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SpaceX’s orbital Starship prototype sheds tiles, comes to life during first tests
After weeks of mostly invisible – albeit slow and steady – work at Starbase’s suborbital launch and test facilities, SpaceX has finally kicked off the first orbital Starship prototype’s first test campaign.
Almost two months ago, Starship 20 (S20) departed the factory it was built in for the first time and was rolled a few miles down a South Texas highway to Starbase’s nascent orbital launch site. There, SpaceX briefly installed Ship 20 on top of Super Heavy Booster 4 (B4) – an important first and one done with the same ship and booster pair CEO Elon Musk says could eventually support the rocket’s inaugural orbital launch attempt. Mere hours after that August 6th photo opportunity and fit test, Ship 20 was rolled back to the Starbase build site for another week of work before again returning to the launch site.
This time around, Starship S20 headed for one of two suborbital launch and test stands and ultimately spent the better part of the next six weeks sitting in place as workers swarmed around the 50m (~165 ft) tall spacecraft and upper stage to prepare it for the next steps. In theory, those steps were simple enough, beginning with the completion of two basic qualification tests – the same tests that a half-dozen prototypes preceding Ship 20 completed without issue.
Effectively SpaceX’s first Starship or Super Heavy test of any kind in more than two months, it thankfully didn’t take long for things to get interesting. Before the pad had even been cleared of the last few remaining workers, Starship S20 violently shed a good dozen or so fragile heat shield tiles. CEO Elon Musk quickly confirmed speculation that Starship S20 had effectively jetted the tiles off its nose during a brief test of high-pressure cold gas maneuvering thrusters, coincidentally around the same time as SpaceX began to pressurize the rocket for its first tests.
Going into what was believed to be Starship S20’s first ambient-temperature pressure test and cryogenic proof test, the loss of some heat shield tiles was almost universally expected. In a structure as large as Starship, even just the thermal contraction of steel at supercool temperatures (and expansion as it warms back up) could change the rocket’s diameter an inch or so, potentially causing tiles to scrape or press against each other. About the size of a dinner plate and the thickness of an average paperback book, Starship’s ceramic heat shield tiles have proven to be very fragile, with dozens routinely chipping, cracking, and shattering during and after installation on Ship 20.
One unique (and no less unproven) aspect of Starship is SpaceX’s decision to mount its heat shield directly to the thin steel propellant tanks and skin that make up the rocket’s entire airframe. SpaceX’s first stab at the problem involves studs/pins welded – by robot – directly to the exterior of Starship’s tanks and skin. By embedding small metal plates inside each cast tile, they can be easily installed by aligning the tile and pressing it against each set of three barb-like pins, which then irreversibly lock in place. Over most of Starship’s hull, SpaceX then tacks on blankets of off-the-shelf ceramic wool insulation before tiles are installed on top of that steel and blanket sandwich. Compared to the Space Shuttle and Russia’s Buran, the only other orbital spacecraft to fly with non-ablative heat shields, Starship’s thermal protection system (TPS) is incredibly simple. Of course, the challenges imposed on heat shields by mechanical stresses during launch/landing, orbital reentry, and a need for rapid reusability are anything but simple.
As such, to see tiles blown off Starship S20 by cold gas maneuvering thrusters that were simply placed too close to adjacent TPS was an unexpected route to an expected outcome. During Monday’s nine-hour test window, SpaceX appeared to partially or fully pressurize Starship S20 at ambient temperatures before aborting a cryogenic proof test either before or just after it began. While an ambient-temperature proof was the easier of the two tests on the docket, it’s still encouraging to see no obvious tile loss caused by the actual mechanical stresses involved in the test.
Most importantly, compared to losing dozens of tiles to regular mechanical or thermal stresses, fixing an issue with thruster impingement is much easier and should only require a few design tweaks to one specific Starship component. The real nail-biting moments will come during Starship S20’s seemingly imminent cryogenic proof and static fire debuts, major TPS issues during either of which could necessitate vehicle-wide design changes and cause delays.
With any luck, whatever forced SpaceX to abort Starship S20’s first cryogenic proof test can be easily rectified, opening the door for additional attempts. Two more test windows are scheduled later this week from 5pm to 11pm CDT on Tuesday and Wednesday. Rewatch today’s brief testing below.
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.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
