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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
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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 has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
SpaceX has solved Starship’s biggest challenge, Elon Musk says
SpaceX is coming for wireless giants with Starlink Mobile
