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SpaceX’s Starship Raptor Vacuum engine plans laid out by CEO Elon Musk
Elon Musk says that SpaceX Starship engine upgrades are on track to begin static fire tests of a Raptor Vacuum variant as few as a “couple months” from now.
Designed to enable more efficient performance in thin atmosphere or vacuum, Musk admitted that the first version(s) of Raptor Vacuum (RVac) will likely be a compromise between efficiency and speed of development. Nevertheless, the faster SpaceX can prepare Raptor Vacuum for flight, the easier it will be for Starship to begin serious (sub)orbital flight tests.
As it turns out, SpaceX’s first and only official render of Raptor – published in September 2016 – showed the engine’s vacuum-optimized variant. In the years since, CEO Elon Musk has vacillated between keeping the vacuum engines as a central Starship feature and simply replacing them with regular sea level Raptors to expedite the spacecraft’s debut. The 2016 and 2017 vehicles featured a mixture of vacuum and sea-level engines, whereas Musk revealed a vehicle with sea-level engines only in 2018.
Perhaps less than a month after Musk’s September 2018 presentation, the SpaceX CEO made the decision to radically redesign the vehicle – newly christened Starship and Super Heavy – by moving from a carbon composite aerostructure to stainless steel. At first, the seven SL Raptors remained a part of the design, but Musk took to Twitter in 2019 to indicate that SpaceX had changed gears again and had reprioritized Raptor Vacuum development.
This came as a bit of surprise and it should go without saying that there’s a significant chance that Musk/SpaceX will oscillate in the opposite direction once again before Raptor Vacuum is actually ready for flight. This time, though, Musk has sketched out a development schedule and strategy that suggests SpaceX is much more serious this time.
Most notably, Musk claims that the first Raptor Vacuum prototype could be ready for static fire testing just a “couple months” from now, an immensely ambitious schedule for any large liquid rocket engine development program. Nevertheless, Musk did indicate that the “V1.0” Raptor Vacuum design would be significantly compromised and “suboptimal”, an intentional decision to prioritize the engine’s “speed of development”.
Even then, Musk believes that the first variant – featuring a shortened bell nozzle – could still be up to 12% more efficient than sea level Raptors and thus already 70-80% of the way to the physical limit of methane-oxygen rocket efficiency.
On a positive note, shrinking V1.0 Raptor Vacuum’s nozzle a bit from its nominal length will likely mean that SpaceX can static fire fully-integrated engines at its McGregor, TX test facilities, critical for speedy development. If not, the company has experience with alternatives through Merlin Vacuum, which can only be tested on the ground with its lengthy nozzle detached. This method just makes it dramatically harder to optimize a vacuum nozzle design, as full-scale, flight-like testing is nearly impossible if a given vacuum engine can’t be tested on the ground with said nozzle installed.
Vacuum engines need such large and unwieldy nozzles in order to make them as efficient as possible. In a very simplistic sense, a rocket engine nozzle directs the flow of superheated, ultrafast gases in order to squeeze as much momentum transfer as possible out of available propellant. The lower the pressure of the surrounding atmosphere is, the more those gases will expand immediately after leaving the nozzle – giant vacuum nozzles simply try to harness the additional momentum available from that extra expansion. This is why rocket exhausts appear to spread and thin out as launch vehicles reach higher and higher altitudes.
In this sense, the perfect theoretical vacuum nozzle is quite literally infinitely long. The job of vacuum rocket engineers is to find the perfect balance between that impractical theoretical perfection and the limits of real-world materials and dynamics. In theory, SpaceX’s sea-level Raptor engines have already been designed to operate in vacuum conditions, while the engine’s closed-cycle design and regeneratively (i.e. propellant) cooled nozzle should apply well to a vacuum design.
If SpaceX is lucky, there will be few roadblocks in the way of simply lengthening a SL Raptor-style nozzle and calling it a day, in which case it would be impressive but not all that surprising if SpaceX is actually able to begin RVac testing before the end of 2019. Once a rough V1.0 engine is in place, the process of optimizing efficiency can be done slowly and methodically, all while exploiting an unprecedented wealth of data from flight and orbit-tested Raptor Vacuum engines.
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Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
