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SpaceX, NASA finalize contract for second crewed Starship Moon landing
Around eight months after announcing its intention to do so, NASA has awarded SpaceX a contract for a second crewed Starship Moon landing as early as 2027.
Known as Option B, NASA has exercised a baked-in right to modify its Human Landing System (HLS) Option A contract with SpaceX – signed in April 2021 – to extract even more value from investments into the program. In addition to an uncrewed Starship Moon landing planned no earlier than (NET) 2024 and a crewed demonstration that could land two NASA astronauts on the Moon as early as 2025, NASA’s contract modification gives SpaceX the approval and resources it needs to prepare for a second crewed Starship Moon landing.
On top of securing NASA’s Artemis IV mission astronauts a ride to the lunar surface, the Option B contract will also allow SpaceX and NASA to pursue and demonstrate upgrades that will make Starship an even more capable and cost-effective Moon lander.
Update: NASA says that the Option B modification will cost $1.15 billion, raising the maximum value of SpaceX’s HLS contract to approximately $4.2 billion.
When NASA first announced its intention to add a second crewed Moon landing to SpaceX’s existing HLS contract, the agency couldn’t offer specific information about when that landing might occur or which Artemis mission it would be attached to. Part of the reason for that uncertainty was another announcement two months prior that NASA no longer expected a Moon landing to be paired with its Artemis IV (4) mission. And five days after a March 2022 announcement of plans for a second crewed Starship Moon landing, NASA seemingly reaffirmed that there would be a multi-year gap between Starship’s first crewed Moon landing (NET 2025; tied to Artemis III) and NASA’s second crewed Moon landing, which would use an unspecified lander.
But as of November 2022, NASA has thankfully abandoned plans to intentionally allow a gap between Moon landings. SpaceX’s Starship is now on contract to support back-to-back crewed Moon landings NET 2025 and 2027 as part of NASA’s Artemis III and Artemis IV missions. It’s unclear how or why NASA was able to make that change, but it’s a definite improvement over the alternative.
Additionally, NASA will work with SpaceX to debut new capabilities and improvements on Starship’s second crewed Moon landing. While the Artemis III landing will be about as barebones as possible, the Artemis IV Starship will be upgraded with the ability to transport more NASA astronauts (four instead of just two) and more cargo to the lunar surface. It’s not entirely clear, but NASA reportedly wants to land just ~180 kilograms (~400 lb) of cargo with the first crewed Starship, a vehicle likely capable of landing dozens of tons of cargo in addition to several astronauts. NASA hopes that future “sustainable” lander missions, a category that Starship’s Option B landing may or may not fall under, will transport up to one ton (~2200 lb) of cargo to and from the lunar surface.
Finally, the Artemis IV Starship will also be able to dock with NASA’s Lunar Gateway. Gateway is a small deep space station that will be located in a strange, high lunar orbit. It exists almost exclusively to give NASA’s Space Launch System (SLS) rocket and Orion crew capsule a destination they can both reach. The Orion capsule is almost twice as heavy as its Apollo counterpart and its European Service Module (ESM) offers less than half the performance of NASA’s retired Apollo Service Module. Combined, Orion is physically incapable of transporting itself (or astronauts) to the simpler low lunar orbits used by the Apollo Program.
Instead, NASA’s new Moon lander(s) have to pick up Orion’s slack. Starship will be responsible for picking up astronauts in a lunar near-rectilinear halo orbit (NRHO), transporting them to low lunar orbit, and returning them to NRHO in addition to landing on the Moon, spending a week on the surface, and launching back into lunar orbit.
Until it’s modestly upgraded in the late 2020s or 2030s, Gateway will be equally underwhelming. In fact, that’s part of the reason that Starship docking with the Gateway is in any way significant. SpaceX and NASA have decades of expertise docking and berthing spacecraft with space stations. But those spacecraft are typically smaller and lighter than the stations they were joining. Even after the Gateway is fully outfitted with a range of international modules, Starship will likely weigh several times more than the tiny station, making docking even more challenging than it already is.
Starship’s Moon lander variant could also have a cabin with hundreds of cubic meters of habitable space, while the Gateway is unlikely to ever have more than a few dozen. Having a Starship docked would thus immediately make the ultra-cramped station far more livable.
NASA says Artemis IV and the second crew Starship Moon landing will occur as early as 2027. But a ‘space prophet’ who predicted in 2017 that NASA’s SLS launch debut would slip from 2019 to “around 2023” and forecasted that SpaceX alone would win NASA’s Moon lander contract recently told Ars Technica’s Eric Berger that Artemis III, the mission before Artemis IV, is unlikely to launch before 2028. At the time, that source’s predictions verged on blasphemy, but they’ve ultimately proven to be eerily accurate. Only time will tell if their third ‘prophecy’ follows the same path.
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
