SpaceX
SpaceX builds new orbital Starship sections as Starhopper loses its engine
Amidst the growing buzz centered around the imminent second launch of Falcon Heavy, SpaceX’s South Texas team has continued to work on Starhopper and the first orbital Starship prototype. wrapping up the first major tests of the former and making new progress on the latter’s aeroshell.
For unknown reasons, SpaceX technicians uninstalled Starhopper’s Raptor – the second full-scale engine ever built – shortly after the vehicle’s first true hop test and proceeded to package it up for shipment elsewhere, likely McGregor’s test facilities or the Hawthorne factory. Simultaneously, the third completed Raptor (SN03) was recently installed in McGregor according to photos and observations published by NASASpaceflight.com, preparing to continue to the engineering verification tests that began in February. Once those tests are complete and the engine design is modified to account for the lessons learned with Raptor SN01, SpaceX’s next step will be to begin ramping Raptor production in preparation for multi-engine Starhopper testing and – eventually – the completion of the first orbit-capable Starship prototype.
Needless to say, SpaceX is juggling a lot of interconnected projects in an effort to speed its Starship/Super Heavy (formerly BFR) development program, none of which are being discussed by the company in more than a cursory manner. What follows is thus meant to be an informed but speculative estimate of what is currently going on and what is next for BFR.
Starhopper slips the surly bonds
Over the course of the last two weeks, SpaceX has been almost continuously testing the first integrated Starship prototype, a partial-fidelity vehicle known as Starhopper. The testing primarily involved almost a dozen wet dress rehearsals (WDRs) in which the rocket was filled with some quantity of liquid oxygen and methane propellant and helium for pressurization as engineers and technicians worked through several bugs preventing Raptor from safely operating. According to CEO Elon Musk, some form of ice – potentially methane, oxygen, or even water – was forming in or around parts known as “prevalves”, likely referring to valves involved in the process of supply rocket engines with the right amount of fuel and oxidizer.
Less than 24 hours later, those valve issues were apparently solved as Starhopper’s Raptor ignited for the first time in a spectacular nighttime fireball. 48 hours after that first ignition, SpaceX once again fueled Starhopper and ignited its Raptor engine, lifting a spectacular handful of feet into the air before reaching the end of its very short tethers. According to Musk, the first Raptor ignition was completed with “all systems green”. After the second test, no additional comments were made. Less than three days later, SpaceX technicians uninstalled Starhopper’s Raptor (SN02) and shipped it somewhere offsite, indicating that it may have suffered a fault similar to the one that caused relatively minor damage to Raptor SN01 at the end of its February test campaign. Regardless, it appears that this development will keep Starhopper grounded for the indefinite future barring the imminent shipment of Raptor SN04 or the completion of SN01’s refurbishment.
The Raptor pack grows
Starhopper’s unplanned grounding ties
While the exact strategy behind SpaceX’s Raptor and BFR propulsion development programs
Regardless, the somewhat buggy behavior exhibited by the integrated Raptor and Starhopper indicate the obvious: both are fairly immature hardware still in some form of development, be it the late (Raptor) or the very earliest stages (Starhopper). By performing even more testing and continuing to optimize and gain familiarity with the hardware at hand, the fairly predictable process of development will arrive at more or less finished products.


Starship’s first orbital prototype
Last but not least, work continues on what will hopefully become the first orbit-capable Starship prototype, built in full-scale out of sheets of stainless steel that are far thinner than the metal used to construct Starhopper. This, too, is a normal process of development – as progress is made, prototypes will gradually lose an emergency cushion of performance margins, a bit like a sculptor starting with a solid block of marble and whittling it down to a work of art. Starhopper is that marble block, with inelegant, rough angles and far more material bulk than truly necessary.
As seen above, the orbital prototype – just the second in a presumably unfinished series – is already dramatically more refined. Instead of the first facade-like nose cone built for Starhopper, Starship’s nose section is being built out of smoothly tapered stainless steel panels that appear identical to those used to assemble the rocket’s growing aeroshell and tankage. As of now, there are five publicly visible Starship sections in various forms of fabrication, followed by a half-dozen or so tank dome segments waiting to be welded together as finished bulkheads.
Intriguingly, the only quasi-public official render of SpaceX’s steel Starship features visible sections very similar to those seen on the orbital prototype’s welded hull. They aren’t all visible in the render, but those that are are a distinct match to the aspect ratio of the welded sections visible in South Texas.

Extrapolating from this observation, Starship, as rendered, is comprised of approximately 16 large cylinder sections and 4-8 tapered nose sections. Based on the real orbital prototype, each large section is 9m in diameter and ~2.5m tall. Assuming Starship is 55 meters (180 ft) tall, this would translate into 22 2.5m sections, a nearly perfect fit with what is shown in the official render. Back in South Texas, SpaceX has 6 tapered sections and 7 cylinder sections in work, meaning that they would reach around 32.5m (~105 ft) – about 60% of a Starship hull – if stacked today.
If we assume that SpaceX follows Falcon procedures to build the seven-Raptor thrust structure separately (~2 sections) and excludes most of the cargo bay (~2-3 sections) on the first orbit-capable Starship, those ~13 in-work sections could be just a tapered nose cone away from the prototype’s full aeroshell. Time will tell…
Check out Teslarati’s newsletters for prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket launch and recovery processes.
Investor's Corner
SpaceX gets initial stock coverage from Tesla’s biggest bull
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Elon Musk
Tesla Phone? Not quite, but close: analyst
For years, there have been images and videos across social media platforms that have reminded me of when I was a 15-year-old kid teased by “Xbox 720” videos on YouTube. These videos are of the supposed “Tesla Phone” that Elon Musk was secretly developing in between leading Tesla with its electric cars and SpaceX with its reusable rockets.
Would you buy a Tesla phone ? pic.twitter.com/aaTwvvIJit
— Tesla Owners Silicon Valley (@teslaownersSV) October 6, 2023
Although Musk has put those rumors to bed several times, it was never completely out of the realm that he could get involved in cell phones in some capacity. Think outside the box and more macro-level, though. Instead of reinventing the computer, Musk reinvented connectivity by developing Starlink with SpaceX.
It could be something similar, TD Cowen analyst Gregory Williams said in a note last week, where he hinted SpaceX could be gathering some steam to acquire T-Mobile.
Williams said it would be the “clear choice” for SpaceX if it decided to go through with a network acquisition. He also suggested AT&T.
The move would be possible through selling more of its own stock, which would help SpaceX raise the money to purchase T-Mobile, which would cost roughly $300 billion. It could be one of the moves SpaceX makes post-IPO in terms of an acquisition: it already acquired Cursor AI for $60 billion.
Other analysts, like Dan Ives of Wedbush, believe SpaceX and Tesla will eventually merge into one anyway, and that conglomeration could come as soon as this year, some have said.
The implications of SpaceX purchasing T-Mobile are massive. A combined entity would create a truly ubiquitous network: T-Mobile’s terrestrial 5G towers and Starlink’s growing constellation of Direct-to-Cell satellites. This would essentially eliminate dead zones across the U.S. and potentially globally.
SpaceX would instantly become a full-scale facilities-based carrier with satellite differentiation; a huge advantage. This would pressure AT&T and Verizon heavily.
There are also concerns like a potential reduction in long-term competition, and of course, a deal of that size would face intense scrutiny from government agencies.
The strategic fit is compelling due to the existing Starlink–T-Mobile partnership and complementary technologies (space + terrestrial). It could create a dominant integrated communications player. However, the regulatory, financial, and execution hurdles are enormous — this remains highly speculative with no indication SpaceX is actively pursuing it right now.
Elon Musk
SpaceX’s newest Starmind will make earth data centers obsolete
Elon Musk confirmed Starmind as SpaceX’s AI satellite constellation name, targeting one million orbital compute nodes.
Elon Musk confirmed that Starmind will be the official name of SpaceX’s planned AI satellite constellation, following a trademark filing by xAI that surfaced earlier this week. Starmind is what’s being described to the FCC as a constellation of up to one million AI satellites
It’s worth noting that SpaceX’s Starlink communication satellite and Starmind are built on the same orbital infrastructure concept but serve entirely different purposes. Starlink is a connectivity network, with satellites receiving and relaying data between points on Earth, and functioning as a high-speed internet backbone in space. The satellites themselves do not process or think, and move information from one place to another, the same function a fiber cable performs underground.
SpaceX just forced Verizon, AT&T and T-Mobile to team up for the first time in history
Starmind, on the other hand, is something completely different, and tather than moving data, its satellites would compute data through artificial intelligence and directly in orbit using onboard processors powered by large solar arrays. Where a Starlink satellite is essentially a very fast pipe, a Starmind satellite is a server. The practical implication is that Starmind would allow AI models to run inference, process queries, and generate outputs from space, then beam results down to users anywhere on Earth within milliseconds, and without the data ever needing to travel to a terrestrial data center.
Starship will be able to carry 30 to 50 AI1 satellites per launch, delivering the equivalent of dozens of server racks per flight, with no land acquisition, no power grid approval, and no cooling infrastructure required on the ground.
SpaceX is pursuing this new technology as terrestrial data centers are running into hard limits such as lack of physical space, community opposition, and power and water consumption at a scale that is increasingly difficult to permit. Space has unlimited solar power, natural vacuum cooling, and no zoning boards. Musk said in a June 8 video presentation that he expects space to become the lowest-cost location to deploy AI compute within two to three years. Two AI1 prototypes are scheduled to launch in early 2027, with volume production targeted for the end of that year at a new facility called Gigasat.
The real world applications Starmind enables extend well beyond powering Grok. A constellation of orbiting AI processors could run inference workloads for any paying customer, anywhere on Earth, with latency measured in milliseconds rather than the seconds associated with ground-based cloud routing across continents. Starmind, if it scales as described, would make SpaceX the landlord of AI compute the same way Starlink made it the landlord of satellite internet.