News
SpaceX’s first orbital Starship rocket engine is almost ready for testing
CEO Elon Musk says that SpaceX is “about a month away” from testing a rocket engine that will be essential for Starship and its Super Heavy booster to reach their full potential.
Known as Raptor Vacuum, the engine – as its name suggests – is a variant of the base Raptor engine optimized for maximum performance and efficiency in the vacuum of space. Although Starship could technically still function and likely reach orbit with only sea level-optimized Raptors installed, it would likely significantly limit the amount of payload it could carry into Earth orbit and would especially harm the ship’s performance to higher orbits and other planets.
Back in May 2019, Musk revealed that SpaceX had shifted gears again, forgoing a plan to begin orbital Starship flight operations with only sea level Raptors, gradually designing and phasing in RaptorVac engines much further down the road. Instead, SpaceX restarted (relatively) urgent work on the vacuum variant and Musk hinted that it would “aspirationally” be ready to support launches in the near term. A few weeks shy of a year later, Musk says that Raptor Vacuum testing could begin as early as June 2020.

For a variety of reasons, even if based directly off of an existing design, vacuum-optimized engines are typically much more complex than a comparable sea level variant. While efficiency is always relatively important for rocket engine design, it becomes even more paramount when dealing with vacuum rocketry, as the entire point of a dedicated vacuum-optimized engine is to eke as much efficiency as possible out of a launch vehicle’s orbital stage(s).

For example, even from a purely visual perspective, Merlin Vacuum (MVac) is substantially different when compared to the Merlin 1D engine it’s based on. Due to a number of major and largely unknown differences, the engines’ shared components are largely invisible. It’s unclear how similar they are but it’s safe to say that they share at least ~50% commonality. Obviously, the most apparent part of the difference between a vacuum-optimized engine and an atmosphere-optimized engine is the bell nozzle: MVac has a nozzle that is dramatically larger than M1D.
Raptor will be no different, with the sea-level variant featuring a nozzle about 1m (3.2 ft) in diameter, whereas RaptorVac’s bell will have a diameter closer to 2.5m (~8 ft). With SpaceX’s apparent May 2019 pivot back to working on RaptorVac now, the company has been working on a dedicated vacuum variant of the high-performance methane-oxygen engine for at least a full year. Now, perhaps beginning as early as June or July, Musk suggests that the first RaptorVac engine (SN0? SN1?) is almost ready to commence static fire testing.



The nature of that testing is a bit of a mystery. While it will almost certainly occur at SpaceX’s McGregor, Texas test and development facilities, it’s unclear if Raptor Vacuum’s first static fire test campaign will be attempted with the engine’s extended nozzle installed. Back in October 2019, Musk suggested that yes, Raptor Vacuum version 1.0 would have a nozzle small enough to operate at sea level without destroying itself or its test facilities. With Merlin Vacuum engines, SpaceX performs acceptance tests in Texas but only without their nozzle extensions installed. If Musk’s October 2019 comments remain true, that may not be the case for RaptorVac.
Either way, it will be thoroughly interesting to note the differences between RaptorVac and its sea level-optimized predecessor if or when Elon Musk or SpaceX releases photos of their newest engine as it nears its first major tests. Simultaneously, SpaceX is also readying a sea-level Raptor for its inaugural static fire test while attached to a full-scale Starship prototype, while the first test with three Raptor engines installed could be attempted just a few weeks from now.
Elon Musk
Tesla Giga Texas to feature massive Optimus V4 production line
This suggests that while the first Optimus line will be set up in the Fremont Factory, the real ramp of Optimus’ production will happen in Giga Texas.
Tesla will build Optimus 4 in Giga Texas, and its production line will be massive. This was, at least, as per recent comments by CEO Elon Musk on social media platform X.
Optimus 4 production
In response to a post on X which expressed surprise that Optimus will be produced in California, Musk stated that “Optimus 4 will be built in Texas at much higher volume.” This suggests that while the first Optimus line will be set up in the Fremont Factory, and while the line itself will be capable of producing 1 million humanoid robots per year, the real ramp of Optimus’ production will happen in Giga Texas.
This was not the first time that Elon Musk shared his plans for Optimus’ production at Gigafactory Texas. During the 2025 Annual Shareholder Meeting, he stated that Giga Texas’ Optimus line will produce 10 million units of the humanoid robot per year. He did not, however, state at the time that Giga Texas would produce Optimus V4.
“So we’re going to launch on the fastest production ramp of any product of any large complex manufactured product ever, starting with building a one-million-unit production line in Fremont. And that’s Line one. And then a ten million unit per year production line here,” Musk stated.
How big Optimus could become
During Tesla’s Q4 and FY 2025 earnings call, Musk offered additional context on the potential of Optimus. While he stated that the ramp of Optimus’ production will be deliberate at first, the humanoid robot itself will have the potential to change the world.
“Optimus really will be a general-purpose robot that can learn by observing human behavior. You can demonstrate a task or verbally describe a task or show it a task. Even show it a video, it will be able to do that task. It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP.
“It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does. Tesla, Inc. has never been a company to shy away from solving the hardest problems,” Musk stated.
Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
Cybertruck
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.