News
SpaceX’s upgraded Starship set for test flight despite sore NASA contract losers
Within the last week, while SpaceX has been diligently working to ready an upgraded Starship prototype for its first launch, former competitors Blue Origin and Dynetics – both of which recently lost a historic NASA Moon lander contract to SpaceX – have filed “protests” and forced the space agency to freeze work (and funds).
That means that NASA is now legally unable to use funds or resources related to its Human Lander System (HLS) program or the $2.9 billion contract it awarded SpaceX on April 16th to develop a variant of Starship to return humanity to the Moon. However, just like SpaceX has already spent a great deal of its own time and money on Starship development and – more recently – a rapid-fire series of launches, the company appears to have no intention of letting sore losers hamper its rocket factory or test campaign.
Instead, on the same two days Blue Origin and Dynetics loudly filed official protests with the US Government Accountability Office (GAO), SpaceX performed two back-to-back static fire tests with a Starship prototype and Raptor engines outfitted with “hundreds of improvements.” Technical challenges and unsavory weather conditions forced SpaceX to call off a launch planned sometime last week but the company now appears to be on track to launch Starship prototype SN15 as early as Tuesday, May 4th.
In principle, the ability for companies to protest US government contracting decisions is a necessity and (nominally) a net good but it can easily be misused – and often in damaging ways. In the case of Blue Origin and Dynetics, it’s difficult not to perceive both protests as examples of the latter.
Blue Origin effectively disagrees with every single major point made and conclusion drawn by NASA’s Source Selection Authority (Kathy Lueders) and a separate panel of experts – often to the point that the company is strongly implying that it understands NASA’s contracting process better than the space agency itself. Blue Origin partners Northrop Grumman and Lockheed Martin are both partially or fully responsible for several of their own catastrophic acquisition boondoggles (F-35, Orion, SLS, James Webb Space Telescope, etc.) and are part of the military-industrial complex primarily responsible for turning US military and aerospace procurement into the quagmire of political interests, quasi-monopolies, and loopholes it is today.
The primary argument is generally shared by both protestors. In essence, Dynetics [p. 23; PDF] and Blue Origin [PDF] believe that it was unfair or improper for NASA to select just a single provider from the three companies or groups that competed. They argue that downselecting to one provider in lieu of budget shortfalls changed the procurement process and competition so much that NASA should have effectively called it quits and restarted the entire five-month process. Blue Origin and Dynetics also both imply that they were somehow blindsided by NASA’s concerns about a Congressional funding shortfall.
In reality, NASA could scarcely have been clearer that it was exceptionally sensitive about HLS funding and extremely motivated to attempt to return humans to the Moon by 2024 with or without the full support of Congress – albeit in fewer words. As Lueders herself noted in the HLS Option A award selection statement, the solicitation Blue, Dynetics, and SpaceX responded to states – word for word – that “the overall number of awards will be dependent upon funding availability and evaluation results.”
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Additionally, implications that NASA somehow blindsided offerors with its lack of funding are woefully ignorant at best and consciously disingenuous at worse. Anyone with even the slightest awareness of the history of large-scale NASA programs would know that the space agency’s budget is all but exclusively determined by Congress each year and liable to change just as frequently if political winds shift. Short of blackmailing members of Congress or wistfully hoping that other avenues of legal political influence and partnership actually lead to desired funding and priorities appearing in appropriations legislation, NASA knows the future of its budget about as well as anyone else with access to the internet and a rudimentary awareness of history and current events.
It became clear that Congress was likely to drastically underfund NASA’s HLS program as early as November 2020 – weeks before HLS Option A proposals were due. The latest appropriations bill was passed on January 3rd, 2021, providing NASA $850 million of the ~$3.4 billion it requested for HLS. Historically, NASA’s experience with the Commercial Crew Program – public knowledge available to anyone – likely made it clear to the agency that it could not trust Congress to fund its priorities in good faith when half a decade of drastic underfunding ultimately delayed the critical program by several years. That damage was done by merely halving NASA Commercial Crew budget request from 2010 to 2013, whereas Congress had already set itself on a path to provide barely a quarter of the HLS funds NASA asked for in the weeks before Moon lander proposals were due.
Ultimately, the protests filed by Blue Origin and Dynetics are packed to the brim with petty axe-grinding, attempts to paint SpaceX in a negative light, and a general lack of indication that either company is operating in good faith. Instead, their protests appear all but guaranteed to fail while simultaneously forcing NASA to freeze HLS work and delay related disbursements for up to 100 days. Given that SpaceX is now technically working to design, build, qualify, and fly an uncrewed Lunar Starship prototype by 2023 and a crewed demonstration landing by 2024, 100 days represents a full 7-10% of the time that’s available to complete that extraordinary task.
Ironically, the protests made by Blue Origin and Dynetics have already helped demonstrate why NASA’s decision – especially in light of unambiguous budgetary restrictions – to sole-source its HLS Moon lander contract to SpaceX was an astute one. Had a victorious Blue Origin or Dynetics been in a similar position to SpaceX, it’s almost impossible to imagine either team continuing work to a significant degree in lieu of NASA funding or direction. SpaceX, on the other hand, hasn’t missed a beat and looks set to continue Starship development, production, and testing around the clock regardless of NASA’s capacity to help.
In other words, with a little luck, the actual schedule impact of a maximum 100-day work and funding freeze should be a tiny fraction of what it could have been if NASA had selected an HLS provider more interested in profit margins and stock buybacks than creating a sustainable path for humanity’s expansion beyond Earth.
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Cybertruck
Tesla Cybertruck production snaps back after ugly supplier fight
Cybertrucks are piling up again at Giga Texas after Tesla’s court win against a parts supplier.
Cybertruck production at Giga Texas is showing its first visible recovery since Tesla sued a supplier last month over withheld manufacturing tooling.
Aerial observer Joe Tegtmeyer flew over the Austin factory Wednesday morning and counted roughly 100 or more Cybertrucks filling the outbound lot, a sharp jump from the thin numbers seen in recent weeks. The flyover came a day after a judge granted Tesla a temporary restraining order against Angstrom Automotive Group, the parts supplier at the center of the dispute.
Tesla filed an emergency lawsuit in late July after Angstrom told the automaker it planned to close the Troy, Texas facility where Tesla’s die-cast tools, trim dies and other Cybertruck stamping equipment were housed. According to Tesla’s complaint, a shipment of 700 finished parts never left the building, and when Tesla sent representatives to retrieve its equipment, accompanied by law enforcement, they were turned away. Angstrom allegedly then asked for an extra $250,000 a week to keep operating, which Tesla’s filing described as holding its own property for ransom.
TESLA: U.S. District Judge Christopher R. Wolfe of the U.S. District Court for the Western District of Texas, Waco Division granted Tesla a Temporary Restraining Order and Writ of Replevin in its dispute with Angstrom Automotive (Case No. 6:26-cv-00477).
The order authorizes… https://t.co/E1DKcQSxMn pic.twitter.com/LR8aAiV2Og
— S.E. Robinson, Jr. (@SERobinsonJr) August 5, 2026
The restraining order gives Tesla immediate right of entry to Angstrom’s facility to recover the tooling. It is temporary, with a fuller hearing still to come, but the speed of Wednesday’s rebound suggests the Angstrom shortage was indeed the main bottleneck limiting Cybertruck output. Outbound lot counts are an imperfect measure of actual production, since finished trucks can sit for days before shipping, but a lot that full after a lean stretch is a meaningful signal.
Cybertruck output at Giga Texas has fluctuated all year as Tesla worked through supply issues and introduced new trims, including a cheaper Dual Motor AWD version that drew strong early demand.
Elon Musk
Space finally faced the people living next to its next Terafab mega-project
SpaceX confirmed Terafab’s Grimes County site is locked in, with construction starting within months.
SpaceX and Terafab representatives sat across from Grimes County residents for the first time on Wednesday, telling a packed Commissioners Court room that the $55 billion chip manufacturing project is now a done deal at the Gibbons Creek Reservoir site.
The meeting followed a $10 million check SpaceX sent the county earlier this week, satisfying a payment deadline built into the tax abatement agreement both sides signed in June. Elon Musk shared a post on X confirming the payment, and County Judge Joe Fauth told the San Antonio Express-News his office deposited the check after it beat its deadline.
Wednesday’s session, first reported by KBTX, moved the project from paperwork to construction. Terafab representative Riley Trennell told residents the JETI tax break agreements with Iola ISD and Anderson-Shiro CISD are signed and active, and that civil work and foundation prep are starting almost immediately. Renderings of the facility could be released within days, he said, with construction beginning within months.
The foundations for an exciting future are being built in Texas. Next up: Terafab → https://t.co/jGg52Zhn5I pic.twitter.com/SNfSXNr2tb
— SpaceX (@SpaceX) August 6, 2026
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Musk first announced Terafab in March as a joint venture between Tesla, SpaceX and xAI aimed at producing over a terawatt of AI compute annually, an amount that dwarfs the roughly 20 gigawatts the entire global chip industry produces today. Intel joined as a manufacturing partner in April. Musk has said the project needed its own day in the spotlight rather than being squeezed into an earnings call, and for months the Grimes County site remained unconfirmed even as reporting pointed there.
SpaceX attorney Buck Brannon used Wednesday’s meeting to note that the company’s abatement is roughly 78 percent, not the 100 percent some earlier reports suggested. In exchange, SpaceX will pay Grimes County a fixed $20 million a year for 35 years, a total of $710 million, which Brannon said exceeds the $14 million Tesla paid Travis County in 2025.
SpaceX also addressed environmental concerns that have followed the project since Musk’s Terafab partnership with Intel was announced. Representatives said Terafab will not raise electric bills for other ratepayers, will not deplete local water supplies and will not draw down the Navasota River. SpaceX confirmed it owns the Navasota River pumping station, which it plans to use to divert stormwater into the Gibbons Creek Reservoir, and said it will build its own natural gas plants to power the facility rather than pulling from the ERCOT grid.
Grimes County commissioners also approved an addendum letting county employees use ten approved AI chatbots for work, including Grok.
Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
Tesla Cybertruck production snaps back after ugly supplier fight
Space finally faced the people living next to its next Terafab mega-project
