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Elon Musk says SpaceX making good progress on Starship’s upgraded Raptor 2 engines
As is routine, SpaceX CEO Elon Musk has taken to Twitter to offer a few details about the status of Starship, its Raptor engines, and a few upgrades planned for both.
In mid-December, Musk revealed even more ambitious plans to upgrade Starship by stretching its propellant tanks and adding another three Raptor engines, potentially boosting the ship’s maximum thrust by 50% and substantially improving payload performance. These latest details are focused on an upgraded version of the Raptor engine and on additional changes to Starship’s structural design and assembly process.
According to Musk, as SpaceX continues to ramp up ground testing of the upgraded engine variant, “Raptor 2 now operates routinely at 300 bar main chamber pressure.” For context, on February 10th, 2019, just days after SpaceX began testing the first full-scale Raptor prototype ever completed, the engine briefly reached a main combustion chamber pressure just shy of 269 bar (3900 psi). That narrowly beat records set by Russia’s RD-270 and RD-180 engines, the latter of which is used on ULA’s Atlas V.
It took 18 months before Musk revealed clear proof that at least one Raptor prototype sustained such high chamber pressures over a minute or more of steady-state operations. The same engine peaked at an impressive 330 bar (~4800 psi), briefly producing 225 tons (~500,000 lb) of thrust and soundly beating out Russia’s never flown RD-701 engine, which crested 290-300 bar in testing. Another ~18 months after that milestone, Raptor isn’t quite operational in the sense of supporting orbital-class launches but the engine isn’t far from its first and has since supported dozens of Starship static fires and seven flight tests – five of which occurred in a period of just six months.
Already, despite the fact that Raptor 1 or 1.5 engines have yet to even attempt an orbital-class launch, SpaceX has almost entirely moved on to a new and improved variant known as Raptor 2. According to Musk, all Raptor ground testing at the company’s McGregor, Texas development campus is now focused on the new hardware, which reportedly features much cleaner plumbing and wiring. The biggest change to Raptor 2, though, is an almost 25% increase in maximum nominal thrust over Raptor 1/1.5 – from around 185 to 230 tons (408,000-507,000 lbf). That’s partially enabled by widening the ‘throat’ of Raptor’s nozzle, which sacrifices a small amount of efficiency for more power density. However, Raptor 2 also contains design improvements throughout to enable sustained, reliable operation at chamber pressures up to 300 bar – 10% higher than Raptor 1.5.
On October 24th, Musk subtly live-tweeted one of the first Raptor 2 static fires, revealing that the engine reached a chamber pressure of 321 bar (~4650 psi) and briefly produced around 245 tons (~540,000 lbf) of thrust before destroying itself. Now, a little over two months later, Musk says that Raptor 2 prototypes are routinely operating at 300 bar without major issues, meaning that they can ignite and safely shut down after burning for several minutes at those pressures. In theory, given that 300 bar is Raptor 2’s targeted chamber pressure at max thrust, that means that the engine is now “routinely” operating at the level SpaceX wants and needs to take Starship to the next level.
It’s likely that one or several months of work remain before SpaceX can begin qualifying the first Raptor 2 engines (or, more importantly, hypothetical Raptor 2 Vacuum or Boost variants) for the first Starship or Super Heavy prototypes designed for the new engine. Nonetheless, the rapid progress SpaceX has made in the first few months of Raptor 2 testing is extremely encouraging.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
News
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla hits major milestone with Full Self-Driving subscriptions
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
