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SpaceX Starship booster heads to launch pad for the fifth time
For the fifth time in five months, SpaceX has transported its most advanced Starship booster prototype from the Starbase factory to the launch pad, setting the stage for another round of testing.
Super Heavy Booster 7 (B7) returned to the factory for the fourth time on August 12th after becoming the first prototype of any kind to perform a static fire engine test while installed on SpaceX’s orbital Starship launch mount. In the days prior, the booster completed two back-to-back static fire tests with one of the 20 Raptor engines installed on the rocket, both of which apparently gave SpaceX enough confidence to prepare for the next phase of testing.
That relatively cautious progress only came after SpaceX attempted to test all 33 of the prototype’s Raptors at once during its first engine test. Whether it was the fault of overzealous managers or executives or a genuine oversight is not clear, but the combined behavior of Super Heavy and the orbital launch pad was not properly characterized before testing began. As a result, the cloud of flammable gas the rocket released during its attempted 33-engine ‘spin-prime’ test found an ignition source and violently exploded on July 11th, causing damage throughout Booster 7’s aft engine section that required several weeks of repairs between July 15th and August 6th.
When the Super Heavy rolled to the pad for the fourth time on August 6th, it was missing all 13 center Raptors, leaving only the outer ring of 20 Raptor Boost engines partially installed for the tests that followed. Thankfully, things went much better on the second try and Booster 7 completed two spin-prime tests with a single Raptor engine, followed by two successful static fire tests on August 9th and 11th. The latter test was the longest Starbase static fire ever (by a factor of ~3) and lasted about 20 seconds, allowing SpaceX to test Booster 7’s autogenous pressurization. That system pressurizes Super Heavy’s tanks by turning small quantities of cryogenic liquid propellant into gas, ensuring that its tanks remain stable as they’re rapidly drained of thousands of tons of propellant.
On August 12th, Booster 7 returned to the factory, where workers installed the rocket’s 13 center engines for the second time. Booster 7 headed back to the orbital launch site (OLS) on August 23rd and the pad’s robotic launch tower used a pair of arms to lift the rocket off its transport stand and place it on the launch mount by the end of the day.
In addition to readying Booster 7 for its next phase of static fire testing, teams of SpaceX workers took advantage of the unplanned lull in testing to modify the orbital launch mount. It’s impossible to know what exactly was done without official confirmation, but it’s likely that SpaceX was attempting to quickly fix the shortcoming(s) that allowed the July 11th explosion to happen. Without a fix, it’s unlikely that SpaceX would want to proceed with plans to ignite large numbers of Raptor engines simultaneously – a series of tests that must be completed before Starship can safely attempt its first orbital launch.
It’s unclear what exactly that fix entails, but it could involve a system to constantly flood the engine section with fire-stopping nitrogen gas or potentially take the shape of a system of vents that will connect to every Raptor engine and remove methane gas before it can turn into flammable clouds.
It’s possible that Booster 7 has returned to the launch pad solely for fit checks or some other basic proof-of-concept testing. It’s also possible that the returns signifies that SpaceX is confident in its quick launch mount fix and ready to restart static fire testing.
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As Booster 7 prepares for that next phase of testing, SpaceX may also be ready to restart static fire testing with Starship S24, which paused shortly before Super Heavy returned to the factory. SpaceX appears to be modifying the suborbital launch mount and test stand Ship 24 is installed on, which could explain the lack of ship testing since August 11th. SpaceX has 12-hour test windows tentatively scheduled on August 24th and 25th, either of which could be used to test either or both prototypes.
If all goes to plan, Ship 24 and Booster 7 will eventually complete all the qualification testing SpaceX can throw at them and be ready to support Starship’s first orbital launch attempt sometime before the end of 2022.
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.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
SpaceX AI investment gamble will make it a big winner, firm says
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
