceX).
What’s next?
The question, then, is “when?” While Brost did not specifically provide any sort of timeline for BFR, aside from a brief statement on its readiness in “a few years,” he did describe in some detail the imminent end of serious Falcon 9 upgrades. A continual stream of upgrades and modifications has been one of the only real constants with SpaceX’s Falcon 9 rocket: the original Falcon 9 is in almost every respect a completely different rocket when compared to the Falcon 9 Full Thrust (FT/1.2) of the present. However, one final leap is expected for Falcon 9, this time almost exclusively intended to improve the vehicle’s reliability and reusability as SpaceX rapidly approaches its first flights of Crew Dragon and dreams of rapid and repeated booster reuse.
While it was a small detail in an obscure sentence of one of several hour-long discussions, Brost specifically stated this:
Brost: with Block 5, goal it to lock down the design and fly the vehicle at very high flight rates. Innovation will focus on designing and testing BFR.
— Jeff Foust (@jeff_foust) January 18, 2018
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This is arguably the most exciting tidbit provided to us by SpaceX. While it was undeniably vague and rather less than crystal-clear, it can be interpreted as something like this: once Block 5 has been introduced and begun to fly and refly both regularly and successfully, the vast majority of SpaceX’s launch vehicle development expertise will begin to focus intensely on the development and testing of BFR and BFS.
Statements from just last week made by SpaceX President Gwynne Shotwell strengthen this intuitive leap considerably, because BFR and BFS are liable to require a considerable amount of attention as they proceed through design maturation and eventually begin physical hardware testing in Texas.
Shotwell’s comments implied that SpaceX’s Boca Chica launch facilities, currently under construction, would be ready to support “vehicle tests” as early as late 2018/early 2019. Comments from earlier in 2017 indicate that SpaceX (and Shotwell) perceive Boca Chica as a near-perfect location for BFR launches (and thus BFR testing, as well). Finally, Brost’s implication that SpaceX’s exceptional team of brilliant and innovative launch vehicle engineers would be refocused on BFR soon after Block 5 was stable also meshes with this rough timeline. If Falcon 9 Block 5 does indeed debut within the “next few months” as Brost stated, it will have likely reached some level of design and operational maturity by the end of 2018, assuming SpaceX’s expected launch cadence.
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- SpaceX’s Falcon 9 ahead of the launch of Zuma. (Tom Cross/Teslarati)
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- A Falcon 9 lifts off from LC-40 carrying the highly secretive Zuma spacecraft. Hispasat 30W will launch from the same pad in just a few days. (Tom Cross)
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- Falcon 9 1035 conducts its second landing after successfully launching CRS-13 on December 15. Improved reusability will be a huge focus of SpaceX in 2018. (NASA)
As of right now, SpaceX is already looking at a very busy February, and currently has as many as three commercial launches scheduled within a period of maybe three weeks (GovSat-1, PAZ, and Hispasat), maybe even four if Falcon Heavy completes its first static fire later this weekend. Musk estimated that SpaceX would complete 30 missions in 2018, and a cadence anywhere near three launches per month (let alone four) would easily push SpaceX past that goal and provide the company dozens of opportunities to test, launch, recover, and relaunch their new Block 5 version of Falcon 9. As such, while BFR is probably not going to reach fully integrated hardware development or testing in 2018, it is certainly a distinct possibility, and 2019 is far more promising for the company’s interplanetary aspirations.
For now, SpaceX’s 2018 focus is quite explicitly centered on ensuring the reliability of its Crew Dragon – set to debut NET August 2018 – and Falcon 9 as it strives to complete the development of both vehicles. Up next on the company’s busy schedule is another attempt at Falcon Heavy’s inaugural static fire on Saturday afternoon, as well as the flight-proven launch of GovSat-1/SES-16, currently NET January 30.
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Follow along live as launch photographer Tom Cross and I cover these exciting proceedings live from both coasts.
Teslarati – Instagram – Twitter
Tom Cross – Instagram
Eric Ralph – Twitter
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
