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SpaceX’s first Starship test flight imminent as rocket nosecone nears completion
Elon Musk has posted a new glimpse inside SpaceX’s South Texas Starship factory, revealing a nearly-completed rocket nosecone and indicating that the first upgraded Starship prototype’s flight debut is imminent.
SpaceX teams have been working around the clock for a little over a month to build the first full-scale, flightworthy Starship prototype, a process that only began after two ‘test tanks’ were fabricated, assembled, and pressurized until they burst on January 10th and 28th. Built with improved tools and methods, those test results – particularly from the second test tank – allowed SpaceX to empirically confirm that its current infrastructure and techniques are ready to manufacture orbital-class (and even human-rated) Starships right now.
And so work on the first truly flightworthy Starship prototype – known as SN01 (serial number 01) – thus began in earnest around mid-January, perhaps less than a month ago. Over the course of that month, SpaceX’s South Texas team has made spectacular progress. Starship SN01’s business half – comprised of a Raptor engine section, a liquid oxygen tank, a methane tank, and all associated tank domes and plumbing – is likely just a single big stacking and welding event away from being structurally complete. The upper section of the prototype – Starship’s curved nose and a few less-critical steel rings – has, however, been a bit more elusive.
Aside from a few partial glimpses earlier this month, that nose appeared for the first time two or so weeks on a local resident’s livestream earlier today – just a few hours before Musk offered an even better view inside the same tent it was spotted in. Situated in the second large sprung structure erected at SpaceX’s Boca Chica, Texas facilities, Musk’s video revealed that that tent – really only completed less than two weeks ago – is already full of Starship production hardware.
Without exaggerating, it’s safe to say that SpaceX has effectively gone from a handful of parts worth of Texas rocket production to a multi-vehicle, Starship production line concurrently manufacturing multiple vehicles in about eight weeks. While it would be theoretically easy for critics and a more general audience to see little more than some cheap stainless steel parts in a few hastily-constructed temporary tents, the reality is that SpaceX has already proven – at a minimum – that a steel Starship built with the exact same tools, facilities, and methods will likely be capable of spaceflight.
SpaceX’s January 2020 Starship test tank program proved as much, demonstrating that thin steel tanks built in tents can serve as orbital-class pressure vessels and survive at internal pressures greater as high as 8.5 bar (125 psi) while filled with cryogenic (extremely cold) liquid. Meanwhile, Tesla’s Fremont factory General Assembly line 4 (GA4) – having continuously churned out high-quality Model 3s for more than a year – has proven that sprung structures can make for fast, cheap, and more or less permanent factory solutions. Prospective SpaceX competitor Blue Origin even based its own brand new headquarters – opened in January 2020 – around an odd U-shaped sprung structure.
Nevertheless, SpaceX’s small test tank successes do not necessarily guarantee that the same kind of tests performed at full scale will be equally successful. The biggest proof of concept for SpaceX’s upgraded Starship production methods will involve manufacturing, fueling, static-firing, and – eventually – flying a complete Starship prototype built with the same methods as those test tanks.
The pressure vessel section of Starship SN01 – said pathfinder prototype – appears to be nearly complete, missing only its integrated engine section and oxygen tank dome before it could theoretically be ready to start cryogenic testing. Incredibly, information acquired and published by NASASpaceflight.com reporter Michael Baylor indicates that SpaceX wants to complete the prototype and transport Starship to its nearby launch site just ten days from now.
A step further, if things go as planned, SpaceX wants to install Starship SN01’s three Raptor engines and perform a live static fire test as soon as early March. In short, SpaceX’s Starship program is likely about to enter a new period of ambitious, rapid-fire testing. Stay tuned!
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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.
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.
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.
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.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
SpaceX AI investment gamble will make it a big winner, firm says
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
