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SpaceX’s first orbital Starship launch runs into more FAA delays
The US Federal Aviation Administration (FAA) says it’s at least two months behind schedule on an environmental review that must be completed before SpaceX will be allowed to attempt the first orbital Starship launch attempts.
In mid-November, the FAA revealed plans to complete SpaceX’s “SpaceX Starship/Super Heavy Launch Vehicle Program” programmatic environmental assessment (PEA) – a review that can be built upon down the road – by December 31st, 2021, officially delaying Starship’s first orbital launch attempt into 2022. Based on the lack of updates from the FAA and progress with the Starship and booster assigned to the mission, that delay was already largely expected, but the rare update nonetheless confirmed it with certainty. Now, less than a month and a half after the FAA announced its Dec 31st target, the agency has waited until three days before that estimated deadline to announce that it will take at least two more months to complete the review.
Somewhat insultingly, in its official statement on the delay, the FAA appears to attempt to implicate the review of “over 18,000 public comments” received during a comment period as a source of those delays. That six-week comment period ended on November 1st, weeks before the FAA published its first December 31st target date. In other words, for comment reviews to be responsible for any of the new delays, the FAA’s environmental compliance group would have had to underestimate the amount of work required to complete that process by at least 100% – not all that encouraging for an agency in which precision and accuracy are of the utmost importance.
“The FAA plans to issue the Final Programmatic Environmental Assessment (PEA) for the SpaceX Starship / Super Heavy project on Feb. 28, 2022. The previous target date was Dec. 31, 2021.
Under the oversight of the FAA, SpaceX is currently drafting responses for the over 18,000 public comments received on the Draft PEA and continues to prepare the Final PEA for the FAA’s review and acceptance. In addition, the FAA is continuing consultation and coordination with other agencies at the local, State and Federal level.
The environmental review is just one part of the FAA commercial space licensing process. SpaceX’s license application must also meet FAA safety, risk and financial responsibility requirements.”
The real delays, which the FAA acknowledges in much less detail, are likely the result of “continuing consultation and coordination with other agencies at the local, State, and Federal level [sic].” In the FAA’s defense, some of those delays may technically be out of its control if slow responses from other agencies are partly to blame. Nonetheless, it was the FAA’s decision to wait from November 2020 to June 2021 to actually proceed with SpaceX’s Starship environmental assessment, which the company officially began drafting in March 2021.
Had the FAA started work on the PEA in earnest several months prior, which appears to have been well within its power, SpaceX’s extremely limited orbital Starship PEA might already be complete, allowing the agency to begin ensuring that SpaceX “meet[s] FAA safety, risk and financial responsibility requirements.” If the process of securing a limited license for far less risky suborbital Starship launches is anything to go off of, securing a similar license for orbital Starship launches with 10-20 times the explosive potential could be an agonizing months-long ordeal. It’s ambiguous if the FAA is already deep into that process or if it’s waiting for a complete, approved PEA to begin work on Starship’s first orbital launch license.
Regardless, the fact remains that it’s no longer clear if the FAA’s delays or poor schedule estimates will actually delay Starship’s first orbital launch attempt. Originally said to be no earlier than July 2021 and almost every subsequent month since by Elon Musk, the CEO’s most recent estimate was January or February 2022. According to a relevant NASA research project published a month prior to Musk’s estimate, the space agency anticipated Starship’s orbital launch debut no earlier than March 2022. Now that the FAA doesn’t expect to complete Starship’s orbital-class PEA before February 28th, 2022, March or April 2022 appears to be a more accurate NET.
That will give SpaceX another three months at minimum to – just maybe – finally complete Super Heavy B4’s aft assembly, qualify and fill the methane side of Starbase’s orbital-class tank farm, perform several unprecedentedly ambitious wet dress rehearsals and static fires, really make sure Ship 20 is ready for flight, and activate the orbital launch tower’s massive ‘chopstick’ arms – meant to eventually catch rockets out of the air but also necessary for SpaceX to install Starship on top of Super Heavy.
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
