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SpaceX ships another huge propellant tank to South Texas BFR test site
Captured by NASASpaceflight.com forum user “bocachicagal”, the second of several massive liquid methane tanks has arrived at SpaceX’s prospective Boca Chica, Texas facilities, to be dedicated to integrated testing of BFR’s spaceship/upper stage.
If there was any doubt beforehand, the arrival of a second ~100,000 gallon vacuum-insulated tank all but guarantees that SpaceX is planning a major campaign of BFR spaceship testing in South Texas – with as much as 200,000 gallons of storage capacity in those two tanks alone, SpaceX could easily top off two Falcon 9’s with liquid oxygen and still have more than 100 tons left over.
Per NASASpaceflight.com’s forums, it appears that this newest tank arrived at the site sometime yesterday or the day before. Thanks to the fundamental properties of BFR’s planned liquid methane and oxygen fuel and oxidizer, aspects of basic ground support infrastructure may actually be a significant improvement over Falcon 9’s refined kerosene (RP-1) and liquid oxygen, and dramatically superior (at least in a logistical and practical sense) to hydrogen/oxygen, a popular choice for many rockets.
In terms of volume and density, oxygen is about 2.5x denser than methane but optimally combusts at a ratio of roughly 3.5 parts oxygen to 1 part methane (3.5:1), with SpaceX likely to operate the Raptor engine closer to 3.8:1. This means that – despite their major density differences – BFR’s oxygen and methane tanks will ultimately end up very similarly sized to hold ~230t of liquid methane and ~860t of liquid oxygen (2017 BFR numbers).
Testing giant rockets: it’s not easy
As it relates to SpaceX’s South Texas propellant infrastructure, this likely means that a minimum of four large vacuum-insulated tanks will be needed to fully fuel a BFR spaceship (BFS), two for oxygen (~800t) and two for methane (~300t). Depending on how SpaceX has structured its BFR infrastructure acquisitions, the two large tanks now present in Boca Chica could be more than enough to support a wide range of spaceship hop tests. A full load of fuel is almost certainly unnecessary – if not outright implausible – for BFS hop testing: with a full load of ~1100t of fuel and the spaceship’s total mass around ~1250t, all seven planned Raptor engines would need to be installed and operating near full thrust (~1400t, 14,000 kN) to lift the ship off the ground.
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- F9R seen just before liftoff for a 2014 hop test at SpaceX’s McGregor, TX test facilities. BFR’s first test pad might (or might not) look quite similar. (SpaceX)
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- An updated spaceship lands on Mars. (SpaceX)
For context, Falcon 9’s first stage produces a maximum thrust of roughly 7,600 kN at liftoff, while Falcon Heavy triples that figure to ~22,800 kN. The spaceship/upper stage of BFR alone thus produces nearly two times as much thrust as an entire Falcon 9 at full throttle and as much as fourteen times as much thrust as Falcon 9 and Heavy’s upper stage, statistics that properly illustrate just how extraordinarily powerful BFR is when compared with the rockets SpaceX currently operates. BFR’s booster (BFB) is even wilder, featuring ~3.5 times as many Raptors and thus ~3.5 times as much thrust as the spaceship/upper stage.
As a result of the sheer power of just the spaceship alone, SpaceX may have to move directly to a style of launch pad closer to that used by Falcon 9 and Heavy rather than the spartan concrete slab used for Falcon 9’s Grasshopper testing. In this case, the rocket would be mounted some distance from the ground to minimize acoustic loads on the vehicle’s after and would likely include a water deluge system to further deaden thermal and acoustic energy while also minimizing damage to the concrete and metal structures that launch and landing pads are built out of.
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- Prior to liftoff, Falcon 9 and Falcon Heavy are held down by massive “hold-down clamps” at the rocket’s base. Even after engine ignition, those clamps only release once the flight computer decides that the rocket is healthy. (Pauline Acalin)
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- Falcon 9 B1049 lifts off from SpaceX’s LC-40 pad on September 10, producing more than 1.7 million pounds of thrust.(Tom Cross)
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- A September 2018 render of Starship (then BFS) shows one of the vehicle’s two hinged wings/fins/legs. (SpaceX)
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- BFR’s booster is at least three times more powerful still than BFS at liftoff. (SpaceX)
Above all else, the presence of not one but two huge ~100,000-gallon vacuum-insulated tanks at SpaceX’s Boca Chica facilities all but guarantees that the company intends to situate a serious campaign of BFR tests there, likely including the integrated spaceship hop tests both Elon Musk and Gwynne Shotwell have explicitly mentioned in recent months. Put simply, SpaceX has no other reason to be bringing massive cryogenic propellant tanks to South Texas – the company has plenty of space at any one of its three large launch complexes (not to mention McGregor) if it wanted to store those tanks elsewhere, and those three facilities already have operational propellant storage and loading infrastructure for Falcon 9 and Heavy launches.
If more massive tanks continue to arrive or if it becomes clear that the two similar tanks present or solely meant for LOX or methane, the scale of SpaceX’s intentions in South Texas will become increasingly clearer.
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SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
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SpaceX AI investment gamble will make it a big winner, firm says
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
