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SpaceX’s next Starhopper flight needs more analysis for FAA go-ahead, says Elon Musk
According to SpaceX CEO Elon Musk, the company’s next major Starhopper flight test is still awaiting FAA approval due to a need for more hazard analysis, presumably required because Starhopper will be traveling much higher than before.
On August 9th, SpaceX completed a routine wet dress rehearsal (WDR) with Starhopper, loading the vehicle with propellant and fluids and replicating a launch countdown up to the point of Raptor ignition. Starhopper remains untethered in a sign that SpaceX doesn’t have plans for a static fire test before the low-fidelity rocket prototype’s next flight milestone. Originally scheduled for August 12th, that milestone – a 200m (650 ft) hop test – has been indefinitely delayed as SpaceX awaits an updated permit from the Federal Aviation Administration (FAA).
The oddity of the apparent difficulty SpaceX is having with the FAA’s experimental permit process is deepened by the fact that Starhopper is already permitted by the FAA and demonstrated its first successful flight just a few weeks ago, on July 25th. On top of the fact that the local Boca Chica and Brownsville, Texas airspace tends to be extremely quiet, it’s unclear what exactly is holding up SpaceX, the FAA, or both in what should otherwise be a relatively streamlined process.

A few weeks ago, after one false start on July 24th, Starhopper performed its first untethered flight ever on July 25th, successfully demonstrating its integrated steel propellant tanks, avionics, software, and Raptor propulsion over the course of 20 or so seconds of flight. Starhopper’s inaugural flight was delayed at least several weeks by a major bug with SpaceX’s next-gen Raptor engine, described by Elon Musk as a problem with a certain frequency of vibration (i.e. mechanical resonance).
According to Musk, said resonance failure mode was effectively solved with unspecified modifications made to the sixth Raptor engine produce (Raptor SN06). That engine became the first to successfully pass SpaceX’s regime of pre-hop static fires in McGregor, Texas around July 10th and was shipped south to Boca Chica and installed on Starhopper scarcely 24 hours later.
Assuming those vibration issues have been completely quashed, Musk has also stated that SpaceX is aiming to produce as many as two Raptor engines per day by the end of 2019. It’s believed that all engines preceding SN06 (SN01-05) were either damaged or destroyed during testing, be that a result of intentional testing-to-destruction or anomalous behavior during certain test regimes. It should be noted that full-scale Raptor is still undoubtedly in development and hardware failure during developmental testing is more predictable and valuable than it might seem. As long as the program can handle it, ‘hardware-rich’ development (i.e. moving fast and breaking things) can be equally – if not more – valuable than an extremely cautious get-it-right-the-first-time approach.
Regardless, once SpaceX’s propulsion engineering team is confident that the more major bugs that plagued early Raptor engines have been alleviated, they will likely give the go-ahead for the engine manufacturing team to begin ramping production rates. Musk believes that SpaceX could be ready for the first test flights of either or both of the company’s orbital Mk1 and Mk1 Starship prototypes as early as mid-September, milestones that will eventually require three sea-level Raptor engines and up to three vacuum Raptor engines per rocket.
Meanwhile, although SpaceX has yet to begin assembling the first Super Heavy booster(s), said boosters will require dozens of Raptor engines each for their first flights. Musk says that SpaceX will start out with something like 20 Raptor engines per booster to minimize losses and disruption in the event of a catastrophic failure, eventually expanding to as many as 35 engines per booster as confidence grows.
For now, Starhopper’s next flight test was scheduled from August 16th through the 18th but has since been tentatively rescheduled to Aug. 19-21. Starhopper will remain grounded until the FAA is satisfied with SpaceX’s updated hazard analyses for the rocket’s 200m flight test.
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Tesla CEO Elon Musk says flying cars are coming
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.
Investor's Corner
Tesla has one big financial question to answer for investors: Morgan Stanley
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.