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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
SpaceX to launch Starlink V2 satellites on Starship starting 2027
The update was shared by SpaceX President Gwynne Shotwell and Starlink Vice President Mike Nicolls.
SpaceX is looking to start launching its next-generation Starlink V2 satellites in mid-2027 using Starship.
The update was shared by SpaceX President Gwynne Shotwell and Starlink Vice President Mike Nicolls during remarks at Mobile World Congress (MWC) in Barcelona, Spain.
“With Starship, we’ll be able to deploy the constellation very quickly,” Nicolls stated. “Our goal is to deploy a constellation capable of providing global and contiguous coverage within six months, and that’s roughly 1,200 satellites.”
Nicolls added that once Starship is operational, it will be capable of launching approximately 50 of the larger, more powerful Starlink satellites at a time, as noted in a Bloomberg News report.
The initial deployment of roughly 1,200 next-generation satellites is intended to establish global and contiguous coverage. After that phase, SpaceX plans to continue expanding the system to reach “truly global coverage, including the polar regions,” Nicolls said.
Currently, all Starlink satellites are launched on SpaceX’s Falcon 9 rocket. The next-generation fleet will rely on Starship, which remains in development following a series of test flights in 2025. SpaceX is targeting its next Starship test flight, featuring an upgraded version of the rocket, as soon as this month.
Starlink is currently the largest satellite network in orbit, with nearly 10,000 satellites deployed. Bloomberg Intelligence estimates the business could generate approximately $9 billion in revenue for SpaceX in 2026.
Nicolls also confirmed that SpaceX is rebranding its direct-to-cell service as Starlink Mobile.
The service currently operates with 650 satellites capable of connecting directly to smartphones and has approximately 10 million monthly active users. SpaceX expects that figure to exceed 25 million monthly active users by the end of 2026.
Elon Musk
Elon Musk’s xAI and X to pay off $17.5B debt in full: report
The update was shared initially in a report from Bloomberg News, which cited people reportedly familiar with the matter.
Elon Musk’s social platform X and artificial intelligence startup xAI are reportedly preparing to repay approximately $17.5 billion in outstanding debt in full.
The update was shared initially in a report from Bloomberg News, which cited people reportedly familiar with the matter.
Morgan Stanley, which arranged the debt financing for both companies, has reportedly informed existing lenders that X and xAI plan to pay back the full amount of the $17.5 billion debt. Bloomberg’s sources did not disclose where the capital for the repayment would be coming from.
X, formerly known as Twitter, assumed roughly $12.5 billion in debt during Musk’s acquisition of the company. xAI separately borrowed about $5 billion through bonds and loans last June. The two firms merged last year under xAI Holdings.
Bloomberg noted that portions of the debt are relatively recent and may carry early repayment penalties. xAI’s $3 billion in high-yield bonds are expected to be redeemed at 117 cents on the dollar, reflecting a premium since the debt was expected to stay outstanding for at least two years.
X has been servicing tens of millions of dollars in monthly debt payments, while xAI has reportedly been burning approximately $1 billion in cash per month as it invests heavily in data centers, chips, and AI talent. That being said, xAI also concluded a funding round in January, where it raised $20 billion of new equity.
The repayment plans come as Musk consolidates several of his businesses. SpaceX recently acquired xAI, making it a subsidiary as the company explores plans for space-based data centers. The combined entity has been valued at approximately $1.25 trillion.
Bloomberg previously reported that SpaceX is targeting a confidential IPO filing as soon as this month, potentially positioning the private space firm for a public listing later this year. Representatives for Morgan Stanley declined to comment, and X and xAI did not immediately respond to requests for comment.
News
Tesla Giga Berlin head calls out Handelsblatt’s claimed 2025 production figures
Andre Thierig, Senior Director of Manufacturing at Giga Berlin, published a detailed post on LinkedIn challenging several points made in the publication’s coverage of the Grünheide facility.
Tesla Gigafactory Berlin’s plant manager has publicly pushed back against recent reporting by German business publication Handelsblatt, which cited reportedly erroneous data about the factory’s production figures and financial performance.
Andre Thierig, Senior Director of Manufacturing at Giga Berlin, published a detailed post on LinkedIn challenging several points made in the publication’s coverage of the Grünheide facility.
In his LinkedIn post, Thierig called out Handelsblatt’s claim that 149,000 Model Y vehicles were produced at Giga Berlin in 2025. He noted that “the article is simply filled from front to back with false information and claims!
“I have to set the record straight here! In the last article about Tesla in Grünheide, the Handelsblatt speaks e.g. of 149,000 Model Ys built in 2025. WRONG!
“In 2025, we again produced over 200,000 vehicles. And this despite the fact that we stopped production in Q1 for the changeover to the new Model Y and then ramped it up again to 5,000 units per week over several weeks,” Thierig wrote.
He added that production increased each quarter in 2025 compared to the prior quarter and stated that more than 700,000 Model Y units have been produced at Grünheide since manufacturing began in 2022. For the first quarter of 2026, he stated that the factory is planning another production increase compared to the fourth quarter of 2025.
Thierig also questioned Handelsblatt’s reported 0.74% profit margin, writing that how the publication calculated the figure “remains reserved for their secret ‘calculation skills.’”
Beyond production data, Thierig highlighted Tesla’s broader footprint in Germany, stating that the company has invested more than €5 billion in Grünheide since 2020 and created nearly 11,000 permanent, above-tariff jobs. He added that Tesla is currently investing nearly €100 million into battery cell production at the site, which is expected to generate several hundred additional positions.
In a follow-up comment, Thierig noted that he did communicate with the publication’s editor-in-chief in an effort to “start fresh,” but he was informed that Handelsblatt’s current approach works just fine.
“Last year, I spoke to a representative of the Handelsblatt editor-in-chief and suggested that we “start anew” again. Handelsblatt turned down this offer on the grounds that their current approach works well for them,” Thierig noted.
Sönke Iwersen, Head of Investigative Research at Handelsblatt, responded to Thierig’s post, stating that the newspaper’s figures were based on Tesla’s own annual financial statements for the Grünheide entity.
He cited reported 2024 revenue of €7.68 billion, operating profit of €156.8 million, and net income after taxes of €55.6 million. Iwersen also referenced prior public comments from Elon Musk about Cybertruck demand, noting the gap between reported pre-orders and subsequent annual sales figures.
He also stated that the works council election eligibility figures Giga Berlin had dropped to 10,703 employees today from 12,415 two years ago.
“As far as production figures are concerned, these are figures from the data service provider Inovev. This is also stated in the article. Please compare this with Elon Musk’s information on demand for the Cybertruck. According to Musk, there were one million pre-orders. In the first year, 39,000 units were sold, in the second year 20,000. How can this be explained? With a million pre-orders?
“You yourself have repeatedly pointed out in recent months that no jobs would be cut in Grünheide because Tesla is different from the competition. Now a new works council is being elected in Grünheide. 10,703 people are eligible to vote. Two years ago, 12,415 people were eligible to vote. So there were exactly 1712 fewer from 2024 to 2026,” Iwersen wrote.