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SpaceX’s first Starship hop on hold for historic Crew Dragon astronaut launch
SpaceX CEO Elon Musk says that he’s “redirected SpaceX’s priorities” to be almost entirely focused on Crew Dragon’s imminent astronaut launch debut, delaying Starship’s own hop test debut by at least a week or two as a result.
As of now, SpaceX’s Crew Dragon spacecraft remains on track to lift off with NASA astronauts for the first time ever at 4:33 pm EDT (20:33 UTC) on Wednesday, May 27th. Known as Demonstration Mission 2 (Demo-2), it will be Crew Dragon’s second orbital launch, third launch on a Falcon 9 rocket, and – most importantly – the United States’ first domestic astronaut launch in almost a decade. Although NASA has still managed to maintain a continuous presence at the International Space Station over the last nine years by paying Russia’s space agency more than $4 billion for roughly six dozen seats on Soyuz spacecraft, Demo-2 will be NASA’s first astronaut launch from the US since June 2011.
Built entirely by SpaceX with funds awarded by NASA, the company’s Crew Dragon spacecraft and Falcon 9 rocket will effectively singlehandedly return the United States’ ability to launch its own astronauts. Funded along with Boeing to ensure that NASA has two redundant spacecraft available, the latter company’s Starliner spacecraft has run into extensive delays after its orbital flight test (OFT) uncovered dangerously shoddy software and quality control. If Boeing is lucky, NASA might clear Starliner for its own crewed flight test (CFT, equivalent to Crew Dragon Demo-2) in the first half of 2021. As a result, a vast amount of pressure is on SpaceX’s shoulders to successfully launch astronauts for the first time ever just a few days from now.
Of course, SpaceX is not unilaterally focused on Crew Dragon or its inaugural astronaut launch, even if it might be the single most important mission in the company’s 18 years of operation. For a company as large as SpaceX, it’s simply not practical or valuable to have every single employee working on one project, while having too many people on a given project would also likely be to its detriment. Nevertheless, Musk – in an interview with Aviation Week’s Irene Klotz – stated that he’d redirected SpaceX’s priorities to be “very focused” on Demo-2.
Aside from Crew Dragon Demo-2, SpaceX operates a Starlink satellite factory near Seattle, builds and assembles all aspects of Falcon rockets and Dragon spacecraft at its Hawthorne, CA headquarters, tests those rockets and spacecraft in McGregor, Texas development facilities, and builds, tests, and flies Starship prototypes in Boca Chica, Texas. (The company has many, many other operations around the US but the list above at least covers the bulk of the company’s workforce.)
Those myriad programs can’t simply freeze operations without catastrophically impacting future plans and schedules, meaning that Musk’s “redirection” is likely more an effort to keep the public focus on Crew Dragon, versus actually retasking thousands of employees to do work that probably doesn’t (but might) exist. Still, the company has definitely taken some real steps to stay laser-focused on Crew Dragon where practical.
Most notably, SpaceX has already indefinitely delayed its eight launch of 60 Starlink communications satellites, previously scheduled to lift off no earlier than (NET) May 19th. Now, Musk says that SpaceX has also decided to delay the first flight test of a full-scale Starship prototype until after Demo-2 successfully launches, implying that the company could have potentially launched Starship SN4 for the first time later this week.
In fact, SpaceX has three Starlink launches – including the mission delayed from May – now scheduled in June 2020, as well as Falcon 9’s second US military GPS III satellite launch at the end of the month. It’s unclear whether SpaceX will retest Starship SN4 after its off-nominal May 19th Raptor test or move directly into flight test operations, but its next South Texas test period has windows on May 28th, May 29th, and June 1st. In short, the next ~5 weeks are set to be a wild ride for SpaceX, to put it mildly.
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Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
A Tesla analyst believes the company’s Full Self-Driving suite is close to an “inflection point,” where people will finally realize that it is more than what it appears, similar to how many view the iPhone.
Pierre Ferragu, an analyst who has covered Tesla for many years at New Street Research, says the Full Self-Driving suite is one piece of evidence supporting the view that a Tesla is more than a car. He compared it to the iPhone and noted that the high price tag seemed like a lot for a phone early on. Then people realized the iPhone was more than just something you make calls with. It made their lives simpler.
🚨 Analyst @p_ferragu says Tesla Full Self-Driving is at an “inflection point” in a recent commentary:
“A Tesla is not a car, the same way an iPhone was not a phone. As a tool that gets you to work peacefully every morning, it is not expensive. Give us 2 more quarters to see… pic.twitter.com/tm6xFrjVPV
— TESLARATI (@Teslarati) July 10, 2026
Suddenly, that price tag was justified.
Tesla offers several models under the average transaction price for a new vehicle, which was above $49,000, according to Kelley Blue Book. However, that does not take into account that many people can still not afford a $35,000 vehicle. Ferragu offers his thoughts:
“Remember when the addressable market of the iPhone was 10 million units? Then people realized how good it was, and now, nearly 250m are sold every year.
A similar evolution for Tesla is still on the table. A Tesla is not a car, the same way an iPhone was not a phone.
A model 3 at $35k + $100 per month is too expensive for most, but only as a car, the same way a $600 iPhone was too expensive for most, until most realized it was much more than a phone.
As a tool that gets you to work peacefully every morning, it is not expensive.”
This point is valid, especially considering the iPhone’s impact on the cell phone market. There are still a handful of players, but most people you know have an iPhone. The iPhone ties into Apple’s other ecosystem of products.
This is how Tesla plans to infiltrate the automotive market, and once the company offers a fully autonomous suite, or something that can allow for unsupervised self-driving, more and more people will flock to Tesla.
Ferragu believes Tesla needs two additional quarters of development before things will truly change. He didn’t elaborate on what will happen in two quarters, but he said it will give us all time to “see where this is heading.”
It is really quite interesting to see people’s reactions when they find out what a Tesla is capable of. Full Self-Driving is a great tool for taking stress out of travel; I use it daily, and it has made it really difficult to consider taking any other car on a drive of practically any length.
To me, it is really hard to believe that people will not at least seriously consider a Tesla as their next car if they experience Full Self-Driving. This is a major point for those who argue that Tesla should advertise in some way.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Elon Musk admits he was ‘clearly wrong’ about Anthropic
