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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SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.
The company announced an offering of senior unsecured notes expected to raise at least $20 billion.
The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.
🚨 SpaceX has announced its inaugural offering of senior unsecured notes.
The net proceeds will be used to repay outstanding loans under its bridge loan facility in full.
This inaugural debt offering represents a financing milestone for SpaceX, which previously depended… pic.twitter.com/pcOZuVbTRv
— TESLARATI (@Teslarati) June 22, 2026
According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.
The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.
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In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.
The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.
SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.
Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.
SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Mississippi.
Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.
CNBC first reported the deal.
🚨 SpaceXAI has agreed to a new compute deal with Reflection AI.
Reflection gets access to NIVIDIA GB300s, and will pay $150M per month to SpaceXAI for the compute. pic.twitter.com/bNPare8U5u
— TESLARATI (@Teslarati) June 22, 2026
This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.
SpaceX has previously signed significant compute deals with other major players.
It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.
Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.
SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.
These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.
Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.
The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.
For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.
It is safe to say SpaceX won’t be going for electric rockets anytime soon.
In a characteristically blunt reply on X, SpaceX frontman Elon Musk stated, “Unfortunately, electric rockets are impossible,” following reports that MSCI had assigned SpaceX its lowest possible ESG rating of CCC.
The assessment, issued just this past week, coinciding closely with SpaceX’s public market debut, placed the company on par with nations like Russia in sustainability scoring and cited significant risks in environmental, social, and governance areas.
MSCI flagged SpaceX’s exposure to rocket emissions and other operational impacts, alongside governance concerns such as concentrated control by Musk and limited shareholder protections. Musk’s terse comment directly addressed the environmental pillar, underscoring a core physical constraint that ESG frameworks often overlook when evaluating high-thrust industries.
Unfortunately, electric rockets are impossible
— Elon Musk (@elonmusk) June 21, 2026
Electric propulsion systems do exist and are widely used in space. Ion thrusters and Hall-effect thrusters accelerate ionized propellant, typically xenon or krypton, using electric fields, achieving very high specific impulse, often exceeding 3,000 seconds compared to roughly 300–450 seconds for chemical rockets.
This efficiency makes them ideal for satellite station-keeping, orbit raising, and deep-space missions where low thrust over long durations is sufficient. SpaceX’s own Starlink satellites employ electric propulsion for these purposes.
However, launching from Earth’s surface demands something entirely different: enormous thrust delivered rapidly to overcome gravity and atmospheric drag. A typical orbital-class booster must generate thrust far exceeding its weight, often in the millions of Newtons within seconds.
Chemical rockets achieve this through exothermic combustion of dense propellants, producing high-mass-flow, high-velocity exhaust. Electric systems, by contrast, expel very small amounts of mass at extremely high speeds. Generating equivalent thrust would require impractical onboard power levels, massive energy storage or generation systems, and prohibitive added mass, rendering the approach infeasible with current or near-term technology.
Musk has previously expressed a similar sentiment, noting a desire for electric orbital rockets while acknowledging the inescapable requirements of Newton’s third law and energy delivery. The distinction is clear: electric propulsion excels once a vehicle is already in space; it cannot replace the high-thrust chemical phase required to reach orbit from the ground.
The episode illustrates broader critiques of ESG ratings. Proponents argue they incentivize better risk management and long-term sustainability. Detractors, including Musk—who has previously called ESG a “scam”—contend that such metrics can penalize essential activities when no practical alternative exists, potentially discouraging innovation in sectors like space access.
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SpaceX has sought to mitigate launch-related impacts through reusability: Falcon 9 boosters have flown more than 30 times in some cases, dramatically lowering the manufacturing and emissions burden per kilogram delivered to orbit. Starship’s design further emphasizes rapid reusability and methane propellant, which can theoretically be produced via sustainable pathways.
Ultimately, Musk’s remark serves as a reminder that certain engineering realities persist regardless of scoring systems. As humanity expands its presence in space for communications, science, and exploration, balancing genuine environmental progress with technological necessity remains a central challenge.
ESG frameworks may evolve, but the fundamental limits of electric launch propulsion are unlikely to change soon.
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