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SpaceX preps second $500M fundraiser as Starlink & Starship make progress
According to regulatory documents seen by Prime Unicorn Index, SpaceX finished a $500M funding round begun in December 2018 and kicked off a second campaign seeking an additional $500M earlier this month.
Altogether, SpaceX appears to be on track to secure $1 billion in fresh capital in the last six months alone, a trend that that may well continue as the company pushes forth into new and capital-intensive phases of Starlink and Starship development. In Boca Chica, a flood of SpaceX engineers and technicians have descended on the area to build the first full-scale steel prototypes of Starship and the major facilities needed to support the vehicles, all from scratch. Across the West Coast of the US, a separate SpaceX team has simultaneously transitioned from prototyping and developing satellites to building a factory to mass-produce them and may be less than six weeks away from launching the first operational batch of Starlink spacecraft.
Giant rockets, giant funding
Both massive, perilous, and largely unprecedented ventures in their own right, Starship (formerly BFR) and Starlink also happen to be extremely capital-intensive, a more or less fundamental consequence of the stages of their development and expansion. Both spent many years in pure research and development phases, tinkering and experimenting with different ideas and technologies on the ground in an effort to conceptualize what exactly their final forms ought to be. This aspect of the BFR program has been extremely visible over the last three years as SpaceX and CEO Elon Musk’s goals underwent continuous semi-annual changes, often intentionally broadcasted to the public in
After appearing to finally settle on the quasi-final form of BFR (renamed to Starship/Super Heavy), SpaceX has actually begun to build and test the first full-scale, integrated prototype of the spacecraft (Starhopper) and is simultaneously building what aims to be the first orbital Starship prototype. At the same time, its propulsion system of choice – known as Raptor – has entered into serial production back at SpaceX’s Hawthorne factory, while also supporting the first Starhopper hop test in early April and preparing to continue separate ground testing.
Thousands of satellites, billions of dollars
In February 2018, SpaceX successfully launched its first Starlink satellites, two prototypes meant to test a bevy of technologies the company was attempting to build (or at least utilize) for the first time. Despite hints and reports of some problems on orbit, SpaceX firmly holds that both satellites were extremely successful in their task of proving out new technologies like electric thrusters and phased-array antennas and are still safely operating today. Just four months after those prototypes launched, CEO Elon Musk took the extraordinary step of flying to Redmond, Washington to personally challenge a number of executives he believed were operating far too sluggishly. According to secondhand reports, many of them refused to expedite the program as Musk wanted them to, resulting in their immediate firings. The challenge that triggered the organizational upheaval: launch the first operational batch of Starlink satellites before the end of June 2019, twelve months away at the time.
Five months after Musk’s challenge, SpaceX submitted a request to the FCC to modify its original Starlink constellation license, halving the orbit of the first thousand or so satellites to 550 km (340 mi) and significantly simplifying the technology on the first several dozen to be launched. As a result of the strategic changes made, SpaceX is already planning to launch its first group of Starlink satellites as early as mid-May, with perhaps one or several additional launches on the books for 2019. To an extent, the first 75 Starlink satellites and their six ground stations will be a nearly full-fidelity second prototype. Instead of a minimalist development platform like Tintin A and B, the first 75 satellites should offer opportunities to actually test the operations of a large constellation of spacecraft while also demonstrating something close to the internet connectivity the full constellation is meant to offer.
Development to production
That SpaceX is attempting to raise huge amounts of capital should come as no surprise. For almost any commercial venture on Earth that is attempting to introduce a real product from nothing, the process of going from concept, design, and testing to building a final product at scale is both extraordinarily difficult and extremely expensive. Tesla famously went through “manufacturing hell” to go from Model 3 prototypes to a mass-producible finished product, while countless other ventures don’t even make it that far (i.e. vaporware). By far the most challenging aspect of this transition is moving from a phase focused predominately on development to one focused predominately on production.
Due to an extremely unorthodox approach to building the first steel Starship and Super Heavy prototypes, quite literally choosing to do so outside and without shelter, the BFR program is probably less extreme for the time being. However, the transformation needed for Starlink to progress is intense, requiring the satellite team to essentially build a factory from scratch and begin mass-producing high-performance satellites as quickly as possible. The 75-satellite buffer should ease the pain a bit and offer a sort of trial run as SpaceX makes that major transition, but the fact remains that an unprecedented number (thousands) of satellites will need to be built and launched at an equally unprecedented pace and cost-per-unit.
The $500M raised since December 2018 will likely be a major help for SpaceX’s often-
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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
