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SpaceX’s recent Starship testing challenges don’t worry Elon Musk
In his latest burst of tweets, SpaceX CEO Elon Musk says he isn’t all that worried about a duo of recent Starship prototype failures and talked next steps for the next few Starships.
Aside from SpaceX’s South Texas rocket factory, Musk also touched on progress being made on the cutting-edge Raptor engine set to power Starships and their boosters, revealing a small production milestone in the process. The CEO says that SpaceX has already begun building its 26th Raptor engine, a sign that Raptors may actually be waiting on Starships in a turn of events. Back when SpaceX was busy testing its low-fidelity Starhopper testbed, the ship actually had to wait several months for the full-scale Raptor engine’s design to mature enough to support 15-30+ second hop tests.
Now, Musk’s Raptor SN26 reveal implies that SpaceX is slowly but surely ramping up production of the new engine back at its Hawthorne, California headquarters.
From August to December 2019, SpaceX completed one Raptor engine every ~17 days, on average. With Musk’s confirmation that SpaceX is currently building (or already testing) SN26, the company is completing an engine every 12-14 days – an overall improvement of 20-40%. In other words, SpaceX’s growing engine production capacity is almost perfectly positioned to support a fleet of suborbital Starship prototypes, which is about where the company’s Boca Chica, Texas factory is today.
Obviously, following two recent full-scale Starship prototype failures spaced barely a month apart, rocket production has a ways to go before it will need the volume of Raptor engines SpaceX appears to already be capable of producing. For the time being, three Raptor engines – having already completed production in Hawthorne and acceptance testing in McGregor, Texas – are quite literally sitting around and gathering dust as they wait for the first Starship prototype qualified to host them.
Once a Starship passes proof testing, SpaceX will be able to install either one or all three engines for an inaugural static fire test, following by a small Starhopper-class hop (no higher than 150m or 500 ft).
However, once SpaceX has explored the full range of testing available to suborbital Starship prototypes, things will change. Likely ending with the first one or several successful ‘skydiver-style’ rocket landing tests, SpaceX will finally be able to seriously think about its first orbital flight tests. To reach orbit and still be capable of returning to Earth and landing softly, Starship will need a Super Heavy booster – set to be the largest rocket booster ever developed by a large margin.
Although Musk has stated that early orbital flight tests will likely launch with far fewer engines, a single Super Heavy booster could eventually require 37 Raptor engines – a full 42% more engines than SpaceX has managed to build in the entire 15+ month history of full-scale Raptor production.
Thankfully, SpaceX’s engine production HQ likely has at least 6-12 months to ramp up production to support fully-outfitted Super Heavy boosters – let alone several. For the time being, each suborbital Starship only needs 3 sea level-optimized Raptor engines, although it’s possible that SpaceX will eventually perform suborbital tests with a full compliment of six engines – including three with much larger vacuum-optimized nozzles.
Ultimately, Musk explained that his lack of concern about recent Starship prototype failures – potentially including any anomalies that follow SN4’s test campaign – comes from the fact that he believes that producing Starships is a much more challenging and pressing concern. Indeed, if your factory can churn out functioning building-sized spacecraft for pennies on the dollar, losing a few during testing is little more than an annoyance. The first failed prototypes can thus be considered learning experiences, helping SpaceX improve designs and optimize the factory and production strategies. SpaceX does still need to prove that its existing approach really can build functioning rockets, but that should (in theory) come with enough trial and error.
Depending on how initial tests go with Starship Serial Number 4 (SN4), likely days away from wrapping up production, Musk says that the first few suborbital Starship tests will likely involve short, low-velocity hops. Those flights will be slow enough that the ship (or ships) wont require aerodynamic control surfaces to complete them, instead relying entirely on smaller thrusters and the thrust vector control (TVC) provided by their three main Raptor engines.
If Starship SN4 testing – including wet dress rehearsals, Raptor static fires, and short hops – goes perfectly, Musk says that Starship SN5 could be the first new ship to have fully-functional flaps installed. If things don’t go quite as well, that milestone could shift to Starship SN6, while SN7 and beyond are obviously on the table in the event of even less forgiving SN4/SN5 testing scenarios. For now, Starship SN4 could be ready to move to the launch pad and kick off a series of critical proof tests a handful of days from now.
Tesla has finally clarified the situation regarding the viral crash in Texas where a Model 3 slammed into a home.
CEO Elon Musk replied to reports on Monday that stated the crash was due to the company’s Full Self-Driving or Autopilot suite, which seemed unlikely to those who are familiar with it. Video showed the car slamming into a house at an excessive rate of speed, making it highly unlikely the crash was due to the suite’s operation, as it does not travel at those speeds in residential areas.
Musk said:
“This makes no sense. FSD drives slowly through neighborhood streets, and this was a high-speed crash!”
Tesla’s Head of AI, Ashok Elluswamy, added context, revealing that the company’s data shows the driver “manually overrode self-driving by pressing the accelerator all the way to 100%.”
He revealed the speed reached by the car was 73 MPH, and the accelerator was still pressed “even after the crash.”
Yup. In this case, the driver manually overrode self-driving by pressing the accelerator all the way to 100% of the accel pedal in this residential area. They reached a speed of 73 mph during the crash, and had the accelerator pressed even after the crash.
— Ashok Elluswamy (@aelluswamy) June 22, 2026
Authorities are reportedly investigating “whether Tesla’s Autopilot system played a role after a Model 3 left the roadway…slammed through a brick house at high speed and fatally struck Matha Avila as she sat inside,” the New York Post reported.
The National Highway Traffic Safety Administration (NHTSA) is now investigating the crash. Tesla will work with the agency to provide them with whatever information they need in order to clarify the cause of the crash.
Similarly, Tesla had claims of a fatal accident in Harris County, Texas, a few years ago. Early reports indicated that Full Self-Driving was the cause of the crash. After the National Transportation Safety Board (NTSB) worked with Tesla, the agency proved there was “no use of the Autopilot system at any time during this ownership period of the vehicle, including the time frame up to the last transmitted timestamp on April 17, 2021.”
Tesla alleged “driverless” crash in Texas: What is known so far
“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws have default speed limits of 30 MPH in residential streets.
This appears to be a similar situation. However, an investigation will prove what happened for sure.
SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.
The company announced an offering of senior unsecured notes expected to raise at least $20 billion.
The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.
🚨 SpaceX has announced its inaugural offering of senior unsecured notes.
The net proceeds will be used to repay outstanding loans under its bridge loan facility in full.
This inaugural debt offering represents a financing milestone for SpaceX, which previously depended… pic.twitter.com/pcOZuVbTRv
— TESLARATI (@Teslarati) June 22, 2026
According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.
The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.
SpaceX officially acquires xAI, merging rockets with AI expertise
In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.
The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.
SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.
Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.
SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Mississippi.
Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.
CNBC first reported the deal.
🚨 SpaceXAI has agreed to a new compute deal with Reflection AI.
Reflection gets access to NIVIDIA GB300s, and will pay $150M per month to SpaceXAI for the compute. pic.twitter.com/bNPare8U5u
— TESLARATI (@Teslarati) June 22, 2026
This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.
SpaceX has previously signed significant compute deals with other major players.
It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.
Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.
SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.
These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.
Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.
The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.
For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.
Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration
SpaceX makes $20 billion move to optimize its balance sheet
