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SpaceX tops off Starship launch tower during Blue Origin crew launch briefing
On Sunday morning, SpaceX began the process of installing the last prefabricated section of Starship’s skyscraper-sized ‘launch tower’ around the same time as startup Blue Origin kicked off a preflight briefing for its first crewed suborbital launch.
Though both events are almost entirely unconnected and have no immediate impact on each other, the simultaneity almost immediately triggered comparisons between one of the most important media briefings in Blue Origin’s 21-year history and an average busy day at SpaceX’s South Texas Starship factory and launch site. Almost exclusively funded by Amazon founder and CEO Jeff Bezos since it was founded in September 2000, around two years before SpaceX, Blue Origin is on the cusp of its first crewed launch less than two weeks after Virgin Galactic completed its first fully-crewed test flight above 80 km (~50 mi).
Approximately 600 miles southeast of Blue Origin’s Van Horn, Texas launch and test facilities, in a different corner of the vast state, SpaceX was preparing for the latest in a long line of steps towards the completion of an orbital launch site for Starship – potentially the first fully reusable orbital rocket ever built.
First revealed more than three months ago in a cryptic post from owner Jeff Bezos, Blue Origin is scheduled to launch passengers on its New Shepard rocket for the first time ever, marking the end of an extraordinarily long development period. Designed to be fully reusable, New Shepard is a small single-stage rocket powered by one liquid hydrogen and oxygen-fueled BE-3 engine capable of producing approximately 500 kN (110,000 lbf) of thrust at liftoff. Designed exclusively for the purpose of ferrying a few tourists above a mostly arbitrary 100 km (~62 mi) line separating Earth’s atmosphere and “space,” New Shepard is about the same diameter as SpaceX’s Falcon 9 and Falcon Heavy rockets but is just 15m (~50 ft) tall.
The small rocket launched for the first time in April 2015 and reached an apogee of ~94 km but instability ultimately destroyed the first New Shepard booster during its first landing attempt. Blue Origin successfully launched and landed New Shepard on its next test flight in November 2015, culminating in Bezos’ infamous “Welcome to the club!” comment after SpaceX successfully recovered a Falcon 9 booster for the first time one month later.
As of July 2021, Blue Origin has completed just 15 New Shepard test flights – 14 of which were fully successful – in six years. In the same period, SpaceX successfully recovered an orbital-class Falcon 9 booster for the first time, reused a Falcon booster on a commercial satellite launch, debuted Falcon Heavy, reused several orbital Cargo Dragon capsules three times each, debuted Crew Dragon, became the first company in history to launch astronauts, completed its first operational astronaut launch for NASA, hopped three Starship prototypes, flew five Starship prototypes to 10-15 km, successfully landed four Raptor-powered Starship prototypes, rolled out Starship’s first completed booster prototype, completed more than 100 successful orbital launches, flown the same Falcon 9 booster ten times (versus New Shepard’s record of seven flights), reused orbital-class boosters 68 times, created the world’s largest satellite constellation, and far, far more.
Along those lines, on Saturday, July 17th, SpaceX teams attached a massive crane to the seventh prefabricated section of a ‘launch tower’ that could eventually support Starship and Super Heavy stacking – and maybe even catch ships and boosters. On Sunday, not long after daybreak and about an hour before Blue Origin’s New Shepard-16 preflight briefing, that tower section lifted off under the watchful eye of several unofficial cameras operated by NASASpaceflight, LabPadre, and others. By the end of Blue Origin’s briefing, most of which involved executives or senior employees reading from scripts and none of which offered a look at actual flight hardware or “astronaut” preparations, the eighth launch tower section was mostly in place, creating a structure some 135m (~440 ft) tall.
By the end of NASASpaceflight.com’s unofficial six-hour stream, the outlet’s excellent and unaffiliated coverage of SpaceX erecting part of a relatively simple tower for the seventh time had been viewed more than a quarter of a million times. By the end of Blue Origin’s official preflight briefing for a crewed launch set to carry the richest person on Earth, the company had accrued around 20,000 views on YouTube.
Some might see ten times as many viewers flocking to an unofficial live stream of fairly mundane SpaceX construction over a briefing for the first crewed launch of a fully-reusable suborbital rocket and scoff. For those who watched both broadcasts, it’s likely less than shocking that spaceflight and rocket fans almost universally sided with a livestream showing something – anything! – happening over what amounted to a camera pointed at five people reading (mostly stale) statements off of teleprompters.
Barely 24 hours away from Blue Origin’s most significant launch ever, the company – save for a few low-res clips from Jeff Bezos – has yet to share a single new piece of media highlighting the mission’s actual New Shepard rocket, crew capsule, astronaut preparations, flight suits, launch pad, or any of the other dozens of things most spaceflight fans – and people in general – tend to get excited about. For whatever reason, Blue Origin has also worked with Texas to shut down the only quasi-public viewing area less than 10-20 miles away from New Shepard’s launch pad despite never having done so in 15 test flights.
SpaceX, on the other hand, may not have always been a perfect neighbor in Boca Chica but the company has mostly accepted the buzzing, near-continuous presence of spaceflight fans and members of the media who come to South Texas to see Starbase in person. More recently, SpaceX has actively let at least two media outlets (NASASpaceflight and LabPadre) install and operate several robotic cameras overlooking Boca Chica’s Starship factory and pad.
It’s impossible to condense it into one or two simple differences but it’s safe to say that SpaceX’s relative openness and a general willingness to engage with media and let public excitement and interest grow uninterrupted (when possible) is part of the reason that mundane SpaceX goings-on can accumulate a magnitude more interest on unofficial channels than an official briefing for the most important event in Blue Origin’s history.
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.
News
Tesla’s dedicated Optimus factory construction officially underway at Giga Texas
Tesla’s dedicated factory for building up to ten million Optimus units is officially under construction at Gigafactory Texas.
Drone footage released on May 27 by Giga Texas observer Joe Tegtmeyer captures the significant milestone of the first steel structure officially standing at Tesla’s new Optimus factory on the North Campus of the facility.
Phase two of land reclamation is advancing steadily, and the progress will let the new building extend nearly the full length of the main Giga Texas factory, potentially exceeding 4,000 feet, while measuring somewhere between 50 and 70 meters narrower. Extensive foundation work is proceeding as well.
Big news at the new Optimus 10m/y factory construction site today! The 1st steel structure has been erected & as expected the second phase of land reclamation is underway.
This will allow this new factory to grow to nearly the same length as the main Giga Texas factory,… pic.twitter.com/FidRLV6XpU
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) May 27, 2026
This facility forms a central element of Tesla’s broader North Campus expansion at Giga Texas. The project will add more than 5.2 million square feet of new industrial space. It sits alongside other advanced developments, including a Terafab for next-gen AI chips. The scale reflects Tesla’s commitment to transforming humanoid robotics into a core pillar of the company’s future.
Musk has said that Optimus will be the biggest product in the world on several occasions. He believes it will be Tesla’s biggest valuation contributor.
Tesla prepares to expand Giga Texas with new Optimus production plant
Tesla plans to build about 10 million robots at the site annually once it is completed, which would be about 27,000 units each day.
The Optimus plant at Giga Texas is part of Tesla’s phased strategy for Optimus manufacturing. In an effort to start production of the robot well before the Giga Texas plant is complete, Tesla ended production of the Model S and Model X vehicles, which were built in Fremont, California, to make way for initial Optimus manufacturing efforts.
Production there will start in either July or August of this year, and early units will support internal factory tasks while the team gathers real-world data to refine processes. The Gigafactory Texas facility will house a second-gen production line. It targets high-volume output starting in Summer 2027.
Musk has repeatedly described Optimus as potentially more valuable than Tesla’s entire vehicle business. Current versions are already completing minor tasks around various facilities, while Tesla continues to refine its abilities and add new features.
Tesla’s total investment could reach several billion dollars. Significant challenges lie ahead, including the creation of an entirely new manufacturing ecosystem, the refinement of AI systems for dependable autonomy, and the development of reliable supply chains for actuators, sensors, and other components.
Nevertheless, the visible progress at Giga Texas highlights Tesla’s capacity to translate ambitious concepts into physical reality.
Tesla’s Optimus factory stands as much more than a simple expansion project, as it is quite literally the second phase of what could potentially be the biggest product ever. With construction beginning, 2027 is poised to become a transformative year for Tesla, as it evolves even further from an electric vehicle leader into a pioneer of intelligent, general-purpose machines.