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SpaceX prepares new Starship tank for explosive test after rapid construction
Over the last few weeks, SpaceX’s South Texas Starship team has been making progress at a pace unprecedented even for the famously agile rocket company and is moving full speed ahead to kick off a new series of explosive tests as early as this morning.
Ever since SpaceX’s original Starship Mk1 prototype spectacularly failed during a November 2019 pressure test, the company has been rapidly rearranging and modifying the development schedule for its next-generation full-reusable rocket. Be it a side effect or coincidence, SpaceX effectively began closing its Florida Starship factory a week after Mk1’s demise and even shipped some of its Florida-built Starship hardware to Texas in recent weeks. However, most of the Florida workforce (up to 80%) was reportedly redirected elsewhere in the company, avoiding layoffs.
Some portion may have even moved to Texas and joined SpaceX’s Starship Boca Chica facilities. Given just how aggressively SpaceX has been expanding its local facilities and preparing new hardware for the next round of improved Starship prototypes, it seems quite likely that the South Texas outpost did indeed receive an influx of skilled workers. Most recently, the company has demonstrated its rapidly growing expertise in the bizarre art of building steel rockets en plein air by fabricating and integrating new tank domes and steel rings and then shipping the curious contraption to its nearby launch site in a matter of weeks from start to finish.
Although it’s difficult to determine the chronology of every single part of the mysterious new tank, it’s fairly safe to say that work on its structure began less than a week before SpaceX CEO Elon Musk tweeted a surprise update, indicating on December 27th that he was in Boca Chica, Texas working all night on “Starship tank dome production”.
In simple terms, the business half of SpaceX’s next-generation Starship upper stage and Super Heavy boosters are comprised of three main parts, shared by almost all launch vehicles. Both are rocket stages that must be as light as physically possible while supporting thousands of tons worth of supercool liquid oxygen and methane propellant. The majority of a simple rocket is ultimately a duo of cylindrical tanks capped by tank domes – also known as bulkheads. The bottom bulkhead of boosters and upper stages also serves as a mounting point for an engine section, where the vehicle’s rocket engines are attached to the rocket body in order to transfer their thrust throughout the rest of the structure.
SpaceX CEO Elon Musk says that Starship tank domes have turned out to be “the most difficult part of [the rocket’s] primary structure” to manufacture, thus explaining why he was apparently assisting the Boca Chica team all night on December 27th.
Starship Mk1 exploded on November 20th, 2019 during a nonflammable propellant loading test, a failure that unofficial videos have compellingly linked to the weld joint connecting the rocket’s upper tank dome to its cylindrical tank. That section of the rocket began leaking cryogenic propellant moments before the entire upper dome tore off the rest of the vehicle and launched hundreds of feet into the air.
All hail Baby Tank
In an apparent response to the unsatisfactory results of Starship Mk1’s manufacturing methods, SpaceX has rapidly initiated an already-planned upgrade of its Starship facilities and manufacturing methods in South Texas, taking delivery of a wealth of new tools over the last several weeks. Most recently, SpaceX’s latest step towards demonstrating that it has substantially improved manufacturing quality arrived in the form of a single propellant tank – the same diameter as Starship Mk1 but much shorter than any possible flight hardware.
Quickly nicknamed Bopper (short for Baby Starhopper) by locals and close followers, the miniature Starship test article came together at a truly spectacular pace. Comprised of two single-weld steel rings and two brand new tank domes, it appears that all four of the components were nothing more than parts and steel stock less than three weeks ago. The first sign of activity came around December 19th, when technicians began placing pressed steel sections onto a bulkhead (dome) assembly jig – used to precisely hold the pieces in the right shape and place as they are welded together.
Incredibly, aside from taking less than three weeks to go from miscellaneous parts to an assembled Starship tank delivered to the test site, SpaceX technicians appeared to finish stacking and welding its two halves (each a ring and a dome) perhaps a handful of hours before it was lifted onto a transporter and driven to the launch pad.
Even for SpaceX, moving a prototype from factory to test site hours after its primary structure was welded together represents an almost unfathomably fast pace of work – truly unfathomable in traditional aerospace. Whether or not such a pace of work is smart, sustainable, or worth it remains to be seen, but SpaceX is nevertheless on track to pressure test its new mini Starship tank as early as this morning, potentially resulting in another spectacular overpressure event (i.e. explosion).
If the tank survives up to or beyond the pressures SpaceX has designed it to, it’s safe to say that the next full-scale Starship prototype could come together far sooner than almost anyone might have expected.
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Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
In early 2026, Tesla made a bold strategic pivot: it largely eliminated the option to purchase Full Self-Driving (FSD) software outright and shifted to a subscription-only model. The change, effective around mid-February, ended the one-time fee that had previously ranged as high as $15,000 and later dropped to $8,000. Instead, customers would access FSD (Supervised) for $99 per month in the U.S.
At the time, skeptics questioned whether locking customers into recurring payments would hurt adoption or alienate buyers who preferred ownership of the feature. Tesla bet that a lower barrier to entry, seamless integration at purchase, and the ability to cancel at any time would drive higher uptake.
The results from Q2 2026 speak for themselves: the decision has been a resounding success, delivering the largest quarterly growth in FSD subscriptions in the company’s history.
Tesla FSD subscriptions went up 56% in Q2 2026 to 1.48 million, an increase of 200,000 from Q1 2026.
Tesla added more FSD subscribers in Q2 than in any quarter in its history. pic.twitter.com/jTciTD2JqW
— Sawyer Merritt (@SawyerMerritt) July 22, 2026
According to Tesla’s Q2 shareholder update, active FSD subscriptions reached 1.48 million globally by the end of June 2026. That represents a 56 percent increase year-over-year and a 15.6 percent jump from the prior quarter. Tesla added roughly 200,000 new subscriptions in the period alone—the biggest single-quarter gain on record.
North America led the charge, with more than 55 percent of new vehicle deliveries including an FSD subscription at the time of purchase, a record attach rate for the region.
Tesla explicitly noted that “more customers [are] opting for subscription at the time of vehicle purchase,” crediting the model shift and prominent placement of the option in the ordering process. Subscriptions now contribute meaningfully to ancillary revenue, helping offset pressure elsewhere in the business.
The financial upside is substantial: At $99 per month, 1.48 million active subscriptions generate approximately $146.5 million in monthly recurring revenue. Over a full year, that equates to roughly $1.76 billion in annualized recurring revenue (ARR) from FSD subscriptions alone, assuming steady retention and no major pricing changes.
These figures represent pure, high-margin software revenue. Unlike vehicle sales, which carry production costs, warranty obligations, and supply-chain risks, FSD subscriptions flow largely to the bottom line once the software is developed and deployed over-the-air.
Tesla does not break out exact FSD subscription revenue in its filings (it sits within “Services and Other”), but the category grew 50 percent year-over-year in Q2, with executives highlighting subscriptions as a key driver.
The subscription model offers several structural advantages. It lowers the upfront cost of a new Tesla, potentially broadening the buyer pool and supporting vehicle demand, especially important amid fluctuating EV market conditions. It creates a predictable revenue stream that compounds as the fleet grows and more owners try (and stick with) the software.
Legacy one-time purchasers still exist, but new growth is overwhelmingly subscription-based following the February cutoff.
Early data also suggests improving retention and satisfaction, as well. Tesla has rolled out iterative FSD updates, including v14 features, and expanded availability to additional markets. Recent regulatory approvals in parts of Europe have further boosted interest, with owners in newly enabled countries eager to activate the software they had been waiting for.
FSD is still supervised; regulatory hurdles for true unsupervised autonomy persist in many regions, including the United States, and competition in advanced driver-assistance systems is intensifying. Yet the Q2 numbers validate Tesla’s bet: by removing the large upfront commitment and making FSD accessible via subscription, the company has accelerated adoption faster than many anticipated.
What began as a controversial switch-up has become a clear win. With nearly 1.5 million subscribers, record attach rates, and nearly $1.8 billion in potential annual recurring revenue already in view, Tesla’s FSD business is transitioning from a promised future to a tangible, fast-growing profit engine.
If the momentum continues, and especially if unsupervised capabilities unlock robotaxi opportunities, the subscription flywheel could become one of the most valuable assets in Tesla’s portfolio.
Elon Musk claps back at France’s Tesla Full Self-Driving approval delay
Google’s massive stake in SpaceX will shock you
