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SpaceX retracts Falcon 9 booster’s landing legs a second time after speedy reuse
Following the Falcon 9 booster’s second successful NASA launch in less than three months, SpaceX recovery technicians have once again rapidly retracted B1056’s four landing legs, also reused from the booster’s May 2019 launch debut.
On the heels of Falcon 9 B1056’s first speedy, leg-retracting recovery, a repeat of the booster’s impressive landing leg retraction debut – using the same legs, no less – serves as an excellent sign that whatever hardware changes were implemented are on the right track. As part of SpaceX and CEO Elon Musk’s interim goal of launching the same Falcon 9 booster twice in 1-2 days, a speedy recovery is an absolute necessity, and landing leg retraction is just one of the dozens of ways the company will need to optimize recovery and reuse to lower average turnaround times from weeks to days.
Falcon 9 B1056 completed its successful launch debut on May 4th, 2019, landing on drone ship Of Course I Still Love You (OCISLY) to preserve an ongoing Crew Dragon failure investigation at Landing Zones 1 and 2 (LZ-1/2). Situated just a few dozen miles off the coast of Florida, OCISLY returned to port with the booster barely a day after the landing, easily the fastest drone ship return yet.
Less than two days after arriving at Port Canaveral, SpaceX technicians had already begun the landing leg retractions in what was the first actual attempt in months. Falcon 9 Block 5 debuted back in May 2018 with comments from Musk indicating that retractable legs were one of several major reusability-focused changes, but SpaceX recovery technicians never got beyond a handful of partial tests in the second half of 2018.
This ended with a truly flawless full retraction of all four landing legs on May 7th, confirmed when booster B1056 was flipped horizontally, loaded onto a powered transporter, and driven back to a SpaceX refurbishment facility with all four scorched legs installed.
Even more impressively, although it’s impossible to know if the retracted legs were removed, inspected, and reattached during refurbishment, all four of those legs were unambiguously flown again on B1056’s second launch less than three months later. Some cursory analysis of photos of CRS-18 taken by SpaceX, NASA, and others definitively identifies all four landing legs as the same ones that flew on CRS-17 – installed in the same positions, no less.
At least in the context of the Falcon family of rockets, SpaceX’s ultimate goal is to dramatically lower the cost of Falcon 9 and Heavy launches by quickly, easily, and safely reusing every part of the rocket except its orbital upper stage, which makes maybe 10-15% of hardware costs. A magnitude reduction in costs is thus out of the question for the Falcon family – a challenge that will be tackled instead by Starship and Super Heavy, a new clean-sheet launch vehicle.
Nevertheless, it’s entirely possible that Falcon 9 missions will be able to launch for 3-5 times less than their current list price ($62M) within a year or two and definitely before the family is replaced by its successor(s). In fact, according to CEO Elon Musk, SpaceX has already lowered the average base price nearly 20%, cutting it to $50M to communicate some of the financial rewards of efficient reuse to its customers.
Of course, it’s important to remember that even if SpaceX gets to a point where it could technically cut its launch prices in half (or more), breaking even on a marginal cost basis does not account for SpaceX’s desire to recoup some of the $1B+ it has spent perfecting Falcon reusability. The fact that prices have (at least according to Musk) been lowered a decent amount is a good sign that SpaceX will choose market expansion over greed, but one can never be certain and Falcon 9 and Heavy pricing may very well never reflect their true reusability.
For now, SpaceX’s rapid progress from zero landing leg retraction to retracting the same booster’s same four landing legs twice in less than three months is an excellent sign that Block 5’s capabilities continue to be refined. In terms of milestones, the first launch of a thrice-flown booster is up next for Falcon 9, as is the first reuse of a recovered Falcon fairing half (or two).
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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
