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SpaceX’s orbital Starship gains a nose as East Coast prototype makes progress
On May 20th, SpaceX technicians successfully stacked a nosecone on top of the company’s Boca Chica orbital Starship prototype. Simultaneously, a separate team of technicians and engineers have been hard at work building a second similar-but-different Starship prototype near Cape Canaveral, Florida.
Officially confirmed last week by Elon Musk, the SpaceX CEO revealed that the company was not only building two orbital Starship prototypes simultaneously – not news in itself – but that those prototypes were being built as a sort of internal competition between different teams and ideas. The competition is not cutthroat – knowledge is shared between Texas and Florida – but the strategy is fairly similar. In lieu of actual commercial competitors, SpaceX is attempting to compete with itself to more rapidly and effectively develop a brand new launch vehicle – the stainless steel Starship/Super Heavy.
A Starship rises in the East
In just the last week, both SpaceX groups have made major progress. On the East Coast, the general public saw the first photo of SpaceX’s Florida Starship build precisely seven days ago. It appears that SpaceX has more or less taken over a Cocoa, Florida facility known to be the prior home of Coastal Steel, a repeat NASA contractor known for steelwork.
It’s unclear if SpaceX has fully acquired Coastal Steel or is simply partnering with the small company in the early stages of its Florida Starship buildup. Regardless, even from perspectives quite a bit more distant than those available in Texas, it’s clear that the metal workmanship is at least on par with Boca Chica, if not giving them a run for their money.
Admittedly, the playing field is not exactly level. SpaceX’s South Texas team has been working just a few thousand feet away from the unobstructed Gulf of Mexico in conditions that would make for an excellent traditional-aerospace horror show. Aside from a lone tent, all welding, assembly, integration, and testing has been done while fully exposed to the elements. SpaceX’s Florida team appears to have the luxury of an established warehouse – previously used for steelwork – to use as a covered and partially insulated work and staging area. The Florida team effectively had everything they needed (give or take) on hand from the moment work began, while Texas had to quite literally build all of its facilities from nothing.
Be it the facility luxuries or Cape Canaveral’s far larger pool of local aerospace talent, it’s clear that SpaceX’s Florida team will be a competitive force to be reckoned with despite Texas’ apparent head start. In the seven days since the first photos of the Florida Starship were published, SpaceX technicians have almost doubled the height of the largest welded section, raising it from ~5.5m to ~9m (18-30 ft).
Meanwhile, those working inside the staging warehouse continue to crank out 2x9m subsections, already making way for what appears to be the first tapered nose section of the Florida Starship. At this rate, Florida could very well catch up to SpaceX’s Texas Starship just a month or two from now. It’s worth noting that the Florida team does not appear to be involved in any Starhopper activities. SpaceX Boca Chica, on the other hand, has spent a major portion of the last several months building out Starhopper and preparing the odd prototype for untethered hop tests.
The (slightly) Old(er) Guard
Despite Starship Florida’s rapid progress, Starship Texas has not exactly been standing around. In the last week or so, SpaceX technicians and engineers have been simultaneously working on major new integration, assembly, and test campaigns with both Starhopper and the first orbital Starship prototype. A dedicated Starhopper article will come later this week as SpaceX’s South Texas team nears Raptor reinstallation and an untethered hop test campaign, scheduled to begin as early as the end of May.
On the orbital Starship side of things, Boca Chica took a major symbolic step towards aeroshell completion by capping off the upper half of the prototype with a stainless steel nose section. Altogether, the Starship assembly now stands about 25m (80 ft) tall from tip to tail, roughly 60% as tall as a Falcon 9 booster (first stage). With the installation of the craft’s nose, SpaceX has also implicitly confirmed that most – if not all – of the Starship prototype’s tankage still needs to be built, unless a great deal of hardware is hiding inside Boca Chica’s on-site tent.
What could either be the orbital Starship’s seven-Raptor engine section or the start of its liquid oxygen or methane tank is also being built a few hundred feet distant. That mystery segment was recently lifted onto a second concrete jig for easier access, while SpaceX has also been hard at work building a dedicated integration facility similar to the warehouse being used in Florida.
Altogether, SpaceX’s South Texas team appears to be 30-40% away from completing a Starship-sized steel aeroshell. A huge amount of work remains to be done on the inside of the theoretically orbit-capable vehicle, including propellant tanks, a thrust structure capable of supporting seven Raptor engines, landing legs/fins, and a jungle of plumbing and avionics installation. Still, the amount of progress already visible is undeniably impressive, made even more intriguing by the existence of a separate Starship build effort to the east.
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Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
