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SpaceX CEO Elon Musk wants to use Starships as Earth-to-Earth transports
SpaceX CEO Elon Musk indicates that the company is analyzing the use of single-stage Starship spacecraft as a potential pillar of its rapid Earth-to-Earth transport ambitions, meant to realize hypersonic mass-transit at “business-class” prices.
The consequences of such a move are varied but the gist is fairly simple: by cutting down on the complexity of the hardware and infrastructure involved, Earth-based transport via reusable rockets immediately becomes a far more intriguing (and plausible) proposition. Huge challenges remain, but many of those challenges could potentially become identical to those that Starship must already face to achieve SpaceX’s ultimate goal of Mars colonization.
As discussed on Teslarati just ~24 hours ago, using extremely large rockets to quickly, reliably, and safely transport humans around the Earth sounds great on paper but runs into a huge number of brick walls after just a cursory analysis. The single most important aspect of any high-volume form of mass transit is passenger safety – if a method consistently demonstrates that it is likely to kill passengers, it will die a very quick death to public opinion and regulatory fury.
From a statistical standpoint, rockets are thousands of times less safe than passenger aircraft, in large part due to their complexity and cost. As it turns out, an almost invariably foolproof method of improving the safety of a given thing is reducing its complexity (within moderation, of course). The fewer the parts there are, the fewer the parts that can fail and the easier (and cheaper) gathering data and evidence will be.
Originally, SpaceX’s 2017 Earth-to-Earth concept relied on a full two-stage BFR rocket (now Starship/Super Heavy) that could transport passengers anywhere on Earth in 30-60 minutes. Expected to launch off of giant, floating platforms, boosters would launch and land on the same platform while sending Starships on there way around the world. Starships would head to identical platforms at their destination and land directly beside that platform’s booster.
In general, this concept at least seemed serviceable, even if it didn’t exactly scream “practical solution!” Thankfully, much like BFR itself has radically changed in the last 18 or so months, it appears that SpaceX’s concept of Starship-based Earth transportation services has also continued to evolve. According to Musk’s May 30th tweets on the subject, one obvious method of improving the viability of the concept involves entirely removing the booster (Super Heavy) from the picture.
In an instant, SpaceX’s concept of Earth-to-Earth transport starts to look more like an exotic version of proposed supersonic and hypersonic transport solutions. By leaning on lone Starship spacecraft, incapable of reaching orbit by themselves, Musk believes that SpaceX could transport passengers up to ~10,000 km at speeds as high as “Mach 20” (6.9 km/s, 15,500 mph). This is undeniably a downgrade from “anywhere on Earth in less than an hour”, but it would still easily trounce any existing mode of transport and could potentially lend itself to actual suborbital spaceports located in key areas.
At the speeds described, SpaceX could offer ~20-minute trips from New York City to London or ~40-minute trips from Los Angeles to Tokyo as just two examples. Lack of range would certainly limit the potential utility and ubiquity of such a transport service, but there are undeniably enough niche markets to sustain something like that. By relying entirely on Starship, transportation could become far similar to airliner-style travel, while keeping speeds well below orbital velocity would give the spacecraft’s heat shield a much easier time.
For now, at least, the SpaceX dream of global, hypersonic mass-transit is clearly still alive and well, even if the hurdles ahead of it remain no less imposing. According to President and COO Gwynne Shotwell, SpaceX could begin offering Earth-to-Earth transport services as early as 2025, if not earlier with Musk’s proposed Starship-only variant.
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Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
Elon Musk says this part of Tesla ‘makes no sense’
