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SpaceX’s second Falcon 9 Block 5 booster reuse closes in as rocket refurb continues
Scheduled on October 7th, SpaceX is roughly three weeks out from the next routine launch of Falcon 9, set to carry the ~2800 kg (6200 lb) Argentinian satellite SAOCOM-1A into a low polar orbit from the company’s Vandenberg Air Force Base launch facilities.
Cocooned inside Falcon 9’s payload fairing during the final days of August, the Earth observation satellite’s launch will mark a number of exciting milestones for SpaceX, including the second reuse of a Block 5 booster and the debut of a California-based rocket landing zone barely 400m (1400ft) from the launch pad.
Última foto del satélite argentino SAOCOM 1A en Tierra! Los equipos de la CONAE, VENG, @invapargentina y @CNEAok finalizaron la integración y encapsulado del SAOCOM 1A en la cofia del lanzador Falcon 9 de @SpaceX. El satélite está listo! Comienzan preparativos de lanzamiento! pic.twitter.com/pwwj0NYIwE
— CONAE (@CONAE_Oficial) September 14, 2018
Previously tasked with launching Iridium’s 7th group of 10 NEXT satellites on July 25th, Falcon 9 B1048 has been assigned as SAOCOM 1A’s ride to orbit, originally expected to refly as early as September 5th and September 28th. Despite the delays, it still appears that B1048 will easily snag the SpaceX record for second fastest booster turnaround – 74 days compared to Block 5 booster B1045’s 71 days gap between launching NASA’s TESS and CRS-15 missions.
According to a number of comments from satellite engineers involved in the launch, most of the month-long slip rested on rocket availability, meaning that SpaceX was having some sort of difficulty with Falcon 9 components. Given photos and official comments showing that SAOCOM-1A was encapsulated in its payload fairing more than 5 weeks before launch (August 30th) and that Falcon 9 Block 5 is a fairly new launch vehicle, especially in a flight-proven configuration, the most logical explanation is that SpaceX is simply being extra cautious and thorough with B1048’s post-flight analysis and refurbishment.
It’s entirely possible that SpaceX engineers and technicians could have managed a ~40-day turnaround to make the original September 5 launch date, but it’s equally likely that some off-nominal characteristics were noted while the booster was being prepped for transport after craning off of drone ship Just Read The Instructions. In fact, B1048’s recovery operations were exceptionally lengthy and in-depth, including an extraordinary few hours during which technicians removed the booster’s Merlin 1D access panels, baring wholly-uncovered rocket engines in full view of a public area. Nothing equivalent has ever been observed over the course of more than a dozen Falcon booster recoveries, perhaps indicating some unique circumstances in the case of B1048.
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- After launching in April 2018, B1045 landed on OCISLY and is being refurbished for a second launch in just 5 days, on June 29. (Tom Cross)
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- An excellent look at Block 5 booster B1048’s aft, showing off two of four launch clamp attachment points. (Pauline Acalin)
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- SpaceX technicians reinstall Falcon 9 B1048’s Merlin bay covers after examining the interior for several hours. (Pauline Acalin)
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- SpaceX’s West Coast landing zone is preparing for its debut, currently NET October 6th 2018. (Pauline Acalin/Teslarati)
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The most obvious explanation is that those publicly-visible inspections were used to judge whether the flight-proven booster could return directly to SpaceX’s Vandenberg launch pad or needed to make a stop at the company’s dedicated Hawthorne factory and refurbishment facilities. Judging from the month-long slip that transpired, it’s probable that the latter option was selected. Regardless, caution is key when a customer’s payload is on the line.
Once it makes its way to the launch pad for the second time, B1048 will have the opportunity to both become the first Block 5 booster to land on land and the first rocket ever to land at SpaceX’s West Coast Landing Zone (LZ), under construction/development for the last two or so years. Just like its Floridan twins, the California LZ will only be an option for particularly lightweight payloads and lower-energy launch profiles, of which SAOCOM 1A (and 1B) certainly fit the bill.
For prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket recovery fleet check out our brand new LaunchPad and LandingZone newsletters!
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
