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SpaceX looks to launch space tourists to record heights
SpaceX has signed an agreement with a space tourism company that could see its Crew Dragon spacecraft take space tourists to heights unmatched by astronauts in half a century.
On Tuesday, February 18th, Space Adventures announced the agreement, revealing that it is now officially looking for wealthy private customers interested in launching to orbit on a SpaceX rocket and spacecraft. Known as Crew Dragon, that spacecraft is perhaps just two or three months away from SpaceX’s inaugural astronaut launch, in which two NASA astronauts will be sent into orbit to rendezvous and dock with the International Space Station (ISS) before returning to Earth after several weeks or months in space.
Founded in 1998, while Space Adventures has a slightly checkered past and has been more or less inactive for more than a decade, the company did manage to arrange eight separate spaceflights for seven private customers between 2001 and 2009. All flights previously arranged were done so through Russian space agency Roscosmos with Soyuz rockets and spacecraft and involved approximately week-long visits to the International Space Station (ISS), where the private astronauts – all multimillionaires and billionaires – mainly observed routine ISS operations and assisted with science experiments. With SpaceX’s Falcon 9 and Crew Dragon, Space Adventures hopes to soon offer orbital tourists an option that keeps all operations in the United States.
As noted, it must be stated that the February 18th agreement doesn’t actually mean that private customers will definitively launch into orbit in SpaceX’s Crew Dragon spacecraft. Instead, it serves as a semi-contractual confirmation that the spaceflight company is officially willing and ready to support such a mission in the event that Space Adventures is able to secure enough customers to purchase the necessary launch services. While not out of the question, that will be no easy feat.
Thankfully, several aspects of this new agreement should work in SpaceX and Space Adventures’ favor. As a unique ‘free-flying’ mission, Crew Dragon and its space tourists would not actually rendezvous with the ISS – instead serving as its own miniature outpost in Low Earth Orbit (LEO) for several days. Relative to SA’s past tourist flights to the ISS, this will save a large portion of the time and cost associated with both training civilians for spaceflight and ISS operations and working with NASA and Roscosmos to arrange the complex mission.
Aside from simplifying the training and bureaucracy involved in orbital tourism, the fact that Space Adventures’ newest proposal will have no affiliation or involvement with NASA or Roscosmos also means that there’s nothing preventing SpaceX from using a flight-proven Falcon 9 booster and Crew Dragon capsule on its space tourist launch. By combining flight-proven hardware with a space station-free mission profile, SpaceX could theoretically cut the overall flight’s cost by tens or even hundreds of millions of dollars.
According to public analyses performed over the last few years by auditors and researchers, SpaceX Crew Dragon launches will likely cost NASA around $400 million each, while a comparable Boeing Starliner mission will cost the space agency at least $650 million. The SpaceX figure is, however, predicated upon the production of a brand new Falcon 9 rocket and Crew Dragon spacecraft for each launch and includes costs associated with any processing or operations involving NASA teams and facilities.
As noted above, the use of a thoroughly flight-proven Falcon 9 booster and Crew Dragon capsule could dramatically cut the cost of private astronaut launches relative to the NASA baseline. It’s conceivable that – having effectively amortized the cost of the spacecraft and booster with a NASA astronaut launch – such a private mission’s price could be little more than the cost of building a new Falcon upper stage and Crew Dragon trunk, as well as booster/capsule refurbishment and general operations. Conservatively, the ultimate price SpaceX offers or offered Space Adventures could thus be as low as $100-200 million per launch.
Space Adventures says it could support as many as four space tourists on one flight, translating to a cost of $25-50 million per person if all seats are filled. This would compare reasonably well with the $20-50 million it typically charged its seven orbital tourism customers. That is still a vast sum of money and cuts the pool of potential customers to perhaps a few tens of thousands of people worldwide. Nevertheless, Google co-founder Sergey Brin (and possibly others) is on a sort of waiting list (requiring a $5 million deposit) for future orbital Space Adventures flights, giving the company at least one strong prospective customer.
Thanks to skipping a space station rendezvous, perhaps the single biggest selling point of the mission is that Falcon 9 and Crew Dragon could potentially send space tourists higher than ever before – to an altitude only certain NASA Apollo and Gemini astronauts can claim to have surpassed. Space Adventures specifically notes this on its website, stating that prospective space tourists could reach an altitude that only Gemini 11 astronauts have surpassed while remaining in Earth orbit.
Gemini 11 astronauts reached an of apogee around 850 miles (1350 km) while still in Earth orbit – a record that stands today. Neither Space Adventures or SpaceX have specifically stated how high an unmodified Falcon 9 and Crew Dragon to launch private astronauts, but the implication is that the view would be comparable to – or even better than – what the Gemini 11 crew saw back in 1966. Regardless, it’s safe to say that if SpaceX and Space Adventures’ new space tourism effort is greeted with healthy demand, we’ll be shortly entering a new era of private spaceflight. Crew Dragon’s first private astronaut mission is tentatively scheduled to launch as early as late-2021 or early-2022.
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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
