News
SpaceX repairing upgraded Starship prototype after first test
SpaceX workers have been spotted repairing the company’s newest Starship prototype in the days after the rocket’s first partial test.
Starship S24 was transported to SpaceX’s Starbase, Texas orbital launch site (OLS) on May 26th after about two and a half months of assembly, marking the first time SpaceX transported a new Starship prototype to a test stand since August 2021. Less than 24 hours later, after attaching Ship 24 to a new test bay located beside the actual ‘orbital launch mount,’ the Starship prototype came to life and began its first proof test.
Unfortunately, while it’s impossible to judge with certainty without official confirmation, Ship 24 either failed to complete that test or did not make it through unscathed.
Known as an ambient or pneumatic proof test, the main goal is to pressurize a Starship or Super Heavy prototype with nonflammable, ambient-temperature nitrogen gas to ensure that the rocket and all its plumbing are structurally sound and working as expected. A successful test would likely require a prototype to reach and sustain flight pressures – up to 8.5 bar (~125 psi) as of 2020 – without exhibiting any significant leaks or problems.
For a while, Ship 24’s first ambient proof test went about as expected, with lots of small vents from its main liquid oxygen (LOx) and methane (LCH4) tanks. No activity was visible at the ship’s nose, where vents and plumbing attach to a pair of small landing (header) propellant tanks. Ship 24 is the first Starship with an upgraded version of those tanks after SpaceX decided to remove the methane header tank from the main methane tank and relocate it directly under the oxygen header tank, which takes up the tip of Starship’s nose.
After an hour or two of testing, a muffled bursting noise different from previous vents was heard, followed by a quieter ‘whoosh’ more akin to a long vent. At the same time as the loud noise was heard, a good dozen or so of S24’s thousands of heat shield tiles were knocked off the section of the hull between the Starship’s main tanks and nose cone. SpaceX depressurized Ship 24 soon after and within a few hours, workers could be seen extracting a pipe from the ship that appeared to have been bent almost in half.

Three days later, workers were spotted guiding apparent replacement pipes into Ship 24. Altogether, it appears that some small section of Ship 24’s internal piping failed catastrophically after it was pressurized during the vehicle’s first pneumatic proof test, knocking tiles loose and possibly damaging other adjacent plumbing. Given the location of that piping inside Ship 24’s nose section, there’s a nonzero chance that the failure occurred when SpaceX attempted to pressurize the Starship’s new header tanks, which would have started by pressurizing the propellant and gas lines leading to them. That would explain the first muffled burst, the subsequent venting sound that slowly faded to nothing, and the loss of heat shield tiles.
It would also explain why SpaceX decided to leave Starship in place and conduct repairs at the pad. Super Heavy Booster 7, which suffered a dramatic plumbing failure during an early proof test, was moved back to one of Starbase’s covered assembly bays for repairs. Had Ship 24’s incident been severe, it would have likely left the pad as well. The fact that Ship 24 did not move indicates that the failure was fairly minor and contained, only impacting some easily-replaceable plumbing.

Additionally, SpaceX appears to have moved Raptor heat shield components and a missing cover for one of Ship 24’s four flaps to the pad since the incident. On top of the team that has been working all weekend to repair the Starship, other sets of workers have set about closing out Ship 24’s ‘raceway’, which protects hundreds of feet of smaller plumbing and cables and a flight termination system that runs from the top to the bottom of the ship’s tanks; and some have begun preparing to fill gaps in Ship 24’s heat shield. Most of that work can be classified as ‘finishing touches’ and none of it would be prioritized if Ship 24 was not in decent shape.
Still, even minor damage is a setback. Ship 24’s next opportunity for redemption is a 10am to 10pm CDT window on Wednesday, June 1st, with backup windows available on Thursday and Friday.
News
Tesla CEO Elon Musk says flying cars are coming
Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?'”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
Investor's Corner
Tesla has one big financial question to answer for investors: Morgan Stanley
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
