News
SpaceX Starship aborts Raptor engine test, briefly catches fire
Update: On March 15th, SpaceX got within milliseconds of Starship serial number 11’s (SN11) first Raptor engine test but suffered an abort just before full ignition, briefly leaving the rocket on fire.
Around 12:26 pm CDT, after an otherwise nominal static fire flow, Starship SN11 momentarily ignited one or two of its three Raptor engines’ preburners, referring to a central component that burns cryogenic liquid propellant into gas that’s ready for combustion. As with all preburner tests, intentional or otherwise, the end result looked a bit like a weak static fire and produced a small but visible amount of flame and thrust. Unlike intentional preburner tests, the static fire abort seemingly ignited something hidden inside Starship SN11’s and appeared to burn for at least another 30-40 seconds.
Raptor has proven itself to be an extremely durable engine, up to and including surviving visible onboard fires during actual Starship flight tests. Nevertheless, depending on the source of SN11’s post-abort fire and what it may or may not have burned or damaged, it’s no surprise that SpaceX ended testing for the day instead of quickly trying again, which it’s done several times prior. If the fire was largely harmless, SpaceX has already distributed notices suggesting a second attempt could happen as early as 6am to 12pm CDT (UTC-5) on Tuesday, March 16th. If more time is needed, SpaceX has the rest of the week to conduct any necessary repairs or swap out SN11’s Raptor engines.
Public documents show that SpaceX has plans to static fire and launch its latest Starship prototype within a two-day period that could begin later today.
SpaceX shipped Starship SN11 from its Boca Chica, Texas rocket factory to test and launch facilities a mile down the road on March 8th, less than five days after Starship SN10 exploded minutes after touchdown. The very next day, SpaceX completed ambient-temperature proof testing, filling Starship with benign nitrogen gas to check for leaks and verify system health. Two days after that, Starship SN11 appeared to complete a several-hour cryogenic proof test – swapping nitrogen gas for its supercool liquid form – without issue.
Despite the seemingly successful ‘cryo proof,’ something prevented a subsequent static fire test planned on March 12th before any attempt could be made, delaying the next attempt until after the approaching weekend. An agreement between SpaceX, Cameron County, and the state of Texas currently prevents road closures (and thus rocket testing) on weekends falling between Labor Day and Memorial Day, rules meant to preserve some level of public access to Boca Chica Beach.
As a result, unless SpaceX is already ready to launch (it has waivers for three such weekend closures for launch attempts), the company has to wait until Monday even if a minor issue fixable in hours or a day or so scrubs Friday test plans. While inconvenient, it’s worth noting that the existence of that public beach and the strong regulations that protect its public domain is likely one of the only reasons the general public can still get as close as they can to SpaceX’s Boca Chica ‘Starbase’.
For whatever reason, that road closure agreement does still mean that SpaceX will (in theory) be able to test and launch any day of the week from May 31st to September 6th, save for a few holidays, effectively boosting the number of opportunities by 40% for those 14 weeks. Until then, SpaceX is doing everything it can to take full advantage of the five days a week it is allowed to test Starship prototypes. N
Notably, although Starships SN8 and SN9 both hit a few weeks of technical and regulatory snags while preparing for their high-altitude launch attempts, SpaceX has been gradually speeding up that process over time. Starship SN10, the first prototype of its kind to land in one piece, took just 33 days to go from pad arrival to liftoff and spent just 8 days between its first static fire and launch attempts. The same feats took Starship SN8 77 and 50 days, respectively, with SN9 splitting the difference at 43 days from transport to liftoff and 28 days between its first static fire and launch attempts.
Road closure requests, a safety warning for residents, and a Temporary Flight Restriction (TFR) filed with the FAA all suggest that SpaceX’s current plan is to attempt Starship SN11’s first triple-Raptor static fire between 6am and 12pm CDT on Monday, March 15th. If that test goes almost perfectly, SpaceX wants to turn the rocket around for a 10 km (6.2 mi) launch attempt on Tuesday, March 16th – the very next day. Given the past performance of high-altitude Starship prototypes, that target is decidedly ambitious and likely to incur delays, but it still reveals the true scope of SpaceX’s goals even at this early stage of development.
If Starship SN11 does manage to launch within a few days of its first static fire attempt, SpaceX would still crush SN10’s 33-day record by a factor of three. Stay tuned for updates on Monday’s possible Starship static fire and rapid Tuesday turnaround attempt
Investor's Corner
Tesla has one big financial question to answer for investors: Morgan Stanley
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.
Investor's Corner
SpaceX AI investment gamble will make it a big winner, firm says
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.
News
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
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.
