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SpaceX’s backup Dragon launch pad on track for 2023 debut
SpaceX has begun building a backup launch pad for its Cargo and Crew Dragon spacecraft and says the facility could be ready for use as early as fall 2023.
Reuters first revealed those plans in June 2022. They arose because NASA reportedly told SpaceX it was worried that the company’s first Florida Starship launch site – colocated at the only pad currently able to launch SpaceX Dragon spacecraft – could add too much risk. In September 2022, NASA and SpaceX acknowledged plans to modify LC-40 for Dragon launches and indicated that both parties had decided to proceed.
Four months later, SpaceX and NASA have provided another press conference update. Officials confirmed that construction is already partially underway and reported that LC-40 could be ready to support its first Dragon launch less than a year from now.
The update that's rolling out to the fleet makes full use of the front and rear steering travel to minimize turning circle. In this case a reduction of 1.6 feet just over the air— Wes (@wmorrill3) April 16, 2024
Because Boeing’s comparable Starliner capsule is years behind schedule and still unqualified to launch humans, NASA has relied almost exclusively on SpaceX’s Crew Dragon to launch its astronauts to the International Space Station (ISS) since 2020. Starliner should be ready to supplement Crew Dragon’s operational astronaut launches by the end of 2023 or early 2024, alleviating some of that pressure.
NASA, however, chose to develop two spacecraft to guarantee that one spacecraft would likely be available if the other was grounded for any reason. Adding the possibility that a giant, new, experimental rocket (Starship) could potentially halt all SpaceX Dragon launches in one fell swoop was apparently one bridge too many for the agency.

SpaceX’s answer to the problem was about as simple, elegant, and cheap as possible. The company has two operational Falcon launch pads in Florida, and it proposed to modify the second pad. SpaceX’s Cape Canaveral Space Force Station (CCSFS) LC-40 pad is located on a secure military base and has an even longer history of successful Falcon 9 launches than Pad 39A. It also appears that its layout will allow SpaceX to add a Dragon access tower without requiring major redesigns or months of downtime.
LC-40 is SpaceX’s most productive launch pad by far, and the company intends to launch up to 100 times in 2023. It’s thus crucial that the pad remains as active as possible as it’s modified – a major challenge. A combination of luck and the fact that the launch pad is already operational is the only reason that’s possible.
Modifying SpaceX’s busiest pad
In theory, SpaceX needs to do relatively little to enable Dragon launches out of LC-40. Dragon spacecraft are processed for flight at a separate facility and only head to the pad once they’re ready to be attached to a Falcon 9 rocket. The biggest modification LC-40 needs is a launch tower, but SpaceX ironically has experience building giant towers in sections – and offsite – through Starship.
LC-40’s Dragon access tower requires far less complex plumbing and should be smaller and easier to prefabricate and assemble. Regulatory documents indicate that the new tower will stand 81 meters (265 feet) tall – almost a third shorter than the 110-meter-tall tower SpaceX modified at Pad 39A for the same purpose. LC-40 will also need a swinging access arm to connect the tower to Dragon’s hatch. That arm can also be constructed offsite, further reducing the amount of downtime required.

The most disruptive modifications may involve LC-40’s transporter/erector (T/E) device, which rolls Falcon 9 out to the pad, raises it vertical, holds it down with giant clamps; and hosts a maze of plumbing that fuels, pressurizes, and powers the rocket. The top of LC-40’s T/E is fitted with a brace designed to support Falcon payload fairings. In comparison, 39A’s T/E was designed with swappable ‘heads’ that allow SpaceX to switch between Dragon and fairing configurations in a matter of days. The top of LC-40’s T/E also appears to be somewhat removable, but SpaceX may still have to halt launches for a few weeks to get the T/E up to spec and modified for Dragon.
SpaceX says that LC-40 will be ready to support its first Dragon launch as early as fall (Q4) 2023. Its first Dragon mission will carry cargo to the ISS, meaning that the tower, arm, and pad will not need to be immediately human-rated. In theory, SpaceX could even launch Cargo Dragon 2 from LC-40 without a tower or arm, as the only purpose of the tower during uncrewed missions is to load volatile cargo at the last possible second. SpaceX could even revert to a practice that dates back to its original Dragon 1 spacecraft and devise a method to late-load cargo while Falcon 9 and Dragon are still horizontal.

The tower and access arm are only essential for Crew Dragon launches, during which astronauts must board the spacecraft a few hours before liftoff. More importantly, the same arm and tower would be used to escape Dragon and Falcon 9 in case of a minor emergency. NASA requires an escape (egress) system to human-rate a launch pad and rocket. SpaceX met that requirement at Pad 39A with a “slidewire basket” system that carries astronauts to a concrete bunker several hundred feet away from the rocket. Before LC-40 can be human-rated, SpaceX will likely need to build the same basket-and-bunker system or come up with a viable alternative.
Once complete, SpaceX will have two pads capable of supporting all Crew and Cargo Dragon launches. With that redundancy in place, NASA should be far more open to regular launches of SpaceX’s next-generation Starship rocket out of Pad 39A. Access to multiple pads will likely be essential for Starship to complete NASA’s Human Landing System (HLS) contracts, which will culminate in the giant rocket sending humans back to the Moon for the first (and second) time in half a century in the mid-to-late-2020s.
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Tesla CEO Elon Musk outlines expectations for Cybercab production
“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
Tesla CEO Elon Musk outlined expectations for Cybercab production as the vehicle is officially set to start rolling off manufacturing lines at the company’s Giga Texas factory in less than 100 days.
Cybercab is specifically designed and catered to Tesla’s self-driving platform and Robotaxi ride-hailing service. The company has been pushing hard to meet its self-set expectations for rolling out an effective self-driving suite, and with the Cybercab coming in under 100 days, it now needs to push for Unsupervised Self-Driving in the same time frame.
Tesla CEO Elon Musk confirms Robotaxi is set to go unsupervised
This is especially pertinent because the Cybercab is expected to be built without a steering wheel or pedals, and although some executives have said they would build the car with those things if it were necessary.
However, Musk has maintained that the Cybercab will not have either of those things: it will have two seats and a screen, and that’s it.
With production scheduled for less than 100 days, Musk broke down what people should expect from the initial manufacturing phases, being cautiously optimistic about what the early stages will likely entail:
“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
Musk knows better than most about the challenges of ramping up production of vehicles. With the Model 3, Musk routinely refers to it as “production hell.” The Cybertruck, because of its polarizing design and stainless steel exterior, also presented challenges to Tesla.
With the important caveat that initial production is always very slow and follows an S-curve.
The speed of the production ramp is inversely proportionate to how many new parts and steps there are.
For Cybercab and Optimus, almost everything is new, so the early production…
— Elon Musk (@elonmusk) January 20, 2026
The Cybercab definitely presents an easier production process for Tesla, and the company plans to build millions of units per year.
Musk said back in October 2024:
“We’re aiming for at least 2 million units a year of Cybercab. That will be in more than one factory, but I think it’s at least 2 million units a year, maybe 4 million ultimately.”
When April comes, we will find out exactly how things will move forward with Cybercab production.
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Tesla reveals awesome Model 3 and Model Y incentive, but it’s ending soon
Tesla has revealed an awesome Model 3 and Model Y incentive to help consumers make the jump to one of its affordable mass-market vehicles, but it’s ending soon.
Tesla is offering one free upgrade on eligible inventory of the Model 3 and Model Y until February 2.
This would help buyers receive the most expensive paid option on the vehicle at no additional cost, meaning white interior or a more premium paint option will be free of charge if you take delivery on or before February 2.
Tesla states on its website for the offer:
“Only for limited inventory while supplies last. Price displayed on inventory listings already deducts the cost of the free option.”
Tesla says its one free upgrade offer on eligible U.S. inventory for the Model 3 and Model Y ends February 2.
With this incentive, buyers receive the most expensive paid option on the vehicle at no additional cost (up to $2k in savings). pic.twitter.com/IhoiURrsDI
— Sawyer Merritt (@SawyerMerritt) January 21, 2026
This latest incentive is just another advantage Tesla has by selling its vehicles directly and not using some sort of dealership model that relies on approvals from higher-ups. It is important to note that these programs are offered to help stimulate demand and push vehicles into customers’ hands.
It is not the only incentive Tesla is currently offering, either. In fact, there is a much larger incentive program that Tesla is working on, and it has to do with Full Self-Driving transfers, which could result in even more sales for the company through Q1.
Tesla is ending its FSD Transfer program on March 31, as it plans to transition to a Subscription-only basis with the self-driving suite for anyone who has not already purchased it outright.
This could help drive some on-the-fence buyers to new vehicles, but it remains to be seen. Given the timing of the program’s demise, it appears Tesla is hoping to use it to add additional sales and bolster a strong Q1 2026.
Interior and exterior paint colors can add up to $2,000 if you choose the most premium Ultra Red body color, or an additional $1,000 for the Black and White interior option. The discount, while small, could help get someone their preferred design configuration, instead of settling for something that is not quite what they want.
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Tesla Full Self-Driving gets outrageous insurance offer with insanely cheap rates
Tesla Full Self-Driving is getting an outrageous insurance offer with insanely cheap rates that will slash the cost of coverage by 50 percent.
Lemonade, a digital insurance company, has launched its first-of-a-kind product known as Lemonade Autonomous Car Insurance, and it is starting with an exclusive offer to FSD. The new offer will cut rates for FSD-engaged driving by “approximately 50 percent,” highlighting the data that shows a significantly safer driving environment when the suite is activated and engaged.
The company also said it plans to introduce even cheaper rates as Tesla continues to release more advanced FSD versions through software updates. Tesla has been releasing new FSD versions every few weeks, highlighting vast improvements for those who have the latest AI4 chip.
The announcement comes just a few months afterLemonade Co-Founder and President Shai Wininger said that he wanted to insure FSD vehicles for “almost free.” He said that Tesla’s API complemented Lemonade’s AI-based platform because it provides “richer and more accurate driving behavior data than traditional UBI devices.”
Tesla Full Self-Driving gets an offer to be insured for ‘almost free’
In mid-December, Lemonade then offered Tesla owners in California, Oregon, and Arizona the opportunity to connect their vehicles directly to the company’s app, which would provide a direct connection and would require a separate telematics device, which is required with other insurance providers who offer rates based on driving behaviors.
This latest development between Lemonade and Tesla is something that Wininger believes will be different because of the advanced nature of FSD:
“Traditional insurers treat a Tesla like any other car, and AI like any other driver. But a car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can’t be compared to a human.”
He went on to say that the existing pay-per-mile product has given the company something that no traditional insurer has been able to offer. This comes through Lemonade’s “unique tech stack designed to collect massive amounts of real driving data for precise, dynamic pricing.”
The reputation FSD has gathered over the past few years is really impressive. Wininger backed this with some more compliments:
“Teslas driven with FSD are involved in far fewer accidents. By connecting to the Tesla onboard computer, our models are able to ingest incredibly nuanced sensor data that lets us price our insurance with higher precision than ever before.”
The product will begin its official rollout in Arizona on January 26. Oregon will get it a month later.