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SpaceX’s first flight-proven Starship takes another step towards reuse
Nine days after becoming the first full-size prototype to survive a high-altitude launch and landing, SpaceX has installed Starship SN15 at the second of two identical launch mounts to prepare for potential reuse.
On May 5th, after a week or two of several minor delays, Starship SN15 – the fifth full-size prototype of its kind – lifted off from SpaceX’s Boca Chica, Texas launch pad under the thrust of three Raptor engines. Like all four of its predecessors, the 50-meter-tall (165 ft) steel rocket easily ascended to an apogee greater than 10 km (6.2 mi), shutting down one Raptor every ~90 seconds to its keep velocity low. When the final engine cut off, SN15 arced over onto its belly and free-fell to around half a kilometer above the ground, using four hollow steel ‘flaps’ to control its orientation like a skydiver’s limbs.
The most radical maneuver came around six minutes after liftoff when the sideways Starship reignited two or three of its Raptors, aggressively flipped into a nose-up position, deployed six stubby landing legs, and gently touched down a few hundred feet east of the stand it took off from.
Despite a fairly large fire that burned for several minutes after touchdown, SpaceX ultimately found itself – for the first time ever – with a full-size Starship prototype that survived its inaugural ~10-km launch and landing. A careful process of safing and securing then followed as operators commanded (or monitored) SN15 to disarm explosive flight termination system (FTS) charges, vent any remaining propellant, and eventually depressurize its fuel and oxygen tanks.
Unlike Starhopper, SN5, and SN6 – which also survived flights – SpaceX was apparently able to safe SN15 without any real issues and recovery teams were able to approach the rocket within a few hours of landing instead of the 12-24+ hours that were normal prior. SpaceX also debuted a sort of supersized version of the ‘Octagrabber’ robots that remotely secure Falcon boosters after drone ship landings, allowing the recovery team to secure Starship SN15 to a stable platform and transporter without a crane.
No longer at risk of toppling over, Starship SN15 then… sat where it landed. Less than two days after touchdown, CEO Elon Musk unexpectedly revealed that SpaceX “might try to refly SN15 soon,” indicating that initial post-flight inspections had revealed that the first flight-proven three-engine Starship was in excellent condition. SN15 would ultimately spend another four days (six total) sitting on a transporter at the landing zone. On May 11th, SpaceX rolled Starship SN15 from its landing spot to “Pad B” – the second of two identical suborbital launch mounts.
Perhaps due to stormy weather and high wind gusts in the area, SN15 once again sat still – this time for another three days. Ultimately, the Starship prototype was rapidly lifted onto Pad B’s launch mount, secured, and detached from the crane in a matter of hours of May 14th – possibly the smoothest pad installation yet. In the two days since then, SpaceX has begun more in-depth inspections that will ultimately determine whether the first flight-proven Starship is truly fit for a second launch.
That process likely wont take more than a few days and even if SN15 isn’t deemed (re)flightworthy, there’s still a very good chance SpaceX will put the Starship through some kind of test(s) before it’s retired. Stay tuned for more details likely to come this week.
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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.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
SpaceX AI investment gamble will make it a big winner, firm says
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
