News
SpaceX scraps Florida Starship Mk2 prototype
SpaceX has scrapped the lone Starship prototype built in Florida in 2019, surprising very few.
Beginning a few months after work began on Starship Mk1 at SpaceX’s South Texas production facilities, a separate team in Cocoa, Florida was tasked with building a similar Starship Mk2 prototype. Not much is known about Mk2 relative to its much more publicized sibling but unofficial photos and videos taken over the course of 2019 suggested that SpaceX had effectively completed most of Starship Mk2 by the end of last year. However, built dozens of miles and several waterways away from a practical test facility, actually testing a Starship prototype assembled at SpaceX’s Cocoa facilities was always going to be an uphill battle.
To warrant the cost and effort that would be required to transport something as large as a vertical Starship from Cocoa, Florida to Cape Canaveral, Mk2 would have to be able offer something invaluable during testing. Now eight months after Starship Mk1 was destroyed during one of its first real tests, that was sadly not the case and SpaceX has chosen the simplest route forward – scrapping Mk2 where it sits.

In November 2019, SpaceX installed Starship Mk1 on a test stand in Boca Chica, Texas and began a series of tests. The ship passed an initial ambient temperature pressure test on the 18th but failed spectacularly during its first cryogenic proof test, said by SpaceX to have “pressurize[d] systems to the max.” Excluding Starhopper, Starship Mk1 was about as rough of a prototype as SpaceX could have feasibly built and the fact that it survived any length of time under cryogenic loads and pressures was fairly impressive.
Welded together almost entirely out in elements on the South Texas Gulf coast, the total success of Starship Mk1 (and its similar Mk2 sibling) would have flown in the face of almost every single tenet of modern aerospace production. As noted in a Teslarati article describing the Starship’s demise, the Mk1 production apparatus left plenty of room for improvement.
“[Videos of the failure implicated] the weld connecting the LOX dome to the cylindrical body of Starship’s LOX tank, pointing to a bad weld joint as the likeliest source of the failure. Although that hardware failure is unfortunate, Mk1’s loss will hopefully guide improvements in Starship’s design and manufacturing procedures.”
Teslarati.com — November 20th, 2019
That is precisely what SpaceX did – and was likely already doing – in response to Mk1’s failure. Just two months later, SpaceX successfully tested a steel Starship tank built in upgraded facilities with upgraded methods and reached pressures of 7.1 bar (~103 psi) before failing – likely a 50% improvement or better relative to Mk1. A second tank completed weeks later in late January 2020 reached 7.5 bar, sprung a leak, was repaired, and ultimately soared to 8.5 bar (~125 psi) before failing. Per CEO Elon Musk, that would technically be enough for a Starship to launch humans into orbit with an industry-standard ~40% safety factor.
Finally, SpaceX recently proved that a full-scale, two-tank Starship prototype built with the same methods and facilities as those test tanks could achieve the same results, completing a ~7.5 bar (~110 psi) cryogenic proof test with Starship SN4 on May 10th.
Long story short, the methods SpaceX used to build Starship Mk1 and Mk2 were already proven redundant more than six months ago and buried even deeper in May 2020. Aside from serving as a museum piece, Starship Mk2’s fate was sealed – the only real question was how and when it would be scrapped. For now, SpaceX’s Starship program will be almost exclusively stationed in South Texas, where it appears to be in good hands. Starship SN5 is currently expected to attempt its first wet dress rehearsal (WDR) and static fire tests no earlier than July 17th (today) at 8 am CDT (13:00 UTC).
Check out Teslarati’s Marketplace! We offer Tesla accessories, including for the Tesla Cybertruck and Tesla Model 3.
Elon Musk
Tesla’s secretive “Project Crystal Sun” gets a big green light in Texas
Fort Bend County approved four incentive agreements Thursday for Tesla’s proposed $10.1 billion solar factory.
Fort Bend County commissioners on Thursday approved a package of tax incentives for Tesla’s proposed $10.1 billion solar cell factory near Needville, Texas, giving the company one of the last local approvals it needs before it decides where to build. All four Tesla agreements passed 4 to 0.
The votes covered a property tax abatement inside Reinvestment Zone No. 34, a Chapter 381 economic development agreement, a foreign trade zone non-objection paired with payments in lieu of certain taxes, and a separate payment in lieu of taxes “true up” agreement, according to agenda notes from the Fort Bend Commissioners Court meeting.
The project, known internally as “Project Crystal Sun,” would make solar cells and finished modules on roughly 3,000 acres near FM 762 and FM 1994, south of the Brazos River. As Teslarati reported when the filing first surfaced in August, Tesla’s application under the state’s JETI Act splits the investment into $1.5 billion in real property and $8.6 billion in equipment, with 9,712 permanent jobs projected by 2033 and commercial operations targeted for the first quarter of 2029. The plant would handle the full chain from ingot and wafer production through cell testing.
Inside Tesla’s secretive $10 Billion “Project Crystal Sun” filing
Thursday’s approval does not lock in the site. Tesla has told the Texas Comptroller it is still weighing other locations, and site selection adviser David Dennison told Lamar Consolidated ISD trustees in September that the race had narrowed to Fort Bend and one out of state rival with a “very compelling package,” according to the Houston Chronicle. Tesla hopes to decide before the end of 2026, and the incentives still need sign off from the Comptroller and the Governor’s office.
Local officials have now done nearly everything within their control. Commissioners created the reinvestment zone in an August 24 special meeting, with Interim County Judge Daniel Wong formally withdrawing himself over his engineering firm’s past work with Tesla. Lamar CISD trustees voted 7 to 0 on September 15 to advance a JETI agreement that would tax Tesla’s qualifying property at 50 percent of its value for maintenance and operations from 2029 through 2038.
The plant lines up with a target Elon Musk set on Tesla’s Q4 2025 earnings call in January, when he said the company would “work toward getting 100 GW a year of solar cell production, integrating across the entire supply chain from raw materials all the way to finished solar panels.” In March, Tesla was reported to be negotiating a $2.9 billion purchase of Chinese solar manufacturing equipment bound for Texas. The Houston area already hosts Tesla’s Megafactory in Brookshire, where Megapack 3 production has started. Tesla said on its Q3 call that Megapack supply for 2027 is nearly sold out, and Musk wrote on X Thursday that the company is “increasing production of Megapacks as much as possible,” as demand from data centers climbs.
News
Tesla is building its own maps to fix Navigation issues
Tesla revealed plans to develop its own maps internally to fix Navigation issues and give owners more control over their routing.
On the company’s Q3 2026 Earnings Call, a question was asked about FSD Navigation issues, particularly speed limit recognition, parking, and routing. These are issues that surface from version to version and seem to be seriously challenging for Tesla’s AI team to resolve.
Tesla’s Head of AI, Ashok Elluswamy, said in response to the question:
“You’re totally right that we shouldn’t be depending on external people’s maps. So we are building our own maps, but not like the same way as OneMoreMap. We are building an entirely new architecture with essentially AI-based mapping and navigation.”
He continued:
“It’s going to be super awesome. It’s going to be integrated with voice. You can talk to it, ask for different routes. It’s going to learn your personalized preferences, plus the fleet preferences. The collective intelligence of all the cars is going to flow into making the maps and navigation super cool.”
Elluswamy said this issue should be confronted, and the mapping should be available for people by the time the v15 release starts deploying to customers.
“And over the next several months,” he added, “it’s just going to take over all of the navigation functions, parking, destination handling. And it will know you better than you know yourself in some regard for the driving task, and then handle it fully.”
Tesla Summon got insanely good in FSD v14.3.2 — Navigation? Not so much
Navigation is perhaps the most notable complaint with FSD, and although it has gotten better, it is still flawed. Much of the time, FSD will take people on routes that are not preferred by the driver, but Tesla tried to combat this with a routing feature in the Summer 2026 Update.
Tesla currently relies on Google for map data, but it is sort of counterintuitive to believe the company would rely on a third party for this. These improvements will be welcome, as routing and navigation have been such a pain point for so many owners for so long.
Quotes via Motley Fool
Elon Musk
Tesla buyers are buying for Full Self-Driving and not for the car, data shows
Tesla Full Self-Driving (Supervised) showed a record attach rate at delivery for new vehicles in the third quarter of 2026.
75 percent of new vehicle deliveries in North America included a subscription to FSD software, up from 55 percent in the prior quarter, a 20-percentage-point sequential gain in the company’s most mature market.
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
Tesla shed light on the Q3 Shareholder Deck that 75 percent of new deliveries came with an FSD subscription:
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets. “
The higher attach rate accompanied strong growth in the overall FSD consumer base, as active subscriptions rose to 1.75 million, a 67 percent year-over-year increase. For the first time, more than half of paid customers are on the monthly subscription, which is priced at $99 per month in the U.S.
People are buying FSD with a car attached, not the other way around
— Elon Musk (@elonmusk) October 21, 2026
The transition to subscriptions has accelerated since Tesla discontinued the one-time purchase option in most markets earlier this year. The recurring model improves revenue visibility and margins compared with large upfront payments. With three-quarters of North American deliveries now including FSD, the software is now an evidently large contributor to Tesla’s economics and ancillary revenue.
Geographic expansion remains important for further gains. FSD is now available in nine countries in the EU, and more than 100,000 customers have driven over 160 million kilometers. Tesla is pursuing broader EU-wide approval, with a related vote expected in December. Similar progress in additional markets could support higher attach rates beyond North America.
These results came as Tesla had a strong quarterly delivery performance of 486,532 vehicles in the quarter, which came with its largest passenger-vehicle backlog in four years. Battery supply continued to limit volume, but the company has pointed to FSD as a clear difference-maker that is helping sustain demand. As supervised capabilities improve, the attach rate will likely continue to improve.
At face value, it is a key measure of how Tesla is converting sales into autonomy progress.