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SpaceX’s first Starship booster a step closer as custom parts arrive
While SpaceX remains focused on Starship flight testing as the dust settles from SN8’s launch debut, the company continues to make slow but steady progress building the first Super Heavy booster prototype.
For the most part, SpaceX has learned from trial and error and developed a decent stainless steel rocket manufacturing process by building a dozen Starship prototypes over the last ~12 months, ranging from a lone nosecone tip to stout test tanks and Starship SN8, which launched to 12.5 km (~7.8 mi) earlier this month. Practically identical below the nose, Super Heavy directly benefits from that maturity and is more or less an extended Starship tank section with more engines and bigger legs.
In many ways, Super Heavy can be much simpler than Starship, as a suborbital booster has no need for header tanks, flaps, or a nosecone, and can be much stronger and heavier in all aspects. However, carrying three or more times as propellant as Starship (and carrying Starship itself), Super Heavy also needs to be stronger. All those changes – requiring new design work and new fabrication – take time. In a great sign that most of that work is complete, some of that custom hardware needed to strengthen and power Super Heavy has begun to arrive over the last several weeks.
SpaceX began stacking the first Super Heavy booster (BN1) on November 8th and appears to have more or less paused integration operations after joining eight rings. Production continued apace, however, and no less than five ring sections destined for Super Heavy appeared over the next several weeks. Why assembly slowed down is unclear but it’s reasonable to assume that SpaceX was trying to keep its focus primarily on Starship SN8’s launch debut and the preparation of several other full-scale ships, where early work on Super Heavy could ultimately be for naught if Starship flight tests uncover major design flaws.
Regardless of the reason, BN1 remains eight rings (14.5m/48ft) tall as of December 14th, representing one-fifth of Super Heavy’s full 70-meter (~230 ft) height.
On December 17th, one of the parts unique to Super Heavy unexpectedly appeared in SpaceX’s South Texas shipyard, labeled “B1 FWD PIPE DOME”. The dome was quickly sleeved with a stack of three steel rings with labels confirming that the assembly was Super Heavy BN1’s common tank dome – “common” because it’s shared by both booster propellant tanks. The new dome is unique to all previous Starship domes, featuring a smaller, more reinforced cutout – likely because Super Heavy doesn’t need header tanks.
It also appears to borrow from Starship’s forward dome design, using the same rougher steel normally used to cap off Starship methane tanks.
Unlike Starship common domes, which place a spherical methane header tank at the bottom, Super Heavy’s common dome will have a transfer tube welded directly to its nozzle-like opening. As it turns out, what could be the first Super Heavy methane transfer tube was delivered to Boca Chica late last month.
Unlike Starship transfer tubes, the new plumbing appeared to have a much wider diameter and was delivered in four sections, meshing well with the fact that Super Heavy tanks are roughly twice as tall as Starship’s. Able to support as many as 28 Raptors compared to Starship’s 6, Super Heavy transfer tubes will also need to pump more than five times as much methane per second at full thrust, which could explain the larger diameter.
Finally and perhaps most significantly, aerial photos from RGV Photography appeared to capture the first glimpse of what might be the hardest custom part required by Super Heavy – a thrust structure designed to support up to 28 Raptor engines. On December 10th, casually sitting between Starship Mk1’s remains (on the white concrete mount) and a tent, a flat ring with clear eightfold symmetry and a donut-like cutout large enough to fit a Starship thrust puck with room to spare was easily visible.
The hexagonal symmetry was the main giveaway, matching comments from CEO Elon Musk that Super Heavy’s thrust structure will feature a central ring of eight engines surrounded by an outer ring of up to 20 more Raptors. Assuming the first Super Heavy booster only flies with a few Raptor engines, that sole eight-engine ‘puck’ may be all that SpaceX needs to complete BN1.
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.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
