SpaceX
SpaceX begins static Starhopper tests as Raptor engine arrives on schedule
SpaceX has officially begun static ground testing of Starhopper, a full-scale pathfinder Starship prototype meant to support an early series of Raptor-powered hop tests at SpaceX’s South Texas launch site. Simultaneously, the second completed Raptor engine arrived at the site on Monday, March 11th, confirming CEO Elon Musk’s March 8th tweets about the delivery.
While reasonably routine for any rocket test program, the first tanking test of Starhopper effectively marks the first time that SpaceX has begun tests with a more or less fully integrated Starship (previously BFS). Likely performed with liquid nitrogen instead of liquid oxygen/methane, the first few tanking tests will be used to determine the quality of the prototype’s stainless steel tanks – built en
In November 2016, SpaceX began propellant-loading tests of its first finished full-scale Starship (then Big Falcon Spaceship) hardware, a massive carbon composite liquid oxygen tank stretching 12 m (~40 ft) in diameter. Over the course of 2017, SpaceX transitioned from liquid nitrogen to liquid oxygen and ultimately conducted one final burst-test in which the composite tank was pressurized until it exploded, ending full-scale BFR composite testing with a bang. Within 6-12 months, Musk had come to the conclusion that a stainless steel BFR would ultimately be a superior path forward for the rocket and spaceship and attempted (apparently successfully) to get his team of R&D engineers on board with such a radical change so late in the development phase.
Despite the fact that that radical design departure may have occurred as few as 6-8 months ago, SpaceX engineers and technicians have accomplished an extremely rapid development program that will – in part – culminate in the hopefully successful hop testing of Starhopper, the first Starship prototype. While more of a rough testbed than an actual representation of the hardware and structures that will be required for a reusable orbital-class Starship, Starhopper has at least acted as a crash course (either technically or organizationally) on fabricating and assembling stainless steel aerospace structures, a material largely foreign to SpaceX flight hardware prior to late 2018.
Although the early vehicle was less than encouraging, as was the demise of its nosecone as a consequence of improper planning and/or bad workmanship, Starhopper as it now stands might actually be flightworthy in the context of suborbital, subsonic hop tests. Powered by the same or similar Raptors that would power orbital prototypes, Starhopper’s hop tests would optimally provide a wealth of experience and engineering data for both building 9 meter/30 foot-diameter stainless steel rocket sections and operating full-scale Raptor engine(s) in actual flight configurations. Extensive testing with Raptor will help to ensure that the fit and finish of the new engine’s flight-grade avionics and hardware are up to the challenge of safe, reliable, and gentle operations for a nominally crew-rated launch vehicle and spacecraft.
Around two days after Starhopper was briskly transported from its build site to SpaceX’s brand new launch facility, local Twitter account @SPadre (short for South Padre Island) posted a video of tanking test that occurred on March 11th, capturing the sound of venting as the liquid involved turned to gas inside its propellant tank(s). The fact alone that the person behind the camera was allowed to be where they were during the test all but guarantees that this first test was performed with an inert liquid, most likely liquid nitrogen given a massive delivery that occurred the day before (March 10th). In no conceivable world would SpaceX or local law enforcement willingly allow for Starhopper to be loaded – for the first time ever – with even a partial load of liquid methane or liquid oxygen with bystanders barely a few hundred feet distant.
When SpaceX gets to the point that they are confident enough in the structural integrity of Starhopper to begin wet dress rehearsals and tests with actual propellant, it’s a safe bet that the company will cooperate with local law enforcement to block off the lone access road to a distance of at least 1-2 miles, if not more. It’s unclear if local homeowners and residents will be forced to vacate the adjacent Boca Chica Village during testing, but chances are good that nobody will be within several thousand feet of Starhopper when those propellant loading tests begin, let alone actual static fire activity once Raptor(s) are installed.
According to an official SpaceX statement on the progress, propellant load tests and static fires could begin “in the days ahead”, although the spokesperson was under the impression that those tests – as well as initial hop tests – “[would] not be visible from offsite”. Unless SpaceX plans to draw a keep-out zone with a radius of multiple miles, interested observers will almost certainly be able to get close enough to at least catch a glimpse of Starhopper, but the statement still offers an idea of just how focused the company will be on safety during these early tests.
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SpaceX CEO Elon Musk recently confronted worries about orbital data centers and launching satellites in mass quantities in space, as some voiced concerns about crowding.
Musk’s SpaceX plans to combat the issue of needing data centers by launching them into space instead of taking up valuable real estate on Earth. It has been a major point of SpaceX’s future, including its looming IPO, which could be the largest ever.
In a recent interview filmed at SpaceX’s Starlink terminal factory in Bastrop, Texas, Elon Musk directly addressed concerns that deploying large numbers of AI satellites for orbital data centers could crowd Earth’s orbit. His message was straightforward and reassuring: space is vast beyond human intuition.
“Space is really big,” Musk said. “It’s not like space is gonna get crowded. Space is enormous. If you actually look at it relative to the Earth, the satellites are so tiny you can’t even see them.” He emphasized that even zooming in makes a satellite appear large, but from a planetary perspective, they are minuscule specks.
Elon on concerns that AI satellites will crowd space:
“Space is really big. It’s not like space is gonna get crowded. Space is enormous. If you actually look at it relative to the earth, the satellites are so tiny you can’t even see them.” https://t.co/Mvr7NpL25Q pic.twitter.com/5Fi629Rii7
— Sawyer Merritt (@SawyerMerritt) June 8, 2026
Musk pointed to SpaceX’s real-world experience operating roughly 10,000 Starlink satellites as evidence that large constellations can be managed safely. “We’ve got a pretty good idea of how to operate just really large constellations and do it safely,” he noted. SpaceX remains the only operator with meaningful experience at this scale, giving the company unique insight into tight orbital packing without compromising safety
The discussion highlighted SpaceX’s plans for “AI1” satellites—essentially orbiting racks of AI compute powered by massive solar arrays and cooled via radiative panels in space’s vacuum.
These satellites leverage proven Starlink V3 technology, making them simpler to design than communications satellites. A first-generation unit targets around 150 kW peak power, with a 70-meter wingspan for solar panels and radiators. Laser links will connect them to each other and the Starlink network, delivering low-latency access (on the order of a few milliseconds from low-Earth orbit).
FCC accepts SpaceX filing for 1 million orbital data center plan
Musk framed orbital data centers as a practical solution to Earth’s constraints on AI growth. Ground-based facilities face power shortages, water demands for cooling, and grid limitations. In space, constant sunlight (no day-night cycle), vacuum radiative cooling, and abundant solar energy offer clear advantages.
Production will ramp up at an expanded “Gigasat” factory in Bastrop, with solar manufacturing already underway and full AI satellite output expected at reasonable volume by the end of 2027. Starship’s rapid, high-volume launch capability, aiming for multiple flights per hour, will make massive deployment feasible.
Critics sometimes raise risks like space debris or Kessler syndrome, but Musk’s response underscores scale: even a million satellites would represent an imperceptible fraction of available orbital volume when viewed against Earth’s size. SpaceX’s automated collision avoidance and deorbiting designs for Starlink further mitigate concerns.
This vision ties into broader ambitions. Musk sees orbital AI compute as a step toward harnessing more of the Sun’s energy, advancing humanity on the Kardashev scale from a Type 0 civilization toward Type 1 and eventually Type 2. By moving power-hungry data centers off-planet, SpaceX aims to unlock orders-of-magnitude more compute while preserving Earth’s resources.
Musk’s comments should ease public anxiety. With proven operational expertise, incremental engineering, and the immensity of space itself, orbital data centers represent not overcrowding, but smart expansion into the final frontier.
The Ontario Teachers’ Pension Plan (OTPP) stands to reap one of the most extraordinary returns in pension fund history thanks to a bold 2019 investment in SpaceX.
According to a recent report from The Globe and Mail, the Toronto-based fund invested roughly $300 million CAD (~$220 million USD at the time) in Elon Musk’s space company as its inaugural deal through the Teachers’ Innovation Platform.
At SpaceX’s anticipated $1.75 trillion IPO valuation, set for a mid-June debut on Nasdaq under ticker $SPCX, that stake could now be worth up to $11.6 billion USD. This would represent a roughly 50x return and easily become OTPP’s most successful single investment ever.
The fund manages $279 billion in assets for approximately 346,000 working and retired teachers in Ontario, potentially delivering an average boost of around $33,500 per member if fully realized.
SpaceX has filed its S-1 and plans to price shares at $135 each, aiming to raise a record $75 billion in what would be the largest IPO in history, surpassing Saudi Aramco. The company reported $18.67 billion in revenue for 2025, driven primarily by Starlink satellite internet growth and NASA contracts, though it continues to post significant losses tied to ambitious R&D in Starship and AI initiatives.
Important pieces moving forward include:
- Starlink Expansion: The satellite broadband service is scaling rapidly, targeting global connectivity, especially in underserved rural and remote areas. This segment offers massive recurring revenue potential as numbers climb.
- Starship and Reusability Leadership: SpaceX’s fully reusable Starship aims to slash launch costs dramatically, enabling frequent missions, Mars ambitions, and lucrative government/defense contracts. Success here could unlock exponential growth.
- AI and Diversification: Recent moves, including ties to xAI, position SpaceX in high-growth AI infrastructure, broadening beyond traditional aerospace.
- Validation Scrutiny: While the $1.75 trillion target excites investors, analysts like Morningstar value the company closer to $780 billion, citing high multiples (around 90x trailing revenue) and execution risks. A 180-day lockup period will prevent early investors like OTPP from selling immediately post-IPO.
The irony has not been lost on observers. Ontario’s government previously canceled a Starlink rural internet contract amid political tensions involving Musk, yet the pension fund’s savvy investment, made when SpaceX was valued around $33-36 billion, and Starlink was nascent, delivers outsized gains independent of politics.
For OTPP, this windfall strengthens its already solid 111 percent funding ratio and underscores the value of patient, innovation-focused capital allocation.
For SpaceX, the IPO marks a new chapter: greater transparency, access to public markets for talent retention and growth capital, and heightened pressure to deliver on its multi-planetary vision.
All eyes are fixed on whether SpaceX can justify its lofty valuation through sustained execution. For Ontario teachers, the returns are already stellar, but SpaceX, like other Musk companies in the past, has plenty of things to prove. Perhaps the most ideal person for the job is at the helm, hoping to bring the company to a massive valuation.
Elon Musk
SpaceX’s amended S-1 is sparking a major Tesla merger conversation
A single line in SpaceX’s amended S-1 just sent Tesla stock down 5% in one day.
A single line buried in SpaceX’s amended S-1 filing is doing more to move Tesla’s stock price than anything Tesla itself has announced in months. The clause, disclosed as SpaceX prepares for what could be the largest IPO in Wall Street history, states that the company “may issue a significant amount of equity in connection with future transactions.” While this may be seen as boilerplate language in S-1 filings, the historical ties between SpaceX and Tesla, and with Elon Musk reportedly discussing a possible merger with close colleagues, investors are interpreting it as something closer to a signal.
The concern among institutional investors like Gary Black, managing director of The Future Fund, pointed directly to the amended filing on X, saying it “strongly suggests more SPCX equity will be issued,” which could potentially be used to acquire Tesla. He estimated such a deal could be 28% dilutive to Tesla shareholders since SpaceX would likely command a significantly higher valuation multiple. Black added that institutional investors he knows hate the idea of a combination because they prefer pure plays over conglomerates, which he said “nearly always gravitate to the lowest common multiple.”
The Tesla and SpaceX merger everyone is talking about is quietly building
The bull case runs the math differently. Tesla influencer and retail shareholder advocate AleXandra Merz pushed back on what she called a widespread misunderstanding of how merger-of-equals deals actually work. Rather than simply splitting the difference between two market caps, a merger exchange ratio is negotiated based on relative fair market values, meaning the lower valued company typically sees its stock reprice upward toward the deal value.
Under her model, SpaceX enters at a $2.5 trillion valuation and Tesla at $1.6 trillion, producing a combined entity worth $4.1 trillion split evenly between both shareholder groups. That implies Tesla’s side of the deal would be valued at $2.05 trillion, a gain of roughly $450 billion from its current market cap. She cited Dow-DuPont and CBS-Viacom as historical examples of how markets reprice both companies toward the announced exchange ratio after a deal is unveiled.
What does a Merger of Equals mean to Elon’s compensation packages?
Well, it changes everything.
Enjoy https://t.co/uekCldyITw pic.twitter.com/kolq1C9qTu
— AleXandra Merz 🇺🇲 (@TeslaBoomerMama) June 1, 2026
The SpaceX S-1 amendments also revealed just how much financial infrastructure already binds the two companies together. As Teslarati has reported, SpaceX purchased $697 million in Tesla Megapacks, $131 million in Cybertrucks, and the two companies have shared supply chain resources, and semiconductor fabrication plans since well before any merger conversation became public. A retail poll by Tesla influencer Sawyer Merritt is finding that 36% of respondents do not plan to buy SpaceX shares at IPO and 15.3% saying their decision depends on the valuation.
Do you plan on buying @SpaceX stock at its IPO?
— Sawyer Merritt (@SawyerMerritt) June 1, 2026
Whether the merger happens or not, the amended filing is seemingly moving markets and sharpened a debate that is no longer theoretical. SpaceX is weeks away from trading publicly, and Tesla shareholders are now watching every word of every filing for clues about what Musk plans to do next.
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