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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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Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
