SpaceX has confirmed that the two large propellant tanks now present at its Boca Chica, Texas facilities will likely to be the last major ground tanks needed to enable the first test flights of the upper stage of its next-gen BFR rocket, known as the Big Falcon Spaceship (BFS).
Expected to begin as soon as late 2019, SpaceX executives have recently reiterated plans for a campaign of hop tests for the first full-scale spaceship prototype, in which the ship will follow in the footsteps of its Falcon 9-based Grasshopper and F9R predecessors.
https://twitter.com/krgv_mike/status/1055748966619537408
In a comment provided to a number of local outlets, SpaceX Communications Specialist Sean Pitt stated this about the recent arrival of a second large propellant storage tank at the company’s prospective South Texas test and launch facilities.
“The ongoing construction of our launch pad in South Texas is proceeding well. SpaceX has now received the final major ground system tank needed to support initial test flights of the Big Falcon Spaceship.” – Sean Pitt, SpaceX
While there may have been some slight uncertainty before, this official statement confirms beyond the shadow of a doubt that SpaceX is actively and rapidly preparing its South Texas property for a future of BFR-related tests, spaceship hops, and perhaps even launches.
Same dance, different hops
Unlike Falcon 9’s Grasshopper and F9R reusability development programs, SpaceX’s BFS hop test campaign is likely going to be much more aggressive in order to gather real flight-test data on new technologies ranging from unfamiliar aerodynamic control surfaces (wings & fins vs. grid fins), all-composite propellant tanks (Falcon uses aluminum-lithium), a 9m-diameter vehicle versus Falcon’s 3.7m, a massive tiled heat-shield likely to require new forms of thermal protection, and entirely new regimes of flight (falling like a skydiver rather than Falcon 9’s javelin-style attitude) – to name just a handful.
To fully prove out or at least demonstrate those new technologies, BFS hop testing is likely to be better described as “flight testing”, whereby the spaceship launches vertically but focused primarily on regimes where horizontal velocity is far more important than vertical velocity.
“But by ‘hopper test,’ I mean it’ll go up several miles and then come down. The ship will – the ship is capable of a single stage to orbit if you fully load the tanks. So we’ll do flights of increasing complexity. We really want to test the heat shield material. So I think we’ll fly out, turn around, accelerate back real hard and come in hot to test the heat shield because we want to have a highly reusable heat shield that’s capable of absorbing the heat from interplanetary entry velocities, which is really tricky.” – CEO Elon Musk, October 2017
Focusing on the important things (for fully-reusable rockets)
SpaceX does has significant familiarity with the general style of testing expected to be used to prove out its next-gen spaceship, a major department from anything the company has yet built or flown. Updated in September 2018 by CEO Elon Musk, the craft’s most recent design iteration is reportedly quite close to being finalized. That near-final design prominently features a trio of new aft fins (two able to actuate as control surfaces), two forward canards, and an updated layout of seven Raptor engines.
Critically, SpaceX has decided to commonize BFR’s main propulsion, choosing to skip the performance benefits of a vacuum-optimized Raptor variant for the simplicity and expediency of exclusively using sea level Raptors on both the booster and spaceship. This decision is ultimately strategic and well-placed: rather than concerning early-stage development with the inclusion of a second major branch of onboard propulsion, the company’s engineers and technicians can place their focus almost entirely on a one-size-fits-all version of BFR with plenty of room for upgrades down the road.
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- BFS seen standing vertically on the pads of its tripod fins. (SpaceX)
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- (SpaceX)
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- A better view. (SpaceX)
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- BFR’s booster and spaceship separate a few minutes after launch. (SpaceX)
With a rocket as large as BFR and a sea level engine already as efficient as Raptor, the performance downgrade wrought by the initial removal of Raptor Vacuum (RVac) is scarcely more than a theoretical diversion. The specific performance numbers remain to be seen but will likely be greater than 100 metric tons (~220,000 lbs) to low Earth orbit (LEO). Past a certain point, however, the actual performance to LEO and beyond is almost irrelevant, at least from a perspective of individual launches. The paradigm SpaceX is clearly already interrogating is one where the cost of individual launches is so low relative to today’s expendable launch pricing ($5,000-20,000/kg to LEO) that it will almost be anachronistic to design or work with a single-launch-limit in mind, a limit that is just shy of a natural law in the spaceflight industries of today.
Because SpaceX has already demonstrated expertise in vertically launching, landing, and generally controlling large rockets, the main challenges faced with BFR are more operational than purely technical. To be clear, the technical challenges are still immense, but successfully solving those challenges by no means guarantees that the aircraft-like operational efficiency needed for BFR to succeed can or will be fully realized.
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- A gif of Raptor throttling over the course of a 90+ second static-fire test in McGregor, Texas. (SpaceX)
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- SpaceX’s subscale Raptor engine has completed more than 1200 seconds of testing in less than two years. (SpaceX)
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- A closeup of BFS’ nose section, featuring impressively varied tile-sizes, joining methods, and extremely precise curves on the interface between canard wings and the hull. (SpaceX)
In 2016, Musk pegged SpaceX’s cost goals for a BFR-style fully-reusable rocket at less than $1M per launch for booster and spaceship maintenance alone, or $3.3M per launch with amortization (paying for the debt/investment incurred to fund BFR’s development) and propellant estimates included. To realize those ambitious costs, SpaceX will effectively have to beat the expendable but similarly-sized Saturn V’s per-launch costs (~$700M) by a factor of 100 to 200 – more than two orders of magnitude – and SpaceX’s own Falcon 9 and Heavy launch costs (~$55M to $130M) by 20-50X.
To even approach those targets, SpaceX will need to learn how to launch Falcon and BFR near-autonomously with near-total and refurbishment-free reusability, while also developing and demonstrating orbital refueling capabilities that do not currently exist and rapidly maturing large-scale composite tankage and structures. None of those things require Raptor Vacuum.
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Elon Musk
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Tesla, SpaceX, and xAI unveiled TERAFAB, a $25B chip factory targeting one terawatt of AI compute annually.
Elon Musk took the stage over the weekend at the defunct Seaholm Power Plant in Austin, Texas, to officially unveil TERAFAB, a $20-25 billion joint venture between Tesla, SpaceX, and xAI that he described as “the most epic chip building exercise in history by far.” The announcement marks the most ambitious infrastructure bet Musk has made since Gigafactory 1 in Sparks, Nevada, and it fuses three of his companies into a single, vertically integrated AI hardware machine for the first time.
TERAFAB is designed to consolidate every stage of semiconductor production under one roof, including chip design, lithography, fabrication, memory production, advanced packaging, and testing. At full capacity, the facility would scale to roughly 70% of the global output from the current world’s largest semiconductor foundry from Taiwan Semiconductor Manufacturing Company (TSMC).
Elon Musk’s stated goal is one terawatt of computing power annually, split between Tesla’s AI5 inference chips for vehicles and Optimus robots, and D3 chips built specifically for SpaceXAI’s orbital satellite constellation.
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
The logic behind the merger of these three entities is rooted in a supply chain crisis Musk has been signaling for over a year. At Tesla’s Q4 2025 earnings call, he warned investors that external chip capacity from TSMC, Samsung, and Micron would hit a ceiling within three to four years. “We’re very grateful to our existing supply chain, to Samsung, TSMC, Micron and others,” Musk acknowledged at the Terafab event, “but there’s a maximum rate at which they’re comfortable expanding.” Building in-house was, in his framing, not a strategic option, but a necessity.
The space angle is where the announcement becomes genuinely unprecedented. Musk said 80% of Terafab’s compute output would be directed toward space-based orbital AI satellites, arguing that solar irradiance in space is roughly 5x greater than at Earth’s surface, and that heat rejection in vacuum makes thermal scaling viable. This directly feeds the SpaceXAI vision, which is betting that within two to three years, running AI workloads in orbit will be cheaper than doing so on the ground. The satellites, powered by constant solar energy, would effectively turn low Earth orbit into the world’s largest data center.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Historically, this announcement threads together every major Musk initiative of the past two years: the xAI-SpaceX merger, Tesla’s $2.9 billion solar equipment talks with Chinese suppliers, the 100 GW domestic solar manufacturing push, the Optimus humanoid robot program, and Starship’s development. TERAFAB is the capstone that ties them into a single coherent architecture — chips made on Earth, launched by SpaceX, powered by Tesla solar, run by xAI, and ultimately extended to the Moon.
“I want us to live long enough to see the mass driver on the moon, because that’s going to be incredibly epic,”Musk said during the presentation.
Announcing TERAFAB: the next step towards becoming a galactic civilization https://t.co/IDKey07mJa
— Tesla (@Tesla) March 22, 2026
News
Rolls-Royce makes shocking move on its EV future
When Rolls-Royce unveiled its first all-electric model, the Spectre, in 2022, former CEO Torsten Müller-Ötvös declared the brand would cease production of internal combustion engine vehicles by the end of the decade.
Rolls-Royce made a shocking move on its EV future after planning to go all-electric by the end of the decade. Now, the company is tempering its expectations for electric vehicles, and its CEO is aiming to lean on its legacy of high-powered combustion engines to lead it into the future.
In a significant reversal, Rolls-Royce Motor Cars has scrapped its ambitious plan to become an all-electric manufacturer by 2030. The luxury British marque announced the decision amid sustained customer demand for traditional combustion engines and shifting regulatory landscapes.
When Rolls-Royce unveiled its first all-electric model, the Spectre, in 2022, former CEO Torsten Müller-Ötvös declared the brand would cease production of internal combustion engine vehicles by the end of the decade.
The move aligned with the industry’s broader push toward electrification, promising silent, effortless power befitting the “Rolls-Royce of cars.”
However, new CEO Chris Brownridge, who assumed the role in late 2023, has reversed course. “We can respond to our client demand … we build what is ordered,” Brownridge stated.
The company will continue offering its iconic V12 engines, which remain a cornerstone of its heritage and appeal to discerning buyers who appreciate the distinctive sound and character. He noted the original pledge was “right at the time,” but “the legislation has changed.”
While not abandoning electric vehicles entirely, the Spectre remains in production, with an electric Cullinan option forthcoming; the decision marks the end of a strict all-EV timeline. Relaxed emissions regulations and slowing EV demand, evidenced by a 47 percent drop in Spectre sales to 1,002 units in 2025, forced the reconsideration.
It was a sign that perhaps Rolls-Royce owners were not inclined to believe that the company’s all-EV future was the right move.
Rolls-Royce joins a growing roster of automakers reevaluating aggressive electrification targets.
Fellow luxury brand Bentley has pushed its full electrification from 2030 to 2035, while continuing to offer hybrids and ICE models. Mercedes-Benz walked back its 2030 all-EV goal, now aiming for about 50% electrified sales while keeping combustion engines into the 2030s. Porsche has abandoned its 80% EV sales target by 2030, delaying models and extending hybrids.
Mainstream giants are following suit. Honda canceled its U.S. EV plans, including the 0-Series and Acura RSX, facing a $15.7 billion hit as it doubles down on hybrids. Ford and General Motors have incurred tens of billions in writedowns, canceling models and pivoting to hybrids amid an industry total exceeding $70 billion in charges.
This trend reflects a pragmatic shift driven by infrastructure gaps, consumer preferences, and policy changes. In the ultra-luxury segment, where emotional connection reigns, automakers are prioritizing flexibility over rigid deadlines, ensuring brands like Rolls-Royce evolve without alienating their core clientele.
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Elon Musk teases expectations for Tesla’s AI6 self-driving chip
This optimistic timeline for tape-out—the stage where chip design is finalized before manufacturing—signals Tesla’s push to rapidly advance its silicon capabilities.
Tesla CEO Elon Musk is outlining expectations for the AI6 self-driving chip, which is still two generations away. Despite this, it is already in the plans of the company and its serial entrepreneur CEO, who has high expectations for it.
Musk provided fresh details on the company’s aggressive AI hardware roadmap, spotlighting the upcoming AI6 chip designed to supercharge Tesla’s self-driving tech, humanoid robots, and data center operations.
In a post on X dated March 19, Musk stated, “With some luck and acceleration using AI, we might be able to tape out AI6 in December.”
With some luck and acceleration using AI, we might be able to tape out AI6 in December
— Elon Musk (@elonmusk) March 19, 2026
This optimistic timeline for tape-out—the stage where chip design is finalized before manufacturing—signals Tesla’s push to rapidly advance its silicon capabilities.
The announcement builds on progress with the predecessor AI5. Earlier in January, Musk announced that the AI5 design was “in good shape” and “almost done,” describing it as an “existential” project for the company that demanded his personal attention on weekends.
He characterized AI5 as roughly equivalent to Nvidia’s Hopper class performance in a single system-on-chip (SoC) and Blackwell-level as a dual configuration, but at significantly lower cost and power usage.
Elon Musk is setting high expectations for Tesla AI5 and AI6 chips
Musk highlighted that AI5 “will punch far above its weight” thanks to Tesla’s co-designed AI software and hardware stack, making maximal use of every circuit. While capable of data center training tasks, it is primarily optimized for edge computing in Optimus robots and Robotaxi vehicles.
For AI6, Musk envisions substantial gains. “In the same half reticle and same process node, we think a single AI6 chip has the potential to match a dual SoC AI5,” he explained.
The company is targeting ambitious nine-month development cycles for future chips, allowing rapid iteration to AI7, AI8, and beyond. AI5/AI6 engineering remains Musk’s top time allocation at Tesla, with the CEO calling AI5 “good” and AI6 “great.”
Samsung is expected to manufacture the AI6 chips, following deals worth billions, while AI5 will leverage TSMC and Samsung production. These chips will form the backbone of Tesla’s Full Self-Driving system, enabling safer and more capable autonomy, alongside powering dexterous movements in Optimus bots and efficient inference in expanding data centers.
Tesla to discuss expansion of Samsung AI6 production plans: report
Musk has also restarted work on the Dojo 3 supercomputer project now that AI5 is progressing. Long-term plans include in-house manufacturing via the Terafab facility.
By accelerating chip development with AI tools, Tesla aims to reduce dependence on third-party GPUs and deliver high-performance, energy-efficient solutions tailored to its ecosystem. Success with AI6 could mark a major milestone in Tesla’s journey toward full autonomy and robotics leadership, though timelines remain subject to manufacturing realities.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Rolls-Royce makes shocking move on its EV future
