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SpaceX to ship Starship ‘deluge’ hardware from Florida to Starbase
SpaceX appears to be preparing to ship a huge collection of hardware – including parts of a possible launch deluge system – from Florida to Texas.
Captured live by NASASpaceflight’s 24/7 Space Coast Live webcam, hardware began accumulating at NASA’s Kennedy Space Center (KSC) Turning Basin on January 12th. Within a few days, four midsize storage tanks, two or three large storage tanks, five high-pressure gas tanks, multiple sections of an apparent launch deluge system, and an unfinished Starship booster transport stand were all staged and ready for shipment. Save for implicit statements from reliable sources, there wasn’t an obvious guarantee that the hardware was all SpaceX’s or headed to the company’s Starbase, Texas factory and launch site.
But combined with the sheer volume of hardware and its privileged presence on NASA KSC property, the last part to arrive – the base of an unmistakable Starship (booster) transport stand – all but confirmed that the destination is Starbase. SpaceX has already shipped hardware from Florida to Starbase multiple times, including a trio of tanks sent in October 2022, which further increases the odds that everything visible is destined for Starbase.
The update that's rolling out to the fleet makes full use of the front and rear steering travel to minimize turning circle. In this case a reduction of 1.6 feet just over the air— Wes (@wmorrill3) April 16, 2024
It might also not be a coincidence that in its first attempt to build a Starship launch site at Kennedy Space Center, SpaceX installed four midsize tanks and plenty of high-pressure gas tanks at LC-39A. The resurgence of work on a totally different Starship pad design at 39A in late 2021 likely made that hardware redundant. It’s possible that the four smaller tanks set to be shipped to Starbase originated at 39A and are being moved in the hopes that they can be more useful elsewhere.
Additionally, satellite photos taken on January 3rd, 2023 and shared by Harry Stranger show a pair of larger tanks also sitting unused at Pad 39A. Ultimately, it’s almost certain that the delivery is SpaceX hardware bound for Starbase, Texas.
A deluge? Under my Starship?
The most interesting part of the shipment is arguably a group of giant metal tubes. Measuring several feet wide, dozens of feet long, and fitted with multiple outlets connected to the same giant pipe, the likeliest possible explanation is that the manifolds are part of a plan to upgrade SpaceX’s Texas Starship launch site with a deluge system.
Almost all rockets use some sort of deluge system to prevent their own exhaust from damaging or destroying themselves or their surroundings. A large volume of water sprayed into the space just below a rocket’s engines can prevent the immense acoustic energy (sound) they produce from wreaking havoc. A deluge also helps protect launch pad hardware by allowing some of the energy in the exhaust to boil and vaporize water instead of eating into concrete or steel. But CEO Elon Musk has infamously stated that SpaceX is intentionally attempting to build an orbital launch site that doesn’t need a flame diverter for Starship – the most powerful rocket in history.
That’s gone about as well as one might expect. Even Starship, which can produce about 18% as much thrust as Super Heavy, has repeatedly incinerated the concrete beneath its test stand, spreading molten debris for thousands of feet and starting major brush fires in a nature reserve. After every six-engine Starship static fire, SpaceX must painstakingly remove and replace all of the concrete beneath the test stand.
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The problem is even more apparent at Starbase’s orbital launch mount, where SpaceX has begun to conduct Super Heavy booster static fire tests. Thus far, SpaceX has had to replace the concrete under the OLM after almost every Super Heavy static fire – a process that takes a week or two. The company recently replaced that concrete with a mix optimized to survive high temperatures, but it remains to be seen if that will survive a direct blow from the most powerful rocket in history.
For the time being, Starbase’s environmental permit only allows up to five orbital launches per year, making lengthy post-launch repairs mostly inconsequential. However, if SpaceX ever wants Starbase to rapidly launch multiple Starships back to back – essential for in-space refilling – or launch dozens of Starships per year, it’s become clear that a deluge system is likely essential.
Starship’s Florida deluge
Some part of SpaceX knows that. The design of Starship’s first Florida launch pad has already been upgraded to include a giant deluge ring embedded in the ground at the base of the mount. Unusual design aside, the structure is sized such that it’s almost certainly a high-flow deluge system capable of spraying thousands of gallons of water per second.
Three months later, SpaceX appears to be preparing to ship two giant deluge manifolds and some deluge plumbing from Florida to Starbase. If SpaceX intends to retrofit Starbase’s existing orbital launch site with a giant deluge system, the process would likely take months and render the pad more or less unusable from start to finish. Alternatively, Musk recently reported that SpaceX intends to build a “rocket test facility” at a separate property it purchased in South Texas. Located miles from the Starbase launch pad, the former gun range could potentially allow SpaceX to test Starships and Super Heavy boosters without disrupting orbital launch preparations and taking over Starbase’s only orbital launch mount.
Perhaps it’s not a coincidence that the same site – currently used for storage and limited Starship tank testing – already hosts some smaller parts of a potential Starbase deluge system. Regardless, it’s clear that significant changes are coming to Starbase and its associated facilities.
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.
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.
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
