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SpaceX, NASA moving forward with plans to build second Dragon launch pad
SpaceX and NASA officials have confirmed that they are moving forward with plans to modify the company’s second Florida launch pad to support Crew and Cargo Dragon missions.
First reported by Reuters in June 2022, SpaceX began studying the possibility of modifying its Cape Canaveral Space Force Station (CCSFS) LC-40 pad for Dragon missions earlier this year after NASA raised concerns about the risks posed by plans to operate its next-generation Starship rocket out of the only pad available for Dragon. Three months later, the partners have committed to that plan and, according to SpaceX, hardware for the required modifications is already in work.
After a false-start in 2019 and 2020, SpaceX began rapidly constructing Starship’s first Florida launch site at the LC-39A pad it leases from NASA’s Kennedy Space Center (KSC) earlier this year. Thanks to a series of modifications and additions to existing Space Shuttle infrastructure, Pad 39A is also the only site currently capable of launching Crew and Cargo Dragon spacecraft on Falcon 9 rockets. Located just 1000 feet (~300 m) east of 39A’s existing Falcon and Dragon launch facilities and access tower, Starship is unlikely to have much of an impact during nominal operations, but the program does have a history of building prototypes that occasionally explode.
Until late 2023 at the absolute earliest, SpaceX’s Crew Dragon is the only spacecraft capable of sustaining NASA’s presence (typically 4-5 astronauts) at the International Space Station (ISS). Years behind schedule, Boeing’s Starliner crew capsule is scheduled to attempt its first crewed test flight (CTF) no sooner than February 2023. Starliner’s first operational astronaut transport mission could then follow in September 2023, but it could easily slip into 2024 if the CTF is less than flawless. To date, both of Starliner’s uncrewed test flights have uncovered significant issues that required months of additional work to rectify.
When a Falcon 9 rocket exploded at LC-40 in 2016, causing damage that effectively required a total rebuild, it took SpaceX 15 months to resurrect the pad. In other words, if a Starship launch failed and destroyed Pad 39A’s Falcon and Dragon facilities at some point within the next 12-18 months, it could easily threaten NASA’s ability to maintain the ISS if Boeing was unable to take over.
Even though SpaceX would never risk launching Starship out of Pad 39A if it knew there was a high risk of the new rocket failing and harming Dragon operations, NASA is in the business of ensuring that contingencies exist in case of unlikely but catastrophic events. It doesn’t matter if Starship probably won’t explode or if Starliner will probably be ready to take over. The risk is always there and SpaceX and NASA must be ready for the possibility.
Nothing is known about the nature of the modifications that LC-40 will require. But more likely than not, NASA will require SpaceX to develop something similar to Pad 39A’s facilities. That would involve building a new crew access tower, crew access arm, escape system (39A uses baskets and ziplines), and an on-site bunker for astronauts.
Given that the need for a backup Dragon launch pad comes largely at NASA’s behest, there’s a good chance that the agency will require that that backup be in place before SpaceX will be allowed to launch Starship out of Pad 39A. Earlier this month, CEO Elon Musk delayed his estimate for the first Florida Starship launch from late 2022 to Q2 2023. It’s highly unlikely that SpaceX will be able to finish modifying LC-40 by Q2 2023.
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SpaceX will have to undertake the already challenging, time-sensitive construction project on a high-security military base and well within the blast radius of the single most active launch pad in the world. Much of the custom hardware required could have significant lead times, further extending the construction timeline. Unless SpaceX is willing to seriously constrain LC-40’s launch cadence, which would likely make its goals of 60+ launches in 2022 and up to 100 Falcon launches in 2023 impossible, the work will take even longer than it would under ordinary circumstances.
Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?'”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
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.
Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
