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SpaceX aces Starship static fire days after NASA astronaut visit
Update: Around 9am CDT (UTC-5), SpaceX successfully fired up Starship serial number 11’s (SN11) three Raptor engines, completing the static fire test on the first try of the day and just two hours into in Monday’s eight-hour window.
As far as three-engine Starship static fires go, SN11’s Monday test was about as smooth and clean as they come, boding extremely well for a launch attempt as early as either Tuesday or Wednesday, according to Temporary Flight Restrictions (TFRs) filed with the FAA. With flight termination system (FTS) explosive charges already installed and an FAA license in hand, all that stands between Starship SN11 and flight is a deeper static fire review and the cooperation of local weather conditions. Stay tuned for updates!
A group of NASA astronauts appear to have taken an agency-sanctioned trip down to SpaceX’s Boca Chica Starship facilities, including a visit with a prototype scheduled to fire up and launch as early as this week.
Seemingly in lockstep with the accelerating pace of Starship production and testing, the frequency of NASA astronaut visits to SpaceX’s South Texas facilities has also seen an uptick over the last six or so months.
Back in 2019, SpaceX built Starhopper, performed numerous tests with early Raptor engine prototypes, and performed two untethered hops. With that success in hand, SpaceX turned its focus to Starship Mk1 and suffered an almost immediate failure during pressure testing, encouraging a series of rapid manufacturing upgrades largely completed in just a few months’ time.
In 2020, SpaceX pushed those new facilities to the limits while continuing major expansions. In 12 months, SpaceX built and tested five small ‘test tanks’ and six full Starship tank sections, performed almost a dozen Raptor static fires with that hardware, hopped two of those tanks (SN5 & SN6) to 150m, fully integrated the first full-height Starship (SN8), and nearly landed that vehicle after an otherwise flawless 12.5 km (7.8 mi) launch and descent.
Back in 2019, NASA inked its first monetary Starship contract with SpaceX, awarding $3M to prototype a coupling mechanism Starships will need to dock and refuel in space. In April 2020, NASA revealed that SpaceX – with its Starship launch vehicle – was one of three finalists selected to compete for a Human Landing System (HLS) Moon lander contract, providing the company $135M of the full $970M award to begin preliminary design and certification work.
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Around five months later, a group of NASA astronauts made their first public visit to SpaceX’s Starship development hub in South Texas, overflying the factory and launch pad in training jets on a routine sortie out of Houston and Johnson Space Center. Days later, SpaceX won a $53M NASA “Tipping Point” contract to demonstrate large-scale cryogenic propellant transfer with a Starship prototype.
Ultimately, excluding rock-solid commercial crew and cargo partnerships, NASA’s relationship with SpaceX and the company’s Starship appears to be growing stronger every day. While it’s hard to say just how indicative of that growth the visible attention of NASA’s astronaut corps is, it’s worth taking note of what those same astronauts aren’t (publicly) overflying, visiting, and touring – namely factories, R&D facilities, or prototype hardware of HLS competitors Dynetics and Blue Origin.
Delayed by about a week, SpaceX is currently preparing to fire up its fourth full-size Starship prototype – SN11 – for the first time as early as Monday, March 22nd, 19 days after Starship SN10 briefly landed in one piece. SpaceX has filed temporary flight restrictions (TFRs) with the FAA for SN11’s 10 km (6.2 mi) launch debut from Tuesday through Friday, leaving plenty of opportunities for a launch this week if the rocket can successfully test its three Raptor engines by Wednesday.
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
