SpaceX CEO Elon Musk says that the company could eventually develop an expendable version of its next-generation Starship rocket.
Starship is extraordinarily ambitious. Even before considering the unproven concepts of orbital propellant refilling and full, rapid reusability that are central to the full system, Starship is a beast. The rocket measures 120 meters (~390 ft) tall and is theoretically capable of producing up to 7590 tons (~16.7M lbf) of thrust at sea level. It’s larger, taller, heavier, and more powerful than any other launch vehicle in history. 33 Raptor 2 engines power Starship’s Super Heavy booster – also more than any other rocket.
Once optimized, SpaceX says that Starship can launch up to 150 tons (330,000 lbs) to low Earth orbit while still recovering the orbital ship and suborbital booster for reuse. CEO Elon Musk has stated that Starship reuse will eventually take hours, enabling multiple flights per day for each ship and booster and dropping the marginal cost of each launch to just a few million dollars.
In comparison, SpaceX’s workhorse Falcon 9 rocket uses simpler Merlin 1D engines, has just 10 of those engines to Starship’s 39 Raptors, produces about 10 times less thrust at liftoff, and can launch about 11% as much payload to orbit while expending its upper stage. Even then, Musk reported in mid-2020 that the marginal cost of a Falcon 9 launch was $15 million – impressively low but still a vivid demonstration of just how far Starship has to go.
The update that's rolling out to the fleet makes full use of the front and rear steering travel to minimize turning circle. In this case a reduction of 1.6 feet just over the air— Wes (@wmorrill3) April 16, 2024
Simply ensuring that Starship can reach orbit at all is a major challenge. Successfully recovering Starship and Super Heavy after the fact may be an even bigger challenge and cannot be fully demonstrated until the rocket can consistently reach orbit. SpaceX won’t be able to reuse Starship until it can consistently recover ships and boosters from orbital launches. And there’s no guarantee that early prototypes will be reusable even if they’re recovered.
Until reusability is demonstrated, every “Starship upper stage” will be functionally expendable whether or not Elon Musk wants it to be. Musk likely means that SpaceX may or may not decide to develop a Starship upper stage custom-built for expendable missions. Such a stage would likely take Starship, remove everything extraneous, and reduce its mass as much as possible. Musk has proposed something similar before, noting that SpaceX could develop a “lightened” version of Starship “with no heat shield or fins/legs” for expendable, interplanetary launches.
Further to the contrary, SpaceX’s Starbase factory is already building multiple intentionally-expendable Starships. Ship 26 and Ship 27 feature no thermal protection, have no heat shield tiles, and will not be fitted with flaps, making them impossible to recover or reuse. More likely than not, they will be used to test other crucial Starship technologies like orbital refilling and cryogenic fluid management.
Meanwhile, SpaceX’s multibillion-dollar contract to use Starship to return NASA astronauts to the Moon revolves around a depot ship variant that will store propellant in orbit and cannot return to Earth. The first few Starship Moon landers may also be functionally expendable and only used for one astronaut landing apiece. In short, SpaceX already has extensive plans to build variants of Starship that are either fully expendable or can only be reused in orbit.
Single-use Starships
In early 2023, SpaceX updated the Starship section of its website, revealing that an expendable version of the rocket will be able to launch up to 250 metric tons (~550,000 lbs) to low Earth orbit in a single launch. Saturn V, the next most capable expendable rocket, could launch up to 118 tons (~260,000 lbs) to LEO and cost $1-2 billion per launch. SpaceX publicly advertising the expendable performance of Starship unsurprisingly confirms that the company is considering all of the capabilities its new launch system will offer.
And Starship’s expendable capabilities are significant. Constructed piece by piece over dozens of launches, the International Space Station weighs about 420 tons (~925,000 lbs). Two expendable Starships could launch more usable mass to LEO – truly revolutionary if SpaceX can make Starship launches frequent and routine.
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
