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SpaceX’s Starhopper cleared by FAA for second and final flight test as locals urged to exit homes
After a full two weeks spent waiting for an FAA permit, SpaceX CEO Elon Musk and local South Texas authorities appear to be preparing Starhopper for a second major flight test as early as Monday, August 26th.
Assuming the FAA comes through with a permit, Starhopper is scheduled to lift off no earlier than 5pm EDT (21:00 UTC) on August 26th for a flight test expected to smash the low-fidelity Starship prototype’s previously altitude record of ~20m (65 ft). Confirming initial reports from NASASpaceflight.com, Musk also stated that Starhopper’s second flight will be its last, after which the steel rocket test-bed will be converted for stationary use at SpaceX’s South Texas facilities.
Prior to Musk tweeting that Starhopper may be nearing approval for its next flight, the SpaceX CEO revealed that delays were centered around the FAA’s apparent unwillingness to permit the vehicle’s next flight. Musk specifically stated that the FAA wanted more “hazard analysis”, meaning that the US aviation administration had concerns that Starhopper could pose a serious threat to local residents in a tiny housing development known as Boca Chica Village.
Technically speaking, Boca Chica Village is just 1.5 miles (2.4 km) away from SpaceX’s Starhopper launch facilities, where the vehicle is expected to reach a maximum altitude of no more than 200m (650 ft) as early as August 26th. FAA regulations tend to be prescriptive and extremely rigid, understandable given the breadth of US aviation-related activities the agency is tasked with regulating. However, a basic back-of-the-envelope analysis of Starhopper’s 200m hop suggests that the risk to local residents – even those as few as 1.5 miles away from the test – is minuscule.
Based on Starhopper’s inaugural flight, its lone Raptor engine – producing up to 200 tons (450,000 lbf) of thrust – is not exactly capable of rapidly moving the Starship prototype. For all accounts and purposes, Starhopper is a spectacularly heavy hunk of steel with the aerodynamics of a cylindrical brick – capable of flight solely through the brute-force application of a literal rocket engine. To make it even half of the distance from its launch site to the Village, Starhopper would have to remain in controlled flight while radically deviating from its planned trajectory, all while its flight termination system (FTS) – explosives meant to destroy the vehicle in a worst-case scenario – completely fails to activate.
As evidence of the apparent lack of perceived risk to local residents, Cameron County, Texas officials distributed flyers to Village residents advising – but not requiring – those choosing to remain at their homes during the test to go outside during Starhopper’s next flight. This is recommended to avoid flying glass in the event that the vehicle explodes, potentially shattering windows with the shockwave that could result, but clearly demonstrates the fact that county officials believe there is a near-zero chance of Starhopper actually impacting anywhere near the houses.
Ultimately, Starhopper’s limited flight tests clearly pose little to no actual risk to residents, but this chapter does raise a far more significant question: what happens once Starship Mk1 is ready and the flight tests SpaceX is pursuing involve distances and heights on the order of several, tens, or hundreds of kilometers? For now, answers will have to wait til a later date.
A Hop and a skip into retirement
Aside from the delays and apparent lack of consensus on the safety of Starhopper’s minor hop tests, Musk confirmed that the prototype’s second test flight ever will likely be its last, providing some interesting insight into SpaceX’s next steps. Most notably, the fact that SpaceX is willing and ready to fully retire Starhopper after such a limited test series serves as a fairly confident statement that orbital-class Starship Mk1 (Texas) and Mk2 (Florida) prototypes are extremely close to flight-readiness.
Roughly a month ago, Musk tweeted that those Starship prototypes could be ready for their first flights as early as mid-September to mid-October, “2 to 3 months” from mid-July. In additional comments made on August 20th, Musk stated that his planned Starship presentation would be delayed in light of Starhopper’s own delays, and is now instead expected to occur around a major Starship Mk1 integration milestone in “mid September”.
As previously discussed on Teslarati, Starhopper’s brief service life is entirely unsurprising, delayed by issues with Raptor engines to the point that SpaceX’s far more valuable Starship prototypes – having made relentless progress – are already nearing completion. Once those Starships are ready for almost any kind of integrated testing, Starhopper will be made entirely and immediately redundant.
“According to Musk, either or both of those orbital-class prototypes could be ready for their inaugural flight tests as early as mid-September, perhaps just 1-2 months from now. Given that Starships Mk1 and Mk2 are significantly higher fidelity than Starhopper, the ungainly testbed will likely become redundant the moment that its successors are ready for flight. In other words, Starhopper is fast approaching the end of its useful life, and SpaceX’s fight for a 200m hop-test permit could ultimately be a waste of time, effort, and money if said permit doesn’t also cover Starship Mk1.”
Teslarati.com, August 20th, 2019
On another positive note, CEO Elon Musk says that Starhopper won’t be ‘retired’ to the scrapyard and will instead be lightly modified to serve as an in-situ test stand for Raptor engines, a useful addition once SpaceX South Texas moves on to multi-engine Starship and Super Heavy testing.
With any luck, SpaceX will attempt to livestream Starhopper’s second attempted flight. Stay tuned for updates on the 5pm EDT, August 26th test.
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Elon Musk
Elon Musk calls Earth’s data centers “peanuts” next to what SpaceX is planning in orbit
Elon Musk says SpaceX capex efficiency is underestimated as orbital data centers loom by 2028.
Elon Musk is pushing back on one of the biggest worries hanging over SpaceX stock. In a reply on X on Sunday, Musk said the company’s capital expenditure efficiency is severely underestimated. He was responding to a Milk Road Stocks post citing analyst Kyle Reidhead, who estimates SpaceX will need to spend roughly $470 billion over the next five quarters.
Reidhead built that figure around the target SpaceX set on its third quarter earnings call: 13 gigawatts or more of compute by the end of 2027. In his breakdown, Nvidia captures 83 to 89 percent of the spending. SpaceX ended the quarter with 1.7 GW of nameplate compute and guided to $35 billion to $40 billion in fourth quarter capex, as Teslarati reported.
Musk did not attach a number to his claim, but the earnings call shows the argument. CFO Bret Johnsen said new compute currently pays for itself in under a year at today’s pricing, and Musk said that window could shrink to six months next year. Using that pace, Reidhead argues about $230 billion of the $470 billion could come from operating cash flow and about $60 billion from SpaceX’s roughly $90 billion cash pile, leaving around $180 billion to borrow. Musk confirmed last week that SpaceX had already closed a new $40 billion debt raise to buy GPUs.
The ground buildout is not the end goal. It is what is meant to pay for the move to orbit. Replying on Friday to charts built from Sequoia partner Shaun Maguire’s SpaceX model, Musk wrote that “Terrestrial compute will be peanuts compared to orbital compute,” adding that orbital compute deployed per month “probably exceeds terrestrial around the end of 2028 and then far exceeds it in 2029.”
Maguire’s model shows how steep that path is. It has capex climbing from $88 billion this year to $290 billion in 2027 and $369 billion in 2028, with SpaceX burning $77.8 billion in cash this year and $122.6 billion next year before turning $114.9 billion cash positive in 2028. Musk’s response to the model was, “I think we can do better.”
The orbital half runs through Starmind. SpaceX plans to operate up to 1 million AI satellites flying in clusters of about 10, linked by roughly 10 terabits of bandwidth, with deployment of thousands of units starting as soon as late 2027 out of its Gigasat factory in Bastrop, Texas, according to SpaceX’s space safety page. Musk has said each Starmind spacecraft will carry more than 250 kW of solar power.
Getting there depends on launch volume. Maguire’s model assumes 250 Starship flights in 2028, up from two this year and 38 next year. The nearer test is financial: SpaceX guided to $33 billion to $37 billion in first quarter 2027 revenue, more than double the $14.58 billion it booked in Q3, and Musk reposted that guidance again on Sunday morning.
Elon Musk
SpaceX President to gift Trump Accounts her SpaceX stock
Gwynne Shotwell’s 2 million SpaceX shares are headed to children’s Trump Accounts starting this December.
SpaceX President Gwynne Shotwell said Friday that more than 2 million SpaceX shares belonging to her and her husband, Robert, will be distributed to children’s Trump Accounts in December, turning a pledge she made over the summer into an actual transfer. “Robert and I are thrilled that our gift of over 2 million shares of SpaceX stock will be distributed to children’s Trump accounts in December!” Shotwell wrote on X, adding that the shares are “transferring to escrow as we speak.”
The first round goes to children aged 11 to 17 who live in ZIP codes where the median family income is $57,000 or less, along with kids in ZIP codes with too few residents for the Census to report that figure. Shotwell said those families should receive a notice by Monday, Reuters reported.
A second gift is expected to be finalized in the next few weeks. That round will cover eligible children in military families serving overseas, children in foster care, and more kids in Texas counties near the Shotwells’ home where median family income is $90,000 or less. Elon Musk replied to the announcement with “Cool” and a heart emoji.
Shotwell first announced the donation on July 6, less than a month after SpaceX priced its record IPO at $135 per share on the Nasdaq. IPO filings showed Shotwell owned about 12.6 million SpaceX shares, Quartz reported at the time, which makes the gift roughly one sixth of her stake. At the roughly $146 per share used to value Musk’s own pledge earlier this month, 2 million shares are worth about $290 million.
How the stock would actually reach the accounts had been an open question since July. Treasury guidance acknowledged that stock donations could flow into Trump Accounts, but it did not explain the mechanics for a program whose contributions default into an S&P 500 index fund. Shotwell thanked the Treasury, the IRS, the Dell Foundation, Greater Horizons, Invest America and the law firms Morgan Lewis and Gibson Dunn for “working over the past few months to make this happen.”
The transfer also works as a dry run for a far larger gift. On October 19, Musk said he would give one of his SpaceX shares to every kid in America next year and called it “the first of many.” With roughly 72 million children in the country, that pledge is worth about $10.5 billion. President Donald Trump thanked Musk the same day and said the shares would go through Trump Accounts, though neither SpaceX nor the Treasury has published how or when that distribution will happen.
Shotwell’s recipients also fill a gap in the program itself. Trump Accounts launched on July 4, and the $1,000 Treasury deposit only goes to babies born between 2025 and 2028. Teenagers aged 11 to 17 receive no government seed money, so for many of the families getting a notice on Monday, SpaceX stock will be the first asset in the account. The accounts convert into retirement accounts when the child turns 18.
Tesla Full Self-Driving is now the centerpiece of the company’s newly revised Referral Program, which launched on October 29.
Instead of referring people to purchase vehicles and the referrer receiving $250 in Tesla Credit, the new program now incentivizes Full Self-Driving subscriptions.
If a Tesla owner is on an FSD trial and uses a referral code to subscribe to Full Self-Driving, the person whose Referral Link was used will receive one month of FSD (Supervised). Their code can be utilized 12 times per year, with January 1 marking the reset date.
Realistically, this means that if your Referral Code is used by 12 Tesla owners on an FSD trial, you will receive a full year of FSD for free.
🚨 Here is Tesla’s new Referral Program for Full Self-Driving (Supervised):
When someone subscribes to FSD using your link, you’ll get a month free. Up to a year of FSD is available to you for free!
If you’d like to use my link: https://t.co/g00IX9OCE3 https://t.co/GFBzEO2jjS
— TESLARATI (@Teslarati) October 30, 2026
The previous program made it pretty difficult to get referrals; buying a vehicle is obviously a much larger financial strain than subscribing to Full Self-Driving for a month.
Of course, the previous Referral Program also offered a tangible benefit: $250 in credits you could use on Service, Supercharging, or anything in the Tesla Shop. It truly could pay for someone’s travel for a year. It recently bought me a new backpack and a T-shirt.
However, this new program is much more attainable for those who do not have a massive online presence of a slew of friends in the Tesla community who will use the code and max out subscriptions for vehicle purchases.
Woke up to maxed out Referrals! Thank you guys, that’s awesome!
Share your referral link below so others can use it! https://t.co/kesbwTcoTV
— TESLARATI (@Teslarati) October 30, 2026
The Full Self-Driving suite will now be the keystone of the Referral Program, which makes it more inclusive and more fun for everyone with an awesome benefit.
It also gives the impression that Tesla is truly focused on FSD subscriptions, something that saw a tremendous increase in volume in Q3, as 75 percent of deliveries for the quarter came with an FSD subscription attached.
Full Self-Driving data is so instrumental to the suite’s improvement that this kind of program benefits Tesla as much as it does the consumer.
Elon Musk calls Earth’s data centers “peanuts” next to what SpaceX is planning in orbit
SpaceX President to gift Trump Accounts her SpaceX stock
