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SpaceX's "Christmas tree" is a Raptor engine for the holidays
SpaceX CEO Elon Musk showed off a holiday-themed Raptor engine “Christmas tree” with its very own star on top. Musk noted via a tweet that the company’s Starship propulsion team is “making great progress” building, testing, and refining the Raptor engines that will one day propel the next-generation rocket to Earth orbit and beyond.
On December 13th, Musk revealed that SpaceX is preparing to ship the 17th completed Raptor engine to the company’s McGregor, Texas rocket test and development facilities, the site of several dedicated test stands for the Starship engine. Likely one of the most complex rocket engines ever designed, built, or tested, Raptor relies on an exotic combustion cycle, referring to the specifics of how engines turn their propellant into meaningful thrust.
Raptor uses what is known as full-flow staged combustion (FFSC) and is the first FFSC engine to graduate beyond ground testing and actually fly, thus far having completed two flight tests in July and August 2019 as part of SpaceX’s Starhopper test campaign. In simple terms, the FFSC cycle aims to extract as much energy from a rocket’s propellant as efficiently as possible, resulting in what is theoretically the most efficient possible chemical propulsion from a given fuel and oxidizer combination.
Due to the sheer complexity required to achieve full-flow staged combustion, the engine type is incredibly rare and only two other (once) functional examples exist – one developed by Soviet engineers in the 20th century and the other built, tested, and inexplicably scrapped by NASA in the 2000s. In fact, the Soviet RD-270 engine’s thrust-to-weight ratio is likely second only to SpaceX’s own Merlin 1D engine, an absolutely spectacular achievement for a propulsion bureau operating in the late 1960s.
RD-270 had major development challenges and would likely have taken years of additional hardware-rich (i.e. destructive trial and error) testing to produce an engine actually capable of reliable flight. Before the program was cancelled in 1970, 22 engines were tested and no single RD-270 survived to perform a fourth static fire, a testament to the immense challenge of FFSC engines.
SpaceX appears to have had a much better go of it with Raptor, although many, many engines have definitely been destroyed or irreparably damaged since the full-scale engine’s February 2019 static fire debut. SpaceX CEO Elon Musk says that the 17th completed Raptor engine is almost ready to head to McGregor, Texas to kick off development and acceptance testing.
It remains to be seen when exactly Raptor engines will be mature and reliable enough to perform the 3-10 minute burns needed to send a Starship to orbit, let alone the Moon or Mars, but Musk appears confident that SpaceX is making great progress along those lines.
Per photos and info posted by NASASpaceflight.com earlier today, Raptor engine SN15 is already installed on a recently-reactivated McGregor test stand ahead of its first rocket-related test in almost half a decade.
Formerly used to test Falcon 9 first stages before SpaceX built a new stand for Falcon 9 and Heavy, that tripod stand has been reactivated for the sole purpose of supporting vertical Raptor engine static fire testing, which Musk says will simplify and expedite development by making test conditions much more flight-like. As of now, all subscale and full-scale Raptor engine static fire testing has been performed at horizontal test stands in McGregor, apparently resulting in wear and behavior that would not likely appear if engines were tested vertically.
SpaceX has gone through the same process with its Merlin engine programs, beginning with horizontal testing (far easier and simpler) but ultimately building a number of dedicated vertical test bays to ensure that engine acceptance and development tests can be performed under more flight-like conditions.
According to NASASpaceflight, SpaceX may have already fired up Raptor SN15 on its reactivated tripod test stand earlier this week, kicking off Raptor’s first Starhopper-free vertical static fire testing. It’s now unclear where the twin horizontal Raptor test bays will fit into future engine testing given Musk’s comments. More importantly, every completed Starship and Super Heavy rocket will require several dozen new Raptor engines and every one of those engines will likely need to pass acceptance testing (including static fires) in McGregor before they can be installed on a launch vehicle.
SpaceX’s Falcon 9 rocket already requires 10 engines per new booster and upper stage, a test burden SpaceX has only managed with the help of two Merlin 1D stands and one Merlin Vacuum stand, all vertical. In other words, it’s safe to say that the reactivated tripod stand is likely just the first of several vertical Raptor test stands to come.
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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
