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
Elon Musk will give ‘every kid in America’ a SpaceX share in 2027
Elon Musk said he is planning to give “every one of his SpaceX shares to every kid in America” in 2027, stating that “this will be the first of many.”
SpaceX went public earlier this year, and its stock price has been relatively stable since leveling off shortly after its IPO. Based on its current price, it’s a gift of just over $10 billion to children across the United States.
It appears to be closely related to President Donald Trump’s bank accounts for children, which were set up earlier this year as Trump Accounts.
Just hours earlier, Anthropic had announced the establishment of its Anthropic Public Benefit Fund, “a new wholly-owned entity dedicated entirely to public benefit.” Musk responded by stating he recommended “giving the shares directly to the public,” and that he would be doing it that way.
Just a little bit later, Musk said children across the U.S. would be getting a share from him:
Next year, I will give one of my SpaceX shares to every kid in America.
This will be the first of many.
— Elon Musk (@elonmusk) October 19, 2026
There are roughly 70 million children, meaning someone under the age of 18, in the United States, according to the Federal Interagency Forum on Child and Family Statistics. Musk’s ownership of SpaceX stock shows he has around 849 million Class A shares of SpaceX stock, according to filings with the SEC.
Elon Musk
Tesla CEO Elon Musk reminds everyone about Roadster’s true meaning
Tesla CEO Elon Musk took to his social media platform X on Sunday to remind everyone that the Roadster’s true meaning is not about company growth or adding dollars to shareholders’ pockets. Sometimes, you just do things because you can.
Following the Roadster’s epic unveiling event last Thursday, skeptics and critics of the company or the project itself came out to say that the vehicle is a pointless project because it is not geared toward growing the company, delivering supreme margins for profitability, nor does it contribute to the big picture of Artificial/Super Intelligence.
But that’s just the thing: Roadster is not meant to be some shareholder dream; it’s meant to be a vehicle that people buy just because it is something awesome, unique, and the first of its kind.
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
Musk had to remind those who are skeptical about the Roadster’s importance to the company mission that while it is not a major contributor to Tesla’s long-term goals, it is something that is being built just because it can be:
“Optimus and Cybercab will be the vast majority of Tesla’s value. The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power, and mass to space. And, of course, if you have the first two, the rest will follow. But Roadster is super cool, so we’re doing it anyway.”
Musk has said on many occasions that Optimus would be the project that would make up the vast majority of Tesla’s value in the coming years.
Robotics will be a major focus of Tesla over the coming years, especially as Musk believes Optimus will enable work to be optional for humans and will enable what he calls “High Universal Income.”
Optimus and Cybercab will be the vast majority of Tesla’s value.
The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power and mass to space.
And, of course, if you have the first two, the rest will follow.
But Roadster is super cool, so we’re doing it anyway.
— Elon Musk (@elonmusk) October 18, 2026
Cybercab will be a passive income opportunity for owners, Musk and Tesla have said for a very long time, as a fleet of self-driving vehicles will operate within a ride-hailing Robotaxi service that won’t require a human driver to be present.
Tesla investors are more than enthusiastic about the company’s future projects, at least from a general consensus perspective. However, it is important to note that the Roadster is a fun and cool project that pushes the boundaries of what people thought was possible for an automobile.
What we saw last week was the first true example of a flying car, and despite the backlash about how it might not contribute to Tesla’s grand ambitions, it’s okay to have fun sometimes, too.
Investor's Corner
SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching
SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger
SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.
The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures
All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.
If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.