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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.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla is going to let you guide Full Self-Driving with Grok in 3 months, CEO Elon Musk confirmed on X.
The response from Musk, which revealed Tesla plans to allow drivers to effectively control the car and its navigation more explicitly using Grok, puts the feature for about September.
A Tesla owner said that Full Self-Driving is great, but owners should be able to “converse with Grok like we can with an Uber driver.” She then used examples like, “Grok, turn right here,” and “Drop us off right here, we’ll walk due to traffic,” and finally,” Drop at entrance first, then park far away.”
Coincidentally, the final piece of dialogue would also mean features like Banish are potentially on the way soon.
This functionality will be there in about 3 months or so
— Elon Musk (@elonmusk) June 18, 2026
Banish is also referred to as “Reverse Summon,” and would enable the car to self-park while dropping occupants off at their destination.
This would be a great way to improve the overall experience while supervising FSD. Navigation is already a major painpoint that many owners complain about. Manual overrides when a maneuver is requested or canceled (like using the turn signal stalk to override a navigation route), do not always work.
The feature could be especially useful in street parking scenarios in a city, where spots are sometimes tough to come by. Many of us who grab dinner in a more populated area will park a street or two over from wherever we’re going, because sometimes you know that’s the best you will get. If a driver using FSD could say, “Hey Grok, turn right here on Queen St. and park in that open spot on the right,” it could save a lot of confusion FSD might have on its own.
Musk teased that a similar feature was “coming” back in February:
Tesla Full Self-Driving set to get an awesome new feature, Elon Musk says
It is certainly surprising that Tesla is doing it at this point. The company’s more recent moves have been more evident of taking control and inputs away from humans and putting them in the AI’s hands more frequently. The biggest example of this was taking away Max Speed in AI4 cars, giving us Speed Profiles, and not having any input on the fastest speed the car will travel.
Of course, giving navigation preferences to Grok is availble already in Teslas, but not at the drop of a hat. Instead, you can suggest a certain route at the beginning of your drive.
Here’s an example of that from December:
🚨🏈 I am taking my parents and Fiancee to the @Ravens game next weekend and asked @Grok to help me route my @Tesla through a specific neighborhood to reach the correct Lot we will park in.
This is a great example of the new @grok nav integration with the Tesla Holiday Update: pic.twitter.com/rPp4I7q8Yv
— TESLARATI (@Teslarati) December 13, 2025
Finally, the original post that Musk responded to mentioned a parking preference after dropping off the occupants, which describes the Banish feature that Tesla has teased for years.
We’re not sure if Musk was responding more to the ability to guide the car with Grok, or whether he also was including Banish in the three-month prediction timeframe.
Elon Musk challenges Tesla credit rating from Moody’s after SpaceX gets a higher one
Tesla faces Full Self-Driving pushback in EU over ‘speeding’
