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SpaceX CEO Elon Musk says major Starship engine bug is fixed as Raptor testing continues
SpaceX CEO Elon Musk has revealed the latest official photo of the company’s Raptor engine in action and indicated that a major technical issue with vibration appears to have been solved, hopefully paving the way for Starhopper’s first untethered flights.
Partly due to Musk’s own involvement in the program, SpaceX’s propulsion development team have struggled to get any single Raptor engine to survive more than 50-100 seconds of cumulative test fires. According to information from sources familiar with the program, Musk has enforced an exceptionally hardware-rich development program for the first full-scale Raptor engines to such an extent that several have been destroyed so completely that they could barely be used to inform design optimization work. Although likely more strenuous and inefficient than it needed to be, the exceptionally hardware-rich test program appears to have begun to show fruit, with the sixth engine built (SN06) passing its first tests without exhibiting signs of a problem that has plagued most of the five Raptors that came before it.
Resonance: not even once
In his tweet, Musk cryptically noted that a “600 Hz Raptor vibration problem” appears to have been fixed as of SN06’s first few static fire tests since arriving in McGregor, Texas. More likely than not, the self-taught SpaceX executive is referring to the hell that is mechanical resonance in complex machines and structures. Shown below, the Tacoma Narrows Bridge’s 1940 collapse – quite possibly the single most famous civil engineering failure of all time – is an iconic example of the unintuitive power of resonance in complex systems.
When it was inaugurated, the first Tacoma Narrows Bridge was one of the longest suspension bridges ever built and implemented new techniques and technologies that had never been tried at such a large scale. As Grady (Practical Engineer) aptly notes, mechanical resonance – in this case, triggered by consistent winds running through the Puget Sound – simply wasn’t something that period engineers knew they had to worry about. When rapidly pushing the envelope of engineering and construction, the chances of discovering entirely novel failure modes also increases – it’s simply one of the costs of extreme innovation.
Luckily for SpaceX, the company doesn’t have to clash with the immense challenge of testing something as large, complex, and expensive as a suspension bridge. Raptor, Starship, and Super Heavy need not necessarily be perfect on SpaceX’s first try, whereas civil bridges must essentially be flawless on the first try, despite being one of a kind. This is why SpaceX has been chewing through an average of one Raptor engine per month since February 2019 – by testing engines to destruction and aggressively comparing engineering expectations with observed behavior and post-test hardware conditions, rapid progress can (theoretically) be made.
Instead of spending another year or more analyzing models and testing subscale engines and components, SpaceX dove into integrated testing of a sort of minimum-viable-product Raptor design, accepting that the path to a flightworthy, finalized design would likely be paved with one or several dozen destroyed engines. According to Musk, the biggest pressing design deficiency involved a mode of mechanical resonance that may or may not have been predicted over the course of the design process. Dealing with unprecedented conditions, it’s not particularly surprising that some sort of new resonance mode was discovered in Raptor.
For the time being, SpaceX continues to work around the clock to build its first two orbital Starship prototypes (one in Texas, one in Florida), while also outfitting Starhopper and completing any possible engine-less tests in anticipation of the first flightworthy Raptor’s arrival. If Musk’s early analysis proves correct and Raptor SN06 makes it through lengthier static fire tests unscathed over the next week or so, the engine could potentially be delivered to Boca Chica as early as mid-July.
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Investor's Corner
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
Tesla (NASDAQ: TSLA) beat Wall Street expectations of 406,000 vehicles delivered in Q2 by reporting 480,126 deliveries for the three months ending in June.
Tesla reported it delivered 467,762 Model 3 and Model Y units, while 12,364 Model S, Model X, and Cybertrucks switched hands during the quarter. The Model S and Model X were officially sunset this past quarter and will no longer be part of the company’s Production & Delivery reports moving forward.
🚨 BREAKING: Tesla delivered 480,126 vehicles in Q2, ANNIHILATING Wall Street expectations of 406,000. Production was reported at 451,758.
Deliveries:
Model 3/Y: 467,762
Other Models: 12,364Production:
Model 3/Y: 442,936
Other Models: 8,822 https://t.co/TTHwQAsKt8 pic.twitter.com/7qI4Zj6FE5— TESLARATI (@Teslarati) July 2, 2026
The quarter is a pleasant surprise and a good rebound from Q1, when Tesla slightly missed the Wall Street consensus of 365,645 cars by reporting 358,023 deliveries for the first three motnhs of the year.
Energy storage deployments also provided some strength in Tesla’s delivery report, hitting 13.5 GWh for Q2. This is a particular division of Tesla’s business that has been overwhelmingly robust over the past few years, truly being a strong point of the company’s overall model.
For the year, Tesla analysts still predict deliveries to trend in the 1.69 million unit region, a modest 3 to 5 percent increase from the 1.64 million cars the company delivered last year. Tesla will likely return to more sequential and noticeable year-over-year growth as the Cybercab project starts to ramp up considerably in the next few years.
Tesla has some other potential catalysts to spur vehicle deliveries, too. Not only is it expecting Cybercab to truly start making a change in the next few years, but other vehicles could be entering the company’s lineup.
Tesla sends production Cybercab with no steering wheel, pedals to on-road testing
The slightly longer Model Y L has been a highly speculated release candidate in the U.S. It has already done incredibly well in China, and U.S. buyers have been wanting slightly more interior space than the Model Y. Now that the Model X is gone, it is more needed than ever.
Q2 highlights a pretty stable automotive division within Tesla, and no true concerns arise from these figures, especially considering it managed to beat expectations convincingly.
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.
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
Tesla Optimus project fires up as Musk sees production line progress
