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SpaceX’s Crew Dragon explosion response praised by NASA in new briefing
During a recent NASA council meeting, SpaceX’s response to a Crew Dragon capsule’s April 20th explosion was repeatedly praised by the agency’s senior Commercial Crew Program (CCP) manager, her optimism clearly rekindled after several undeniably challenging months.
On October 29th and 30th, NASA held its second 2019 Advisory Council (NAC) meeting, comprised of a number of (more or less) independent advisors who convene to receive NASA updates and provide a sort of third-party opinion on the agency’s programs. Alongside NASA’s SLS rocket and Orion spacecraft, Commercial Crew continues to be a major priority for NASA and is equally prominent in NAC meetings, where program officials present updates.
On October 30th, CCP manager Kathy Lueders presented one such update on the progress being made by Commercial Crew providers Boeing and SpaceX, both of which are just weeks away from multiple crucial tests. Boeing is scheduled to perform a pad abort test of its Starliner spacecraft as early as November 4th, while SpaceX is targeting a static fire of a Crew Dragon capsule on November 6th. If that test fire is successful, the same capsule could be ready to support SpaceX’s In-Flight Abort (IFA) test in early-December, and Boeing’s Starliner could attempt its orbital launch debut (OFT) no earlier than (NET) December 17th.
For both SpaceX and Boeing, the results of their respective In-Flight Abort and Orbital Flight Test will determine just how soon NASA will certify each company to attempt their first commercial launches with astronauts aboard. If Boeing’s Pad Abort goes perfectly and Starliner’s NET December 17th OFT is also a total success, the company could be ready for its Crewed Flight Test (CFT) anywhere from 3-6+ months after (March-June 2020).
If SpaceX’s IFA test goes perfectly next month, Crew Dragon’s Demo-2 astronaut launch could occur as early as February or March 2020. In April 2019, SpaceX suffered a major setback when flight-proven Crew Dragon capsule C201 violently exploded milliseconds before a planned abort thruster static fire test, reducing the historic spacecraft to a field of debris. Before that failure, C201 had been assigned to perform the in-flight abort test, while capsule C205 was in the late stages of assembly for Demo-2.
Had that explosion never happened and the C201 IFA gone perfectly, Demo-2 could have potentially been ready for launch as early as August or September 2019. Instead, C201’s demise forced SpaceX to change capsule assignments, reassigning C205 to support Crew Dragon’s IFA, while C206 was moved to Demo-2. Nevertheless, as both SpaceX and NASA officials have noted, C201’s on-pad explosion has been viewed as a gift, for the most part, as the capsule failed in a largely controlled and highly-instrumented environment.
In fact, NASA manager Kathy Lueders complimented NASA’s involvement in the anomaly resolution process and repeatedly praised SpaceX’s response to Dragon’s explosion. Although the explosion was an undesirable result, SpaceX’s relentless prioritization flight hardware testing prevented a failure from occurring in flight. Performed alongside NASA, SpaceX’s subsequent investigations and experimentation have essentially brought to light a new design constraint, the knowledge of which many space agencies and companies will likely benefit from.
Most notably, however, Lueders detailed how impressed she was at the incredible speed with which SpaceX was able to respond to Crew Dragon’s catastrophic static fire anomaly.
“So the nice thing is that the SpaceX folks had a bunch of vehicles in flow. So even though we lost Demo-1 [capsule C201], … [SpaceX] was able to pull up what was going to be our Demo-2 vehicle, outfit it, make [necessary] changes [and upgrades] to the vehicle, and get it ready for [flight] with a six-month slip — a pretty phenomenal turnaround.“
Kathy Lueders – NASA – 10/30/19
Crew Dragon C201 exploded on April 20th, 2019. Five months and seven days later, a new Crew Dragon capsule and trunk – having undergone significant modifications as a result of the C201 explosion investigation – were delivered to SpaceX’s Florida facilities for their new role, Dragon’s In-Flight Abort test. Meanwhile, despite the upset and general instability, Crew Dragon capsule C206 – previously assigned to the flight after Demo-2 – is in the late stages of assembly and integration and is expected to ship to Florida for preflight preparations in early-December.
Altogether, those turnaround times are almost unheard of for such complex systems. For example, Boeing’s Starliner service module – generally less complex than the crew capsule – suffered a serious anomaly during a June 2018 static fire test. As a result, Boeing had to fully replace the service module with new hardware and repeat the same test before it could proceed to Starliner’s Pad Abort, at the time expected a few weeks later (Q2 2018).
Like SpaceX, Boeing was forced to cannibalize future launch hardware to re-attempt its static fire test, which was ultimately completed some 11 months after the anomaly on May 24th, 2019. The Pad Abort previously expected in mid-2018 is now expected no earlier than November 4th, 2019, a delay of 12-16 months. In simpler terms, the six or so months that Crew Dragon C201’s explosion has delayed SpaceX’s In-Flight Abort test is an undeniably “phenomenal turnaround” relative to both NASA’s expectations and SpaceX’s peers.
A happy partnership
The day prior, famed ex-NASA engineer and Space Shuttle program manager Wayne Hale – now serving as NAC chair – brought up SpaceX in an entirely different context, deeming the company as a whole a “sterling example” of NASA’s ability to incubate and incentivize commercial spaceflight.
Indeed, SpaceX has radically reshaped almost every aspect of the global spaceflight industry in the ten years since NASA awarded the company its first major contract, proving that orbital-class commercial rockets can be built, landed, and reused – all for far less money than NASA or competitors believed was possible.
All things considered, NASA appears to be more content than ever with the results its fruitful SpaceX partnerships are producing, and a number of senior NASA officials seem to be increasingly willing to unbridle their enthusiasm as a result.
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Tesla is using the vehicles’ internal microphones to improve build quality, Vice President of Engineering Lars Moravy revealed recently.
It’s no secret that Tesla is always finding ways to make its manufacturing operations more efficient, accurate, and valuable. Constantly trying to make its cars better, the company has never placed any restrictions on what it will do to improve everything from panel gaps to paint.
As Teslas have been driving autonomously on the property of the Gigafactory Texas plant for a while now, Moravy revealed to Herbert Ong in a new interview that cars rolling off production lines now autonomously navigate themselves through a bumps, squeaks, and rattles (BSR) portion of the line. This helps to identify any loose or improperly installed internal parts.
The cabin’s microphones, which are used for a variety of things in ownership, simultaneously monitor any noises inside the vehicle while it rolls through the BSR portion of the production line. Moravy actually revealed that Tesla is trying to build “Full Self-Hearing,” an AI system that will detect minor imperfections so they can be corrected before delivery.
It’s no secret that build quality is something that Tesla struggled with as it scaled to a fully massive production operation that manufactures over 1.6 million vehicles per year. However, in recent years, especially, there have not been as many complaints. Tesla has truly improved upon its build quality and paint quality over the past several years, especially in the U.S.
Tesla’s ‘megacasts’ are key to massive build quality improvements
While those improvements have been evident, there are still some complaints; no automaker is perfect with this. But this step will now ensure that every single car that rolls off the production lines at Gigafactory Texas will be void of any creaks, squeaks, or squeals when it leaves the factory.
This measure is one of the most unique we’ve seen in terms of a strategy to avoid build quality issues, but it is not exclusive to Tesla.
Ford uses acoustic analysis AI to find abnormalities in seat motors, climate control units, and other components. Suppliers and OEMs will also use microphone arrays or particle velocity sensors in end-of-line stations.
The full interview with Lars Moravy is available below:
🚨 If you’re a Tesla investor, this is one interview you don’t want to skip. The full video posted below.
Jeff Lutz @thejefflutz and I sat down with Tesla VP of Engineering Lars Moravy, and it was packed with insights!
A few of the biggest takeaways:
• Cybercab is expected to… pic.twitter.com/fhYSr2dCqP
— Herbert Ong (@herbertong) July 1, 2026
Investor's Corner
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
Tesla (NASDAQ: TSLA) beat Wall Street expectations of 406,000 vehicles delivered in Q2 by reporting 480,126 deliveries for the three months ending in June.
Tesla reported it delivered 467,762 Model 3 and Model Y units, while 12,364 Model S, Model X, and Cybertrucks switched hands during the quarter. The Model S and Model X were officially sunset this past quarter and will no longer be part of the company’s Production & Delivery reports moving forward.
🚨 BREAKING: Tesla delivered 480,126 vehicles in Q2, ANNIHILATING Wall Street expectations of 406,000. Production was reported at 451,758.
Deliveries:
Model 3/Y: 467,762
Other Models: 12,364Production:
Model 3/Y: 442,936
Other Models: 8,822 https://t.co/TTHwQAsKt8 pic.twitter.com/7qI4Zj6FE5— TESLARATI (@Teslarati) July 2, 2026
The quarter is a pleasant surprise and a good rebound from Q1, when Tesla slightly missed the Wall Street consensus of 365,645 cars by reporting 358,023 deliveries for the first three motnhs of the year.
Energy storage deployments also provided some strength in Tesla’s delivery report, hitting 13.5 GWh for Q2. This is a particular division of Tesla’s business that has been overwhelmingly robust over the past few years, truly being a strong point of the company’s overall model.
For the year, Tesla analysts still predict deliveries to trend in the 1.69 million unit region, a modest 3 to 5 percent increase from the 1.64 million cars the company delivered last year. Tesla will likely return to more sequential and noticeable year-over-year growth as the Cybercab project starts to ramp up considerably in the next few years.
Tesla has some other potential catalysts to spur vehicle deliveries, too. Not only is it expecting Cybercab to truly start making a change in the next few years, but other vehicles could be entering the company’s lineup.
Tesla sends production Cybercab with no steering wheel, pedals to on-road testing
The slightly longer Model Y L has been a highly speculated release candidate in the U.S. It has already done incredibly well in China, and U.S. buyers have been wanting slightly more interior space than the Model Y. Now that the Model X is gone, it is more needed than ever.
Q2 highlights a pretty stable automotive division within Tesla, and no true concerns arise from these figures, especially considering it managed to beat expectations convincingly.
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.
Tesla is using vehicle microphones to improve build quality: here’s how
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
