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[Update: not so fast…] SpaceX retires brand new Starship to focus on orbital launch buildup

SpaceX's Boca Chica 'rocket garden' now has two fully-assembled Starships to call its own after a second early retirement. (NASASpaceflight - Jack Beyer)

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SpaceX has moved its newest finished Starship straight from its Boca Chica, Texas factory to a nearby ‘rocket garden,’ all but guaranteeing an early retirement.

Built as the first of several planned backups to Starship SN15, which debuted a number of significant upgrades in April and May, it appears that Starship serial number 16 (SN16) has been retired to a display stand after its only sibling became the first full-size prototype to successfully survive a launch and landing on May 5th. SN16 actually reached its full height before SN15 lifted off and was more or less complete by May 10th. Since then, the prototype has remaining more or less untouched, seemingly waiting for SpaceX to decide its fate in lieu of Starship SN15’s major success.

Ultimately, with SN16 now sitting side by side with SN15 at what will likely become a sort of open-air SpaceX museum, it appears that the company has made up its mind.

Once SN15 touched down, safed itself, and remained standing after a near-flawless 10 km (6.2 mi) test flight, questions about Starship SN16’s fate almost immediately arose. From the outside looking in, replicating that spectacular success was judged a logical next step by many in light of the four variously unsuccessful Starship launches that closely preceded it. If SpaceX could land SN15 and then successfully recover an entirely separate Starship weeks later, it would all but eliminate the possibility that – much like several different failure modes popped up on SN8 through SN11 – the first total success was a fluke.

Given that SN16 was quite literally completed within days of SN15’s launch and landing, it seemed an almost foregone conclusion that SN16 would fly. For a few weeks, it even looked possible that SpaceX would attempt to reuse Starship SN15. However, SpaceX appeared to decide against reuse and rolled its first flight-proven full-size Starship from the pad to a plot of land expected to host a future ‘garden’ for retired SpaceX rockets.

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After its three intact flight-proven Raptor engines – valuable in their own right – were removed, Starship SN15 was seemingly retired around May 26th. Three weeks later, SN16 has (quite literally, to an extent) followed in SN15’s footsteps, bowing to an apparently virulent desire within (or at least atop) SpaceX to launch Starship into space and orbit as quickly as possible. From that perspective, assuming enough data was gathered by Starship SN15 to encourage significant confidence that its survival wasn’t an ‘accidental success,’ reusing Starship SN15 or flying Starship SN16 would only really benefit a line of prototypes that had just made itself obsolete.

Much like Starship SN15 debuted “hundreds of improvements” across the board, CEO Elon Musk revealed that Starship SN20 would also involve a “major technology [revision]” to produce the first prototypes with full heat shields, a stage separation mechanism, vacuum-optimized Raptor engines, and more. In fact, that process may still be ongoing, which could explain why SpaceX has yet to begin assembling Starship SN20 – various subsections and components of which have already been completed in Boca Chica.

Confirmed by Musk in March, SpaceX has been working towards a target of no later than July 2021 for Starship’s first orbital test flight. Given that Starship SN20 has yet to enter the assembly phase and that Super Heavy “Booster 2” (BN3) will be the first of its kind and likely need to pass several major tests on its own, July is no longer within reach. Of course, an orbital launch attempt anytime in 2021 would still be a staggering achievement for SpaceX, beating the likes of Vulcan Centaur, New Glenn, and Ariane 6 to the punch despite Starship’s superior performance, unprecedented design challenges, and grander ambitions.

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 Model 3 and Model Y dominates U.S. EV market in 2025

The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.

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Credit: Tesla

Tesla’s Model 3 and Model Y continued to overwhelmingly dominate the United States’ electric vehicle market in 2025. New sales data showed that Tesla’s two mass market cars maintained a commanding segment share, with the Model 3 posting year-to-date growth and the Model Y remaining resilient despite factory shutdowns tied to its refresh.

The figures were detailed in Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report.

Model 3 and Model Y are still dominant

According to the report, Tesla delivered an estimated 192,440 Model 3 sedans in the United States in 2025, representing a 1.3% year-to-date increase compared to 2024. The Model 3 alone accounted for 15.9% of all U.S. EV sales, making it one of the highest-volume electric vehicles in the country.

The Model Y was even more dominant. U.S. deliveries of the all-electric crossover reached 357,528 units in 2025, a 4.0% year-to-date decline from the prior year. It should be noted, however, that the drop came during a year that included production shutdowns at Tesla’s Fremont Factory and Gigafactory Texas as the company transitioned to the new Model Y. Even with those disruptions, the Model Y captured an overwhelming 39.5% share of the market, far surpassing any single competitor.

Combined, the Model 3 and Model Y represented more than half of all EVs sold in the United States during 2025, highlighting Tesla’s iron grip on the country’s mass-market EV segment.

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Tesla’s challenges in 2025

Tesla’s sustained performance came amid a year of elevated public and political controversy surrounding Elon Musk, whose political activities in the first half of the year ended up fueling a narrative that the CEO’s actions are damaging the automaker’s consumer appeal. However, U.S. sales data suggest that demand for Tesla’s core vehicles has remained remarkably resilient.

Based on Kelley Blue Book’s Q4 2025 U.S. Electric Vehicle Sales Report, Tesla’s most expensive offerings such as the Tesla Cybertruck, Model S, and Model X, all saw steep declines in 2025. This suggests that mainstream EV buyers might have had a price issue with Tesla’s more expensive offerings, not an Elon Musk issue. 

Ultimately, despite broader EV market softness, with total U.S. EV sales slipping about 2% year-to-date, Tesla still accounted for 58.9% of all EV deliveries in 2025, according to the report. This means that out of every ten EVs sold in the United States in 2025, more than half of them were Teslas. 

Q4 2025 Kelley Blue Book EV Sales Report by Simon Alvarez

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Tesla Model 3 and Model Y earn Euro NCAP Best in Class safety awards

“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.

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Credit: Tesla Europe & Middle East

Tesla won dual categories in the Euro NCAP Best in Class awards, with the Model 3 being named the safest Large Family Car and the Model Y being recognized as the safest Small SUV.

The feat was highlighted by Tesla Europe & Middle East in a post on its official account on social media platform X.

Model 3 and Model Y lead their respective segments

As per a press release from the Euro NCAP, the organization’s Best in Class designation is based on a weighted assessment of four key areas: Adult Occupant, Child Occupant, Vulnerable Road User, and Safety Assist. Only vehicles that achieved a 5-star Euro NCAP rating and were evaluated with standard safety equipment are eligible for the award.

Euro NCAP noted that the updated Tesla Model 3 performed particularly well in Child Occupant protection, while its Safety Assist score reflected Tesla’s ongoing improvements to driver-assistance systems. The Model Y similarly stood out in Child Occupant protection and Safety Assist, reinforcing Tesla’s dual-category win. 

“The company’s best-selling Model Y proved the gold standard for small SUVs,” Euro NCAP noted.

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Euro NCAP leadership shares insights

Euro NCAP Secretary General Dr. Michiel van Ratingen said the organization’s Best in Class awards are designed to help consumers identify the safest vehicles over the past year.

Van Ratingen noted that 2025 was Euro NCAP’s busiest year to date, with more vehicles tested than ever before, amid a growing variety of electric cars and increasingly sophisticated safety systems. While the Mercedes-Benz CLA ultimately earned the title of Best Performer of 2025, he emphasized that Tesla finished only fractionally behind in the overall rankings.

“It was a close-run competition,” van Ratingen said. “Tesla was only fractionally behind, and new entrants like firefly and Leapmotor show how global competition continues to grow, which can only be a good thing for consumers who value safety as much as style, practicality, driving performance, and running costs from their next car.”

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Tesla is shifting FSD to a subscription-only model, confirms Elon Musk

Tesla CEO Elon Musk confirmed the upcoming update in a post on social media platform X.

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Credit: Grok Imagine

Tesla will be ending one-time purchases of its Full Self-Driving (FSD) system after Valentine’s Day, transitioning the feature to a monthly subscription-only model.

Tesla CEO Elon Musk confirmed the upcoming update in a post on social media platform X.

No more FSD one-time purchases

As per Elon Musk in his post on X, “Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.” This marks a shift in how Tesla monetizes its FSD system, which can now be purchased for a one-time fee or accessed through a monthly subscription. 

FSD’s subscription model has been $99 per month in the United States, while its one-time purchase option is currently priced at $8,000. FSD’s one-time purchase price has swung wildly in recent years, reaching $15,000 in September 2022. At the time, FSD was proficient, but its performance was not on par with v14. This made its $15,000 upfront price a hard sell for consumers.

Tesla’s move to a subscription-only model could then streamline how the company sells FSD. It also lowers the entry price for the system, as even price-conscious drivers would likely be able to justify FSD’s $99 monthly subscription cost during periods when long-distance travel is prevalent, like the holidays. 

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Musk’s compensation plan and FSD subscription targets

Tesla’s shift to a subscription-only FSD model comes amidst Musk’s 2025 CEO Performance Award, which was approved by Tesla shareholders at the 2025 Annual Shareholders Meeting with roughly 75% support. Under the long-term compensation plan, Musk must achieve a series of ambitious operational milestones, including 10 million active FSD subscriptions, over the next decade for his stock awards to vest.

The 2025 CEO Performance Award’s structure ties Musk’s potential compensation to Tesla’s aggressive targets that span market capitalization, vehicle deliveries, robotics, and software adoption. Apart from his 10-million active FSD subscription target, Musk’s compensation is also tied to Tesla producing 20 million vehicles cumulatively, delivering 1 million Tesla bots, and having 1 million Robotaxis in operation. He must also lead Tesla to a market cap of $8.5 trillion.

If successful, Elon Musk’s 2025 CEO Performance Award could make him the world’s first trillionaire. It could also help Tesla become the world’s most valuable company by market cap by a notable margin. 

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