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SpaceX separates Starship prototype’s nose and tail to install giant propellant tanks

The two halves of SpaceX's Starship prototype were separated on Tuesday, Jan 15 to allow for additional work. (NASASpaceflight - bocachicagal)

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After a handful of days as an impressive monolith stood along the coastal wetlands of Texas, SpaceX technicians have once again separated the nose and tail sections of the first Starship prototype to allow additional integration and assembly work to continue. The craft’s three Raptors were also removed and stored nearby, shown to be barebones facsimiles standing in for flightworthy hardware that could arrive in the next month or two.

Up next, three or four propellant tank domes – currently being assembled and welded together on-site – will likely be installed inside the steel hull of the giant Starship prototype’s aft barrel section. Known as bulkheads, the installation of those tank domes will bring SpaceX one step closer to performing hop tests of the simultaneously bizarre, confusing, and beautiful craft.

At this point in time, it appears that Starhopper is some odd combination of showmanship and actual hardware meant to test certain aspects of the first orbital Starship build, said to be complete as early as June 2019 by CEO Elon Musk. In the last week or so, SpaceX technicians attached and welded over Starhopper’s two sections – an aft barrel with legs and Raptors and a conical nose – and even did a sort of photoshoot, removing an on-site fence for a photo that Musk later shared while stating that the vehicle had “completed assembly”.

One could argue that assembly is not exactly complete if the given product has to be pulled in half to install significant new components. Regardless, the external skin, aft barrel section, and rough landing legs do appear to be more or less complete from a very basic structural perspective, although there is clearly much work still to be done if the vehicle’s tank bulkheads haven’t been installed. Aside from completing the liquid oxygen and methane tank structure, SpaceX engineers and technicians will additionally have to complete the vehicle’s aft section, a massive 9m/30ft-diameter thrust structure capable of supporting the thrust of three Raptor engines and the weight of the entire fueled rocket. After that, plumbing, avionics, sensors, attitude thrusters, and more will still need to be completed and integrated.

If Starhopper’s nose section is largely a nonfunctioning aerodynamic shroud and propellant tanks will be primarily located inside the aft section, the fuel and oxidizer capacities of the vehicle’s tanks can be roughly estimated. Assuming a 9m/30ft diameter, the aft barrel stands around 13m/43ft tall. Assuming that the upper tank dome will reach a meter or two above the steel cylinder and that the aft Raptor thrust structure is also roughly 1-2 meters deep, Starhopper would have a total tank volume around 830 m3 or almost 30,000 cubic feet (~225,000 gallons), potentially 1000 metric tons of fuel or more if fully loaded.

Perhaps less than coincidentally, SpaceX already has liquid methane and oxygen tanks on-site (one is pictured above) with more than enough capacity to meet Starhopper’s potential propellant needs. However, it’s worth noting that current plans (and permissions) only show Starhopper traveling as high as 5km on flights that will last no more than 6 minutes, and CEO Elon Musk has indicated in no uncertain terms that the prototype will remain distinctly suborbital and is primarily focused on fleshing out Starship’s vertical take-off or landing (VTOL) capabilities before SpaceX proceeds to much more aggressive tests.

While it would be safe to take his schedule with many dozens of grains of salt, Musk noted last week that the first orbit-ready Starship could be finished as early as June 2019, while he expects Starhopper tests to begin as early as February or March. Where exactly that orbital Starship and its Super Heavy booster partner will be built is now much less clear after SpaceX has reportedly canceled a berth lease and thus its plans to build a BFR factory in the Port of Los Angeles. Will SpaceX build a BFR factory in Texas or will it build the orbital Starship en plein air like its Starhopper predecessor? And Super Heavy? Where will all three conduct static fires, hops, or launches from?

Stay tuned as more details and photos continue to bubble up from beneath the surface.

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Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration

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Credit: CNBC

Tesla has finally clarified the situation regarding the viral crash in Texas where a Model 3 slammed into a home.

CEO Elon Musk replied to reports on Monday that stated the crash was due to the company’s Full Self-Driving or Autopilot suite, which seemed unlikely to those who are familiar with it. Video showed the car slamming into a house at an excessive rate of speed, making it highly unlikely the crash was due to the suite’s operation, as it does not travel at those speeds in residential areas.

Musk said:

“This makes no sense. FSD drives slowly through neighborhood streets, and this was a high-speed crash!”

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Tesla’s Head of AI, Ashok Elluswamy, added context, revealing that the company’s data shows the driver “manually overrode self-driving by pressing the accelerator all the way to 100%.”

He revealed the speed reached by the car was 73 MPH, and the accelerator was still pressed “even after the crash.”

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Authorities are reportedly investigating “whether Tesla’s Autopilot system played a role after a Model 3 left the roadway…slammed through a brick house at high speed and fatally struck Matha Avila as she sat inside,” the New York Post reported.

The National Highway Traffic Safety Administration (NHTSA) is now investigating the crash. Tesla will work with the agency to provide them with whatever information they need in order to clarify the cause of the crash.

Similarly, Tesla had claims of a fatal accident in Harris County, Texas, a few years ago. Early reports indicated that Full Self-Driving was the cause of the crash. After the National Transportation Safety Board (NTSB) worked with Tesla, the agency proved there was “no use of the Autopilot system at any time during this ownership period of the vehicle, including the time frame up to the last transmitted timestamp on April 17, 2021.”

Tesla alleged “driverless” crash in Texas: What is known so far

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“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws have default speed limits of 30 MPH in residential streets.

This appears to be a similar situation. However, an investigation will prove what happened for sure.

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Investor's Corner

SpaceX makes $20 billion move to optimize its balance sheet

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Credit: SpaceX

SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.

The company announced an offering of senior unsecured notes expected to raise at least $20 billion.

The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.

According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.

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The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.

SpaceX officially acquires xAI, merging rockets with AI expertise

In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.

The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.

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SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.

Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.

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Elon Musk

SpaceX confirms third massive compute deal at Colossus data center

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Credit: xAI Memphis

SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Tennessee.

Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.

CNBC first reported the deal.

This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.

SpaceX has previously signed significant compute deals with other major players.

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It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.

Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.

SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.

SpaceX makes first acquisition post-IPO

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These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.

Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.

The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.

For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.

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