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SpaceX ramps Starship hiring as Elon Musk talks Texas rocket factory's "awesome" progress
After several successful tests last month, Elon Musk says that SpaceX’s South Texas Starship team is looking to rapidly expand in order to aggressively ramp up Starship manufacturing in a sign that the nascent rocket factory is making excellent progress.
Almost immediately after SpaceX successfully wrapped up its first and second explosive Starship tank tests last month, the company’s Boca Chica, Texas presence started to take on a new atmosphere, reminiscent of the rapid progress made at a since-mothballed Florida Starship facility. Perhaps thanks to the fact that SpaceX’s Boca Chica Starship facilities are adjacent to a dedicated test and launch facility just a mile down the road, it’s looking much less likely that a similar fate will befall its Texas presence.
Instead, SpaceX’s successful Starship tank tests – intentionally destroying two massive propellant tanks – are a testament to the progress the next-generation rocket is making in Texas. In fact, SpaceX CEO Elon Musk has effectively stated that after the most recent tank test, the company is now ready to shift gears and start building the first space-bound Starship prototypes, while the last week or two of SpaceX’s visible Texas activities make it clear that that shift is already well underway.
In simple terms, SpaceX now appears to be moving full speed ahead in a bid to manufacture, assemble, and test the first flightworthy, full-scale Starship prototypes. It’s worth noting that CEO Elon Musk has underestimated the challenge at hand several times in the last 18 or so months of Starship development, frequently suggesting that the first full-scale prototype of the spacecraft would be ready for a challenging flight test and maybe even its first orbital flights as early as 2019.
For a number of reasons, those ambitious targets were not met. To Musk’s credit, the executive is at least conscious of his tendency to be wildly optimistic when it comes to schedules and has effectively tacked on an asterisk that the schedules and deadlines he often publicizes tend more along the lines of “this time-frame is technically possible without breaking the laws of physics” than anything verging on pragmatism. With challenges as complex as those faced in spaceflight, let alone massive, fully-reusable rockets like Starship, it’s hard to be surprised that practical deadlines tend to be miles away from theoretically-possible minimums.
As such, it wouldn’t be unreasonable to feel a bit like the townspeople with a boy crying wolf, but there are arguably several reasons for optimism, this time around. Most importantly, as partially pictured above, SpaceX has completed four intentionally destructive tests with full-scale Starship hardware in just the last 2.5 months. Deemed unfit for flight, SpaceX pressurized Starship Mk1 with liquid nitrogen until it burst in November 2019, reaching an estimated 3-5 bar (45-75 psi).
SpaceX spent the following month upgrading both the methods and facilities used to build Starship prototypes in South Texas – a process that is still very much ongoing. However, two recent tests of Starship tanks built with some of those new methods and facilities have unequivocally proven that great progress is being made. The first ‘test tank’ managed 7.1 bar (105 psi) before it burst, while a second tank completed less than three weeks later reached 7.5 bar (110 psi) with water and 8.5 bar (125 psi) with liquid nitrogen on January 28th. Between those tests, Musk revealed that 6 bar was the bare minimum necessary for orbital Starship flights, while 8.5 bar would potentially offer the safety margins needed for crewed Starship flights.
In other words, SpaceX’s last two tank tests have effectively proved that – even with facilities and methods only partially upgraded – the company is ready to begin manufacturing the first truly flight-rated Starship prototypes. In response, Musk recently stated that he was going “max hardcore on” Starship design and production in Boca Chica and revealed that SpaceX would host a second South Texas jobs fair in three weeks to help rapidly staff its growing rocket factory.
Looking at the progress SpaceX has made in just the last week, it’s hard to fault Musk’s brimming enthusiasm. Now breaking in new semi-automated welding machines, upgraded production equipment, and two massive sprung structures (i.e. tents), SpaceX engineers and technicians are churning out improved steel rings, tank domes (bulkheads), smaller propellant tanks, and more at a breakneck pace relative to the last year of Starship work. Additionally, at least six of those new rings have been stacked together in two sections, likely representing the effective birth of the first flightworthy Starship – ‘SN01’.
With SpaceX’s new enclosed facilities, much of its South Texas work is now hidden. Still, from what’s visible, it’s safe to say that the company is well its way to completing the first flight – and possibly orbit – worthy Starship prototypes in the near future.
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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
