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SpaceX Starship prototype ignites six engines, starts major brush fire
SpaceX has successfully ignited all six engines on its latest Starship prototype, taking a significant step towards ensuring that the upper stage will be ready for the rocket’s first orbital launch attempt.
Unfortunately, the same successful static fire of a Starship upper stage – potentially producing almost twice as much thrust as the booster of SpaceX’s Falcon 9 rocket – scattered superheated debris hundreds of meters away, igniting a major brush fire. It’s not the first major fire caused by Starship activities in South Texas, and it likely won’t be the last.
Starship S24 completed its first successful static fire on August 9th, igniting two Raptor engines. Several unsuccessful attempts to test more engines followed throughout the rest of the month, and SpaceX ultimately decided to replace one of Starship S24’s three Raptor Vacuum engines in early September before trying again. After workers installed the new engine and buttoned up Ship 24, the stars eventually aligned on September 8th.
Kicking off the test, SpaceX pumped several hundred tons of liquid oxygen (LOx) and a much smaller quantity of liquid methane (LCH4) fuel into Ship 24 in about 90 minutes, producing a crisp layer of frost wherever the cryogenic liquids touched the skin of the rocket’s uninsulated steel tanks. No frost formed on Starship’s upper methane tank, implying that SpaceX only loaded methane fuel into internal ‘header’ tanks meant to store propellant for landings. The hundreds of tons of liquid oxygen, then, were likely meant as ballast, reducing the maximum stress Starship could exert on the test stand holding it to the ground.
That potential stress is substantial. Outfitted with upgraded Raptor 2 engines, Starship S24 could have produced up to 1380 tons (~3M lbf) thrust when it ignited all six for the first time at 4:30 pm CDT. On top of smashing the record for most thrust produced during a Starbase rocket test, Ship 24’s engines burned for almost 8 seconds, making it one of the longest static fires ever performed on a Starship test stand.
Several brush fires were visible almost immediately after clouds of dust and steam cleared. More likely than not, the combination of the extreme force, heat, and burn duration likely obliterated the almost entirely unprotected concrete surface below Ship 24. Despite continuous evidence that all Starship static fire operations would be easier and safer with the systems, SpaceX still refuses to install serious water deluge or flame deflector systems at Starbase’s test stands and launch pads.
Instead, under its steel Starship test stands, SpaceX relies on a single middling deluge spray nozzle and high-temperature concrete (likely martyte) that probably wouldn’t pass muster for a rocket ten times less powerful than Starship. In multiple instances, Starships have shattered that feeble martyte layer, creating high-velocity ceramic shards that damage their undersides or Raptor engines, requiring repairs and creating risky situations. With essentially no attempt at all to tame the high-speed several-thousand-degree Raptor exhaust, static fire tests at Starbase thus almost always start small grass fires and cause minor damage, but those fires rarely spread.
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Ship 24’s first six-engine test was not so lucky, although the Starship made it through seemingly unscathed. Most likely, eight long seconds of blast-furnace conditions melted the top layer of surrounding concrete and shot a hailstorm of tiny superheated globules in almost every direction. Indeed, in almost every direction there was something readily able to burn, a fire started. In several locations to the south and west, brush caught fire and began to burn unusually aggressively, quickly growing into walls of flames that sped across the terrain. To the east, debris even made it into a SpaceX dumpster, the contents of which easily caught fire and burned for hours.
Eventually, around 9pm CDT, firefighters were able to approach the safed launch pad and rocket, but the main fire had already spread south, out of reach. Instead, they started controlled burns near SpaceX’s roadblock, hoping to clear brush and prevent the fire (however unlikely) from proceeding towards SpaceX’s Starbase factory and Boca Chica Village homes and residents.
The nature of the estuary-like terrain and wetlands means that it’s very easy to stop fires at choke points, so the fire likely never posed any real threat to Boca Chica residents, SpaceX employees, or onlookers. It was also unlikely to damage SpaceX’s launch facilities or return to damage Starship S24 from the start, as both of are surrounded by a combination of concrete aprons, empty dirt fields, and a highway.
Still, the “brush” burned by the fire is a protected habitat located in a State Park and Wildlife Refuge. While fire is a natural and often necessary element of many habitats, including some of those in Boca Chica, this is the second major brush fire caused by Starship testing since 2019, which may be less than desirable. At a minimum, fighting fires around Starbase generally requires firefighters to walk or even drive on protected wetlands and salt flats, the impact of which could ultimately be as bad for wildlife and habitats as the fire itself.
SpaceX’s Federal Aviation Administration (FAA) Programmatic Environmental Assessment (PEA), which fully greenlit the company’s existing Starbase Texas facilities and launch plans earlier this year, only discusses fire [PDF] a handful of times. Repairing and preventing future damage to wetlands, however, comes up dozens of times and is the subject of numerous conditions SpaceX must meet before the FAA will grant Starship an orbital launch license.
Ultimately, given that the FAA approved that PEA in full awareness of a 2019 brush fire caused by Starhopper (an early Starship prototype) that may have been as bad or worse than 2022’s, there’s a chance that it will play a small role in the ongoing launch licensing process, but the odds of it being a showstopper are close to zero. Still, it would likely benefit SpaceX at least as much as the surrounding Boca Chica wilderness if it can implement changes that prevent major brush fires from becoming a regular ‘accidental’ occurrence.
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
