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SpaceX delays Starhopper’s first flight a few days despite Raptor preburner test success
SpaceX has (partially) ignited Starhopper’s freshly-installed Raptor engine, successfully verifying that the engine is ready for its next major test: a full ignition and static firing. Although successful, SpaceX still has some work to do before the vehicle is ready for its first untethered flight(s).
July 15th’s progress is just the latest in a several day-series of preflight tests designed to reduce the likelihood that Starhopper is destroyed over the coming days and (hopefully) weeks. If all goes planned during the awkward Starship prototype’s first foray into hover tests, SpaceX CEO Elon Musk has stated that he will provide an official presentation updating the public on the status of the company’s ever-changing next-generation rocket.
The past week or so of Starhopper preflight testing began with Raptor serial number 6 (SN06) completing the last of a series of acceptance test fires in McGregor, Texas on June 10th. Even on its own, this was a major milestone for the new SpaceX engine: Raptor SN06 was the first of the new, full-scale engines to pass the acceptance test program with flying colors. According to Musk, for the engine to complete those tests so successfully, SpaceX had to solve a challenging bug in which some sort of mechanical resonance (i.e. vibration) damaged or destroyed Raptors SN01-05.
Hours later, the engine began a short ~450 mi (720 km) journey south to Starhopper, located in Boca Chica, Texas. The engine arrived on July 11th and was fully installed on Starhopper by the following evening (July 12th), at which point SpaceX put Starhopper and Raptor through some mild but valuable thrust vector controller (TVC) tests, wiggling the car-sized engine to ensure it can accurately steer the prototype rocket.
Around two days after the above ‘wiggle’ test was successfully completed, SpaceX moved into the next stage, partially fueling Starhopper with liquid methane and oxygen propellant and helium pressurant in what is known in rocketry as a wet dress rehearsal (WDR). The (implicitly) successful WDR was capped off with a duo of what can now safely be concluded were some sort of Raptor test preceding even pre-ignition operations. Whatever the tests were, they appear to have been completed successfully.
That appears to be the case because less than 24 hours after their completion, on July 15th, SpaceX once again began loading Starhopper with propellant and pressurant for a second round of wet testing. This time around, SpaceX got right into more critical Raptor tests once enough propellant was loaded, igniting the engine’s interwoven oxygen and methane preburners.
Previously discussed 24 hours ago in a Teslarati article focused on Raptor wiggles and other miscellaneous tests, Raptor is an extremely advanced rocket engine based on a cycle (i.e. how propellant is turned into thrust) known as full-flow staged combustion.
“In a staged-combustion engine like Raptor, getting from the supercool liquid oxygen and methane propellant to 200+ tons of thrust is quite literally staged, meaning that the ignition doesn’t happen all at once. Rather, the preburners – essentially their own, unique combustion chambers – ignite an oxygen- or methane-rich mixture, the burning of which produces the gas and pressure that powers the turbines that bring fuel into the main combustion chamber. That fuel then ignites, producing thrust as they exit the engine’s bell-shaped nozzle.
Unintuitively, conditions inside the preburner – hidden away from view – are actually far more intense than the iconic blue, purple, and pink flame that visibly exists Raptor’s nozzle. Much like hot water will cool while traveling through pipes, the superheated gaseous propellant that Raptor ignites to produce thrust will also cool (and thus lose pressure) as it travels from Raptor’s preburner to its main combustion chamber. If the pressure produced in the preburners is too low, Raptor’s thrust will be (roughly speaking) proportionally limited at best. At worst, low pressure in the preburners can trigger a “hard start” or shutdown that could destroy the engine. According to Elon Musk, Raptor’s oxygen preburner thus has the worst of it, operating at pressures as high or higher than 800 bar (11,600 psi, 80 megapascals).”
In full-flow staged combustion (FFSC), even more complexity is added as all propellant that touches the engine must necessarily end up traveling through the main combustion chamber to eke every last ounce of thrust out of the finite propellant a rocket lifts off with. As such, FFSC engines can be about as efficient as the laws of physics allow any given chemical rocket engine to be, at the cost of exceptional complexity and brutally difficult development.
Additionally, FFSC physically requires two separate preburners and then makes things even harder by making each separate preburner (methane and oxygen) depend on each other’s operation for the engine to fully ignite. This means that no individual preburner can be used to kickstart Raptor – instead, SpaceX must somehow spin the turbopumps that feed propellant into each preburner with some separate system. This is all just to emphasize the fact that Raptor’s ignition sequence is a spectacularly complex orchestra of valves, spark plugs, sensors, and magic. This is why it’s valuable for Raptor to test its preburner system independently of an actual ignition test, at least as long as the engine is still in the development stages.
According to NASASpaceflight.com managing editor Chris Bergin, what this practically translates to is a minor Starhopper hover test delay of 1-2 days, while the static fire has also been pushed roughly 24 hours from July 15th to July 16th. If that full static fire produces lots of happy data, Starhopper could be cleared for a hover test debut attempt as early as Wednesday or Thursday (July 17/18).
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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
