SpaceX
SpaceX’s Starship prototype set for first serious test after Raptor engine installed
In concert with South Texas’ Cameron County, SpaceX has officially scheduled the first serious test – requiring temporary road closures – of its Starship prototype, unofficially nicknamed ‘Starhopper’ in light of its ultimate goal of performing low-altitude, low-velocity hop tests.
SpaceX technicians have already successfully completed a number of unspecified tanking tests – likely with chemically neutral liquid nitrogen – and completed acceptance and installation of Raptor serial number 02 (SN02), setting the stage for the giant testbed’s first flight-critical tests. Now set to occur between
Scarcely seven days after the engine’s arrival in Boca Chica, SpaceX technicians completed the first-ever installation of a flight-ready Raptor – SN02 – on a full-scale BFR prototype known as Starhopper. Aside from marking a major symbolic milestone for the company’s next-generation rocket development program, the installation of a functional rocket engine on the first partial-fidelity vehicle prototype means that SpaceX can now enter into a new and critical stage of development: integrated flight testing.
Assuming (hopefully) that SpaceX has yet to conduct actual fueling tests of the Starship prototype without establishing roadblocks and safety perimeters, something that would be an egregious threat to nearby locals, it’s likely that this first major test – much like SpaceX’s established Falcon 9 and Heavy test regime – will involve a process known as a Wet Dress Rehearsal (WDR). A WDR would see Starhopper loaded with liquid methane and oxygen propellant – potentially anywhere from the bare minimum needed to operate a single Raptor to completely filling its tanks – to verify that the prototype’s complex plumbing system and giant tanks are operating nicely together under flight conditions (i.e. cryogenic temperatures, thermal and mechanical stresses, chemical environments, etc.). Much like routine Falcon 9 static fire tests performed both at SpaceX’s McGregor, TX test site and the launch pad, data indicating that the rocket is behaving nominally during the WDR allows the operations team to transition smoothly from a WDR into a captive static fire test, in which the vehicle’s engine(s) are briefly ignited to simulate the first few seconds prior to liftoff.
It’s relatively rare but not unusual for planned Falcon 9 or Heavy static fire tests to end during the WDR phase in cases where the launch team observes data that appears to be less than nominal. SpaceX generally takes a “better safe than sorry” approach to these sorts of operations, swallowing the costs and risk of raising customers’ ire due to delays in order to ensure the highest probability of complete launch success.
For a vehicle as utterly new and alien as Starhopper is to both SpaceX and the aerospace industry as a whole, it’s safe to say that that tendency towards caution will be readily on display throughout these first several tests, at least until the company’s operations technicians and engineers are considerably more familiar with the prototype rocket’s behavior. On the other hand, given just how shoestring the budget of this beast likely is and how rapidly SpaceX managed to go from an empty dirt lot to a hop-test-ready, 30ft/9m-diameter Starship prototype, it’s equally likely that the company – particularly CEO Elon Musk – will accept the increased risk of catastrophic vehicle failures to keep the development program as agile as possible.
As Musk himself frequently and famously is known to say, it’s far better to push hardware to failure during early testing than it is to hold back and risk largely unplanned failures during nominal operations, a lesson that SpaceX itself has learned the hard way several times. One step further, while they are at best undeniably inconvenient and expensive, major vehicle failures during testing can actually be an invaluable source of data that ultimately improves the system as a whole. For BFR, a launch vehicle meant to safely, routinely, and reliably transport as many as 100+ people both around the Earth and solar system, all possible opportunities to learn and improve the system prior to risking the lives of passengers will be an absolute necessity if SpaceX wants to ensure that customers remain willing to trust the company and its spacecraft with their lives.
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Elon Musk
Elon Musk just upped his Tesla stake further fueling SpaceX merger conversation
Elon Musk just collected a $116 billion Tesla payday and the timing is eye-opening
Elon Musk quietly collected one of the largest single-transaction paydays in corporate history on Monday. A Form 4 filed with the SEC on June 17, 2026 disclosed that Musk exercised 303,960,630 Tesla stock options from his 2018 compensation package, with the transaction dated June 16. No shares were sold on the open market.
The numbers are straightforward but striking. Musk exercised the options at a split-adjusted strike price of $23.34, with Tesla closing at $404.66 that day, putting the spread at $381.32 per share and generating roughly $115.9 billion in paper gains in a single transaction. To cover the exercise cost, Tesla withheld 17,531,857 shares through a net share settlement, meaning Musk paid nothing out of pocket.
For perspective, in 2018, Elon Musk’s award was originally approved by Tesla shareholders on March 21, 2018, and structured entirely around performance milestones that many analysts at the time called unreachable. Every tranche eventually vested. The original grant covered 20,264,042 shares at $350.02, which after Tesla’s 5-for-1 split in 2020 and 3-for-1 split in 2022 adjusted to 303,960,630 shares at $23.34. A Delaware court rescinded the award in January 2024, ruling the board was conflicted. As Teslarati reported, Tesla shareholders voted to ratify the package anyway in June 2024 by a wide margin. The Delaware Supreme Court reversed the decision in December 2025, finding full cancellation too extreme, and Tesla’s board signed an Implementation Agreement on April 21, 2026 to formally deliver the shares.
The Tesla and SpaceX merger everyone is talking about is quietly building
The timing and structure of the Form 4 filing carries more weight than a routine stock option exercise typically would. Musk exercised his 2018 Tesla award on June 16, a week into SpaceX completing its IPO and trading publicly, and giving SpaceX a public market valuation and share currency for the first time in the company’s history. A stock-for-stock merger between two companies requires the acquiring entity to have tradeable shares it can offer to the target’s shareholders, and SpaceX now has exactly that. At the same time, Musk just increased his direct Tesla voting power to approximately 20%, giving him greater influence over any shareholder vote that a merger would require. The restricted shares he received cannot be sold until 2033, which removes any near-term incentive to cash out and instead positions this stake as long-term structural collateral in a deal. Additionally, Musk’s two companies are already deeply intertwined through shared semiconductor fabrication at their joint TERAFAB facility in Austin, cross-company supply chain transactions, and Tesla’s $2 billion investment in xAI prior to the SpaceX-xAI merger.
Wedbush analyst Dan Ives has publicly placed the odds of a Tesla and SpaceX combination at 80% to 90% by early 2027. The Implementation Agreement that made Monday’s exercise possible was signed on April 21, 2026, roughly two months before the SpaceX IPO closed. That sequencing, building Musk’s Tesla ownership to its highest point ever immediately before SpaceX gains the public currency needed to acquire it, is either an extraordinary coincidence or a carefully staged foundation for the largest corporate merger in history.
SpaceX has exercised its option to acquire Cursor, the innovative AI coding company, in an all-stock transaction valued at $60 billion. The deal, announced on June 16, marks a significant step in SpaceX’s expansion into advanced artificial intelligence, building on months of close collaboration between the companies.
Cursor, officially operated by Anysphere, Inc., is an AI-native code editor and coding agent designed to transform software development. Founded in 2022 by a group of MIT graduates in San Francisco, Cursor builds on the familiar foundation of Visual Studio Code but integrates powerful AI capabilities directly into the core experience.
Unlike traditional code editors or simple extensions, Cursor functions as a full “coding agent” that turns natural-language instructions into actionable code.
SpaceX has exercised the option to acquire @cursor_ai in an all-stock transaction with the goal of building the world’s most useful AI models.
For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon.… https://t.co/X5mepgXgjJ
— SpaceX (@SpaceX) June 16, 2026
Developers interact with Cursor through features like its Composer agent, which can search entire codebases, edit multiple files, run terminal commands, debug issues, and complete complex multi-step programming tasks autonomously.
Users describe high-level goals, such as “build a scalable API endpoint with authentication,” and the AI plans, implements, tests, and refines the solution while the human oversees decisions. Additional tools include advanced autocomplete (Tab), context-aware chat, and infrastructure for handling billions of daily requests.
The platform has gained considerable traction, surpassing $3 billion in annual recurring revenue by early 2026 and earning adoption by over half of the Fortune 500 companies. Its agentic approach accelerates development dramatically, allowing engineers to focus on architecture and creativity rather than repetitive coding.
The acquisition integrates Cursor’s leading product, expert team of roughly 300 engineers, and distribution network among top software developers with SpaceX’s unparalleled computational resources. SpaceX’s Colossus supercomputer, equivalent to a million H100 GPUs, has already powered joint training of next-generation models. These models are expected to launch soon within Cursor and SpaceX’s Grok Build environment.
This combination positions SpaceX to develop the world’s most capable AI systems for coding and knowledge work. Access to Cursor’s real-world usage data from millions of professional developers provides unparalleled feedback loops for model improvement. Training on Colossus enables rapid iteration on massive datasets, potentially creating AI that outperforms current leaders in reliability, context handling, and complex reasoning.
For SpaceX, the benefits extend far beyond software tools. Rocket engineering, satellite constellation management, autonomous flight systems, and Starship development involve millions of lines of highly specialized, safety-critical code.
Cursor’s AI agents, supercharged by proprietary models trained on SpaceX’s domain expertise, could slash development timelines, reduce errors, and enable faster innovation cycles. This vertical integration of AI tooling strengthens SpaceX’s competitive edge in both aerospace and the broader AI race, complementing its xAI initiatives.
The deal reflects the exploding value of AI-native developer platforms. By owning Cursor outright, SpaceX secures a strategic talent pool and product pipeline that will accelerate internal projects while potentially offering enhanced tools to the wider engineering community. As AI continues reshaping software creation, this acquisition underscores SpaceX’s commitment to leveraging cutting-edge technology for ambitious goals, from Mars colonization to global connectivity.
SpaceX executed its first Falcon 9 launch since going public on June 15, a routine yet symbolically powerful Starlink mission from Vandenberg Space Force Base in California.
Liftoff of the Falcon 9 booster B1093, on its 14th flight, occurred at approximately 8:34 a.m. PDT from Space Launch Complex 4E (SLC-4E), deploying 24 Starlink V2 Mini Optimized satellites into low-Earth orbit.
The first stage successfully landed on the droneship “Of Course I Still Love You” in the Pacific Ocean, underscoring the company’s unmatched reusability track record.
Watch Falcon 9 launch 24 @Starlink satellites to orbit from California https://t.co/meDwb05qOE
— SpaceX (@SpaceX) June 15, 2026
This mission comes just three days after SpaceX’s historic IPO on June 12, which shattered records as the largest ever. The company raised $75 billion by pricing shares at $135, with trading under ticker SPCX on Nasdaq opening at $150 and closing at $160.95—a 19 percent gain—valuing SpaceX at over $2.1 trillion.
The launch highlights the seamless transition from private innovator to public powerhouse. SpaceX, founded in 2002, has revolutionized access to space with over 650 Falcon 9 flights and a massive Starlink constellation now serving millions globally.
As a public company, it faces new pressures: quarterly earnings, shareholder scrutiny, and expectations to accelerate Starship development for Mars ambitions and deeper NASA partnerships. Yet the market response signals strong confidence in its dominance, as launch costs are slashed by 95 percent, rapid satellite deployment, and a backlog of government and commercial contracts.
SpaceX maintains bold advertising push for Starlink, contrasting Tesla’s minimalistic approach
Analysts view today’s flight as business as usual, but it carries extra weight. With shares volatile in early trading days, successful operations reassure investors that core capabilities remain unaffected by public status.
SpaceX now operates under heightened transparency, potentially unlocking capital for ambitious goals like Starship orbital tests and global broadband expansion.
Challenges loom, including regulatory hurdles for megaconstellations, competition in reusable rockets, and orbital debris concerns. Nevertheless, this morning’s flawless execution reinforces SpaceX’s trajectory.
As Musk often notes, the company’s mission—to make humanity multiplanetary—now aligns with Wall Street’s growth demands. The stars, it seems, are aligning for both.
Elon Musk just upped his Tesla stake further fueling SpaceX merger conversation
Tesla Full Self-Driving is getting a major parking upgrade, Elon Musk says
