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SpaceX preps Starship, Super Heavy for another week of Raptor testing
SpaceX continues to work around the clock to prepare its latest Starship and Super Heavy booster prototypes for another week of testing – likely focused on firing up the Raptor engines installed on each vehicle.
Known as Booster 7 and Ship 24, SpaceX has been slowly testing both prototypes for approximately four months, beginning in April and May, respectively. Only in early August did the company cautiously begin attempting to ignite their Raptor engines as part of a process known as static fire testing – by far the most difficult and important part of qualifying both vehicles for flight.
Thanks to progress made in 2021, SpaceX already has significant experience testing an earlier orbital-class Starship prototype on the ground, but the process of testing Ship 24 is still fresh and unfamiliar for a number of reasons. For Booster 7, the challenges are even greater.
On top of major design changes made to Starship and Super Heavy over the last year as SpaceX continues to refine the rocket, the company also developed a substantially different version of its Raptor engine. Compared to Raptor V1, Raptor V2 almost looks like a new engine and can produce around 25% more thrust (230 tons versus 185 tons). SpaceX has also tweaked how the engine operates, particularly around startup and shutdown, further weakening the value of past experience testing Raptor V1 and V1.5 engines on Ship 20 and Boosters 3 and 4.
In other words, with Ship 24 and Booster 7 engine testing, it’s possible that SpaceX is effectively starting from scratch. Many aspects of testing – propellant conditioning, thermal characteristics, tanking, detanking, certain test stands – are likely mostly unchanged, but almost every aspect of a rocket is affected by its engines.
Before SpaceX began testing Raptor V2 engines on Starship and booster prototypes, it wasn’t clear if the changes between V1.5 and V2 would invalidate a lot of prior testing. After the start of Booster 7 and Ship 24 static fire testing, it’s now clear that a lot of that earlier work has to be redone. It’s also clear that despite some of the simplifications in Raptor V2’s design, operating the engine on Starship and Super Heavy is much harder get get right.
Since mid-July, SpaceX has completed around 15-20 ‘spin-prime’ tests between Ship 24 and Booster 7 – more of that kind of test than any other prototype in the history of Starbase has performed. Spin-prime tests flow high-pressure gas through Raptor’s pumps to spin them up without igniting anything. It’s unclear why so many of those tests are being done, what SpaceX is gaining from it, or why the company appears to have completely stopped conducting preburner tests (a more life-like spin-prime with partial combustion).
Regardless, eight weeks after the start of engine testing, Booster 7 has only performed three static fires (two with one engine, one with a max of three or four engines), and Ship 24 has only completed one static fire with two engines. Before either vehicle can be considered ready for flight, a day that could easily never come, each will likely need to conduct multiple successful static fires with all of their Raptor engines (6 on S24 and 33 on B7).
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If the pace of Booster 7 testing doesn’t change, the vehicle could be months away from a full 33-engine static fire attempt – perhaps the single most important and uncertain test standing between SpaceX and Starship’s first orbital launch attempt. Ship 24’s path to flight readiness should be simpler, but it appears to be struggling almost as much.
According to CEO Elon Musk, “an intense effort is underway” to ensure that Super Heavy B7’s Raptor engines are well contained during anomalies, so that one engine violently failing won’t damage or destroy the booster, other engines, or the launch pad. That could certainly complicate the process of testing Booster 7, and it’s likely that SpaceX is taking some of the same actions to protect Ship 24.
In early September, after a partially successful Booster 7 static fire (its first multi-engine test) and numerous additional Ship 24 tests that failed to achieve ignition, SpaceX replaced engines on both vehicles. Booster 7 had one of 13 Raptor Center engines swapped out, while Ship 24 had one of its three Raptor Vacuum engines replaced.
On September 5th, SpaceX distributed a safety alert to Boca Chica’s few remaining residents, confirming that it wants to restart testing as early as Tuesday, September 6th. Especially as of late, that alert guarantees nothing, but it does at least open the door for SpaceX if Ship 24, Booster 7, and the positions of the stars happen to be in the right mood between 8am and 8pm CDT. Additional opportunities are available on September 7th, 8th, 9th, and 12th.
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
