SpaceX
SpaceX’s Crew Dragon returns to port as NASA praises successful launch debut
SpaceX’s Crew Dragon spacecraft successfully returned to Port Canaveral aboard recovery vessel GO
The culmination of the better part of a decade of constant work and NASA support, the flawless success of SpaceX’s DM-1 Crew Dragon mission is a testament – above all else – to the many hundreds of thousands or millions of hours SpaceX employees have put into the spacecraft’s design, production, operation, and recovery. While just one half of a critical pair of demonstrations, DM-1’s success should translate into extremely good odds for Crew Dragon’s Demo Mission 2 (DM-2), in which SpaceX will launch two NASA astronauts to the International Space Station on the company’s first crewed launch ever.
“I can’t believe how well the whole mission has gone. I think on every point, everything’s been nailed, all the way along—particularly this last piece. We were all very excited to see re-entry and parachute and drogue deploy and main deploy, splashdown—everything happened just perfectly, right on time the way that we expected it to. It was beautiful.” – Benji Reed, Director of Crew Mission Management, SpaceX
SpaceX Director of Crew Mission Management Benji Reed’s unqualified appraisal of Crew Dragon’s debut serves as a perfect example of the attitude almost universal throughout the company in the twilight of the mission’s completion. While sources suggest that there were more than a few hiccups during the mission, they were extremely mild and came as no surprise for what effectively amounted to the first shakeout mission of a brand new vehicle. According to CEO Elon Musk, Crew Dragon shares almost no hardware – aside from its Draco thrusters – with Cargo Dragon, the uncrewed orbital spacecraft SpaceX has now launched into orbit 17 times in the last eight years.
Crew Dragon approaches the ISS during its orbital launch debut, March 3rd. (NASA) 
Cargo Dragon is seen here attached to the ISS shortly before the completion of SpaceX’s CRS-16 resupply mission, January 7th. (NASA) 
Crew Dragon was successfully recovered aboard GO Searcher on March 8th. (SpaceX) 
Cargo Dragon completed its most recent mission, CRS-16, on January 13th. (SpaceX)
For such a complex spacecraft, not to mention an almost clean-sheet redesign, it’s nothing short of extraordinary that its debut launch was so utterly free of significant anomalies or unexpected behavior. Separated into the distinct phases of launch, free-flight, ISS docking/undocking, and recovery, Crew Dragon reportedly performed almost perfectly in all cases, “right on time” according to Mr. Reed. NASA’s CCP Deputy Manager Steve Stich was equally enthusiastic and elated about the spacecraft’s performance.
“On-orbit we got a lot of great data on the vehicle in terms of the thermal performance and power performance; the vehicle really did better than we expected. Then the rendezvous was phenomenal as we came in and checked out those sensors. Today; the undocking, watching how those systems performed, that went flawlessly. It’s a very tight sequence between undocking and de-orbit burn, how the nose cone performed, how the de-orbit burn was executed, then the entry was phenomenal.”
“I don’t think we saw really anything in the mission so far—and we’ve got to do to the data reviews—that would preclude us from having the crewed mission [DM-2] later this year.”
– Steve Stich, CCP Deputy Manager, NASA
Following Crew Dragon’s March 9/10 return to Port Canaveral, the spacecraft is expected to immediately enter into a post-flight analysis and data-gathering phase that will quickly transfer into refurbishment to prepare for the capsule’s second (albeit suborbital) launch, a critical in-flight abort (IFA) test that could happen as early as April according to Elon Musk. While official planning schedules point towards the IFA occurring closer to June or even July, it’s reasonable to assume that those official schedules are highly conservative. If Crew Dragon’s significantly waterproofing and reusability upgrades make a major difference, it’s far from inconceivable that the vehicle’s second abort test could actually occur ahead of schedule, although it’s unlikely.
The in-flight abort test will effectively be a repeat of SpaceX’s successful 2015 pad abort demonstration, albeit with the stationary launch pad replaced with a full Falcon 9 rocket – first and second stage – traveling at supersonic speeds. If Crew Dragon can safely abort in such challenging conditions, it’s almost guaranteed that it will be able to safely abort at any time during a Falcon 9 launch, all the way from the moment fueling begins on the ground into orbital operations. In fact, CEO Elon Musk recently suggested that the same SuperDraco abort thrusters that enable those safe escapes could potentially be used to add yet another level of redundancy during landing, standing in for parachute damage or failures to slow the capsule down and minimize or prevent injuries during splashdown.
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Elon Musk
SpaceX’s amended S-1 is sparking a major Tesla merger conversation
A single line in SpaceX’s amended S-1 just sent Tesla stock down 5% in one day.
A single line buried in SpaceX’s amended S-1 filing is doing more to move Tesla’s stock price than anything Tesla itself has announced in months. The clause, disclosed as SpaceX prepares for what could be the largest IPO in Wall Street history, states that the company “may issue a significant amount of equity in connection with future transactions.” While this may be seen as boilerplate language in S-1 filings, the historical ties between SpaceX and Tesla, and with Elon Musk reportedly discussing a possible merger with close colleagues, investors are interpreting it as something closer to a signal.
The concern among institutional investors like Gary Black, managing director of The Future Fund, pointed directly to the amended filing on X, saying it “strongly suggests more SPCX equity will be issued,” which could potentially be used to acquire Tesla. He estimated such a deal could be 28% dilutive to Tesla shareholders since SpaceX would likely command a significantly higher valuation multiple. Black added that institutional investors he knows hate the idea of a combination because they prefer pure plays over conglomerates, which he said “nearly always gravitate to the lowest common multiple.”
The Tesla and SpaceX merger everyone is talking about is quietly building
The bull case runs the math differently. Tesla influencer and retail shareholder advocate AleXandra Merz pushed back on what she called a widespread misunderstanding of how merger-of-equals deals actually work. Rather than simply splitting the difference between two market caps, a merger exchange ratio is negotiated based on relative fair market values, meaning the lower valued company typically sees its stock reprice upward toward the deal value.
Under her model, SpaceX enters at a $2.5 trillion valuation and Tesla at $1.6 trillion, producing a combined entity worth $4.1 trillion split evenly between both shareholder groups. That implies Tesla’s side of the deal would be valued at $2.05 trillion, a gain of roughly $450 billion from its current market cap. She cited Dow-DuPont and CBS-Viacom as historical examples of how markets reprice both companies toward the announced exchange ratio after a deal is unveiled.
What does a Merger of Equals mean to Elon’s compensation packages?
Well, it changes everything.
Enjoy https://t.co/uekCldyITw pic.twitter.com/kolq1C9qTu
— AleXandra Merz 🇺🇲 (@TeslaBoomerMama) June 1, 2026
The SpaceX S-1 amendments also revealed just how much financial infrastructure already binds the two companies together. As Teslarati has reported, SpaceX purchased $697 million in Tesla Megapacks, $131 million in Cybertrucks, and the two companies have shared supply chain resources, and semiconductor fabrication plans since well before any merger conversation became public. A retail poll by Tesla influencer Sawyer Merritt is finding that 36% of respondents do not plan to buy SpaceX shares at IPO and 15.3% saying their decision depends on the valuation.
Do you plan on buying @SpaceX stock at its IPO?
— Sawyer Merritt (@SawyerMerritt) June 1, 2026
Whether the merger happens or not, the amended filing is seemingly moving markets and sharpened a debate that is no longer theoretical. SpaceX is weeks away from trading publicly, and Tesla shareholders are now watching every word of every filing for clues about what Musk plans to do next.
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.
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.
SpaceX’s amended S-1 is sparking a major Tesla merger conversation
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