News
SpaceX’s upgraded Starship completes second Raptor engine test in ~24 hours
SpaceX Starship prototype SN15 has completed a second ‘static fire’ test of its Raptor engines in the last 24 hours, hopefully setting up the rocket for a launch and landing attempt on Thursday or Friday.
While Monday’s test was a total success, it’s unclear if April 27th’s static fire went according to plan. Notably, it was much shorter than the Monday engine test and involved either one or two – but not all three – of Starship SN15’s Raptor engines. Historically, unusually brief static fires (~2-3 seconds) aren’t unprecedented, but they’ve generally been part of a process of troubleshooting after a prototype runs into technical issues during earlier testing.
According to Musk, SpaceX also moved to reigniting all three sea level Raptors for landing burns from Starship SN10 onwards, meaning that an intentional two-engine SN15 static fire is either a reversion to earlier two-engine landing burns or a sign of a static fire abort or engine ignition failure. If SpaceX needs to perform another test, particularly if one or more Raptors need to be replaced, Starship SN15’s launch will likely slip into early May. Stay tuned for updates.
SpaceX CEO Elon Musk says that the next Starship launch could happen “later this week” after the company’s first ‘upgraded’ prototype aced a three-engine static fire test on the first try.
While substantially delayed from optimistic initial targets just a week or two after the rocket rolled from factory to launch pad, upgraded Starship prototype serial number 15 (SN15) – outfitted with “hundreds of improvements” – fired up its three Raptor engines for a few seconds around 5pm CDT on Monday, April 26th. Also upgraded, the rocket’s engines seemed to perform nominally and SpaceX ultimately closed out the evening’s testing a few hours early.
Around the same time as SN15’s first static fire attempt was wrapping up, SpaceX distributed safety notices to Boca Chica Village residents, indicating that a second static fire test may be planned on Tuesday. Musk didn’t mention plans for a second static fire, but he did imply that the first test was completed successfully enough to enable Starship SN15 to launch just a few days from now.
Like four other “high-altitude” flight tests before it, Starship SN15 is expected to target a similar ~10-12 kilometer (6-8 mi) apogee and once again attempt to perform a complete ascent, controlled bellyflop, landing flip maneuver, and soft touchdown. Between December 2020 and April 2021, Starships SN8 through SN11 tried and failed to survive that challenge intact, though prototype SN10 did manage to survive for around ten minutes on the ground before its still-hard landing led to an explosion.
-
All four failures ultimately had different causes. Starship SN8 lost fuel tank pressure, starving its Raptors and causing a near-total loss of thrust seconds before touchdown. One of SN9’s Raptors failed to ignite for a landing burn, triggering an even more aggressive impact with the ground. Starship SN10 landed in one piece but its lone landing engine underperformed when it began to ingest helium ullage gas – a quick-fix implemented after SN8’s pressurization issue. SN11 exploded almost immediately after attempting to ignite its three engines for landing, failing even earlier than its predecessors.
All four flight tests saw each respective Starship prototypes narrowly miss a fully successful and survivable landing, providing SpaceX a great deal of data and direct experience to improve the rocket’s design and operations with. Two of the four failures – SN9 and SN11 – appear to have been the fault of one or more of Starship’s three Raptor engines. Beginning with Starship SN15, SpaceX has moved to an upgraded iteration of the next-generation engine, raising hopes that whatever changes the company has implemented will substantially improve reliability and thus the odds of a successful high-altitude launch and landing test.
As of April 26th and in spite of one or two weeks of delays, the fact that Starship SN15 managed to complete a three-Raptor static fire test on its first true attempt is a great sign that the rocket’s many “improvements” may already be paying dividends. A launch “later this week” would make the effects of those improvements even harder to deny. A successful launch and landing in the next few days would all but guarantee that SpaceX’s process of iterative development is working like a charm. Regardless of whether SN15 survives its first flight, Starship SN16 will likely be ready to take over a matter of days later.
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
