News
SpaceX’s next Falcon Heavy two-thirds done as side booster #2 leaves factory
First posted to a SpaceX-focused Facebook group by member Eric Schmidt, Falcon Heavy Flight 2’s second side booster (of two) was spotted eastbound in Arizona on December 3rd, partway through a journey from SpaceX’s Hawthorne, CA factory to its McGregor, TX testing facilities.
This is the second (known) Falcon Heavy-related booster spotted in less than a month and an incontrovertible sign that the company’s second-ever Falcon Heavy launch is perhaps just a handful of months away, with both side boosters now likely to be present in Florida by January 2019 barring unforeseen developments.
Look who was waving at passing planes over McGregor today!
A Falcon Heavy side booster on the McGregor test stand for a static fire test. pic.twitter.com/S7af6b0gHk
— NSF – NASASpaceflight.com (@NASASpaceflight) November 18, 2018
This second booster appearance follows on the heels of the first Falcon Heavy booster spotting on November 9-10, confirming that – at a minimum – two of the next rocket’s three first stage boosters have finish production and are now focused on completing their separate hot-fire acceptance tests at McGregor. Owing to the ironic fact that the center core – dramatically more complex than its pointy-nosed side core brethren – is far harder to discern while in transport, it’s even possible that the second side core spotting is actually the third new Falcon Heavy booster to depart SpaceX’s factory. The above booster was apparently the second SpaceX first stage to make its way east through Arizona in the week prior to its arrival, so that may well be the case.
SpaceX's second Falcon Heavy is slowly but surely coming together 😀 https://t.co/AYJsQ8Mld5
— Eric Ralph (@13ericralph31) November 13, 2018
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While Falcon Heavy side boosters do sport easily recognizable nosecones, they apparently are able to be modified from a Falcon 9 booster to a side booster with no more than a week or two’s work. On the other hand, the rocket’s center booster is dramatically more complex and requires an entirely new custom rocket be built from scratch thanks to the extreme loads it must survive when the two side boosters channel all of their thrust directly into the center core during launch.
However, until the arm-like mechanisms that connect the center stage to its two side boosters are attached, it’s extremely difficult to discern between a normal Falcon 9 booster and a Falcon Heavy center stage. Until a center core is more or less unwrapped and showing off its octaweb or unusual bumps around the interstage, its identity is likely to remain a secret. In the past three months, no fewer than four Falcon boosters arrived at Cape Canaveral, while only one (or maybe two) of them have launched in the time since their arrival.
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- SpaceX’s first Falcon Heavy prepares for launch. (SpaceX)
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- Falcon Heavy ahead of its inaugural launch. (SpaceX)
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- SpaceX’s Falcon Heavy prepares for the huge rocket’s inaugural launch. (SpaceX)
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- Falcon Heavy just prior to its first-ever integrated static fire test. (SpaceX)
Given that both side boosters have traveled from California to McGregor, it’s almost certain that Falcon Heavy will fly for the second time with all-new Block 5 hardware, including all three boosters and the upper stage. Most importantly, a Block 5 version of the non-interchangeable center stage should ultimately be able to launch multiple times with zero or minimal refurbishment and repairs, potentially making Falcon Heavy for more viable from a production and internal cost perspective. For a rocket that may only ever launch twice per year, one or two custom center cores could be all that is needed over the vehicle’s operational lifetime, save for any potential launch contract that requires expendable performance.
Ultimately, this second Falcon Heavy booster spotting in less than four weeks is a thrilling sign that SpaceX is pushing extremely hard to have the rocket’s next iteration integrated and ready to launch as soon as possible, perhaps as early as Q1 2019. As its two side boosters begin to arrive in Florida, we should start to have a better idea of when exactly the massive rocket’s second launch might be.
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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
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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
