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SpaceX CEO Elon Musk says first orbital Starship prototype will be done by June
SpaceX CEO Elon Musk says that the company’s first Starship prototype – a low-fidelity hop test vehicle – has finished assembly in South Texas, paving the way towards a series of experimental vertical take-off or landing (VTOL) hop tests that could begin as early as February or March 2019.
One step beyond the prototype currently rising out of the coastal Texas wetlands, Musk also indicated that the first orbital Starship prototype – essentially the spacecraft’s first full-fidelity test article – could be completed as early as June 2019, a truly extraordinary pace of development for a program as complex and cutting-edge as BFR.
Starship test flight rocket just finished assembly at the @SpaceX Texas launch site. This is an actual picture, not a rendering. pic.twitter.com/k1HkueoXaz
— Elon Musk (@elonmusk) January 11, 2019
Starhopper rising
Barely six weeks after work began on the massive Starship prototype, SpaceX’s Starhopper appears to have grown to its full ~40m (~130 ft) height in South Texas. Following a preliminary fit test on Tuesday, January 8th, workers made a second attempt on Wednesday and completed the final attachment of Starhopper’s upper and lower halves. Intriguingly, no time was wasted spot-welding the halves together after their successful docking, and an additional sheet of stainless steel has been welded over the seam in the hours since then.
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- It remains to be seen if BFR can be made as reusable and reliable as it will need to be to sustainably support interplanetary humans. (SpaceX)
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- Eventually, SpaceX may graduate into high-speed, high-altitude flight tests of the prototype spaceship to fully test the design of its its control surfaces and “ultra-lightweight heat shield”. (SpaceX)
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- BFR’s booster, now known as Super Heavy. (SpaceX)
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- BFR (2018) breaks through a cloud layer shortly after launch. (SpaceX)
However, what looks like 9m-diameter (~30 ft) steel tank domes are being assembled and welded together at the same SpaceX facility, despite the fact that no domes have been observed being installed inside Starhopper. Musk did seem to indicate that even Starhopper – requiring far less propellant than an orbital Starship – will still feature full 9m (~30 foot) diameter tanks. This could imply that the newly integrated Starhopper has yet to have propellant tank domes installed inside and will need to be taken apart again to allow for that critical final step. If that is not the case, the only possible explanation is that Starhopper’s propellant tanks will actually be less than 9m in diameter and will be lifted up through the vehicle’s aft for installation.
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One last increasingly improbable possibility is that a significant portion of the hopper’s upper half will be or already is a pressure vessel capable of holding cryogenic propellant, although the process of actually watching the less than surgical fabrication does not inspire a great deal of confidence in any potential pressure vessel aspirations. In the meantime, we have been given the first look at what the outside of Starhopper will look like once complete. According to SpaceX CEO Elon Musk, hop tests of the imposing vehicle could begin as few as 4-8 weeks from now.
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- Starhopper is assembled for the second time, January 9th. (NSF – bocachicagal)
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- And voila! (NSF – bocachicagal)
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- Meanwhile, giant 9m-diameter tank domes are being assembled and welded together a few hundred feet away from Starhopper. (NSF – bocachicagal)
To orbit, and beyond!
Aside from offering the above photo and comparing Starhopper’s prospects to those of Falcon 9’s Grasshopper and F9R hop test articles (i.e. very suborbital and very short-lived), Musk also stated that the first orbital Starship prototype could be completed as early as June 2019, as few as three months after Starhopper’s first hop test. This paints at least a rough picture of the planning going on for BFR’s flight test regime, beginning with a suborbital hop test prototype, moving to a full-fidelity Starship capable of high-speed intra-atmospheric heat shield and aero surface testing, and finally full-up orbital testing with the completion of the first BFR booster (now known as Super Heavy).
Should be done with first orbital prototype around June
— Elon Musk (@elonmusk) January 11, 2019
Both, but demo Starship is being built now, whereas Super Heavy hardware will start getting built in spring
— Elon Musk (@elonmusk) December 9, 2018
According to Musk, the first Super Heavy booster will begin production and assembly as early as spring 2019, while the CEO stated that he believed the odds of BFR (Starship/Super Heavy) reaching orbit by 2020 were 60% and “growing rapidly” thanks to a recent move from carbon composite tankage to stainless steel. If SpaceX and Musk keep putting their money where their mouths are and rapidly building test articles and prototypes, that orbital debut might actually be less insane than it sounds. We’ll find out soon enough.
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In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
