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SpaceX scraps first Starship prototype to make way for new and improved rockets
A bit less than a month after SpaceX’s first full-scale Starship prototype was partially destroyed during testing, the damaged rocket has been almost completely scrapped to make way for new and improved Starships.
On November 20th, SpaceX effectively tested the Starship Mk1 – the first full-scale prototype – to destruction, pressurizing the rocket’s tank section (lower half) until it quite literally popped its top. The pressure wave that failure created damaged almost every internal component of the massive vehicle, all but guaranteeing that SpaceX would have to scrap the vehicle and move on to new prototypes.
Those future prototypes will take advantage of the many, many lessons learned from Starhopper’s two test flights and several additional grounded tests, as well as the many learning experiences presented through Starship Mk1’s pathfinder manufacturing, assembly, and test campaign. As is SpaceX’s signature, the company is choosing to learn by building actual hardware and making the inevitable mistakes that come hand in hand with such an eccentric and ambitious program.
Above all else, SpaceX is trying to redefine the minimum infrastructure needed to build high-performance launch vehicles at a scale comparable to or even larger than NASA’s Saturn V, the largest rocket ever successfully launched. Modern rockets like Falcon 9 and Atlas V are built in relatively clean and environmentally-controlled environments and Saturn I and V – while quite a bit less sterile – were at least built inside large hangar-like facilities.
With Starship, SpaceX instead wants to build rockets even larger than Saturn V out in the elements and with a far more common (and thus affordable) workforce, (theoretically) made possible in large part thanks to its extensive use of stainless steel. Case in point, Starhopper – a low-fidelity Starship test bed – was quite literally welded together on the South Texas coast by welders far more familiar with building water towers. While not without its teething pains, Starhopper proved to be incredibly sturdy and resistant to anomalous behavior and successfully performed two separate flight tests in July and August 2019.
Three months after Starhopper’s second and final hop test, SpaceX’s Starship Mk1 tank section – the lower half of the rocket – was moved to the launch site and began a series of tanking tests. The first few tests were completed successfully and focused on searching for leaks with a neutral cryogenic liquid (likely liquid nitrogen). After the majority of those leaks were sealed, SpaceX moved into liquid oxygen load testing a few days later. For unconfirmed reasons, it turned out that that first liquid oxygen pressure test would also be Starship Mk1’s last.
On November 20th, SpaceX pressurized Starship Mk1 to its limits, with almost all of the visible creases and wrinkles in its steel surface visibly smoothing out as the supercool liquid oxygen caused frost to form on the exterior. Ultimately, SpaceX pushed the vehicle beyond its limits and its uppermost tank dome quite literally popped off of Starship’s tank section, whether the overpressure event was intentional or unexpected. The force of that overpressure event essentially sent a shockwave through Starship, crushing and warping its two remaining tank domes and transfer tubes like an aluminum soda can.
In simpler terms, very few parts of Starship Mk1 escaped unharmed, all but guaranteeing that it would not be worth the effort to repair it. Instead, SpaceX has almost entirely scrapped the prototype over a period of two weeks. According to an official statement released shortly after Mk1’s failure, SpaceX will attempt to recover and reuse as much of Mk1 as it can and those few salvageable parts will be added to an entirely new prototype, deemed Starship Mk3.
Although it’s disappointing that Starship Mk1 was unable to perform any kind of Raptor engine testing, let alone flight tests, it’s safe to say that the pathfinder prototype has been well worth the time and effort it took to build. Regardless of flight or engine testing, a ton of Mk1’s value lies in its utility as a hands-on, physical testbed for SpaceX employees to perform experiments and learn how to build steel rockets – and build them outside in less than friendly weather conditions.
SpaceX is in the midst of rapidly expanding its presence in Boca Chica, Texas, including a new launch control center, an expanded landing and launch pad, new production facilities, and more. The company has also just begun churning out numerous monolithic (single-weld) steel rings that will likely become part of Starship Mk3 in the near future. It will likely be several months before that next-generation prototype is as close to completion as Starship Mk1 was, but it should be well worth the wait and well worth its predecessor’s sacrifice.
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Elon Musk dismissed reports claiming SpaceX had placed a massive order for NVIDIA GPUs worth $52 billion. The denial came hours after Taiwanese media, citing unnamed industry sources, reported that SpaceX planned to acquire approximately 13,000 AI server racks, equating to roughly 1 million GB300 GPUs, from Foxconn.
Each rack was estimated at around $4 million, with deliveries potentially starting in late 2025.
The story suggested this would mark SpaceX’s first major foray into Foxconn-manufactured NVIDIA hardware, breaking from suppliers like Supermicro and Dell. Musk responded bluntly on X:
This is fake news
— Elon Musk (@elonmusk) July 20, 2026
Despite the denial, the rumored scale aligns with SpaceX’s explosive growth in AI infrastructure. NVIDIA’s GB300 (successor to the GB200 NVL) racks deliver unprecedented performance for large-scale training and inference. A $52 billion commitment would dwarf most corporate AI budgets and provide the compute muscle needed for frontier models.
SpaceX already operates gigawatt-scale terrestrial clusters like Colossus in Memphis, Tennessee, and has monetized them aggressively through leasing deals.
SpaceX’s newest Starmind will make earth data centers obsolete
Major customers include Anthropic (paying ~$1.25 billion monthly for 220,000+ GPUs), Google (~$920 million monthly for 110,000 GPUs), and Reflection AI. These arrangements are projected to generate tens of billions in annual revenue, far outpacing traditional SpaceX businesses.
Such an investment would fuel internal AI efforts, particularly Grok models under the integrated SpaceXAI division, while supporting ambitious orbital data center plans. SpaceX envisions launching thousands of AI-optimized satellites powered by solar energy and cooled in space, bypassing terrestrial power and land constraints.
This “Starmind” constellation could position the company as a leader in space-based computing.
SpaceX as an Emerging AI Powerhouse
Once primarily known for reusable rockets and Starlink satellite internet, SpaceX has transformed into a multifaceted AI player.
The 2026 acquisition of xAI integrated Grok development directly into the company. Starlink’s low-latency global network complements massive compute clusters, enabling efficient data flow for training and serving AI models.
Musk has long argued that AI scaling demands solutions beyond Earth, citing things like real estate and electricity limits on the ground.
While the Foxconn deal may not be in the cards, SpaceX’s trajectory is continuing on the path of blending aerospace engineering with hyperscale AI to dominate both launches and intelligence infrastructure.
Elon Musk shed more details on the upcoming improvements to Tesla’s Full Self-Driving suite, specifically one that the CEO mentioned last week, which should help owners see fewer interventions.
Last week, Musk hinted that one major improvement that Tesla planned to roll out to Full Self-Driving users was the car’s ability “to remember your specific interventions and match each person’s individual preferences.”
Elon Musk says your Tesla will start to learn your individual preferences
This small bit of detail was linked to a post from Tesla community member Whole Mars, who said that FSD’s tendency to exit the carpool lane, a feature that owners can turn on but at times the car will disregard.
It sounds like, based on Musk’s two responses since that original post, it is safe to say the things FSD will start to remember are wide-ranging. However, it seems the biggest differences will be noticed with parking performance, which Musk continues to mention.
Highway Lane Preferences
The initial post Musk mentioned, with these new remembered preferences soon to arrive for Tesla owners everywhere, was the Carpool/Express Lane.
Tesla has a setting in the FSD menu that lets drivers enable HOV Lane travel. However, the car won’t always stay in that suggested or preferred lane.
The car will start to remember your specific interventions and match each person’s individual preferences
— Elon Musk (@elonmusk) July 18, 2026
Some owners have also complained of left lane camping, an illegal maneuver in at least some states. Cruising in the passing lane has resulted in tickets for some, as it is illegal in over 30 states in the U.S.
Tesla did not confirm if these preferences would also be included in new FSD behaviors, but it would certainly help move the company toward fewer interventions.
Parking Preferences
This seems to be the real focus of the entire operation, as Musk stated several weeks ago that parking was overwhelmingly the most frequent reason for interventions.
The major issue with parking is not necessarily the parking “performance,” as FSD is generally good at parking. It definitely has its issues; we’ve recorded plenty of them, including this one as recent as last week:
Yeah it seems like FSD v14.3.5 is having some issues with parking early on https://t.co/Bw5ULfVmDq pic.twitter.com/RHdpjOEpIo
— TESLARATI (@Teslarati) July 13, 2026
However, the changes coming are more about preferences, meaning where you park and how your car enters the spot, either pulling in or backing in. Owners have also reported that pulling into the correct driveway is a relatively rare thing for FSD, something else that needs to be confronted.
Musk basically confirmed that all of these things would be part of Tesla’s plan to address driver preferences with FSD:
Yes
— Elon Musk (@elonmusk) July 20, 2026
It’s obvious there is something big coming with FSD, and the company’s focus seems to be eliminating any intervention that would be related to preferences. This is probably the biggest bottleneck between Tesla and being fully autonomous. Critical interventions do occur, but they are much less frequent.
The only time a driver should be taking over is because of a critical intervention; this seems to be the goal of Tesla right now.
This all seems to be a priority as Tesla continues to move closer to the prospect of unsupervised driving.
Elon Musk said today on X that Teslas will start to learn your individual preferences. This is something that he seemed to hint toward earlier this month when he said parking was by far the biggest reason drivers intervene with Full Self-Driving.
Musk made the comment in response to notable Tesla influencer Whole Mars, who said that his vehicle will sometimes disobey the settings he has enabled for his car. He responded to the post, stating that “The car will start to remember your specific interventions and match each person’s individual preferences.”
The car will start to remember your specific interventions and match each person’s individual preferences
— Elon Musk (@elonmusk) July 18, 2026
This is something that could be perhaps one of the biggest ways Tesla could minimize or even work closer toward eliminating interventions altogether. While FSD does a lot of things really well, many people intervene a vast majority of the time not due to major or critical safety errors.
Instead, many take over because the car is doing something that they do not like as a preference; it might park in a parking spot that is not preferred by the driver, it might linger too long in the left lane on the highway (a personal favorite), or it could even take a route that the driver does not like.
These all lead to interventions, but they are not triggered by a major safety issue. Instead, it’s just preference.
READ OUR REVIEW OF TESLA’S LATEST FSD VERSION:
Tesla Full Self-Driving v14.3.5 Early Impressions: new features and early performance
If Teslas could start to learn the personal preferences of the person who owns them, interventions will truly begin to be less frequent. Some of this is already pretty evident, in my opinion. Teslas use a neural network to learn behaviors and accumulate data to improve performance.
For months now, we’ve tracked FSD’s performance at “Except Right Turn” stop signs, something that is very common in Pennsylvania, but many of our readers located in other parts of the U.S. have never heard of. FSD handles one Except Right Turn stop sign very well, one that I travel past frequently. Others that I do not navigate through as often do not have as confident a performance. It seems like the cars might already be doing this to an extent.
🚨 Tesla Full Self-Driving v14.3 proceeds through an Except Right Turn Stop Sign pic.twitter.com/YemRSlens7
— TESLARATI (@Teslarati) April 8, 2026
That example is also for something that is a street sign and not necessarily a driver preference; however, I still feel it is worth mentioning because it only handles that commonly passed Except Right Turn stop sign with true confidence. Others it still seems to struggle with.
This could be one of Tesla’s big moves toward full autonomy, and it could be a pathway to truly unsupervised driving. Every day, millions of cars on the road travel at a human driver’s personal preferences with no incident. Why can’t autonomous vehicles still cater to a passenger’s preferences while being autonomous? Tesla seems to have the idea that it would be possible.
Elon Musk dispels $52 billion SpaceX-NVIDIA GPU deal: ‘Fake news’
Elon Musk sheds details on Tesla FSD’s upcoming improvements
