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SpaceX just blew up a Starship tank on purpose and Elon Musk says the results are in
Before dawn on January 10th, SpaceX technicians and engineers intentionally blew up a miniature Starship tank in order to test recently-upgraded manufacturing and assembly methods, likely to be used to build the first Starships bound for flight tests and orbit.
SpaceX CEO Elon Musk quickly weighed in on Twitter later the same day, revealing some crucial details about the Starship tank test and effectively confirming that it was a success. While somewhat unintuitive, this is the second time SpaceX has intentionally destroyed largely completed Starship hardware in order to determine the limits of the company’s current methods of production and assembly.
Most notably, on November 20th, SpaceX is believed to have intentionally overpressurized the Starship Mk1 prototype in a very similar – albeit larger-scale – test, destroying the vehicle and sending its top tank dome flying hundreds of feet into the air. It’s generally believed that SpaceX (or perhaps even just Musk) decided that Starship Mk1 was not fit to fly, leading the company to switch gears and deem the prototype a “manufacturing pathfinder” rather than the first Starship to fly – which Musk had explicitly stated just a few months prior.
Bopper (Baby StarPopper) this morning after the overpressure event at SpaceX Boca Chica. ??@NASASpaceflight https://t.co/nCG7E9XtKM pic.twitter.com/PRTDQvvlRh— Mary (@BocaChicaGal) January 10, 2020
Dome to barrel weld made it to 7.1 bar, which is pretty good as ~6 bar is needed for orbital flight. With more precise parts & better welding conditions, we should reach ~8.5 bar, which is the 1.4 factor of safety needed for crewed flight.— Buff Mage (@elonmusk) January 10, 2020
Instead, Starship Mk1 suffered irreparable damage during its pressurization test and was rapidly scrapped in the weeks following, although several segments were thankfully salvaged – perhaps for use on future prototypes. Along those lines, it can arguably be said that the results from the mini Starship tank’s Jan. 10 pop test have paved the way for SpaceX to build the first truly flightworthy Starship prototypes – potentially all the way up to the first spaceworthy vehicles.
Hours after the test, Musk revealed that the Starship test tank failed almost exactly where and how SpaceX expected it would, bursting when the weld joining the upper dome and tank wall failed. Critically, the tank reached a maximum sustained pressure of 7.1 bar (103 psi), some 18% over the operating pressure (6 bar/87 psi) Musk says Starship prototypes will need to be declared fully capable of orbital test flights. In other words, given the tank’s size, it survived an incredible ~20,000 metric tons (45 million lbf) of force spread out over its surface area, equivalent to about 20% the weight of an entire US Navy aircraft carrier.
Musk also revealed that SpaceX will require Starships to survive a minimum of 140% of that operating pressure before the company will allow the spacecraft to launch humans.
Some have less than generously taken to smugly noting that several modern spaceflight and engineering standards require that launch vehicle tankage be rated to survive no less than 125% of their operating pressure, while this test tank would be rated for less than 118% under identical conditions. However, this ignores several significant points of interest. First and foremost, the Starship test tank intentionally destroyed on January 10th was assembled from almost nothing – going from first weld to a completed pressurization test – in less than three weeks (20 days).
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Second, all visible welding and assembly work was performed outside in the South Texas elements with only a minor degree of protection from the coastal winds and environment. Although some obvious tweaks were made to the specific methods used to assembly the prototype tank, it also appears that most of the welding was done by hand. For the most part, in other words, the methods used to build this improved test article were largely unchanged compared to Starship Mk1, which is believed to have failed around 3-5 bar (40-75 psi).
Additionally, it appears that almost all aspects of this test tank have smaller structural margins, meaning that the tank walls and domes are likely using steel stock that is substantially thinner than what was used on Starship Mk1. Nevertheless, thanks to the addition of continuous (single-weld) steel rings, a tweaked dome layout, and slightly refined welding, this test tank has performed anywhere from 20% to 200+% better than Starship Mk1 – again, all while coming together from scratch in a period of less than three weeks.
As Musk notes, with relatively minor improvements to welding conditions and the manufacturing precision of Starship rings and domes, SpaceX can likely ensure that Starships (and thus Super Heavy boosters) will be able to survive pressures greater than 8.5 bar (125 psi), thus guaranteeing a safety margin of at least 40%. Even a minor improvement of ~6% would give vehicles a safety margin of 125%, enough – in the eyes of engineering standards committees – to reasonably certify Starships for orbital test flights.
All things considered, it’s safe to assume that SpaceX is going to begin building and assembling Starship SN01 (formerly Mk3) hardware almost immediately. Given that this test tank took just 20 days to assemble, it’s safe to say that the upgraded prototype’s tank section could be completed in just a handful of weeks. Stay tuned for progress reports.
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Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
SpaceX and Nvidia team up on Musk’s orbital AI bet
