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SpaceX begins stress-testing upgraded Super Heavy booster
In a what is likely a prelude to engine installation, SpaceX has begun stress-testing an upgraded Super Heavy booster prototype.
Known as Super Heavy Booster 7 or B7, the prototype is the first of its kind designed to support up to 33 new Raptor V2 engines – each potentially capable of producing up to 230 tons (~510,000 lbf) of thrust at liftoff. Even with just 20 such engines installed, Super Heavy – measuring around 69 meters (~225 ft) tall and nine meters (~30 ft) wide – will be the largest and most powerful rocket stage ever tested. That potentially unprecedented power is why SpaceX has custom-built a complex structural test stand to explore Super Heavy’s true performance envelope in a slightly less risky manner.
In the second half of 2021, that structural test stand briefly tested an unusual half-Starship, half-Super Heavy test tank with a nine-engine thrust section (‘puck’) and later compressed a different test tank until its reinforced steel skin buckled. In the interim, SpaceX removed its nine-ram setup and modified the stand to support 13 rams, guaranteeing that its new purpose was to test Super Heavy’s new 13-engine thrust section. Prior to Booster 7, all Super Heavy prototypes have had a similar nine-engine puck and an outer ring of 20 engines that would attach directly to the rim of each booster’s cylindrical body.
Increasing the central engine count from 9 to 13 was already certain to up the amount of stress future Super Heavy thrust pucks would need to survive by almost 45%. But combined with Raptor V2’s thrust increases, Super Heavy Booster 7’s thrust puck could actually be subjected to at least 80% more thrust at liftoff. Altogether, Super Heavy B7’s 33 engines should be able to produce ~7600 tons (~16.8M lbf) of thrust compared to Super Heavy B4’s ~5400 tons (~11.9M lbf). As a result, though it’s odd that SpaceX never did significantly test Booster 4, it’s no surprise that the company chose to give Booster 7 priority as soon it was ready.
After a few false starts and at least one ‘pneumatic proof test’ that likely saw Booster 7 pressurized with benign nitrogen gas, SpaceX began stress-testing the upgraded Super Heavy in earnest on April 14th. First, the booster was filled about a third of the way with roughly 1000 tons (~2.2M lb) of liquid nitrogen (LN2) or a combination of liquid oxygen (LOx) and LN2. Once the rocket was fully chilled, there were clear signs of some kind of added stress as large sheets of ice that had formed on the side of B7’s skin broke apart and fell off.
Only ice close to Super Heavy’s base was visibly disturbed, increasing the odds that the behavior was a sign of some or all of the structural test stand’s hydraulic rams simulating Raptor engines. It’s also possible that the stress was caused by pressurizing Super Heavy’s tanks to the point that they began to appreciably deform, though that type of testing is far harder to differentiate. Without official comments, it’s unfortunately impossible to ever know what exactly SpaceX is testing or how successful those tests are when the structural test stand is involved.
Nonetheless, it’s likely that Booster 7 isn’t done with the stand just yet. SpaceX could benefit from just about any data gathered about the performance of Super Heavy’s new thrust puck during simulated Raptor startup, throttling, and shutdown both at liftoff and during boostback and landing burns. SpaceX might also want to simulate engine-out scenarios that would result in asymmetric thrust.
Assuming Booster 7 survives this particular series of tests and SpaceX is happy with its performance on the structural test stand, the upgraded Super Heavy could be ready for Raptor installation and integrated wet dress rehearsal and static fire testing in the near future. SpaceX began delivering upgraded Raptors V2 engines to Starbase in late March.
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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
