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SpaceX Starship Mk1’s most important tests yet could begin just hours from now
SpaceX’s South Texas Starship Mk1 prototype is on the verge of kicking off a critical period of ground tests, ranging from tank pressurization and propellant loading to the rocket’s first triple-Raptor engine static fire. The campaign could begin soon – perhaps as soon as later today, in fact.
Over the last two weeks, SpaceX’s South Texas team has faced bad winter weather, among the many other challenges associated with building giant rockets almost entirely out in the elements. Nevertheless, company technicians and engineers continue to check off task after task along the path towards Starship Mk1 completion, the next-generation launch vehicle’s first full-scale, high-fidelity prototype.
In the month of November alone, SpaceX has (re)installed Starship Mk1’s nose and aft section flaps (this time outfitted with heavy-duty actuator mechanisms), nearly completed the process of routing and integrating the vehicle’s external liquid and gas plumbing, and more or less finished a barebones launch mount. Starship Mk1 was snugly attached atop that launch mount around the start of the month and workers have continuously swarmed around the rocket and pad in scissor and boom lifts and ever since, closing out umbilical connections, insulating cryogenic propellant pipes, and much, much more.
Within the last week or so, SpaceX has apparently also begun the process of expanding its presence around its existing Boca Chica pad facilities, where Starship Mk1 is preparing for testing. The purpose of that expansion is unclear, but the first phase – extending the existing square landing pad – is essentially complete and will presumably give Starship Mk1 a better chance of successfully landing in the event that its first skydiver-style landing attempt is not as accurate as predicted.
Based on official renders/mockups in SpaceX’s updated 2019 launch animation, it could also eventually become the foundation of a much more permanent integration and processing hangar, much like the hangars that SpaceX uses to integrate Falcon 9 and Heavy at its Florida and California launch sites. It could even be the foundation for a dramatically larger Super Heavy-class launch mount and water-cooled flame deflector like the one shown in that same video. For now, Starship Mk1 will begin testing (and presumably first flights) off of a minimal steel mount that was built up from almost nothing in barely two months.
No nose, no problem?
As previously discussed on Teslarati, the testing Starship Mk1 is preparing for could take a number of routes to completion, but all of those routes will likely involve several main events. First, SpaceX may or may not decide to do a preliminary tank proof test with neutral (i.e. non-explosive) liquid nitrogen, which would verify the structural integrity and determine if there are leaks in what is essentially a building-sized pressure vessel.
SpaceX may instead skip that – it would require a vast and unwieldy quantity of liquid nitrogen – and move directly into the first cryogenic propellant loading test, in which SpaceX would attempt to fully fill Starship’s tanks with liquid oxygen and liquid methane. Assuming Starship Mk1 is 1:1 scale, that could involve as much as 1200 metric tons (2,650,000 lbs) of propellant, more than twice as much fuel as a Falcon 9.
In other words, Starship’s inaugural propellant loading attempt will be almost at the same scale as Falcon Heavy’s, which took several attempts, broke some hardware, and was a major learning experience and challenge on its own. A structural failure or explosion could be absolutely catastrophic, as those ~1200 tons of fuel and oxidizer could act as a massive bomb under the right conditions.
According to road closure notices published by Cameron County, SpaceX is expected to begin operations that require road closures as early as November 18th from noon to 8 pm CST, with backups on the 19th and 20th. Another window opens on the 25th at the same time, with backups on the 26th and 27th. To be clear, there is no official word that SpaceX actually means to start cryogenic ground testing with Starship Mk1 today, but it’s not necessarily out of the question.
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Whenever SpaceX does decide to start Starship Mk1 ground testing, it will be an immensely important milestone, signifying the start of the period that will essentially determine whether SpaceX’s deeply unusual manufacturing methods can build a structurally-sound, high-performance rocket prototype for pennies on the dollar. In simple terms, if Starship Mk1 behaves as planned, commercial spaceflight may never be the same.
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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.
Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
SpaceX and Nvidia team up on Musk’s orbital AI bet
