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SpaceX’s odd Starbase propellant storage tank prototype passes first test
Likely to the relief of many, SpaceX appears to have successfully tested a prototype of the custom-built Starbase propellant storage tanks that will eventually hold thousands of tons of fuel and oxidizer.
For reasons unknown, SpaceX’s built its first ground support equipment (GSE) ‘test tank’ – a subscale prototype designed to quickly verify basic production quality and design goals – months after it began mass-producing operational storage tanks. In fact, of the seven total GSE tanks expected to be built, SpaceX has already completed seven, installed five, and scrapped one. Known as GSE4, SpaceX actually used modified parts of that scrapped tank to assemble the GSE test tank that first rolled to Starbase’s launch (and test) facilities on August 23rd.
Two days later, SpaceX subjected the small tank to its first test.
Given that SpaceX appears to have almost retroactively assembled the GSE4 test tank after building the final products, the results from its testing were always going to be significantly more anxiety-inducing than any of the more than half-dozen other tanks the company has tested in the last year and a half. Having already fabricated, assembled, or even installed six of seven planned GSE tanks, the discovery of major issues during testing could potentially cause months of delays by forcing SpaceX to perform lengthy repairs or even fully scrap all six existing tanks and start over.
Thankfully, at least for the time being, it appears that SpaceX can write off those potential worst-case scenarios. On August 25th, SpaceX took advantage of a test window initially believed to be for Starship S20 and put the cobbled-together GSE4 tank through its paces for the first time. As with previous test tanks, all SpaceX can really do is fill the prototype with liquid nitrogen (LN2), a non-flammable alternative to liquid oxygen or methane propellant that is approximately as cold and heavy. As a storage tank prototype, though, GSE4 has no need for hydraulic ram setups used to simulate the thrust of Raptor engines on several previous prototypes.
As such, one or several cryogenic proof tests were all that were ever really in GSE4’s future. On GSE4’s first test, SpaceX performed a more or less normal cryogenic proof, completely filling the tank with LN2, closing its vents, and then allowing the natural process of LN2 boiloff to raise the tank to the desired test pressure. However, unlike other test tanks, GSE4 never actually appeared to reopen its main vents. In fact, SpaceX may have never actually drained liquid nitrogen from the test tank, instead simply letting it slowly warm up and boil off into gas that was seemingly managed and vented by ground systems instead of the tank itself.
As a result, GSE4 stayed frosty (indicating a significant amount of remaining liquid nitrogen) for more than eight hours, strongly implying that it was either very slowly drained or simply allowed to warm up naturally. Given that large cryogenic storage tanks really don’t have to be significantly pressurized to complete their job, it’s possible that GSE4’s first test was primarily meant to verify the basic structural integrity of a tank that’s slightly different than those on Starship and, more importantly, test a different method of pressure and fluid management where most of that work is done by external, permanent systems on the ground.
That’s exactly what one might expect of rocket tankage slightly modified to serve as ground storage tanks. SpaceX’s GSE tanks never have to act as self-contained units and can instead rely almost entirely on separate systems.
Aside from verifying that that slightly different method of tank operations works as expected, GSE4’s first test likely also allowed SpaceX to better characterize the thermal properties of the thin steel skin and domes that are Starship and GSE tanks. Unlike GSE4, operational GSE tanks will be enclosed inside 12m (~40 ft) wide ‘cryo shells’ designed to insulate their cryogenic contents, but the insulative properties of the inner tanks (or the lack there of, rather) will still determine how well that insulation works and how much is actually needed to reach the desired boiloff rates. A contractor hired by SpaceX has already completed all seven cryo shells, so any results gathered from GSE4 will obviously be more of a check than a developmental test, but data is still data.
Tesla is using the vehicles’ internal microphones to improve build quality, Vice President of Engineering Lars Moravy revealed recently.
It’s no secret that Tesla is always finding ways to make its manufacturing operations more efficient, accurate, and valuable. Constantly trying to make its cars better, the company has never placed any restrictions on what it will do to improve everything from panel gaps to paint.
As Teslas have been driving autonomously on the property of the Gigafactory Texas plant for a while now, Moravy revealed to Herbert Ong in a new interview that cars rolling off production lines now autonomously navigate themselves through a bumps, squeaks, and rattles (BSR) portion of the line. This helps to identify any loose or improperly installed internal parts.
The cabin’s microphones, which are used for a variety of things in ownership, simultaneously monitor any noises inside the vehicle while it rolls through the BSR portion of the production line. Moravy actually revealed that Tesla is trying to build “Full Self-Hearing,” an AI system that will detect minor imperfections so they can be corrected before delivery.
It’s no secret that build quality is something that Tesla struggled with as it scaled to a fully massive production operation that manufactures over 1.6 million vehicles per year. However, in recent years, especially, there have not been as many complaints. Tesla has truly improved upon its build quality and paint quality over the past several years, especially in the U.S.
Tesla’s ‘megacasts’ are key to massive build quality improvements
While those improvements have been evident, there are still some complaints; no automaker is perfect with this. But this step will now ensure that every single car that rolls off the production lines at Gigafactory Texas will be void of any creaks, squeaks, or squeals when it leaves the factory.
This measure is one of the most unique we’ve seen in terms of a strategy to avoid build quality issues, but it is not exclusive to Tesla.
Ford uses acoustic analysis AI to find abnormalities in seat motors, climate control units, and other components. Suppliers and OEMs will also use microphone arrays or particle velocity sensors in end-of-line stations.
The full interview with Lars Moravy is available below:
🚨 If you’re a Tesla investor, this is one interview you don’t want to skip. The full video posted below.
Jeff Lutz @thejefflutz and I sat down with Tesla VP of Engineering Lars Moravy, and it was packed with insights!
A few of the biggest takeaways:
• Cybercab is expected to… pic.twitter.com/fhYSr2dCqP
— Herbert Ong (@herbertong) July 1, 2026
Investor's Corner
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
Tesla (NASDAQ: TSLA) beat Wall Street expectations of 406,000 vehicles delivered in Q2 by reporting 480,126 deliveries for the three months ending in June.
Tesla reported it delivered 467,762 Model 3 and Model Y units, while 12,364 Model S, Model X, and Cybertrucks switched hands during the quarter. The Model S and Model X were officially sunset this past quarter and will no longer be part of the company’s Production & Delivery reports moving forward.
🚨 BREAKING: Tesla delivered 480,126 vehicles in Q2, ANNIHILATING Wall Street expectations of 406,000. Production was reported at 451,758.
Deliveries:
Model 3/Y: 467,762
Other Models: 12,364Production:
Model 3/Y: 442,936
Other Models: 8,822 https://t.co/TTHwQAsKt8 pic.twitter.com/7qI4Zj6FE5— TESLARATI (@Teslarati) July 2, 2026
The quarter is a pleasant surprise and a good rebound from Q1, when Tesla slightly missed the Wall Street consensus of 365,645 cars by reporting 358,023 deliveries for the first three motnhs of the year.
Energy storage deployments also provided some strength in Tesla’s delivery report, hitting 13.5 GWh for Q2. This is a particular division of Tesla’s business that has been overwhelmingly robust over the past few years, truly being a strong point of the company’s overall model.
For the year, Tesla analysts still predict deliveries to trend in the 1.69 million unit region, a modest 3 to 5 percent increase from the 1.64 million cars the company delivered last year. Tesla will likely return to more sequential and noticeable year-over-year growth as the Cybercab project starts to ramp up considerably in the next few years.
Tesla has some other potential catalysts to spur vehicle deliveries, too. Not only is it expecting Cybercab to truly start making a change in the next few years, but other vehicles could be entering the company’s lineup.
Tesla sends production Cybercab with no steering wheel, pedals to on-road testing
The slightly longer Model Y L has been a highly speculated release candidate in the U.S. It has already done incredibly well in China, and U.S. buyers have been wanting slightly more interior space than the Model Y. Now that the Model X is gone, it is more needed than ever.
Q2 highlights a pretty stable automotive division within Tesla, and no true concerns arise from these figures, especially considering it managed to beat expectations convincingly.
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Tesla is using vehicle microphones to improve build quality: here’s how
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
