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SpaceX CEO Elon Musk kills mini BFR spaceship 12 days after announcing it
Less than two weeks after SpaceX CEO Elon Musk announced that Falcon 9’s “second stage [would] be upgraded…like a mini-BFR Ship” to prove lightweight heatshield and hypersonic control surface technologies, Musk took to Twitter to assert that the mini BFR spaceship project was dead, despite having stated that SpaceX was working to launch that test article into orbit as early as June 2019 just 12 days prior.
From a public perspective, the status of SpaceX’s next-gen rocket program (known as BFR) is effectively up in the air after several cryptic and seemingly contradictory statements from the company’s CEO and chief engineer.
No, we’re just going to accelerate BFR
— Elon Musk (@elonmusk) November 20, 2018
On Nov. 17, Musk tweeted that BFR – last updated in September 2018 alongside a statement that “this is [likely] the the final iteration [of BFR] in terms of broad architectural decisions” – had already been redesigned, going so far as to describe it as a “radical change”. What that radical design change might be is almost entirely unclear, although Musk has now twice stated that the purpose of these changes (and the whiplash-inducing cancellation of the mini-spaceship) is to “accelerate BFR”.
Radical change
— Elon Musk (@elonmusk) November 17, 2018
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As of now, SpaceX appears to have just completed a massive 9-meter diameter composite tank dome in the company’s temporary Port of Los Angeles tent, where a small but growing team of engineers and technicians are working to realize some version of the company’s next-generation rocket. That group has been working in near-silence for the better part of a year and has accepted delivery of and set up a wide range of custom-built tooling for carbon composite fabrication, and has even managed to get that tooling producing massive composite parts that are expected to eventually make up the structure of a spaceship prototype.
That prototype would eventually be shipped to South Texas, where SpaceX is constructing an entirely new facility from scratch to test the design, technology, and operation of the first full-scale BFR spaceship (BFS). As of a few months ago, the plan was to begin those hop tests before the end of 2019, but it’s no longer clear if SpaceX still intends to build a prototype spaceship to conduct hops and high-speed, high-altitude test flights.
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- BFR’s spaceship design, as of 2018. (SpaceX)
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- A BFS attempts a Mars landing in this official updated render. (SpaceX)
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- SpaceX’s huge Port of LA-based BFR tent, September 18th. (Pauline Acalin)
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- SpaceX’s first BFR spaceship prototype is coming together piece by piece. (SpaceX/Pauline Acalin)
Responsibly building giant rockets
One can only hope that the SpaceX employees tasked with bringing an already monumentally difficult idea from concept to reality are learning about these earth-shaking, “radical” decisions and changes through a medium other than Twitter. If those senior engineers and technicians are not extensively forewarned and given some say in these major system-wide decisions, it’s hard to exaggerate the amount of time, effort, and resources potentially being wasted (or at least misdirected).
There is undoubtedly something to be said for getting complex and difficult things as right as possible on the first serious try, especially when the sheer expense of the task at hand might mean that there is only one real chance to try. Still, it’s not particularly encouraging when a three-year-old hardware development program marked by several major design iterations is still experiencing anything close to “radical change”. After multiple years of concerted effort, BFR still appears to be in some sort of design limbo, where a constant and haphazard stream of on-paper changes act as a near-insurmountable hurdle standing in the way of a completed “good enough” blueprint that can begin to be made real.
Ultimately, even if some of the worst-case scenarios described above turn out to be true, there are still many, many reasons to remain positive about SpaceX’s BFR program on the whole. The next-gen rocket’s propulsion system of choice – an advanced engine known as Raptor – is quite mature at this point and may already be nearing initial flight readiness. Regardless of any future changes to BFR’s overall spaceship and booster structures, SpaceX technicians, engineers, and material scientists have likely gained invaluable experience in pursuit of an unprecedented 9-meter diameter rocket built almost entirely out of carbon fiber composites.
Further, it appears that quite a bit of progress has been made over the course of R&D programs related to methane-oxygen RCS thrusters (Falcon uses nitrogen), autogenous tank pressurization with gaseous methane and oxygen (Falcon uses helium), and perhaps even in-situ resource utilization (ISRU) that will be an absolute necessity to generate water, oxygen, and methane that will keep prospective Mars colonists alive and refuel spaceships for the voyage back to Earth.
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- SpaceX’s horizontal Raptor test stand is pictured here in April 2018. A prototype Raptor can be seen in the center bay. (Aero Photo/Teslarati)
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- A new rocket test-stand takes shape at SpaceX’s McGregor, TX facilities. As of just a few months ago, this site was effectively barren of activity. (April 17, Aero Photo)
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- SpaceX’s Boca Chica facilities now sport two massive propellant tanks, meant to support BFR spaceship hop tests. (NSF /u/ bocachicagal, SpaceX)
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SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
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For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
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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.
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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.
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SpaceX is coming for wireless giants with Starlink Mobile
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
