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SpaceX to end Crew Dragon capsule production as Starship’s shadow grows

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Reuters reports that SpaceX has begun to shut down Crew Dragon capsule production after assembling a fleet of four reusable spacecraft, highlighting the company’s ever-growing desire to pivot to Starship.

According to SpaceX president and chief operating officer (COO) Gwynne Shotwell, who spoke with Reuters reporter Joey Roulette, the company has already ended production of new Crew Dragon capsules after recently completing a fourth operational spacecraft. Nicknamed “Freedom” by its crew, Dragon capsule C212 (Dragon 2 capsule #12) is scheduled to debut as early as April 19th and will ultimately ferry SpaceX’s fourth crew of government astronauts to and from the International Space Station.

However, while ending production of Crew Dragon might sound like a dramatic and unexpected move after less than two years of operational astronaut launches and undeniably hints at the company’s desire for Starship to take over, it’s not quite as jarring as it seems.

Above all else, Shotwell did not explicitly mention Cargo Dragon 2 production. It’s possible that there was a miscommunication during the brief Q&A and that a generic statement about ending production of all Dragon capsules was projected onto just SpaceX’s Crew Dragon variants, but the Reuters article strongly implies that only Crew Dragon production has been ended.

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As of today, SpaceX only has two operational Cargo Dragon 2 capsules in its uncrewed fleet – both of which have already flown twice. Following a recent contract extension, SpaceX is scheduled to complete at least 11 more ISS cargo deliveries and recoveries by 2027 and while it’s possible that the company is confident enough to gamble that two Dragon 2 capsules can complete all 15 CRS2 resupply missions, a SpaceX engineer confirmed that at least one more Cargo Dragon is scheduled to debut in 2022. With three Dragons, that would at least give SpaceX the ability to confidently fulfill its CRS2 obligations even if one capsule is damaged or lost.

Meanwhile, Shotwell indicated that SpaceX would preserve the ability to restart Dragon production if the need arose – far easier said than done. At the same time, the company will still need to churn out at least half a dozen or so expendable Dragon ‘trunks’ per year and continue building a wide range of replacement parts. A substantial team will also be needed to refurbish and operate Crew and Cargo Dragons for as long as launches continue.

SpaceX’s Dragon capsules. (SpaceX/NASA)
In theory, Starship could one day fill the roles of Crew Dragon, Cargo Dragon, Falcon 9, and Falcon Heavy. (SpaceX)

But by and large, the move to end Crew Dragon capsule production says one thing above all else: that SpaceX is chomping at the bit to redirect large portions of its Falcon and Dragon workforce to Starship development. If SpaceX can make it work, Starship – a fully-reusable two-stage rocket – could end up costing roughly as much as Dragon and Falcon per launch but its launch costs could also plummet to a magnitude less – all while offering a magnitude more space, performance, and capabilities.

Crew Dragon is currently used to launch four astronauts at a time. A single crewed Starship could have a habitable volume greater than the entire International Space Station and carry 40 astronauts into orbit inside it in a single launch. Cargo Dragon typically delivers about three tons (~6600 lb) of cargo to the ISS. A Cargo Starship could deliver dozens of tons in one go – more cargo space than NASA would know what to do with after decades sent under the tyranny of razor-thin mass margins.

NASA is likely the single largest individual investor in Starship after contracting with SpaceX to build a version of Starship capable of returning astronauts to the Moon for about $3 billion, meaning that the space agency will be intimately aware of and involved in the vehicle’s development over the next 5-10 years. It would only be logical to extract as much value as possible out of that investment and simultaneously revolutionize the transportation of cargo and, one day, astronauts to Earth orbit and beyond.

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Unfortunately, there’s no real guarantee that NASA will actually do that, but SpaceX’s choice to end Dragon capsule production so early on makes it clear that the company is more than willing to prepare the groundwork for such a transition itself.

Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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What is Digital Optimus? The new Tesla and xAI project explained

At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.

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Credit: Grok

Tesla and xAI announced their groundbreaking joint project, Digital Optimus, also nicknamed “Macrohard” in a humorous jab at Microsoft, earlier this week.

This software-based AI agent is designed to automate complex office workflows by observing and replicating human interactions with computers. As the first major outcome of Tesla’s $2 billion investment in xAI, it represents a powerful fusion of hardware efficiency and advanced reasoning.

Tesla announces massive investment into xAI

At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.

Tesla’s specialized AI acts as “System 1”—the fast, instinctive executor—processing the past five seconds of real-time computer screen video along with keyboard and mouse actions to perform immediate tasks.

xAI’s Grok model serves as “System 2,” the strategic “master conductor” or navigator, providing high-level reasoning, world understanding, and directional oversight, much like an advanced turn-by-turn navigation system.

When combined, the two can create a powerful AI-based assistant that can complete everything from accounting work to HR tasks.

Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI

The system runs primarily on Tesla’s low-cost AI4 inference chip, minimizing expensive Nvidia resources from xAI for competitive, real-time performance.

Elon Musk described it as “the only real-time smart AI system” capable, in principle, of emulating the functions of entire companies, handling everything from accounting and HR to repetitive digital operations.

Timelines point to swift deployment. Announced just days ago, Musk expects Digital Optimus to be ready for user experience within about six months, targeting rollout around September 2026.

It will integrate into all AI4-equipped Tesla vehicles, enabling parked cars to handle office work during downtime. Millions of dedicated units are also planned for deployment at Supercharger stations, tapping into roughly 7 gigawatts of available power.

Digital Optimus directly supports Tesla’s broader autonomy strategy. It leverages the same end-to-end neural networks, computer vision, and real-time decision-making tech that power Full Self-Driving (FSD) software and the physical Optimus humanoid robot.

By repurposing idle vehicle compute and extending AI4 hardware beyond driving, the project scales Tesla’s autonomy ecosystem from roads to digital workspaces.

As a virtual counterpart to physical Optimus, it divides labor: software agents manage screen-based tasks while humanoid robots tackle physical ones, accelerating Tesla’s vision of general-purpose AI for productivity, Robotaxi fleets, and beyond.

In essence, Digital Optimus bridges Tesla’s vehicle and robotics autonomy with enterprise-scale AI, promising massive efficiency gains. No other company currently matches its real-time capabilities on such accessible hardware.

It really could be one of the most crucial developments Tesla and xAI begin to integrate, as it could revolutionize how people work and travel.

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Tesla adds awesome new driving feature to Model Y

Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.

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Credit: Tesla

Tesla is adding an awesome new driving feature to Model Y vehicles, effective on Juniper-updated models considered model year 2026 or newer.

Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.

Tesla writes in the release notes for the feature:

“Your Tesla now provides a smoother feel as you come to a complete stop during routine braking.”

Interestingly, we’re not too sure what catalyzed Tesla to try to improve braking smoothness, because it hasn’t seemed overly abrupt or rough from my perspective. Although the brake pedal in my Model Y is rarely used due to Regenerative Braking, it seems Tesla wanted to try to make the ride comfort even smoother for owners.

There is always room for improvement, though, and it seems that there is a way to make braking smoother for passengers while the vehicle is coming to a stop.

This is far from the first time Tesla has attempted to improve its ride comfort through Over-the-Air updates, as it has rolled out updates to improve regenerative braking performance, handling while using Full Self-Driving, improvements to Steer-by-Wire to Cybertruck, and even recent releases that have combatted Active Road Noise.

Tesla set to activate long-awaited Cybertruck feature

Tesla holds a unique ability to change the functionality of its vehicles through software updates, which have come in handy for many things, including remedying certain recalls and shipping new features to the Full Self-Driving suite.

Tesla seems to have the most seamless OTA processes, as many automakers have the ability to ship improvements through a simple software update.

We’re really excited to test the update, so when we get an opportunity to try out Comfort Braking when it makes it to our Model Y.

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Tesla finally brings a Robotaxi update that Android users will love

The breakdown of the software version shows that Tesla is actively developing an Android-compatible version of the Robotaxi app, and the company is developing Live Activities for Android.

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Credit: Grok

Tesla is finally bringing an update of its Robotaxi platform that Android users will love — mostly because it seems like they will finally be able to use the ride-hailing platform that the company has had active since last June.

Based on a decompile of software version 26.2.0 of the Robotaxi app, Tesla looks to be ready to roll out access to Android users.

According to the breakdown, performed by Tesla App Updates, the company is preparing to roll out an Android version of the app as it is developing several features for that operating system.

The breakdown of the software version shows that Tesla is actively developing an Android-compatible version of the Robotaxi app, and the company is developing Live Activities for Android:

“Strings like notification_channel_robotaxid_trip_name and android_native_alicorn_eta_text show exactly how Tesla plans to replicate the iOS Live Activities experience. Instead of standard push alerts, Android users are getting a persistent, dynamically updating notification channel.”

This is a big step forward for several reasons. From a face-value perspective, Tesla is finally ready to offer Robotaxi to Android users.

The company has routinely prioritized Apple releases because there is a higher concentration of iPhone users in its ownership base. Additionally, the development process for Apple is simply less laborious.

Tesla is working to increase Android capabilities in its vehicles

Secondly, the Robotaxi rollout has been a typical example of “slowly then all at once.”

Tesla initially released Robotaxi access to a handful of media members and influencers. Eventually, it was expanded to more users, so that anyone using an iOS device could download the app and hail a semi-autonomous ride in Austin or the Bay Area.

Opening up the user base to Android users may show that Tesla is preparing to allow even more users to utilize its Robotaxi platform, and although it seems to be a few months away from only offering fully autonomous rides to anyone with app access, the expansion of the user base to an entirely different user base definitely seems like its a step in the right direction.

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