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SpaceX ‘sleeves’ Starship-derived propellant tank for the first time – here’s why
In a small but important step towards activating a pad capable of launching the largest and most powerful rocket ever built, SpaceX has ‘sleeved’ one of its Starship-derived propellant storage tanks for the first time.
Starship is a fully-reusable, two-stage liquid rocket designed to ultimately cut the cost of orbital launch by at least one magnitude, opening the door for humanity’s sustainable expansion to Earth orbit, the Moon, Mars, and even beyond. To accomplish that lofty feat, it has to be a massive rocket. Measuring approximately 120m (~395 ft) tall and 9m (~30 ft) wide, Starship and Super Heavy will weigh on the order of 300 metric tons (~675,000 lb) when empty.
Once filled to the brim with cryogenic liquid methane (CH4) and liquid oxygen (LOx) propellant and gas, though, a two-stage Starship will easily weigh more than 5000 tons (11 million lb) shortly before and after liftoff. Further, SpaceX wants to be able to launch at least two Starships from Boca Chica in rapid succession. To meet the staggering needs of back-to-back Starship launches, SpaceX has thus had to design and build what will be the world’s largest launch pad tank farm.
Work on that tank farm is already well underway, though progress has been slower than expected. The site’s foundation and a few associated blockhouses were mostly completed by January 2021. By early April, the company had completed the first of at least seven steel propellant storage tanks at its Starship factory and rolled it to the launch pad for installation.
Notably, SpaceX chose to manufacture those storage tanks itself and ended up building structures virtually identical to the tanks that already make up most of flightworthy Starship and Super Heavy airframes. Depending on whether they’re meant to store liquid oxygen or methane, the seven tanks SpaceX is building are either 26 or 30 meters (85 or 100 feet) tall – though the concrete mounts they’re affixed to at the launch site are sized such that all storage tanks will have the same final height.
Of course, being made with the same tools and out of the same steel as Starship and Super Heavy, that means that SpaceX’s custom storage tanks are little more than 4mm (~1/6″) thick steel shells – about as bad as it gets for keeping cryogenic rocket fuel… cryogenic. If SpaceX were to simply use those unmodified tanks, it would be almost impossible to store Starship fuel for more than a few hours – and maybe just a few minutes – without it warming up past the point of usability.
As such, SpaceX’s final Starship tank farm design involves seven Starship-derived storage tanks and seven contractor-built tank sleeves. Measuring around 12m (~40 ft) wide and 40m (~130 ft) tall, those “cryo shells” will enclose all seven SpaceX-built tanks, allowing the company to fill the 1.5m (~5 ft) gap between them with an insulating solid, gas, or some combination of both. With those shells and insulation, SpaceX’s custom-built Starship tank form should be more than capable of storing cryogenic liquid oxygen and methane for days or even weeks.
As of August 5th, SpaceX has installed three of Starship’s custom ground supply equipment (GSE) tanks (with a fourth moved onsite on Thursday), moved two ‘cryo shells’ to temporary storage spots at the pad, and installed one cryo shell that actually turned out to be a million-gallon water tank. On Thursday, SpaceX ‘sleeved’ one of those storage tanks for the first time ever, marking an important milestone towards the activation of a tank farm capable of supporting Starship’s orbital launch debut. Another four sleeves are more or less complete, with the eighth and final sleeve likely just a week or two away from completion.
A fifth GSE tank is also more or less complete, leaving two more to go. However, with some basic math, it’s possible to determine that SpaceX’s orbital launch pad likely only needs five cryogenic tanks (three oxygen, two methane) – and possibly as few as four – to support Starship’s first orbital test flight(s). With SpaceX finally beginning to install tank sleeves, it’s possible that that four or five-tank milestone – and the first tests of SpaceX’s custom, unproven storage solution – are now much closer at hand.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s Robotaxi dreams just took a massive step toward reality
The Tesla and SpaceX merger everyone is talking about is quietly building
