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SpaceX CEO Elon Musk arrives in Texas for milestone Starship engine test
On Saturday evening, SpaceX CEO Elon Musk landed in Waco, Texas – perhaps along with additional SpaceX propulsion engineers – for the critical static fire debut of the first “radically redesigned” Raptor engine, built to power BFR’s Starship upper stage and Super Heavy booster.
If the first operationalized Raptor’s static fire tests go well, there are several possible routes the test program could take, all of which will end up with this engine and several others being tested and ultimately installed on the Starship hopper (Starhopper) prototype under construction roughly 500 miles (800 km) south of SpaceX’s Raptor test cell.
At @SpaceX Texas with engineering team getting ready to fire new Raptor rocket engine pic.twitter.com/ACFM8AtY8w
— Elon Musk (@elonmusk) February 3, 2019
Shortly after Musk revealed official photos of the first operationalized Raptor preparing for an inaugural static fire test at SpaceX’s McGregor, Texas facilities, the SpaceX and Tesla CEO’s private jet was seen landing at Waco, Texas around sunset. Although all SpaceX technical expertise needed for Raptor’s first ignition was probably already on site several days prior, Musk has been known to offer seats on his private planes to SpaceX and Tesla employees when a critical group is needed away from their normal base of operations. The best examples come from Tesla engineering expertise sometimes traveling between Fremont and Gigafactory 1 when needed, often to solve production holdups.
Regardless of whether he was traveling with members of the SpaceX propulsion team, Musk’s arrival at McGregor yesterday signified that Raptor Block 1’s first integrated hot-fire was imminent. Assuming no attempt was made on Saturday night or Sunday morning, SpaceX technicians and engineers are presumably still working on installing what is effectively a new rocket engine and ensuring that Raptor’s test cells – extensively overhauled and upgraded for the occasion – are working as intended. While the development Raptors SpaceX built hovered around 1000 kN (~100t) of thrust, also roughly the same as Merlin 1D, the Raptor now on stand in Texas is reportedly a 200 ton-class engine or more than double the thrust of any single engine SpaceX engineers and technicians have built or test-fired in 15 years of engine development.
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- The only official render of Raptor, published by SpaceX in September 2016. The Raptor departing Hawthorne in Jan ’19 looked reasonably similar. (SpaceX)
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- Technically speaking, this Raptor is the smaller (sea-level) version of the engine. (SpaceX)
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- SpaceX’s current Texas facilities feature a test stand for Raptor, the engine intended to power BFR and BFS to Mars. (SpaceX)
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- A Raptor prototype is seen here during its first-ever ignition test. (SpaceX)
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- A 2017 test-firing of the mature development Raptor, roughly 50% less powerful than the full-scale system. (SpaceX)
A fork in the R&D road
Prior to completing Raptor Block 1 (unofficial designation), SpaceX cumulatively test-fired dev Raptors for far more than 1200 seconds over the course of more than 24 months. It’s unclear how extensively the company’s engineers will be able to test the pathfinder hardware built on the back of that extensive test program. Nominally, one would expect hundreds or thousands of seconds of additional testing to properly characterize the design and production of a brand-new, optimized engine like Raptor while primarily ensuring that it performs within engineering specifications.
Knowing CEO Elon Musk’s self-admitted tendency to push for impractical deadlines and schedules that often appeared rushed for the sake of rushing, it’s not impossible that the first Raptors could find themselves installed on the Boca Chica-based Starhopper test article after Merlin-esque acceptance testing and nothing more. For M1D and MVac, acceptance testing usually takes the shape of a full-duration burn with throttle and gimbal activity to closely simulate a true Falcon 9 or Heavy launch. For the 200-ton Raptor now in Texas, comparable acceptance testing could take a variety of forms, ranging from short Starhopper-relevant burns (10-60 seconds for small hops) to simulating conditions during a Super Heavy launch and landing or even a 6 or 7-minute orbital insertion burn indicative of the performance needed for Starship.
Depending on the interplay between the route SpaceX engineers would likely prefer and the Starhopper test schedule executives and managers might want, this first Raptor engine (and two more soon to follow) could be installed on Starhopper anywhere from a few weeks to several months from now. Elon Musk indicated in early January that he expected hop tests would occur 4-8 weeks later, shortly followed by unplanned damage to the craft’s nose cone that pushed the debut back “a few weeks”.
Aiming for 4 weeks, which probably means 8 weeks, due to unforeseen issues
— Elon Musk (@elonmusk) January 5, 2019
I just heard. 50 mph winds broke the mooring blocks late last night & fairing was blown over. Will take a few weeks to repair.
— Elon Musk (@elonmusk) January 23, 2019
Realistically, hop tests should thus be expected to begin no earlier than (NET) 8-12 weeks from the first week of January, translating to NET March or April. This would give SpaceX propulsion engineers a decent amount of time to gain at least a few hundred (or maybe 1000+) seconds of experience operating the newest and most advanced iteration of Raptor.
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Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk strikes down reports on SpaceX IPO rumors
Tesla’s Robotaxi dreams just took a massive step toward reality
