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SpaceX begins building upgraded Starship prototype
A Starship part spotted on July 20th confirms that SpaceX is already well into the process of building a significantly upgraded full-scale prototype.
Following in the footsteps of five or six full-scale ships before it, information published by NASASpaceflight.com suggests that Starship SN8 will be a substantial departure from its predecessors. Thanks to data gathered by testing the Starship SN7 test tank to destruction on June 24th, SpaceX has determined that a different alloy – known as 304L – is superior to the 301 stainless steel all Starship prototypes have been built out of up to now.
SN8 is SpaceX’s response to that discovery. As usual, the company has performed smaller tests before deciding to build a full-scale Starship prototype – identical to all previous SNx prototypes beyond the alloy change – out of 304L stainless steel. As a result, Starship SN8 – once complete – may have the most potential of any prototype built thus far, but its fate will also be more uncertain than most of its predecessors.
On June 24th, SpaceX destroyed the SN7 Starship test tank as part of a controlled cryogenic proof test – essentially a pressure test at cryogenic (ultra-cold) temperatures. Departing from routine, CEO Elon Musk never commented on the test, leaving its results shrouded in mystery. According to NASASpaceflight, however, SN7 “achieved a record pressure before it failed.”
Designed to test a different formulation of stainless steel, that success implies that SN7 proved that the 304L alloy will not only be more malleable and forgiving at cryogenic temperatures – but is also more capable overall compared to 301 steel. To beat the record set by the second or third Starship test tank in January or March 2020, SN7 would have had to reach pressures of ~8.6 bar or higher – effectively icing on the cake for the already-demonstrated ~140% safety factor.
A full-scale Starship has yet to survive proof tests at those pressures but Starship SN4 did become the first to complete a full cryo proof, sustaining ~7.5 bar (~110 psi) before it was safely depressurized. Currently on the pad and preparing for an imminent static fire and hop test debut, Starship SN5 is unlikely to put pressure on that record unless that it aces both of the aforementioned trials. Built entirely out of the 304L alloy already proven to be superior to 301, SN8 may well be the golden goose of prototypes.
“The vehicle will feature major upgrades over previous Starship prototypes. SN8 will be built out of 304L stainless steel versus 301 and will receive a fairing, aerosurfaces, and three Raptor engines to allow for a higher-altitude test flight.”
NASASpaceflight.com — July 15th, 2020
The appearance of SN8’s labeled common dome – the dome separating Starship’s liquid oxygen and methane tanks – implies that a variety of other parts spotted over the last few days are also meant for the next full-scale rocket. Mounted on a stand purpose-built for the task, the SN8 common dome will soon be ‘sleeved’ by one or several stacked steel rings, after which it can be welded to the rest of the Starship’s tank. An engine section and thrust structure – likely SN8’s – in the late stages of assembly was spotted three days prior, while an upper tank dome that could be for either SN8 or test tank SN7.1 was captured in the same photos.
In the last photo, taken on July 13th, there’s even signs of what could be Starship SN9 – hinted at by the appearance of two Starship engine sections signified by the pattern of welds on their exteriors. Those welds are incontrovertible signs of the stringers used to strengthen Starship engine sections and they haven’t been used anywhere else on past prototypes.
Based on the sheer number of steel rings and domes currently floating around SpaceX’s Boca Chica, Texas Starship factory, SN8 could be a just a week – or even less – away from final stacking operations. If SN5 leaves the pad intact and completes its wet dress rehearsal, static fire, and flight debut without issue, SN8 could be up to bat much sooner than later.
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Tesla released what analysts believe the company will report in terms of deliveries and energy deployments for Q2, but the figures seem to confirm a long-standing theory on the company’s vehicle division.
For years, Tesla was just looked at as a car company. Now that it has established itself as a powerhouse in energy, AI, and tech as a whole, the company is now less hellbent on achieving quarterly growth, on a sequential basis, at least from a major standpoint.
Tesla topped out its annual deliveries in 2023 at 1.81 million, and in the two years since, the company has reported a decrease in deliveries for the entire 12-month term both times.
With Tesla delivering 358,023 cars in Q1, a 6.3 percent increase over Q1 2025, but falling short of Wall Street expectations at 365,000-370,000 units, the narrative around vehicle deliveries and their importance continued to change earlier this year. Some might say it is convenient, but others might say it is the typical evolution of a company that continues to change over time.
For Q2, Tesla’s delivery consensus estimates sit at 406,024 units, analysts believe. They were surveyed from Daiwa, DB, Wedbush, Cowen, Canaccord, Baird, Wolfe, BMP Paribas, Goldman Sachs, RBC, Evercore ISI, Barclays, Bank of America, Wells Fargo, Morgan Stanley, Truist, UBS, Jefferies, JPM, Needham & Co., HSBC, and William Blair.
Credit: Tesla
Tesla is also expected to report deployments of 13.8 GWh this quarter.
The change to Tesla’s overall narrative now leans less on vehicle deliveries and more on its other projects. Most notably, Tesla’s Robotaxi project has taken the priority over most of its other business ventures, and investors and the public are more concerned about the deployment of vehicles into the fleet, the operation of a driverless ride-hailing service, Cybercab production and operation, and expansion into new cities.
Tesla analyst realizes one big thing about the stock: deliveries are losing importance
This big narrative switch happened when Tesla indicated it was looking at making transportation a service by launching a ride-hailing service that will operate using Tesla’s Full Self-Driving suite. Once unsupervised operation begins, Robotaxi could be a new way for people to get around, all without a driver in their car.
Instead, they will rely on the billions of miles Tesla has accumulated from its real-world fleet.
It is important to note that Tesla remains significant in the automotive sector, and deliveries must continue as they have for years. Tesla still has a strong automotive business and needs to execute further on all facets to keep its investors happy.
Tesla launched the slightly larger Model Y L in China last year, and it became a hit in no time. The longer wheelbase, larger interior, and slightly more forgiving legroom area in the Model Y L became a sought-after possibility for U.S. buyers, who have been begging the company for a larger SUV.
Now, Tesla needs it more than ever, especially considering the Model X was discontinued alongside its Model S sibling earlier this year. It looks to be more likely than ever, and based on recent reports, it will fall in line with CEO Elon Musk’s prediction that it would arrive in the United States in late 2026.
Recent reports from Forbes and Not a Tesla App both have indicated Tesla plans to bring the Model Y L to the U.S. this year. The reports cite “credible sources,” and an analyst from AutoForecast Solutions named Sam Fiorani stated that the car would enter production later this year.
Fiorani said:
“China, Australia, and India are supplied by the factory in China, which will not supply vehicles to the U.S. Production of the Model Y L is expected to begin in the U.S. in September, which will lead to sales beginning before the end of 2026.”
Production would take place at Gigafactory Texas.
Additionally, a few Model Y L units have been spotted under wraps in the United States, giving more indication that Tesla plans to bring the vehicle to the U.S. When Tesla is close to launching a vehicle in the U.S., it is not uncommon to see these models with the exact car covers that you see below:
Looks like another Tesla Model Y L was spotted in the U.S.! pic.twitter.com/jhsdkcN5Go
— TESLARATI (@Teslarati) June 26, 2026
It makes sense, especially considering Musk hinted the Model Y L would make it to the U.S. in late 2026, but it was up in the air. The CEO said the advent of self-driving might not warrant a larger SUV coming to the U.S. market specifically.
The problem is, consumers do not want to hear that. They love Tesla’s tech, FSD, and other features, but they need more space for growing families. The Model X is gone, and the most anyone can fit in a Tesla right now is seven people in the seven-seat Model Y. That back row is truly only large enough to fit small children comfortably.
Tesla fans have requested a full-size SUV, and the company has made some hints that it could be in the plans.
The Model Y and Model Y L differ noticeably in size, with the Model Y L being a stretched, six-seat variant designed for great interior room. The Standard Model Y measures approximately 4,790mm in length, 1,982 mm in width with the mirrors folded, 1,624mm in height, and 2,890mm in wheel base.
In contrast, the Model Y L extends to be about 4,969–4,976mm long (roughly 179mm or 7 inches longer), stands 1,668mm tall (+44mm), and features a significantly longer 3,040 mm wheelbase (+150mm), while maintaining the same width.
This elongation primarily benefits rear passenger space and enables a 2+2+2 seating layout with captain’s chairs, though it slightly reduces maximum cargo capacity behind the rearmost seats and adds a bit of overall mass and turning radius. The result is a more spacious family hauler that still shares the core footprint and agile character of the original Model Y.
In a major development that will inevitably strengthen Tesla’s dominant position in the American EV market, Polestar has been effectively banned from selling new vehicles in the United States, starting with the 2027 model year.
The U.S. Department of Commerce denied Polestar authorization under the Connected Vehicle Rule, which prohibits vehicles containing certain connected technologies (Cellular, Wi-Fi, Bluetooth, etc.) linked to China or Russia due to national security risks, including potential data collection on American drivers.
🚨 A Tesla competitor goes down
Polestar will no longer sell new vehicles in the United States starting with the 2027 model year.
The U.S. Department of Commerce denied the brand authorization under the Connected Vehicle Rule, which restricts the sale of cars with software and… pic.twitter.com/TrwnQeoiES
— TESLARATI (@Teslarati) June 25, 2026
Polestar, which is majority-owned by China’s Geely Holding, could not obtain the required exemption despite producing some models domestically.
Polestar confirmed it will sell off any remaining inventory of the Polestar 3 and Polestar 4 models, while continuing service and warranty support for existing customers. No new models or major refreshes will reach U.S. buyers, and the company is pivoting its growth strategy to Europe, where it already generates the vast majority of its sales.
The outcome removes a direct premium EV competitor that had positioned itself as a stylish, performance-oriented alternative to Tesla’s lineup. The Polestar 2 challenged the Model 3, while the Polestar 3 and 4 targeted segments overlapping with the Model Y and upcoming Tesla offerings. Polestar’s U.S. sales had already been sluggish amid intense competition and slower demand, representing just 6 percent of its global volume in the first quarter of 2026.
While Polestar was not on Tesla’s level in the U.S., it still places a dent in the evergrowing field of Tesla competitors in the country, where it has long dominated EV sales.
Tesla faces none of these hurdles. As a U.S.-founded and U.S.-headquartered company with major manufacturing in Fremont, Austin, and Nevada, Tesla’s vehicles are built with compliant domestic and allied supply chains. Its Full Self-Driving technology, over-the-air software updates, and vertically integrated ecosystem were developed entirely in-house without foreign ownership entanglements that trigger national security reviews, at least in the U.S.
Of course, it did face a similar threat in China a few years back:
Elon Musk responds to reports of Tesla ban among China’s military over security concerns
The Connected Vehicle Rule, first advanced under the prior administration and upheld under the current one, is part of a broader U.S. effort to protect the domestic auto industry and critical technology from Chinese influence. High tariffs on Chinese-made EVs and related restrictions have already reshaped the market. Tesla benefits directly: it avoids these barriers while continuing to lead in U.S. EV sales volume, Supercharger network expansion, and energy storage integration.
By clearing Polestar from the new-vehicle playing field, the policy reduces competitive pressure in the premium and performance EV segments where Tesla has invested billions. American consumers seeking cutting-edge electric vehicles now have one fewer option tied to foreign adversaries — and one clearer path to the market leader that has driven the EV transition from the start.
For Tesla, this is more than regulatory relief. It is a strategic tailwind that reinforces its position as America’s premier EV innovator at a time when domestic manufacturing and technological independence matter most.
Tesla Q2 delivery consensus confirms this long-standing theory
Tesla looks keen to bring larger Model Y L to the U.S.
