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SpaceX’s next Starship starts to take shape as Elon Musk talks next steps
Less than a day after SpaceX successfully hopped a full-scale Starship prototype for the first time, the company has begun stacking the next rocket and Elon Musk is talking next steps.
Almost immediately after Starship SN5 took to the sky on a 150m (500 ft) hop debut, SpaceX CEO Elon Musk was talking about the company’s next near-term goals for the next-generation launch vehicle’s test program. To an extent, he had already offered a rough overview through various interviews and tweets over the last year or so. Aside from continuing to gradually refine Starship and Super Heavy designs and the processes used to manufacture and test those rockets, a few major proofs of concept stand between SpaceX and total confidence in the current architecture.
As far as basic rocketry goes, SpaceX’s 150m Starship hop has functionally proven that the company’s exotic, rule-of-thumb-breaking approach to Starship production and assembly can be feasibly refined into something capable of producing extraordinarily cheap orbital-class rockets. While a massive achievement, it doesn’t guarantee that the rockets produced will be reusable – let alone rapidly and easily reusable.
As of now, it can be safely stated that SpaceX has solved all major challenges involved in routinely and reliably landing and reusing orbital-class rocket boosters (first stages). It’s hard and surprises are always a possibility, but the landing records of Falcon 9 and Falcon Heavy boosters speak for themselves. For the colossal booster Starship needs to reach orbit, the Falcon family’s success means that Super Heavy recovery and reuse is more a question of “when” than “if”.
Starship, on the other hand, is going to offer many different challenges – some unprecedented for SpaceX and others unprecedented in the entire history of spaceflight. For Starship to be able to support a level of reuse compatible with what the Super Heavy booster is likely to achieve, SpaceX will have to create the biggest and most effortlessly reusable orbital-class spacecraft ever built.
Even heavier than NASA’s Space Shuttle orbiter, Starship will also rely almost entirely on the unproven technology of on-orbit cryogenic propellant transfer to reach beyond low Earth orbit (LEO). To survive orbital-velocity reentries while still being rapidly and cheaply reusable, Starship will further have to push the envelope of heat shield technologies. Last but certainly not least, in its current iteration, Starship relies on a truly unprecedented style of recovery to efficiently land back on Earth.
It’s this last bit where CEO Elon Musk’s recent comments and recent activity at SpaceX’s Starship factory come in. According to Musk, SpaceX intends to perform at least several more smaller hops (a la SN5) “to smooth out [the] launch process.” It’s unclear which prototype(s) will be involved in that series of hops but after SpaceX is satisfied with the state of launch operations, the plan is to “go high altitude with body flaps.” Based on past comments, it’s safe to assume that Musk is referring to a plan to launch a Starship to 20 km (~12 mi).
After reaching 20 km, Starship would orient itself belly down – a bit like a skydiver – and quite literally fall its way to ~1 km altitude before attempting an aggressive Raptor-powered pitch-over maneuver and last-second landing. By using Earth’s atmosphere much like a skydiver trying to slow down, Starship will theoretically be able to dramatically reduce the amount of propellant it needs to land.
That high-altitude launch and landing demonstration will also be the first time a Starship truly needs aerodynamic control surfaces (i.e. “body flaps”) to safely complete a flight test. According to NASASpaceflight.com info, Starship SN8 – also the first full-scale prototype to be built out of a different steel alloy – will be the first ship to receive functional flaps and a nosecone. If initial tests go according to plan, SN8 will also be the first ship to attempt a skydiver-style landing as described above. As far as full-scale aerodynamics goes, such a landing is loosely understood at best. For an orbital-class spacecraft, it’s even more of a wildcard.
Regardless, just hours after Starship SN5’s successful hop debut, SpaceX began stacking the first of several already finished Starship SN8 sections. Based on the assembly of past prototypes, the ship’s tank section could reach its full height just a few weeks from now, while subsequent nosecone and flap installations are uncharted territory.
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Tesla stock (NASDAQ: TSLA) endured one of its sharpest single-day declines in years on July 23, tumbling approximately 14.5 percent and closing near $320 after opening the session around $374. The drop erased more than $140 billion in market value amid heavy trading volume and left the shares at multi-week lows.
The sell-off followed the company’s second-quarter 2026 results, released the previous evening. Tesla reported record revenue of $28.2 billion, up 26 percent year over year, driven by a Q2-record 480,126 vehicle deliveries. Energy storage deployments also rose strongly.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Yet profitability disappointed sharply. Operating income fell 57 percent to $398 million, compressing the operating margin to just 1.4 percent. Non-GAAP earnings per share came in at $0.33, well below the roughly $0.53 analysts had expected. Free cash flow turned negative by $1.1 billion as capital expenditures surged 142 percent to $5.8 billion, largely tied to accelerated spending on artificial intelligence, robotics, and autonomous systems.
The losses on capex were expected, as Tesla said it would be spending heavily in 2026.
Investors also reacted to lingering uncertainty surrounding key product timelines. During the Earnings Call, management reiterated ambitions for Robotaxi deployment and the Optimus humanoid robot, but offered limited new concrete milestones, renewing questions about execution pace that have long accompanied Tesla’s ambitious roadmap.
The magnitude of the decline places it among Tesla’s more severe one-day percentage losses since its 2010 initial public offering. Historically, the two largest single-day drops (split-adjusted) remain September 8, 2020, when shares fell 21.1 percent amid broader market volatility and valuation concerns, and January 13, 2012, with a 19.3 percent plunge during the company’s early growth struggles.
Other notable declines include an 18.6 percent drop on March 16, 2020, at the onset of pandemic-related market turmoil. Thursday’s move ranks roughly ninth on the all-time list but stands out as the steepest in more than a year.
Despite the short-term pain, Tesla’s long-term trajectory has repeatedly recovered from such volatility. The latest results underscore both the strength of its core automotive and energy businesses and the near-term costs of heavy investment in next-generation technologies.
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
Tesla stock tumbles after earnings, one of its sharpest single-day declines
Elon Musk is not happy about this Tesla Full Self-Driving approval delay
