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SpaceX Starship nails ‘flip’ maneuver in explosive landing video
Update: SpaceX has published a video taken near the launch pad of Starship nailing an exotic ‘flip’ maneuver shortly before a hard landing destroyed the rocket.
Both the company, test directors, and CEO Elon Musk have all made it abundantly clear that despite the explosive end, Starship SN8’s maiden flight was a spectacular success, proving that the rocket is capable of performing several previously-unproven maneuvers and surviving the associated stresses. Notably, according to tweets posted by Musk not long after, Starship SN8 performed almost perfectly, failing a soft landing (already proven by SN5 and SN6) solely because of low pressure in the rocket’s secondary ‘header’ fuel tank.
For unknown reasons, that tank or its associated plumbing were unable to maintain the pressure needed to feed Raptor with enough propellant, resulting in fuel starvation mid-burn. A lack of fuel and surplus of oxygen effectively turned the landing engine into a giant oxygen torch, melting the copper walls of its combustion chamber (hence the green plume). Had the header tank maintained the correct pressure, SN8 would have very likely landed intact (or at least had a much softer landing).
In simpler terms, it seems that Raptor isn’t to blame for Starship SN8’s failed landing and fixing a pressurization problem will be dramatically faster and easier than rectifying a rocket engine design flaw.
In perhaps the most spectacular aerospace demonstration since Falcon Heavy’s 2018 debut, SpaceX’s first full-size Starship prototype came within a hair’s breadth of sticking the landing after an otherwise successful ~12.5 km (7.8 mi) launch debut.
To quote SpaceX’s test director, heard live on the company’s official webcast moments after Starship serial number 8 (SN8) exploded on impact, “Incredible work, team!” For most, praise shortly after a rocket explosion could easily feel nonsensical, but in the context of SpaceX’s iterative approach to development, a Starship prototype failing just moments before the end of a multi-minute test can be considered a spectacular success.
Chock full of surprises, Starship SN8 ignited its three Raptor engines for the third time and lifted off at 4:45 pm CST (UTC-6) on the program’s high-altitude launch debut.
About 100 seconds after liftoff, already representing the longest-known ignition of one – let alone three – Raptor engines, one of those three engines appeared to shut down, causing the two remaining engines to gimbal wildly in an effort to retain control. Another two minutes after that, one of those Raptors also shut down, leaving one engine active. That one engine continued to burn for another minute and a half, producing just enough thrust to more or less maintain Starship SN8’s altitude at apogee while performing a bizarre horizontal slide maneuver.
Finally, at a bit less than five minutes after liftoff, Starship cut off all Raptor engines and began falling back to earth. Looking spectacularly similar to fan-made renders and CGI videos of the highly-anticipated ‘skydiver’ or ‘belly-flop’ maneuver, Starship – belly down – spent around two minutes in a rock-solid freefall, using four large flaps to maintain stability.
Around 4:52 pm, Starship SN8 performed exactly as expected, igniting one – and then two – Raptor engines while fully parallel to the ground to complete an aggressive 90-degree flip, transitioning into vertical flight for an attempted landing. Unfortunately, although it’s difficult to judge what was intentional and what was not, things began to go wrong after that point -visible in the form of one of the two reignited Raptors flashing green before shutting down.
At the same time, the plume of the lone remaining engine flashed an electric green, quite literally consuming its copper-rich internals in an unsuccessful attempt to slow Starship down. According to SpaceX CEO Elon Musk, Raptor performed “great” throughout the launch and landing attempt, with the bright-green plume likely explained by extremely oxygen-rich combustion caused by low “fuel header tank pressure.”
Regardless of the specific cause, Starship SN8 smashed into the ground around 10-20 seconds early, traveling about 30 m/s (~70 mph) too fast. To be clear, in SpaceX’s eyes, the test – primarily focused on demonstrating multi-engine ascent, freefall stability, header tank handover, engine reignition, and a flip-over maneuver – was a spectacular success, completing almost every single objective and seemingly doing so without any major issues.
Clocking in at an incredible (and unexpected) ~400 seconds (~6.5 minutes) from liftoff to explosion, it’s difficult to exaggerate the sheer quantity of invaluable data SpaceX has likely gathered from SN8’s sacrifice. Thanks to SN8’s primarily successful debut, SpaceX’s Starship test and launch facilities (minus the rocket’s remains on the landing zone) appear to be almost completely unharmed, likely requiring only minor repairs and refurbishment. Further, Starship SN9 is effectively complete and patiently waiting a few miles down the road, ready to roll to the launch pad almost as soon as SpaceX has understood the cause of SN8’s hard landing.
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Stay tuned for more analysis, photos, and videos as the dust settles.
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
