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SpaceX’s next Falcon Heavy launch may feature record-breaking center core landing
Thanks to a temporary reopening of the US federal government, SpaceX was finally able to continue the process of filing FCC and FAA paperwork needed to acquire permits for upcoming launches, including Falcon Heavy.
One such filing related to the first operational Falcon Heavy launch has revealed a fairly impressive statistic: comprised of three first stage boosters, SpaceX indicated that Falcon Heavy’s center core will attempt to land on drone ship Of Course I Still Love You (OCISLY) nearly 1000 km (600 mi) away from its launch site, easily smashing the record for the greatest distance traveled by a Falcon booster in flight.
Of Course I Still Love You will be positioned a record ~965km downrange. That's nearly 300km further that the previous greatest distance of 681km, set during the Eutelsat-117WB mission in June 2016. (The landing was a failure, with the booster running out of LOX!) https://t.co/RECKjMtd37
— Gav Cornwell (@SpaceOffshore) January 28, 2019
The same FCC filings also revealed a No Earlier Than (NET) launch date: March 7, 2019. Originally targeted for mid to late February, the complexity and logistical challenges of building, shipping, testing, and delivering two side boosters, a center core, one upper stage, and a payload fairing from SpaceX’s California factory to its Texas test facilities and Florida launch pad unsurprisingly took a small toll on the launch’s aspirational schedule. Nevertheless, if the launch data actually holds to March 7th, SpaceX will not have missed the mark by much considering that this Falcon Heavy – based on new and more powerful Block 5 boosters – is likely a significant departure from the Block 2/Block 3 hardware that has flight heritage from the triple-booster rocket’s Feb. 2018 launch debut.
Just shy of a year after Falcon Heavy’s launch debut, it appears that the rocket’s second and third launches were pushed back by a fundamental lack of production capacity. In other words, SpaceX’s Hawthorne rocket factory simply had to focus on more critical priorities in the 6-9 months that followed the demo mission. At nearly the same time as Falcon Heavy was lifting off for the first time, SpaceX’s world-class production crew was in the midst of manufacturing the first upgraded Falcon 9 Block 5 booster (B1046) and wrapped up final checkouts just 10 days after Heavy’s Feb. 6 launch debut, sending the pathfinder rocket to McGregor, Texas for the first static fire of a Block 5 booster.
In the meantime, SpaceX’s decision to intentionally expend otherwise recoverable reused Falcon boosters after their second launches meant that the company’s fleet of flightworthy rockets was rapidly approaching zero, a move CEO Elon Musk specifically indicated was meant to make room for Block 5, the future (and final form) of the Falcon family. SpaceX’s busy 2018 launch manifest and multiple critical missions for the US government were thus balanced on the success, reliability, and rapid production of a serious number of Merlin engines, boosters, and upper stages. This included B1051 – the first explicitly crew-rated Falcon 9 – and B1054, the first SpaceX rocket rated to launch high-value US military (specifically Air Force) satellites. However, SpaceX also needed to produce a cadre of Falcon 9 boosters capable of easy reuse to support the dozen or so other commercial launches on the manifest.
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- Falcon 9 B1046 is processed in Port of LA shortly after its third successful launch and landing, December 2018. (Pauline Acalin)
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- Falcon 9 B1047 is pictured here beneath an upper stage and satellite Es’hail-2 prior to its second launch. (Tom Cross)
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- Falcon 9 B1048 returned to Port of Los Angeles aboard drone ship Just Read The Instructions after its first launch. July 27. (Pauline Acalin)
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- Falcon 9 B1049 returned to Port of Los Angeles after its second successful launch and landing in four months. (Pauline Acalin)
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- Falcon 9 B1050 is seen here just after liftoff. GPS III SV01’s Falcon 9 will feature no grid fins or landing legs. ☹ (Tom Cross)
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- Falcon 9 B1051 and Crew Dragon vertical at Pad 39A. (SpaceX)
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That gamble ultimately paid off, with Block 5 performing admirably and supporting a reasonable – if not record-breaking – rate of reuse. SpaceX successfully launched B1054 for the USAF, completed B1051 (now at Pad 39A awaiting NASA’s go-ahead), and built enough reusable Block 5 boosters to support nine additional commercial missions in 2018. In hindsight, barring an assumption of a truly miraculous and unprecedented Falcon booster production rate, Falcon Heavy’s next launches were almost guaranteed to occur no fewer than 6-12 months after the rocket’s launch debut – SpaceX’s entire launch business depended on building 5+ unrelated Falcon 9 boosters, while Falcon Heavy customers Arabsat and the USAF were unlikely to be swayed to launch on flight-proven hardware so early into Block 5’s career.
https://twitter.com/_TomCross_/status/1048483536917823488
All cylinders firing
Once Falcon 9 B1054 departed SpaceX’s Hawthorne factory (see above) in early October, it appears that the company’s production team pivoted directly to integrating and shipping the next three (or more) Falcon Heavy boosters back to back for the rocket’s second and third launches. The first new side booster departed the factory in mid-November, followed by a second side booster in early December and a (presumed but highly likely) center core at the turn of 2019. Both side boosters have been static-fired in Texas and are now at SpaceX’s Florida facilities, while the center core either just completed its Texas static fire testing or is already on its way East.
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- SpaceX’s Falcon Heavy Block 5 side booster is pictured here in Texas in November 2018. (Teslarati/Aero Photo)
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- The second (and third) flight of Falcon Heavy is even closer to reality as a new side booster heads to Florida after finishing static fire tests in Texas. (Reddit /u/e32revelry)
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- SpaceX Facebook group member Joshua Murrah captured the second Falcon Heavy side booster to arrive in Florida in the last month. (Joshua Murrah, 01/17/19)
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- The next Falcon Heavy’s first side booster delivery was caught by several onlookers around December 21. (Instagram)
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- A booster – likely the next Falcon Heavy center core – was vertical at McGregor’s S1 static fire stand. (Instagram /u/tcryguy)
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- A booster – either Falcon Heavy’s next center core or a new Falcon 9 – was vertical at SpaceX’s McGregor, TX test facilities on Jan 28. (Instagram /u/n75sd)
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- A diagram from a recent SpaceX document offers an idea of what Falcon Heavy Block 5 will look like. (SpaceX)
Once the center core and upper stage make their way to SpaceX’s Kennedy Space Center Pad 39A, the company’s technicians and engineers will be able to integrate the second Falcon Heavy to have ever existed in preparation for a critical static fire test. That could occur as early as February, although the launch debut of Crew Dragon (DM-1) – now NET March from Pad 39A after a relentless string of slips – will likely take precedence over Falcon Heavy and could thus directly interfere with its launch, as the launch pad and transporter/erector (T/E) has to undergo at least a few days of modifications to switch between Falcon 9 and Heavy.
Regardless, the next two Falcon Heavy launches will be well worth the wait. SpaceX’s FCC filings indicate that the center core may travel nearly 1000 km (600 mi) East of Pad 39A to land on drone ship OCISLY after launch, smashing the previous record attempt – during the June 2016 launch of Eutelsat 117WB – of ~700 km (430 mi). That Falcon 9 booster – albeit a less-powerful Block 2 variant – was unsuccessful in its landing attempt, running out of oxidizer seconds before landing. Falcon Heavy’s debut center core also happened to suffer a wholly different but no less fatal anomaly during landing, causing it to miss the drone ship and slam into the Atlantic Ocean at almost half the speed of sound (300 mph/480 km/h).
Looks like early liquid oxygen depletion caused engine shutdown just above the deck pic.twitter.com/Sa6uCkpknY
— Elon Musk (@elonmusk) June 17, 2016
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Known for their rocket performance estimates, NASASpaceflight forum user “Orbiter” first pointed out the impressive distance – gathered by mapping coordinates included in SpaceX’s Jan. 28th FCC filing – and estimated that the Falcon Heavy center booster flying a trajectory as implied could be traveling as fast as ~3.5 km/s (2.2 mi/s) at main engine cut-off (MECO), the point at which the booster separates from the upper stage and fairing. This would be a nearly unprecedented velocity for any Falcon booster, let alone a booster with plans to land after launch. Falcon 9 MECO typically occurs at velocities between 1.5 and 2.5 km/s for recoverable missions, while even the recent expendable GPS III launch saw F9 S1’s engines cut off around 2.7 km/s.
Whether that MECO velocity estimate is correct, Falcon Heavy’s NET March launch of the ~6000 kg (13,300 lb) Arabsat 6A satellite is likely to be an exceptionally hot reentry and recovery for the center core, while the rocket’s duo of side boosters will attempt a repeat of the debut mission’s spectacular double-landing at LZ-1.
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
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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.”
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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.
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
