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SpaceX readies its California landing pad for September rocket recovery debut
Just as SpaceX successfully debuted Falcon 9 Block 5 at their California launch pad and returned drone ship Just Read The Instructions (JRTI) to rocket recovery duty after a nine-month leave, the company’s next West Coast mission is already aligning for an early-September launch. The mission, SAOCOM-1A, will feature yet another inaugural event – the first use of a West Coast landing pad less than a mile from SpaceX’s Vandenberg launch pad.
For the last two and a half years, SpaceX’s Florida launch sites (Pad 40 and Pad 39A) have also been privy to a unique secondary facility known as Landing Zone-1, located a few miles away from both pads inside the boundaries of Cape Canaveral Air Force Station (CCAFS). In fact, although a number of attempts were made to recover a Falcon 9 booster aboard drone ship Of Course I Still Love You (OCISLY) in 2015, the first successful Falcon 9 booster landing happened to occur at LZ-1, followed four months later by the first successful recovery by sea.
SLC-4E after a foggy launch of Iridium-7 at Vandenberg. #spacex #iridium7 pic.twitter.com/YQkXbpBooj
— Pauline Acalin (@w00ki33) July 25, 2018
Why land on land, why land at sea?
The primary draw of an equivalent land-based pad is both simple and massive: while SpaceX’s autonomous drone ship vessels are complex, comparatively easy to damage, and extremely expensive to both operate and maintain, a concrete circle on land has relatively tiny fixed and variable costs, does not have to concern itself with volatile ocean conditions, and does not require a fleet of tugboats and service vessels to operate. Rough estimates place the cost of taking a drone ship, tugboat, and crew transport vessel hundreds of miles off the coast on missions that can last 7-14 days anywhere from $500,000 to $2 million or more, depending on how you tabulate costs. Either way, the drone ship fleet will always be more complex and more expensive than simple concrete pads on land.
One problem with land-based landing zones is that returning rockets to their launch sites is very fuel-intensive, requiring propellant margins at booster stage separation that dramatically reduce the payload that can be placed into low Earth orbit (LEO), let alone higher-energy missions to geostationary orbit. As such, without massive performance improvements, drone ships like JRTI and OCISLY will be irreplaceable for as long as Falcon 9 and Heavy are flying – SpaceX simply cannot recover rockets during the geostationary launches that comprise a huge portion of their manifest unless they have those vessels.
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- Elon Musk walks among his recovered Falcon Heavy boosters at LZ-1 and 2. (Elon Musk)
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- The drone ship Of Course I Still Love You spotted in Port Canaveral, FL last December. (Instagram /u/ johnabc123)
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- West Coast drone ship Just Read The Instructions headed out to sea to catch a Block 5 booster on July 22. It succeeded. (Pauline Acalin)
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This brings us to another conundrum. SpaceX’s Florida launch facilities support heavy commercial geostationary satellite launches as much as or more than any other type of payload in a given year of launches, meaning that the company’s now-doubled landing pad at LZ-1 is only used every once and awhile for Cargo Dragon launches and other miscellaneous and rare launches that leave enough margin in Falcon 9. SpaceX’s Vandenberg pad, on the other hand, is effectively bound to launching satellites into polar orbits (orbiting over Earth’s poles versus around the equator) – safety regulations prevent large rockets from launching over populated areas like the entire continental U.S., as an example for California launches.
Equatorial launches from East to West are much less efficient than their opposite, as Earth’s own rotation (West to East) provides rockets an appreciable performance boost. The point is that SpaceX’s Vandenberg launches are for fairly particular payloads, usually LEO communications satellites and imaging satellites that thrive in polar orbits, where one or a handful of satellites can observe almost anywhere on Earth over the course of a normal 24-hour. Those satellites also happen to be lightweight more often than not, meaning that many of the booster recoveries on drone ship JRTI could instead return to launch site (RTLS) for a dramatically simpler and cheaper recovery.
Enter Block 5
A West Coast LZ is even more intriguing and important with respect to the recent debut of Falcon 9 Block 5 at Vandenberg and the fact that all future launches. Even compared to SpaceX’s Florida LZ-1, the company’s Western pad is incredibly close to the launch pad. By landing less than a mile from SpaceX’s VAFB integration and refurbishment facilities (and launch pad), recovery and refurbishment operations should be more effortless than any before it.
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- SpaceX’s yet-unused Californian Landing Zone, seen ahead of Falcon 9 Block 5’s Iridium-7 debut. (Pauline Acalin)
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- SpaceX’s Vandenberg launch pad (right) and landing zone (left) ahead of the pad’s first Falcon 9 Block 5 launch, Iridium-7. (Pauline Acalin)
While the company’s VAFB launch pad is a bit older than its Eastern cousins and requires at least 3-5 weeks between launches for repairs and refurbishment, that relaxed schedule may be unbeatable for proving out the Block 5 upgrade’s true rapid reusability, as well as its ability to far more than two orbital missions per booster lifespan. SAOCOM-1A, one of two Argentinian Earth observations scheduled for launch with SpaceX, will begin that new era for SpaceX’s Vandenberg operations, including a landing pad debut permit officially granted by the FCC in the last few weeks. The Falcon 9 booster that launches that mission is bound to have a storied future ahead of itself.
For prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket recovery fleet (including fairing catcher Mr Steven) check out our brand new LaunchPad and LandingZone newsletters!
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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.”
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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.
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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.
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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.
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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
