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SpaceX’s Starship explosion explained by Elon Musk
Shortly after a briefing following SpaceX’s flawless astronaut launch debut, CEO Elon Musk casually revealed the best explanation yet for why a Starship prototype violently exploded during testing on May 29th.
On that fated Saturday, SpaceX successfully completed the fifth static fire of a Raptor engine installed on a full-scale Starship prototype, preceded by about an hour and a half of vehicle checks and propellant loading. Unfortunately, around a minute after Raptor shut down, what was quickly identified as liquid methane began spurting out of a specific section at the base of Starship, rapidly creating a massive cloud as the cryogenic propellant boiled and turned into gas. The specific source is unclear but moments later, something under Starship SN4 provided the shock or spark needed to ignite the expanding fire hazard, producing a spectacularly large and violent explosion.
Unsurprisingly, the accidental fuel-air explosion that was created obliterated Starship SN4 in the blink of an eye, shredding its lower (liquid oxygen) tank into steel confetti and immediately breaching the upper (liquid methane) tank, which fell to the ground and subsequently exploded again. The launch mount Starship was staged on was also damaged beyond repair and has been fully dismantled and scrapped in the two days since the anomaly. Thankfully, however, SpaceX already has replacement mounts and ships well on their way to carrying Starship SN4’s torch forward and Elon Musk already seems to understand what caused the prototype’s demise.
Shortly after a post-launch briefing celebrating and discussing SpaceX’s inaugural astronaut launch on May 30th, Reuters reporter Joey Roulette was able to ask Musk about Starship SN4’s spectacular demise the day prior. The SpaceX CEO was quoted saying that “what we thought was going to be a minor test of a quick disconnect ended up being a big problem”, confirming suspicions based on careful analysis of public views of the explosion that it was caused by issues with Starship’s ground support equipment (GSE).
In Musk’s statement, “quick disconnect” (QD) refers to an umbilical port that connects a launch vehicle to GSE, enabling the loading and offloading of propellant and fluids, clamping down the rocket, and providing a wired telemetry and communications link for ground controllers. QDs must perform all those tasks while also being able to rapidly release and disconnect, allowing the rocket to lift off while still protecting its sensitive ports for ease of reuse.
In theory, Starship’s quick-disconnect umbilical panel is even more complex, as it will have to simultaneously enable the ship to be fueled and controlled while sitting on top of a Super Heavy booster and permit in-orbit docking and refueling. Given that Starships are currently being tested independently on spartan launch mounts, it’s unclear if the current generation of prototypes has been outfitted with advanced QD panels. More likely, Musk was referring to a test of a less advanced QD panel similar to the rough version used on Starhopper last year, and SpaceX simply wanted to test its ability to disconnect and reconnect to Starship on command.
If that’s the case, the likeliest explanation for SN4’s explosion is that that quick disconnect was unable to fully reconnect after the test, resulting in a leak from the liquid methane port when SpaceX began to detank the rocket. Instead of the highly-pressurized fluid flowing smoothly back to ground storage tanks, the liquid methane sprayed wildly, akin to the effect one might observe when attempting to block off an active water source with an open palm.
Compared to the many possible ways a fueled Starship could fail, a propellant leak started by a faulty umbilical panel is about as convenient as they come. Starship SN4 may have been violently destroyed as a result, turning a relatively small error into exceptionally painful lesson but SpaceX has already had some success building full-scale prototypes at an almost unbelievably low cost – likely less than $10M apiece. Starship SN5 appears to be just shy of ready to take SN4’s place on the launch mount, although SpaceX will have to build an entirely new launch mount before it can resume testing.
At the same time, Starship SN5’s successor – SN6 – is just one stacking event away from reaching a level of completion similar to SN4 and SN5. All told, Starship SN4’s demise is just another part of the process of developing a new kind of rocket by building and testing hardware – failure can be a valuable tool when managed properly. Based on past observations, SpaceX could be ready to continue testing (and hopefully flying) Starship prototypes before the end of the month.
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Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla is going to let you guide Full Self-Driving with Grok in 3 months, CEO Elon Musk confirmed on X.
The response from Musk, which revealed Tesla plans to allow drivers to effectively control the car and its navigation more explicitly using Grok, puts the feature for about September.
A Tesla owner said that Full Self-Driving is great, but owners should be able to “converse with Grok like we can with an Uber driver.” She then used examples like, “Grok, turn right here,” and “Drop us off right here, we’ll walk due to traffic,” and finally,” Drop at entrance first, then park far away.”
Coincidentally, the final piece of dialogue would also mean features like Banish are potentially on the way soon.
This functionality will be there in about 3 months or so
— Elon Musk (@elonmusk) June 18, 2026
Banish is also referred to as “Reverse Summon,” and would enable the car to self-park while dropping occupants off at their destination.
This would be a great way to improve the overall experience while supervising FSD. Navigation is already a major painpoint that many owners complain about. Manual overrides when a maneuver is requested or canceled (like using the turn signal stalk to override a navigation route), do not always work.
The feature could be especially useful in street parking scenarios in a city, where spots are sometimes tough to come by. Many of us who grab dinner in a more populated area will park a street or two over from wherever we’re going, because sometimes you know that’s the best you will get. If a driver using FSD could say, “Hey Grok, turn right here on Queen St. and park in that open spot on the right,” it could save a lot of confusion FSD might have on its own.
Musk teased that a similar feature was “coming” back in February:
Tesla Full Self-Driving set to get an awesome new feature, Elon Musk says
It is certainly surprising that Tesla is doing it at this point. The company’s more recent moves have been more evident of taking control and inputs away from humans and putting them in the AI’s hands more frequently. The biggest example of this was taking away Max Speed in AI4 cars, giving us Speed Profiles, and not having any input on the fastest speed the car will travel.
Of course, giving navigation preferences to Grok is availble already in Teslas, but not at the drop of a hat. Instead, you can suggest a certain route at the beginning of your drive.
Here’s an example of that from December:
🚨🏈 I am taking my parents and Fiancee to the @Ravens game next weekend and asked @Grok to help me route my @Tesla through a specific neighborhood to reach the correct Lot we will park in.
This is a great example of the new @grok nav integration with the Tesla Holiday Update: pic.twitter.com/rPp4I7q8Yv
— TESLARATI (@Teslarati) December 13, 2025
Finally, the original post that Musk responded to mentioned a parking preference after dropping off the occupants, which describes the Banish feature that Tesla has teased for years.
We’re not sure if Musk was responding more to the ability to guide the car with Grok, or whether he also was including Banish in the three-month prediction timeframe.
Elon Musk challenges Tesla credit rating from Moody’s after SpaceX gets a higher one
Tesla faces Full Self-Driving pushback in EU over ‘speeding’
