News
SpaceX’s first Starship hop on hold for historic Crew Dragon astronaut launch
SpaceX CEO Elon Musk says that he’s “redirected SpaceX’s priorities” to be almost entirely focused on Crew Dragon’s imminent astronaut launch debut, delaying Starship’s own hop test debut by at least a week or two as a result.
As of now, SpaceX’s Crew Dragon spacecraft remains on track to lift off with NASA astronauts for the first time ever at 4:33 pm EDT (20:33 UTC) on Wednesday, May 27th. Known as Demonstration Mission 2 (Demo-2), it will be Crew Dragon’s second orbital launch, third launch on a Falcon 9 rocket, and – most importantly – the United States’ first domestic astronaut launch in almost a decade. Although NASA has still managed to maintain a continuous presence at the International Space Station over the last nine years by paying Russia’s space agency more than $4 billion for roughly six dozen seats on Soyuz spacecraft, Demo-2 will be NASA’s first astronaut launch from the US since June 2011.
Built entirely by SpaceX with funds awarded by NASA, the company’s Crew Dragon spacecraft and Falcon 9 rocket will effectively singlehandedly return the United States’ ability to launch its own astronauts. Funded along with Boeing to ensure that NASA has two redundant spacecraft available, the latter company’s Starliner spacecraft has run into extensive delays after its orbital flight test (OFT) uncovered dangerously shoddy software and quality control. If Boeing is lucky, NASA might clear Starliner for its own crewed flight test (CFT, equivalent to Crew Dragon Demo-2) in the first half of 2021. As a result, a vast amount of pressure is on SpaceX’s shoulders to successfully launch astronauts for the first time ever just a few days from now.
Of course, SpaceX is not unilaterally focused on Crew Dragon or its inaugural astronaut launch, even if it might be the single most important mission in the company’s 18 years of operation. For a company as large as SpaceX, it’s simply not practical or valuable to have every single employee working on one project, while having too many people on a given project would also likely be to its detriment. Nevertheless, Musk – in an interview with Aviation Week’s Irene Klotz – stated that he’d redirected SpaceX’s priorities to be “very focused” on Demo-2.
Aside from Crew Dragon Demo-2, SpaceX operates a Starlink satellite factory near Seattle, builds and assembles all aspects of Falcon rockets and Dragon spacecraft at its Hawthorne, CA headquarters, tests those rockets and spacecraft in McGregor, Texas development facilities, and builds, tests, and flies Starship prototypes in Boca Chica, Texas. (The company has many, many other operations around the US but the list above at least covers the bulk of the company’s workforce.)
Those myriad programs can’t simply freeze operations without catastrophically impacting future plans and schedules, meaning that Musk’s “redirection” is likely more an effort to keep the public focus on Crew Dragon, versus actually retasking thousands of employees to do work that probably doesn’t (but might) exist. Still, the company has definitely taken some real steps to stay laser-focused on Crew Dragon where practical.
Most notably, SpaceX has already indefinitely delayed its eight launch of 60 Starlink communications satellites, previously scheduled to lift off no earlier than (NET) May 19th. Now, Musk says that SpaceX has also decided to delay the first flight test of a full-scale Starship prototype until after Demo-2 successfully launches, implying that the company could have potentially launched Starship SN4 for the first time later this week.
In fact, SpaceX has three Starlink launches – including the mission delayed from May – now scheduled in June 2020, as well as Falcon 9’s second US military GPS III satellite launch at the end of the month. It’s unclear whether SpaceX will retest Starship SN4 after its off-nominal May 19th Raptor test or move directly into flight test operations, but its next South Texas test period has windows on May 28th, May 29th, and June 1st. In short, the next ~5 weeks are set to be a wild ride for SpaceX, to put it mildly.
Check out Teslarati’s Marketplace! We offer Tesla accessories, including for the Tesla Cybertruck and Tesla Model 3.
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
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s Robotaxi dreams just took a massive step toward reality
The Tesla and SpaceX merger everyone is talking about is quietly building
