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SpaceX Starship prototype gets frosty for a launch attempt as early as this week
Update: It appears that SpaceX has completed Starship SN10’s first cryogenic proof test campaign and the company lifted its road closure around 4:30 pm CST, signifying the end of Monday’s testing.
If Monday’s cryo proof was successful, SpaceX has requested possible static fire test windows on Wednesday, Thursday, and Friday (Feb 10-12), though it’s possible another window could be added on Tuesday, February 9th. If Starship SN10 is able to complete a flawless wet dress rehearsal (WDR) and static fire on Tuesday or Wednesday, there is a chance – albeit small – that SpaceX can turn the rocket and pad around for a launch attempt on Friday.
Unfortunately, the FAA also deemed it necessary to reissue SpaceX’s airspace restrictions with a note that SN10’s launch is still “pending [authorization],” adding additional bureaucratic uncertainty on top of the technical hurdles the Starship still needs to navigate to be cleared for flight.
In the midst of what appears to be Starship SN10’s first cryogenic proof test, SpaceX has filed temporary flight restrictions (TFRs) with the FAA for a third Starship launch as early as this week.
Effectively identical to late Starships SN8 and SN9, both of which suffered last-second failures that led to hard impacts and explosions on December 9th and February 2nd, Starship SN10 is a prototype steel rocket and reusable upper stage measuring 50m (165 ft) tall, 9m (30 ft) wide, and some 1350 metric tons (three million pounds) – about as much as Falcon Heavy – fully fueled.
Like its predecessors, Starship SN10 has been outfitted with a cluster of three Raptor engines producing up to 600 metric tons of thrust (~1.3M lbf) and was built as part of a series of four prototypes designed to prove out a new method of rocket recovery.
As previously discussed on Teslarati, SpaceX unexpectedly distributed safety “alerts” to Boca Chica Village residents on Sunday, February 7th, an act that has only ever signified plans to (attempt to) static fire a Starship prototype. However, Starship SN10 has yet to even complete cryogenic proof testing, referring to a common practice SpaceX has used to verify vehicle health with liquid nitrogen, simulating the extreme cold of liquid methane and oxygen propellant without the risk of a violent fire or explosion.
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At the moment, SpaceX is in the middle of putting Starship SN10 through its first LN2 cryo proof attempt(s). SpaceX appeared to abort one attempt around 1:15 pm CST and has kicked off a second attempt around this article’s publishing time (~2 pm CST). If SN10 manages to pass a cryo proof in the early afternoon, there’s a chance – albeit limited – that SpaceX will then attempt to recycle for a live wet dress rehearsal (WDR; replacing LN2 with methane and oxygen) and possible static fire attempt later today.
Even attempting – let alone completing – an inaugural cryoproof and static fire on the same day would be an unprecedented feat, so it’s far more likely that the process will take a couple days. Even if that’s the case, however, it’s still possible that SpaceX could make Starship SN10 ready for another high-altitude launch attempt as early as this week. Stay tuned for updates!
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
