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SpaceX CEO Elon Musk explains how Starships will return from orbit
In the near future, SpaceX wants to begin putting its first two full-scale Starship prototypes through a series of increasingly challenging test flights, eventually culminating in their first Super Heavy-supported orbital launch attempts.
SpaceX CEO Elon Musk took to Twitter over the last 48 or so hours to answer a number of questions about how exactly Starship is meant to make it through orbital reentries – by far the most strenuous period for the ship and without a doubt the single most challenging engineering problem SpaceX must tackle.
Discussed yesterday on Teslarati, SpaceX technicians began the process of attaching numerous Tesla Model S/X battery packs to a subcomponent that will eventually be installed inside Starship Mk1’s nose, offering a storage capacity of up to 400 kWh. The need for all that power (Crew Dragon relies on a few-kWh battery) is directly related to Starship Mk1’s methods of reentry and recovery, recently described in detail by Elon Musk.
As noted above, ~400 kWh of batteries are needed to power the electric motors that will actuate Starship’s massive control surfaces – two large aft wings and two forward canards/fins. According to Musk, Starship’s “stability is controlled by (very) rapid movement of rear & fwd fins during entry & landing”, meaning that the spacecraft will need to constantly tweak its control surfaces to remain in stable flight.
By far the biggest challenge SpaceX faces is ensuring that Starship can survive numerous orbital-velocity reentries with little to no wear and tear, a necessity for Starship to be cost-effective. In Low Earth Orbit (LEO), Starship will be traveling no less than 7.8 km/s (Mach 23, 17,500 mph) at the start of atmospheric reentry. In simple terms, the process of slowing from orbital velocity to landing on Earth involves turning the vast majority of that kinetic energy into heat. As Musk noted yesterday, this reality is just shy of unavoidable but there is some flexibility in terms of how quickly one wants to convert that energy into heat.
The fastest route to Earth would involve diving straight into the atmosphere, dramatically increasing peak heating on a spacecraft’s surface to the point that extremely exotic heat shields and thermal protections systems become an absolute necessity. SpaceX wants to find a middle ground with Starship in which the spacecraft uses its aerodynamic control surfaces and body to generate lift, slowly and carefully lowering itself into Earth’s atmosphere over a period of 15+ minutes. Musk notes that this dramatically lessens peak heating at the cost of increasing the overall amount of energy Starship has to dissipate, a bit like cooking something in the oven at 300 degrees for 30 minutes instead of 600 degrees for 10 minutes.
To an extent, Starship’s reentry profile is actually quite similar to NASA’s now-retired Space Shuttle, which took approximately 30 minutes to go from its reentry burn to touchdown. Per the above infographic, it looks like Starship will take approximately 20 minutes from orbit to touchdown, owing to a dramatically different approach once it reaches slower speeds. Originally described by Musk in September 2018 and again in recent weeks, Starship will essentially stall itself until its forward velocity is nearly zero, after which the giant spacecraft will fall belly-down towards the Earth, using its wings and fins to maneuver like a skydiver. The Space Shuttle landed on a runway like a (cement-encased) glider.
This unusual approach allows SpaceX to sidestep the need for huge wings, preventing Starship from wasting far more mass on aerodynamic surfaces it will rarely need. The Space Shuttle is famous for its massive, tile-covered delta wing and the leading-edge shielding that partially contributed to the Columbia disaster. However, it’s a little-known fact that the wing’s size and shape were almost entirely attributable to US Air Force demands for cross-range performance, meaning that the military wanted Shuttles to be able to travel 1000+ miles during reentry and flight. This dramatically constrained the Shuttle’s design and was never once used for its intended purpose.
SpaceX thankfully doesn’t have its own “US Air Force” stand-in making highly consequential demands (aside from Elon Musk ?). Instead, Starship will continue the SpaceX tradition of vertical landing, falling straight down – a bit like a skydiver (or a brick) – on its belly and flipping itself over with fins and thrusters for a propulsive vertical landing. In this way, Starship doesn’t have to be a brick forced to fly, like the Shuttle was – it just needs to be able to stably fall and quickly flip itself from a horizontal to vertical orientation.
Additionally, Starship is built almost entirely out of steel, whereas the Shuttle relied on an aluminum alloy and needed thermal protection over every square inch of its hull. Steel melts at nearly twice the temperature of the Shuttle’s alloy, meaning that Starship will (hopefully) be able to get away with nothing more than ceramic tiles on its windward half, saving mass, money, and time. Once Starship completes its first 20 km (12.5 mi) flight test(s), currently scheduled no earlier than mid-October, SpaceX will likely turn its focus on verifying Starship’s performance at hypersonic speeds, ultimately culminating in its first orbital-velocity reentries.
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Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
In early 2026, Tesla made a bold strategic pivot: it largely eliminated the option to purchase Full Self-Driving (FSD) software outright and shifted to a subscription-only model. The change, effective around mid-February, ended the one-time fee that had previously ranged as high as $15,000 and later dropped to $8,000. Instead, customers would access FSD (Supervised) for $99 per month in the U.S.
At the time, skeptics questioned whether locking customers into recurring payments would hurt adoption or alienate buyers who preferred ownership of the feature. Tesla bet that a lower barrier to entry, seamless integration at purchase, and the ability to cancel at any time would drive higher uptake.
The results from Q2 2026 speak for themselves: the decision has been a resounding success, delivering the largest quarterly growth in FSD subscriptions in the company’s history.
Tesla FSD subscriptions went up 56% in Q2 2026 to 1.48 million, an increase of 200,000 from Q1 2026.
Tesla added more FSD subscribers in Q2 than in any quarter in its history. pic.twitter.com/jTciTD2JqW
— Sawyer Merritt (@SawyerMerritt) July 22, 2026
According to Tesla’s Q2 shareholder update, active FSD subscriptions reached 1.48 million globally by the end of June 2026. That represents a 56 percent increase year-over-year and a 15.6 percent jump from the prior quarter. Tesla added roughly 200,000 new subscriptions in the period alone—the biggest single-quarter gain on record.
North America led the charge, with more than 55 percent of new vehicle deliveries including an FSD subscription at the time of purchase, a record attach rate for the region.
Tesla explicitly noted that “more customers [are] opting for subscription at the time of vehicle purchase,” crediting the model shift and prominent placement of the option in the ordering process. Subscriptions now contribute meaningfully to ancillary revenue, helping offset pressure elsewhere in the business.
The financial upside is substantial: At $99 per month, 1.48 million active subscriptions generate approximately $146.5 million in monthly recurring revenue. Over a full year, that equates to roughly $1.76 billion in annualized recurring revenue (ARR) from FSD subscriptions alone, assuming steady retention and no major pricing changes.
These figures represent pure, high-margin software revenue. Unlike vehicle sales, which carry production costs, warranty obligations, and supply-chain risks, FSD subscriptions flow largely to the bottom line once the software is developed and deployed over-the-air.
Tesla does not break out exact FSD subscription revenue in its filings (it sits within “Services and Other”), but the category grew 50 percent year-over-year in Q2, with executives highlighting subscriptions as a key driver.
The subscription model offers several structural advantages. It lowers the upfront cost of a new Tesla, potentially broadening the buyer pool and supporting vehicle demand, especially important amid fluctuating EV market conditions. It creates a predictable revenue stream that compounds as the fleet grows and more owners try (and stick with) the software.
Legacy one-time purchasers still exist, but new growth is overwhelmingly subscription-based following the February cutoff.
Early data also suggests improving retention and satisfaction, as well. Tesla has rolled out iterative FSD updates, including v14 features, and expanded availability to additional markets. Recent regulatory approvals in parts of Europe have further boosted interest, with owners in newly enabled countries eager to activate the software they had been waiting for.
FSD is still supervised; regulatory hurdles for true unsupervised autonomy persist in many regions, including the United States, and competition in advanced driver-assistance systems is intensifying. Yet the Q2 numbers validate Tesla’s bet: by removing the large upfront commitment and making FSD accessible via subscription, the company has accelerated adoption faster than many anticipated.
What began as a controversial switch-up has become a clear win. With nearly 1.5 million subscribers, record attach rates, and nearly $1.8 billion in potential annual recurring revenue already in view, Tesla’s FSD business is transitioning from a promised future to a tangible, fast-growing profit engine.
If the momentum continues, and especially if unsupervised capabilities unlock robotaxi opportunities, the subscription flywheel could become one of the most valuable assets in Tesla’s portfolio.
Elon Musk claps back at France’s Tesla Full Self-Driving approval delay
Google’s massive stake in SpaceX will shock you
