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SpaceX repairing heat shield, reinstalling Raptors on first orbital-class Starship
SpaceX has begun reinstalling three of the six Raptor engines that will power the first orbital-class Starship and repairing the heat shield that will hopefully protect it on its first trip to space.
Known as Starship 20 or S20, the 50m (~165 ft) tall steel rocket prototype has been stationed at one of SpaceX’s two suborbital testing pads since August 13th. No testing has been done, though, and a small army of SpaceX technicians and engineers have instead spent the last three or so weeks effectively turning a collection of steel tanks, tubes, and parts into a functional rocket. While it’s unclear why SpaceX chose to do that outfitting work at an unsheltered launch pad, new activity suggests that it may be almost complete.
Exactly one month ago, SpaceX stacked Starship S20 on top of Super Heavy Booster 4 (B4) on August 6th, briefly creating the largest rocket in history and completing a fit test that was admittedly just as much a photo op. Ship 20 was rapidly destacked and returned to SpaceX’s Starbase factory, where all six of its Raptor engines were removed. About a week later, Ship 20 returned to the pad and has remained installed on Suborbital Pad B ever since.
At the time, the implication was that SpaceX had removed Ship 20’s engines to allow the prototype to complete cryogenic proof testing with hydraulic thrust simulators. However, despite having carefully modified Pad B over several weeks for that exact purpose, those modifications were rapidly removed before Ship 20’s second rollout. Precluding a proof test with thrust simulation, the next logical conclusion was that SpaceX would still perform a cryogenic proof test before reinstalling Ship 20’s Raptors and moving on to a static fire campaign.
Now, even that appears to have been p1recluded. Instead, as if Ship 20 were the second or third or fourth in a series of prototypes, SpaceX rolled three center Raptors to Pad B on September 5th and began installing the engines on Starship on the 6th. It’s hard to say anything with confidence given how chaotically Starship S20’s to-be-determined qualification testing has changed in the last several weeks but, with plenty of uncertainty, Raptor installation implies that the vehicle will perform its first ambient pressure and cryogenic proof tests with engines installed.
It remains to be seen if Ship 20’s three vacuum-optimized Raptor engines will also be installed over the next few days (seemingly the logical assumption) or if SpaceX will instead complete proof tests and center Raptor static fire testing before finally moving into new territory. SpaceX has never static fired more than three Raptors at once and certainly never tested multiple Raptor Vacuum (RVac) engines in close proximity – let alone all six simultaneously.
Meanwhile, much of the focus of the last few weeks appears to have been on finishing Ship 20 plumbing and avionics wire runs, though it’s hard to say exactly what has been done. What is extremely visible and easy to follow, though, is the process of finishing the first orbital-class Starship heat shield and repairing a few hundred tiles broken during its pathfinder installation. SpaceX has installed 500-1000+ tiles on flown Starship prototypes like SN15 but the company has never come close to the ~15,000 needed to cover the entire windward side of the world’s largest rocket upper stage.
SpaceX has undertaken that process for the first time over the last six or so weeks and unsurprisingly seen a number of successes and failures. At some point along the way, a significant fraction of the ceramic, dinner-plate-sized tiles SpaceX technicians installed chipped, broke, shattered, or ran into other fitment issues. Over the last month or so, a great deal of progress has been made fixing those problem tiles and SpaceX has also more or less completed tile installation on the angular ‘aerocovers’ that protect Starship’s flap mechanisms – requiring dozens of custom tiles with complex shapes and curves.
As of September 6th, Starship S20’s heat shield appears to be around 95% complete and the installation of Raptor engines implies that the rocket’s plumbing, avionics, and tankage are also nearly finished. In other words, after many weeks of work, SpaceX’s first orbital-class Starship prototype could be ready to kick off cryoproof and static fire testing just a week or so (and maybe less) from now. Stay tuned for updates!
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
