News
SpaceX to end Crew Dragon capsule production as Starship’s shadow grows
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.
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.
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.
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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.
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.
Tesla flexed the new features of the Model Y L with a dedicated media event at the company’s Diner on Santa Monica Boulevard in Los Angeles.
The Model Y L is the extended-wheelbase version of the all-electric crossover, which has been voted the best-selling car in the world on three occasions. The vehicle is already rolling off production lines at Gigafactory Texas, and first deliveries are slated to take place later this year.
Tesla brings Model Y L ‘Launch Series’ to the U.S. at $61,990
Teslarati was invited to the event, but due to some scheduling conflicts, we could not make it to Los Angeles. Instead, we will have our hands on a media unit sometime in August, so we’ll be able to spend some more extended time with the Model Y L.
However, plenty of those who made it to LA shared some cool features that set the Model Y L apart from the Model Y.
Multi-Row Climate Control
Tesla fitted the Model Y L with full climate control on all three rows on the front screen. It can be adjusted by selecting which row you’d like to modify on the right-hand side of the touch screen:
The Model Y L has a little row of icons on the right side of the climate screen so the front passenger can more quickly jump to whatever row they want to control. pic.twitter.com/uJS44mgCvk
— Sawyer Merritt (@SawyerMerritt) July 30, 2026
Better Rear Window Visibility
One of the strangest things about the Model Y, especially the Juniper iteration, is the rear window has extremely limited visibility when looking into the rearview mirror.
Tesla has improved upon this with the Model Y L:
This is a drastic difference. https://t.co/wTdhitD5aA pic.twitter.com/z6hFs0Jkss
— TESLARATI (@Teslarati) July 30, 2026
PowerShare will be included
Model Y L will come with PowerShare in North America, with an 11.5kW output to your home. Tesla said it would require Powerwall 3 for operation.
Wireless Charging Pad
There has been some speculation that Tesla would upgrade the wireless charging pads in the United States, but this is not the case.
Tesla owner fixes common feature complaint with crafty DIY retrofit
Tesla confirmed that it does not come with the cooled pads as the Y L in China does. This is because North America has not adopted Qi charging yet.
Thermal Management Improvements
These improvements in the Model Y L were seen with thermal management:
- Up to 15% faster cabin cooling
- +23% thermal efficiency gained in hot weather, 7 miles of real-world range gained
- 8x more solar energy reflection off of glass roof
- 30% reduction in solar energy entering the cabin
Some of the thermal management improvements in the new Model Y L Premium:
• Up to 15% faster cabin cooling
• Up to 15 min faster cabin cooling in sunny conditions
• +23% thermal efficiency gained in hot weather +7 miles of real-world range gained
• +10 miles recovered after… pic.twitter.com/jZirFWFdtO— Sawyer Merritt (@SawyerMerritt) July 31, 2026
Demand
Tesla said the Model Y L is almost sold out in the U.S. It comes with
- 1 year of FSD Supervised
- 1 year of Supercharging
- 1 year of Premium Connectivity
- Free exterior paint color, interior, and wheel option at no additional cost
Tesla CEO Elon Musk took to his social media platform X on Thursday night to deny a ridiculous rumor regarding the sale of the company’s Chinese vehicle production plant, Gigafactory Shanghai.
On Thursday, the Wall Street Journal, citing sources familiar with the matter, claimed in a scathing new report that Tesla was exploring a potential sale of the entire China business in an effort to help bolster a potential merger between SpaceX and Tesla.
Musk immediately denied the rumor not once but twice, initially calling it “fake news,” and then calling it “absurdly fake news” in a separate post just a few moments later:
This is fake news
— Elon Musk (@elonmusk) July 31, 2026
The original poster of the Wall Street Journal article that Musk saw deleted the initial post sharing the headline and the rumored sale of Tesla’s China business.
This has never even come up in a discussion ever.
Absurdly fake news.
People should assume news is fake until proven otherwise.
— Elon Musk (@elonmusk) July 31, 2026
The report seemed absolutely and unequivocally false to begin with; Tesla’s business in China is among the most important pieces of the company’s business. Not only does the factory supply vehicles for the domestic market, but also for various other markets in Asia and Europe.
China is also one of the largest automotive markets in the world, and Tesla has performed well there despite the robust competition.
The speculation regarding a Tesla and SpaceX merger has started to gain steam this year as the space exploration company went public just a month ago. There has been speculation that Musk will bridge all of his companies under one “umbrella company,” and analysts believe this could happen before the end of the decade.
The Tesla and SpaceX merger everyone is talking about is quietly building
This is the latest iteration of Musk’s very evident war on mainstream media. Reports regarding any of Musk’s companies are quick to get the dreaded “false” or “fake news” response from the CEO when they are unfounded.
Elon Musk
Tesla AI boss reveals how big Optimus is going to get
Tesla’s Optimus chief corrected himself on X, confirming a staggering 10 million robot production target.
![Tesla Optimus Gen 3 [Credit: Tesla]](https://www.teslarati.com/wp-content/uploads/2026/03/tesla-optimus-gen3-diner.jpg)
Tesla’s Optimus program has a new number attached to it, after Ashok Elluswamy, the executive who has run the humanoid robot program since June 2025, posted a three word correction on X Thursday, “Correction, 10 million robots.”
The line clarifies the long term annual capacity Tesla is building toward its planned second Optimus production line at Gigafactory Texas, a figure Musk has cited repeatedly since last year’s shareholder meeting.
The scale is worth noting, because ten million robots a year would mean Tesla building more units annually than most countries sell in new cars. Tesla has framed this as a second line, not the first. The buildout is happening in two phases: a roughly one million unit per year line inside Tesla’s Fremont factory, installed on the floor space vacated when Model S and Model X production ended earlier this year, and a much larger dedicated facility under construction at Giga Texas that broke ground on its first steel structure in May. That Texas facility is the one Elluswamy’s correction refers to, and is expected to reach volume production sometime in 2027.
Correction, 10 million robots https://t.co/0z4nyQNTzp
— Ashok Elluswamy (@aelluswamy) July 30, 2026
Tesla Optimus project fires up as Musk sees production line progress
Elluswamy took over Optimus from Milan Kovac last summer and has spent the months since talking up the program’s trajectory. Elon Musk has also floated the ten million figure at Tesla’s 2025 shareholder meeting.
Ending Model S and Model X production to make room for the first Optimus line was one of the more consequential manufacturing decisions in the company’s recent history, retiring two flagship vehicles in favor of a robot that has yet to enter mass production. Musk has previously estimated per unit production costs at $20,000 to $25,000 once Tesla reaches a million units a year, though he hasn’t said what that cost looks like at ten times the volume.
Tesla Model Y L’s new features flexed at unveiling event at Diner
Tesla CEO Elon Musk denies ridiculous Gigafactory Shanghai rumor
![Tesla Optimus Gen 3 [Credit: Tesla]](https://www.teslarati.com/wp-content/uploads/2026/03/tesla-optimus-gen3-diner-80x80.jpg)
