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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 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
