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SpaceX to send retired Starship to local Texas airport, says Elon Musk
In a brief Twitter exchange, the Brownsville/South Padre Island International Airport (BRO) appears to have talked SpaceX CEO Elon Musk into turning a retired Starship prototype into a public exhibit.
Operational in some form since 2020, SpaceX’s ‘Starbase’ Starship factory is already a bit of a tourist destination for Brownsville, Texas and the local Rio Grande Valley – particularly for fans of spaceflight and rockets. The substantial factory and a trio of orbital and suborbital launch pads are both located directly beside a public highway, a tiny private housing development, and a public beach – maintaining access to all of which has been a consistent challenge for SpaceX for years.
However, the company has continued to work to coexist with locals while simultaneously generating tourism and bringing unprecedented economic growth and publicity to the relatively quiet region. It’s increasingly unclear if SpaceX will be able to realize its full ambitions for Starbase and South Texas but Elon Musk recently reiterated the company’s commitment to maintaining a strong presence in the region whether or not the US government gives it the permissions it needs for regular Starship launches.
Musk’s drop-of-a-pin willingness to donate an entire Starship prototype to a local organization certainly exemplifies that commitment. While Starbase is already a de facto tourist destination where people can get within a stone’s throw of several prototypes of the largest rockets ever built, the setup for visitors is very impromptu, inconvenient, and right beside an active highway and rocket factory. A dedicated Starship display at a less frenetic site with dedicated parking and no need to tiptoe around a highway would undoubtedly be an improvement.
Situating that public Starship display directly beside the largest local airport would also preclude the need for prospective visitors to drive half an hour out of their way, ensuring that far more people actually get to experience a Starship up close and learn about SpaceX’s presence in the region. Thankfully, increasingly unusual behavior means that SpaceX has no shortage of prototypes to choose from.
Starship SN15 is the first prototype of any kind to fly to a moderate altitude (~10 km), fall back to Earth like a skydiver, flip around at the last second, and survive a soft landing in May 2021. Musk once said that the historic prototype would be reused on a second flight test but the ship never did and has instead sat at Starbase’s ‘Rocket Garden’ ever since. Starship SN16 – almost identical to SN15 – was also supposed to fly but never got to perform a single test before it was retired to the same garden.
Up next, SpaceX mostly finished an entire Super Heavy booster – standing almost 70 meters (230 ft) tall – late last year but sent it (B5) directly to the ‘garden’ without even attempting to finish or test the rocket. Its sister booster, Super Heavy B4, was at one point supposed to support Starship’s first orbital launch attempt but has only completed a fraction of the necessary proof tests after spending almost half a year floating around the orbital launch site. It’s entirely possible that B4 will meet its end beside B5 later this year.
Finally, SpaceX most recently decided to assemble Starship S22 – very similar to Starship S20, the other half of the first orbital test flight pair of B4/S20 – and stacked the ship to its full height on February 14th, 2022. After installing its nosecone and the last two of four flaps, though, SpaceX immediately sent the unfinished Starship to the same graveyard of retired prototypes, strongly implying that it, too, will never be used.
While increasingly confusing from a programmatic standpoint, SpaceX’s ever-growing supply of retired or fully unused Starship and Super Heavy hardware gives the company plenty of options for donating one or even several prototypes. The only real barriers are the need for a concrete foundation to secure the display vehicles and the challenge of transporting vertical, building-sized rockets by road. To get a Starship all the way to the Brownsville International Airport, a number of power lines and traffic lights would likely need to be temporarily removed or rerouted, but that’s a relatively minor inconvenience with enough political will.
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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
