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SpaceX backup Starship reaches full height after nosecone installation
SpaceX has installed another Starship’s nosecone, all but completing the second full-size prototype a matter of days before the first fully-assembled Starship’s risky launch debut.
Over the last two months, SpaceX has effectively put Starship number 8 (SN8) through an almost nonstop series of tests, completing at least four separate cryogenic proof tests, four Raptor engine static fires, and much more. The company’s South Texas team have also dodged an array of technical bugs; installed, plumbed, and wired what amounts to ~40% of Starship (the nose section) while fully exposed to the coastal elements; and even narrowly avoided a potentially catastrophic failure.
In spite of the many hurdles thrown up and delays resultant, CEO Elon Musk announced earlier this week that Starship SN8 is scheduled to attempt its 15-kilometer (~50,000 ft) launch debut as early as Monday, November 30th. Musk, however, does not see success as the most probable outcome.
Why, then, push to launch Starship SN8 when, in Musk’s own words, the probability of success is as low as “33%”? As previously discussed many times in the history of Teslarati’s BFR and Starship coverage, SpaceX’s attitude towards technology development is (unfortunately) relatively unique in the aerospace industry. While once a backbone of major parts of NASA’s Apollo Program moonshot, modern aerospace companies simply do not take risks, instead choosing a systems engineering methodology and waterfall-style development approach, attempting to understand and design out every single problem to ensure success on the first try.
The result: extremely predictable, conservative solutions that take huge sums of money and time to field but yield excellent reliability and all but guarantee moderate success. SpaceX, on the other hand, borrows from early US and German rocket groups and, more recently, software companies to end up with a development approach that prioritizes efficiency, speed, and extensive testing, forever pushing the envelope and thus continually improving whatever is built.
In the early stages of any program, the results of that approach can look extremely unusual and rudimentary without context (i.e. Starhopper, above), but building and testing a minimum viable product or prototype is a very intentional foundation. Particularly at the start, those minimal prototypes are extremely cheap and almost singularly focused on narrowing a vast range of design options to something more palatable. As those prototypes rapidly teach their builders what the right and wrong questions and design decisions are, more focused and refined prototypes are simultaneously built and tested.
Done well, the agile approach is often quite similar to evolution, where prototype failures inform necessary design changes and killing off dead-end strategies, designs, and assumptions before they can be built upon. In many cases, compared to cautious waterfall-style development, it will even produce results that are both better, cheaper, and faster to realize. SpaceX’s Starship program is perhaps the most visible example in history, made all the more interesting and controversial by the fact that it’s still somewhere in between its early, chaotic development phase and a clear path to a viable product.
On the build side of things, SpaceX has created a truly incredible ad hoc factory from next to nothing, succeeding to the point that the company is now arguably testing and pushing the envelope too slowly. As of November 2020, no fewer than eight full-size Starships and the first Super Heavy booster prototype are visibly under construction. Most recently, Starship SN9 was stacked to its full height, kicking off nosecone installation while still at the build site (unlike SN8). SN10’s completed tank section is likely ready to begin flap installation within the next few days, while Starship SN11 is perhaps a week or two behind that. Additionally, large tank sections of Starships SN12, SN13, SN14, SN15, and (most likely) SN16 are already completed and have all been spotted in the last few weeks.
Some ~90% of the above work was likely started after Starship SN8 first left the factory and rolled to the launch pad on September 26th. In many regards, SN8 has been the first to reach multiple major milestones, largely explaining the relatively plodding pace of its test program compared to SN4, SN5, and SN6.
Ultimately, SN9’s imminent completion – effectively a superior, more refined copy of SN8 – means that Starship SN8’s utility to SpaceX is rapidly deteriorating. The company would almost assuredly never skip an opportunity to learn, meaning that there’s no plausible future in which SN8 testing doesn’t continue, but that doesn’t mean that SpaceX can’t turn its risk tolerance to 11. In essence, accept a 67% (or higher) chance of Starship SN8’s violent destruction but learn as much as possible in the process. As long as good data is gathered, SN8’s launch debut will be a success for Starship whether the rocket lands in one or several pieces.
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
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.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
