News
SpaceX details plan to build Mars Base Alpha with reusable Starship rockets
For the first time, SpaceX has teamed up with researchers from NASA and several other US institutions to publicly discuss how it plans to use Starship to build Mars Base Alpha.
Save for a handful of comments spread around the periphery of SpaceX and CEO Elon Musk’s main focus, Starship itself, the company and its executives have almost never specifically discussed how the next-generation fully-reusable rocket will be used to create a permanent human presence on Mars. For the most part, that clear focus on near-term hurdles is hard to fault. Half a century of mostly theoretical analysis has made it abundantly clear that a permanent and sustainable extraterrestrial human outpost is impossible without a radical reduction in the cost of access to space. For decades, NASA has studied and studied and studied slight variations of a plan that would cost hundreds of billions of dollars to send a few astronauts to Mars for a few months at a time.
Put simply, without a revolution in space transport, even a temporary presence on Mars where inhabitants are mostly dependent on imported goods is infeasible unless Mars exploration is made a national or international priority on the order of tens of billions of dollars per year. Over the 80-90 years that spaceflight has been seriously pondered, dozens of groups and papers and studies and space agencies have imagined what that revolution might look like and SpaceX is not unique for proposing a solution to that longstanding problem. However, SpaceX is the first of that long list of contenders to propose a solution and both invest significant resources and put hammer to metal in an attempt to make that vision real.
Two years after SpaceX announced its intention to build that next-generation space transportation system, Musk revealed a radical design change and work on the first steel Starship prototypes began. Three years later, SpaceX has completed nine Starship test flights – four brief hops and five flights above 10 km (6 mi). In 2021 alone, SpaceX completed four of those high-altitude flight tests, recovered a high-altitude prototype intact for the first time, built the first orbital-class ship and booster prototypes, began testing that ship, and is nearly finished the first orbital Starship launch site from scratch. In April, SpaceX also secured a $2.9 billion NASA contract to build a human-rated Moon lander variant of Starship.
Put simply, SpaceX – and now NASA with it – has laid a sturdy foundation upon which Starship will almost certainly be realized. A great deal of work remains but SpaceX has more or less surmounted most of the major technical hurdles that towered over Starship/BFR/ITS just a few years ago. A wealth of Starship ground and flight tests have firmly demonstrated that the rocket’s structures, avionics, Raptor engines, exotic methods of descent and landing, and previously unflown fuel of choice are all ready for orbital flight. From then on, SpaceX will still need to prove out Starship’s massive, ceramic, non-ablative heat shield technology; mature orbital rocket refueling techniques and technologies; and finally operationalize all the above to make the rapid launch, reuse, and refueling of the largest rocket in history routine and mundane – something SpaceX has proven to be more than capable of with Dragon and Falcon.
How, then, will SpaceX proceed to the Red Planet?
Packing for Mars
With the help of coauthors from NASA Ames, SETI, and half a dozen prestigious US universities and institutes, SpaceX has begun to answer exactly that question in a 2021 whitepaper [PDF] submitted for the National Academies’ next Planetary Science and Astrobiology Decadal Survey. While that survey alone could influence NASA as the agency prepares to outline its next decade of space science and determine the ultimate destination of tens of billions of federal dollars, the consequences of which could be immense, SpaceX also used the paper to describe its plans for early missions to Mars in unprecedented detail.
As has always been the plan, SpaceX will begin the process of constructing sustainable cities on Mars with a few (relatively) simple steps. Likely as soon as the mid-2020s, SpaceX will begin launching uncrewed Starships to Mars to both verify the system’s maturity and readiness and “deliver significant quantities of cargo to the surface in advance of human arrival.” Likely leaning on a wide range of robotics, those early missions will help SpaceX characterize local resources, stage supplies, test technologies for long-duration Martian surface ops, and begin developing infrastructure – with a propellant plant likely the most pressing need. None of that is surprising. However, there’s more.
According to the authors, which include several current and former SpaceX engineers, “current SpaceX mission planning [tasks those early uncrewed Starships with delivering] equipment for increased power production, water extraction, LOX/methane production, pre-prepared landing pads, radiation shielding, dust control equipment, exterior shelters for humans and equipment, [and more – all hardware needed to support the first human base.]”
Further, confirming what’s been assumed to be the plan for years, “humans will likely live on [Starships] for the first few years until additional habitats are constructed” and “the first wave of uncrewed Starships can also be relocated and/or repurposed as needed to support the humans on the surface,” serving as “valuable assets for storage, habitation, [scientific laboratories], and a source of refined metal structures and resources.” The paper also states that “SpaceX is aggressively developing Starship to…conduct initial test flights to Mars…as soon as 2022 [or 2024]” and even raises the possibility of SpaceX launching the first Starship(s) to Mars before the rocket’s first lunar mission but then launching a separate lunar mission and landing a different Starship on the Moon while the Marsbound ship or ships are still in transit.
The whitepaper marks the first time that SpaceX (or those familiar with the company’s plans) has properly fleshed out the basics of its first crewed and uncrewed Starship missions to Mars and confirms a great deal of well-informed speculation. Namely, SpaceX appears to intend to pack even the very first Mars-bound ships with supplies. But even if they don’t bring much, the first Martian immigrants – launched in batches of “10-20 people” alongside “100+ metric tons” (~220,000+ lb) of cargo – will reuse all surviving Starships as pre-emplaced habitats, storage tanks, and raw material feedstock. Early cargo will focus on power, water, and propellant production, as well as shelters, radiation shielding, and the construction of prepared landing pads. Unsurprisngly, early residents will likely make the Starships that carry them to Mars their first homes on the surface of the Red Planet, taking advantage of an ~1100m³ (~39,000ft³) pressurized volume already outfitted to keep dozens of people alive and healthy in deep space for months at a time.
Tesla is bringing closure to its flagship Model S and Model X vehicles, which CEO Elon Musk said several years ago were only produced for “sentimental reasons.”
The Model S and Model X have been light contributors to Tesla’s delivery growth over the past few years, commonly contributing only a few percentage points toward the over 1.7 million cars the company has handed over to customers annually since 2022.
However, the Model S and Model X have remained in production because of their high-end performance and flagship status; they are truly two vehicles that are premium offerings and do not hold major weight toward Tesla’s future goals.
On Wednesday, during the Q4 2025 Earnings Call, Musk confirmed that Tesla would bring closure to the two models, ending their production and making way for the manufacturing efforts of the Optimus robot:
“It is time to bring the Model S and Model X programs to an end with an honorable discharge. It is time to bring the S/X programs to an end. It’s part of our overall shift to an autonomous future.”
Musk said the production lines that Tesla has for the Model S and Model X at the Fremont Factory in Northern California will be transitioned to Optimus production lines that will produce one million units per year.
Tesla Fremont Factory celebrates 15 years of electric vehicle production
Tesla will continue to service Model S and Model X vehicles, but it will officially stop deliveries of the cars in Q2, as inventory will be liquidated. When they’re gone, they’re gone.
BREAKING: Tesla will wind down Model S and Model X production next quarter, Elon Musk confirms.
“It is time to bring the Model S and Model X programs to an end with an honorable discharge.” pic.twitter.com/Czn7aQjJE1
— TESLARATI (@Teslarati) January 28, 2026
Tesla has been making moves to sunset the two vehicles for the better part of one year. Last July, it stopped taking any custom orders for vehicles in Europe, essentially pushing the idea that the program was coming to a close soon.
Musk said back in 2019:
“I mean, they’re very expensive, made in low volume. To be totally frank, we’re continuing to make them more for sentimental reasons than anything else. They’re really of minor importance to the future.”
That point is more relevant than ever as Tesla is ending the production of the cars to make way for Optimus, which will likely be Tesla’s biggest product in the coming years.
Musk added during the Earnings Call on Wednesday that he believes Optimus will be a major needle-mover of the United States’ GDP, as it will increase productivity and enable universal high income for humans.
Investor's Corner
LIVE BLOG: Tesla (TSLA) Q4 and FY 2025 earnings call
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter.
Tesla’s (NASDAQ:TSLA) earnings call follows the release of the company’s Q4 and full-year 2025 update letter, which was published on Tesla’s Investor Relations website after markets closed on January 28, 2025.
The results cap a quarter in which Tesla produced more than 434,000 vehicles, delivered over 418,000 vehicles, and deployed 14.2 GWh of energy storage products. For the full year, Tesla produced 1.65 million vehicles and delivered 1.63 million, while total energy storage deployments reached 46.7 GWh.
Tesla’s Q4 and FY 2025 Results
According to Tesla’s Q4 and FY 2025 Update Letter, the company posted GAAP earnings per share of $0.24 and non-GAAP EPS of $0.50 in the fourth quarter. Total revenue for Q4 came in at $24.901 billion, while GAAP net income was reported at $840 million.
For full-year 2025, Tesla reported GAAP EPS of $1.08 and non-GAAP EPS of $1.66 per share. Total revenue reached $94.83 billion, including $69.53 billion from automotive operations and $12.78 billion from the company’s energy generation and storage business. GAAP net income for the year totaled $3.79 billion.
Earnings call updates
The following are live updates from Tesla’s Q4 and FY 2025 earnings call. I will be updating this article in real time, so please keep refreshing the page to view the latest updates on this story.
16:25 CT – Good day to everyone, and welcome to another Tesla earnings call live blog. There’s a lot to unpack from Tesla’s Q4 and FY 2025 update letter, so I’m pretty sure this earnings call will be quite interesting.
16:30 CT – The Q4 and FY 2025 earnings call officially starts. IR exec Travis Axelrod opens the call. Elon and other executives are present.
16:30 CT – Elon makes his opening statement and explains why Tesla changed its mission to “Amazing Abundance.” “With the continued growth of AI and robotics, I think we’re headed towards a future of universal high income,” Musk said, adding that along the way, Tesla will still be improving its products while keeping the environment safe and healthy.
16:34 CT – Elon noted that the first steps for this future are happening this year, thanks to Tesla’s autonomy and robotics programs, which will be launching and ramping this year. He also highlighted that Tesla will be making major investments this year, though the company will be very strategic when it comes to its funding. “I think it makes a ton of strategic sense,” Musk said.
16:36 CT – Elon also announces the end of the Model S and Model X programs “with an honorable discharge.” If you’re interested in buying a Model S or X, it’s best to do it now, Musk said. The Model S and Model X factory in Fremont will be replaced by an Optimus line. “It’s slightly sad, but it is time to bring the S and X program to an end. It’s part of our overall shift to an autonomous future,” Musk said.
16:38 CT – Elon discusses how Unsupervised FSD is now starting for the Robotaxi service. He noted that these Unsupervised Robotaxis don’t have any chase cars as of yesterday. He reiterated Tesla’s plans for owners to be able to add their own vehicles to the Robotaxi fleet. Autonomy target for the end of the year is about a quarter or half of the United States, Musk said.
16:41 CT – Elon noted that the Tesla Energy team is absolutely killing it. He also stated that Tesla expects its Energy business to continue growing, and that the “solar opportunity is underrated.”
16:43 CT –Elon also added that Tesla Optimus 3 will be unveiled in about three months, probably. The Model S and Model X line in Fremont will be a million-unit Optimus production line. Looks like Optimus is really coming out of the gate with large, meaningful volumes. “The normal S curve for manufacturing ramps is longer for Optimus,” Musk stated. “Long term, I think Optimus will have a significant impact on the US GDP.”
16:44 CT – Elon closes his opening statements with a sincere thanks to the Tesla team. He also noted that he feels fortunate to be able to work alongside such a talented workforce.
Elon ends his opening remarks with an optimistic prediction about the future.“The future is more exciting than you can imagine,” he concluded.
16:47 CT – Tesla CFO Vaibhav Taneja makes his opening remarks. He discusses several aspects of Tesla’s Q4 milestones. He noted that Tesla Energy achieved yet another gross profit record during the fourth quarter. There’s insane demand for the Megapack and Powerwall. Backlogs for these products are healthy this 2026. He also noted that Tesla ended 2025 with a bigger vehicle order backlog compared to recent years.
16:53 CT – Investor questions from Say begin. The first question is about Tesla’s expectations for the Robotaxi Network. Lars Moravy noted that it has the advantage of manufacturing and scale, and Tesla believes that the Robotaxi Network will significantly grow year over year. Elon highlighted that the Cybercab will be produced with no steering wheel or pedals. No fallback. Elon also noted that Tesla expects to produce more Cybercabs than all its other vehicles combined in the future.
16:51 CT – The next question is if Tesla still expects to launch new models, such as affordable cars. Lars Moravy noted that Tesla did release affordable variants last year, and Tesla is still pushing hard to lower its costs. That being said, Tesla is really pushing the Cybercab as its total addressable market is larger than consumer-owned cars. Lars also mentioned that Tesla will produce different vehicles for its Robotaxi services.
16:56 CT – Elon noted that eventually, Tesla will produce mostly autonomous cars. The exception would be the next-generation Roadster, which will be a true driver’s car.
17:03 CT – A question about Elon’s past comments about a potential next pickup truck was asked. Lars noted that the Cybertruck is still performing well in the electric pickup truck segment, though Tesla is known for flexibility. Elon added that Tesla will be transitioning the Cybertruck line to a fully autonomous vehicle line. He also stated that the Cybertruck is a useful vehicle. “An autonomous Cybertruck will be useful for that.”
17:10 CT – A question was asked about when FSD will be 100% Unsupervised. Elon noted that 100% Unsupervised FSD is already being used today, though only in the Austin Robotaxi program. Tesla is still being extremely careful with its rollout.
When asked about Tesla’s chip program, Elon noted that he feels pretty good about Tesla’s chip strategy. But in terms of selling Tesla’s chips outside Tesla, the company has to make sure it has enough chips for Optimus robots, data centers, and other programs first.
17:18 CT – Analyst questions begin. First up is Wolf Research. He asks about Tesla’s increasing Capex, specifically where the majority of it is going. The Tesla CFO noted that programs in six factories are going live this year, so that consumes Capex. The Optimus program also consumes a lot of resources. The growth of Tesla’s current capacity is also consuming a lot of resources. As for how these programs will be funded, the CFO pointed to Tesla’s massive war chest, as well as initiatives such as the Robotaxi Network.
17:21 CT – Morgan Stanley asks about Tesla’s xAI investment. The analyst asked about more information about how Tesla and xAI will work together. The CFO noted that this investment is part of Master Plan Part IV. Elon also mentioned some advantages for xAI’s technology for Tesla’s products, like Grok being used to manage a Robotaxi fleet or a group of Optimus robots.
17:24 CT – Barclays asks Elon about the constraints on memory. Does Tesla have any near term constraints for Tesla vehicles’ memory? Elon responded that the Tesla AI computer is already very compute and memory-efficient. The intelligence per gigabyte is important. Musk noted that Tesla is ahead of the industry by an order of magnitude or more.
17:29 CT – Cannacord asks about startups from China entering the humanoid market. What competitive advantage does Optimus have compared to these rivals? Elon stated that he believes China will be a key competitor in the humanoid robot market. China will be the toughest competitor for Tesla. That being said, Elon noted that Tesla believes Optimus will be ahead in real-world intelligence, electromechanical dexterity, and hand design.
News
Tesla announces massive investment into xAI
“On January 16, 2026, Tesla entered into an agreement to invest approximately $2 billion to acquire shares of Series E Preferred Stock of xAI as part of their recent publicly-disclosed financing round,” it said.
Tesla has announced a major development in its ventures outside of electric vehicles, as it confirmed today that it invested $2 billion into xAI on January 16.
The move is significant, as it marks the acquisition of shares of Series E Preferred Stock, executed on market terms alongside other investors. The company officially announced it in its Q4 2025 Shareholder Deck, which was released at market close on Wednesday.
The investment follows shareholder approval in 2025 for potential equity stakes in xAI and echoes SpaceX’s earlier $2 billion contribution to xAI’s $10 billion fundraising round.
Tesla said that, earlier this month, it entered an agreement to invest $2 billion to acquire shares of Series E Preferred Stock of xAI:
“Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round. As set forth… pic.twitter.com/HgtrcHdB2U
— TESLARATI (@Teslarati) January 28, 2026
CEO Elon Musk, who is behind both companies, is now weaving what appears to be an even tighter ecosystem among his ventures, blending Tesla’s hardware prowess with xAI’s cutting-edge AI models, like Grok.
Tesla confirmed the investment in a statement in its Shareholder Deck:
“On January 16, 2026, Tesla entered into an agreement to invest approximately $2 billion to acquire shares of Series E Preferred Stock of xAI as part of their recent publicly-disclosed financing round. Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round. As set forth in Master Plan Part IV, Tesla is building products and services that bring AI into the physical world. Meanwhile, xAI is developing leading digital AI products and services, such as its large language model (Grok).”
It continued:
“In that context, and as part of Tesla’s broader strategy under Master Plan Part IV, Tesla and xAI also entered into a framework agreement in connection with the investment. Among other things, the framework agreement builds upon the existing relationship between Tesla and xAI by providing a framework for evaluating potential AI collaborations between the companies. Together, the investment and the related framework agreement are intended to enhance Tesla’s ability to develop and deploy AI products and services into the physical world at scale. This investment is subject to customary regulatory conditions with the expectation to close in Q1’2026.”
The history of the partnership traces back to xAI’s founding in July 2023, as Musk launched the company as a counterweight to dominant AI players like OpenAI and Google.
xAI aimed to “understand the true nature of the universe” through unbiased, truth-seeking AI. Tesla, meanwhile, has long invested in AI for its Full Self-Driving (FSD) software and Optimus robots, training models on vast datasets from its vehicle fleet.
The investment holds profound significance for both companies.
For Tesla, it accelerates its Master Plan Part IV, which envisions AI-driven autonomy in vehicles and humanoid robots. xAI’s Grok could enhance Tesla’s real-world AI applications, from optimizing battery management to predictive maintenance, potentially giving Tesla an edge over its biggest rivals, like Waymo.
Investors, on the other hand, stand to gain from this symbiosis. Tesla Shareholders may see boosted stock value through AI innovations, with analysts projecting enhanced margins and significant future growth in robotics. xAI’s valuation could soar, attracting more capital.
Tesla brings closure to flagship ‘sentimental’ models, Musk confirms
LIVE BLOG: Tesla (TSLA) Q4 and FY 2025 earnings call
