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SpaceX is building launch pad tanks out of Starship parts and that’s a big deal
SpaceX has begun installing the first of numerous propellant storage tanks at its first orbital South Texas launch facilities – a mostly ordinary and expected step made extraordinary by the fact that those tanks will be built out of Starship parts.
Labeled “GSE” for Ground Support Equipment, the first signs of those self-built storage tanks began appearing at SpaceX’s Boca Chica Starship factory less than two months ago in mid-February. A matter of weeks later, the first of those SpaceX-brand cryogenic storage tanks is off to the launch site for installation (and insulation) while at least two more tanks are well on their way to completion.
While a few ground starge tanks may look like a distraction in the scope of a program tasked with building the world’s largest (and fully reusable) rocket, the existence of those tanks is far more significant than it might initially appear.
Simply put, rocket propellant storage – even for extremely cold cryogenic liquids like those that SpaceX uses – is a thoroughly solved problem. Numerous commercial vendors exist and industrial demand for practically identical tanks is far higher, further lowering commercial tank costs even for those with niche use-cases thanks to economies of scale. For SpaceX’s purposes, major discounts could like be secured given that the company would need to purchase around three to four-dozen commercial-off-the-shelf (COTS) 100,000 gallon tanks to supply a launch pad with enough commodities for two back-to-back launches of Starship and Super Heavy.
That initial launch capability – which SpaceX appears to be working towards – would likely allow the company to start orbital refueling test flights (and Starlink launches, perhaps) immediately after completion. However, that initial capability wouldn’t suffice for ambitious missions to Mars, the Moon, or higher Earth orbits; where one Starship would need to be rapidly refueled with 3-10+ tanker launches. A launch facility capable of supporting 5-10 back-to-back launches (optimally just a few hours apart) would require many times more propellant storage.
The point is that for the initial target of two (or so) launches between commodity resupply, SpaceX could likely acquire the few dozen new storage tanks it would need for a few million dollars apiece for a total cost likely between $50M and $100M. Instead, SpaceX has decided to design and build its own propellant storage tanks. Even more significantly, the GSE tanks SpaceX has already begun building appear to be virtually identical to Starships.
In other words, SpaceX is effectively taking identical rocket parts, slightly tweaking a handful of those parts, and turning what could have been a rocket into a propellant storage tank. This is significant because relative to all other rockets in history, even including SpaceX’s own Falcon 9 and Heavy, building storage tanks with unchanged rocket parts on a rocket assembly line would be roughly akin to hiring Vincent van Gogh to paint lane lines.
Ever since Elon Musk made the radical decision to switch from composite structures to stainless steel, Starship has always aimed to be radically different than any large rocket before it. Crucially, by using commodity steel, the CEO imagined SpaceX would be able to build Starships fairly easily and for pennies on the dollar next to even SpaceX’s exceptionally affordable Falcon 9. In the last 18 months, it’s become apparent that SpaceX has built a factory capable of churning out one or two massive steel rockets per month and is willing to consign at least four or five of those Starship prototypes to all-but-guaranteed failures for the sake of data-gathering and iterative improvement.
Technically, the most logical conclusion would be that Musk was right and that SpaceX has quickly developed the ability to build steel rockets larger than any other launch vehicle on Earth for perhaps just $5M or less apiece. However, SpaceX is also raising on the order of $1-2B in venture capital annually, so they could technically afford to shoulder the cost of extremely expensive Starship prototypes if the company was confident that there was a path to cut those costs and reach the targets needed for the rocket to make economical sense.
Now, the existence of self-built propellant storage tanks virtually identical to flightworthy Starship airframes all but guarantees that SpaceX is already building Starships for a few million dollars each – and possibly much less. More than a year ago, Musk said that SpaceX was already building the Raptor engines that will power Starship and Super Heavy for less than $1M apiece and was working to mass-produce a simpler variant for less than $250,000. Beyond engines and primary structures, Starship hardware is fairly simple and ranges from Tesla-derived motors, basic flaps, and landing legs to off-the-shelf pressure vessels (COPVs) and wiring. SpaceX has managed that extraordinary cost-efficiency despite the fact that Boca Chica is still nowhere close to the level of volume production Musk is aiming for, meaning that there are still far more efficiencies waiting to be realized.
For now, with virtually no retooling and the exact same assembly line, SpaceX’s South Texas rocket factory is busy churning out massive launch pad tanks – one of which is already preparing for installation while another two speed towards completion. All told, SpaceX appears to be preparing foundations for seven 9m-wide (30ft), 27.5m-tall (90ft) Starship-derived tanks that should be capable of storing ~2200 tons (4.9 million pounds) of subcooled liquid methane in three tanks and ~7300 tons (16.1 million pounds) of liquid oxygen in the other four tanks – enough for two orbital Starship launches.
Tesla received a price target boost from Morgan Stanley, according to a new note on Monday morning, but there is some considerable caution also being communicated over the next year or so.
Morgan Stanley analyst Andrew Percoco took over Tesla coverage for the firm from longtime bull Adam Jonas, who appears to be focusing on embodied AI stocks and no longer automotive.
Percoco took over and immediately adjusted the price target for Tesla from $410 to $425, and changed its rating on shares from ‘Overweight’ to ‘Equal Weight.’
Percoco said he believes Tesla is the leading company in terms of electric vehicles, manufacturing, renewable energy, and real-world AI, so it deserves a premium valuation. However, he admits the high expectations for the company could provide for a “choppy trading environment” for the next year.
He wrote:
“However, high expectations on the latter have brought the stock closer to fair valuation. While it is well understood that Tesla is more than an auto manufacturer, we expect a choppy trading environment for the TSLA shares over the next 12 months, as we see downside to estimates, while the catalysts for its non-auto businesses appear priced at current levels.”
Percoco also added that if market cap hurdles are achieved, Morgan Stanley would reduce its price target by 7 percent.
Perhaps the biggest change with Percoco taking over the analysis for Jonas is how he will determine the value of each individual project. For example, he believes Optimus is worth about $60 per share of equity value.
He went on to describe the potential value of Full Self-Driving, highlighting its importance to the Tesla valuation:
“Full Self Driving (FSD) is the crown jewel of Tesla’s auto business; we believe that its leading-edge personal autonomous driving offering is a real game changer, and will remain a significant competitive advantage over its EV and non-EV peers. As Tesla continues to improve its platform with increased levels of autonomy (i.e., hands-off, eyes-off), it will revolutionize the personal driving experience. It remains to be seen if others will be able to keep pace.”
Additionally, Percoco outlined both bear and bull cases for the stock. He believes $860 per share, “which could be in play in the next 12 months if Tesla manages through the EV-downturn,” while also scaling Robotaxi, executing on unsupervised FSD, and scaling Optimus, is in play for the bull case.
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Meanwhile, the bear case is placed at $145 per share, and “assumes greater competition and margin pressure across all business lines, embedding zero value for humanoids, slowing the growth curve for Tesla’s robotaxi fleet to reflect regulatory challenges in scaling a vision-only perception stack, and lowering market share and margin profile for the autos and energy businesses.”
Currently, Tesla shares are trading at around $441.
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Tesla Optimus dramatically collapses after teleoperator mishap
It seemed blatantly obvious that whoever was controlling the Optimus robot from behind the scenes did not disconnect their ability to manipulate its movements
Tesla Optimus dramatically collapsed after a teleoperator mishap at the company’s “Future of Autonomy Visualized” event in Miami this past weekend.
It seemed blatantly obvious that whoever was controlling the Optimus robot from behind the scenes did not disconnect their ability to manipulate its movements, then left the controls, causing Optimus to collapse.
A video captured at the event shows Optimus doing a movement similar to taking a headset off, likely what the teleoperator uses to hear guest requests and communicate with other staff:
🚨 Tesla Optimus mishap at the Miami event
To be fair, don’t we all want to do this around the Holidays? pic.twitter.com/EJ5QKenqQd
— TESLARATI (@Teslarati) December 8, 2025
After the headset removal motion was completed, Optimus simply collapsed backward, making for an interesting bit of conversation. While it was a mishap, it was actually pretty funny to watch because of the drama displayed by the robot in the situation.
This was obviously a mistake made by the teleoperator, and does not appear to be a spot where we can put any sort of blame on Optimus. It would have likely just stood there and waited for controls to resume if the teleoperator had disconnected from the robot correctly.
However, details are pretty slim, and Tesla has not announced anything explaining the situation, likely because it seems to be a pretty face-value event.
Tesla Optimus shows off its newest capability as progress accelerates
The Tesla Optimus program has been among the most hyped projects that the company has been working on, as CEO Elon Musk has extremely high hopes for what it could do for people on Earth. He has said on several occasions that Optimus should be the most popular product of all time, considering its capabilities.
Obviously, the project is still a work in progress, and growing pains are going to be part of the development of Optimus.
In its development of Optimus Gen 3, Tesla has been working on refining the forearm, hand, and fingers of Optimus, something that Musk said is extremely difficult. However, it’s a necessary step, especially if its capabilities will not be limited by hardware.
All in all, Optimus has still been a very successful project for Tesla, especially in the early stages. The company has done an excellent job of keeping Optimus busy, as it helps with serving customers at events and the Tesla Diner, and is also performing tasks across the company’s manufacturing plants.
Tesla has finally announced the features for the 2025 Holiday Update, which includes a wide variety of new inclusions that are both functional and just for fun.
The new features are plentiful, but there were a handful of things we were expecting to see based on what we know. We don’t want to sound ungrateful, because there are a lot of great new things on the way with this update.
Here’s what was included:
Grok with Navigation Commands (Beta)
Grok will now have the ability to add and edit navigation destinations, which is a drastic improvement considering Tesla owners had to use their standard voice commands for this in the past.
The utilization of Grok will likely improve the navigation experience by offering some insight into your destination, including reviews and other points of interest nearby.
It will be enabled by using Grok’s “Assistant” personality.
Tesla Photobooth
“Turn your car into a photobooth! Take selfies from inside your Tesla & give yourself a makeover with fun filters, stickers, and emojis. Share with others right from the Tesla app.”
This feature will be available within the Toybox.
Dog Mode Live Activity
When using Dog Mode to keep your four-legged friend comfortable in the car, you’ll now be able to check in on them as it will share periodic snapshots of the cabin, along with live updates on temperature, battery, and climate conditions.
Dashcam Viewer Update
Dashcam clips are awesome, but they’re void of a lot of information, which could be useful in some instances, especially if there is an accident.
Now, there will be additional details included on each Dashcam clip, like speed, steering wheel angle, and Self-Driving state.
Santa Mode
New graphics, trees, and a lock chime are now available.
Light Show Update
A new Light Show, called Jingle Rush, will be available.
Custom Wraps and License Plates in Colorizer
Colorizer will now be known as “Paint Shop” in the Toybox. You will now be able to personalize your Tesla Avatar with window tints, custom wraps, and license plates. Preloaded designs will be available, but owners will be able to use their USB Flash Drives to create one that suits their style.
Navigation Improvements
Changing the order of your destinations will be easier through a new “Favorites” tab, and Home and Work can now be set by dropping a pin.
There will also be “Suggested Destinations,” which will be determined through recent trips and habits while parked.
Supercharger Site Map
Perhaps the most significant feature of the Holiday Update, Tesla is adding a 3D view of select Tesla Superchargers by tapping “View Site Map.”
When navigating to a location with this capability, the site layout, live occupancy, and nearby amenities will be available. Drivers will also be able to choose which stall to Supercharge.
This is only available at a handful of locations currently, but it will expand to more Superchargers as it becomes more robust.
Automatic Carpool Lane Routing
Navigation will include an option to utilize carpool lanes. Your route will automatically choose the carpool lane when eligible.
Phone Left Behind Chime
If the in-car occupant detection system does not see anyone in the car and there is a phone key, or if a phone is left inside the cabin, your Tesla will chime a few seconds after the doors close.
Charge Limit Per Location
You can now save a charge limit for the current location while parked and it will be applied automatically the next time you charge there.
ISS Docking Simulator
In a SpaceX collaboration, Tesla has added this game to its in-car Arcade:
“Become an astronaut and prove your skills by docking with the International Space Station. Control & guide the rocket in this 3D docking simulator game using a set of controls based on actual interfaces used by NASA astronauts.”
Additional Improvements
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Enable or disable wireless phone charging pads in Controls > Charging (S3XY) or Controls > Outlets & Mods (Cybertruck)
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Add Spotify tracks to your queue right from the search screen & scroll through large Spotify playlists, albums, podcasts, audiobooks & your library seamlessly, without paging
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Take the vibes up another level with rainbow colors during Rave Cave. Accent lights color will change along with the beats of your music. App Launcher > Toybox > Light Sync
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Lock Sound now includes Light Cycle from Tron Mode. Toybox > Boombox > Lock Sound
What’s Missing
There are a handful of features we expected to see with the Holiday Update, but were not included.
Banish Feature
Tesla has been teasing the Banish functionality for quite a few years, but evidently, it is not quite there yet.
Banish will allow owners to get out of their vehicle at the entrance of their destination, and the car will go find a spot and park itself. Some refer to it as “Reverse Summon.”
Apple CarPlay
With all of the rumors regarding Apple CarPlay and then the evidence that Tesla was working to bring CarPlay to vehicles, we really expected it to come with the Holiday Update.
We’re not upset it’s not here, though. Tesla’s in-car UI is significantly better, at least in our opinion.
Parking Spot Selection
One of the biggest gripes about the new Arrival Features with Full Self-Driving v14 is that choosing a set parking spot is not available. This is especially frustrating for Tesla owners who rent or live in townhouse neighborhoods or apartment complexes with assigned parking.
Tesla seems to be working on this based on the release notes for v14.2, where it said future capabilities would include Parking Spot Selection.
Tesla gets price target boost, but it’s not all sunshine and rainbows
Tesla Optimus dramatically collapses after teleoperator mishap
