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SpaceX begins installing new ‘Raptor 2’ engines on Super Heavy booster
SpaceX has begun installing new ‘Raptor 2’ engines on Super Heavy Booster 7 after the prototype completed a range of tests and returned to the company’s South Texas ‘Starbase’ rocket factory.
Earlier this month, SpaceX transported Booster 7 (B7) in the opposite direction, returning the 67-meter (~220 ft) tall rocket to Starbase’s orbital launch site (OLS) for the second time after it was forced to head back to the factory for repairs. Repairs completed, SpaceX dove headfirst into the process of verifying that the booster had been returned to full health and immediately filled its tanks to the brim with at least 3000 tons (>6.5M lb) of liquid nitrogen and oxygen – better known as a cryogenic proof test.
Less than 48 hours after completing its first post-repair test, Booster 7 sailed through another full cryoproof test without losing a beat. On May 13th, two days later, SpaceX attached a crane to Super Heavy B7 and removed it from the orbital launch mount before rolling the rocket back to Starbase’s build site on May 14th. Without official confirmation, which is increasingly rare, it was impossible to determine the results of the testing with certainty, but the speed of the process and Booster 7’s rapid launch mount removal made the two most extreme outcomes the most likely.
A quick return to the build site could have been explained by a significant vehicle failure or a major issue with SpaceX’s repair job – no point in continuing to test a vehicle that can’t be fully tested. On the exact opposite hand, a near-perfect test campaign in which all objectives were more or less achieved without major hiccups could also explain the quick return. In general, the evidence was in favor of the more optimistic explanation. Had a major issue been uncovered during the first post-repair cryoproof, it’s difficult to imagine that SpaceX would have completed the exact same test – in full less than 48 hours later.
However, SpaceX moved an in-situ Raptor engine installation stand towards Booster 7 and the orbital launch mount shortly before testing restarted, hinting – for the moment – that the company wanted to begin installing Raptor engines immediately after cryoproof testing. But mid-way through testing, the stand was moved back to its storage area and Super Heavy was instead removed from the mount and returned to the factory, adding a little uncertainty.
Concerns were immediately assuaged on May 17th when SpaceX was spotted moving Raptor engines from a production tent to the ‘megabay’ assembly building containing Booster 7. While the location of the new bay makes it difficult to peek inside from public viewpoints, preventing direct confirmation, it’s very likely SpaceX has begun installing new Raptor 2 engines on Super Heavy B7.
Additionally, confirming some of the more optimistic speculation about SpaceX’s decision to move Booster 7 back to build site, two of the three Raptor engines spotted on May 17th were also labeled “E26” and “E28.” Unless SpaceX’s engine numbering conventions have changed, the labels identify the engines as three of 20 ‘Raptor Boost’ engines that will ultimately populate the outer ring of Super Heavy B7’s aft end. More importantly, the installation of any Raptor Boost 2 (RB2) engines likely indicates that SpaceX has decided to install a full set of 33 Raptors on the booster before kicking off static fire testing.
To limit risk, SpaceX could have begun test-firing Booster 7 with just 1-3 Raptor engines installed and gradually added more as confidence grew. Instead, SpaceX appears to have accepted the added risk of losing 33 brand-new Raptor 2 engines in one fell swoop in return for the possibility of a much faster test campaign. If there are no major surprises during static fire testing, in other words, Booster 7 could be ready for flight far more quickly if the process begins with all 33 engines already installed. Installing Booster 7’s Raptors, heat shield, and aerocovers will be easier back at the build site.
Doing it all at once should also help prevent Booster 7 from suffering Booster 4’s fate and wallowing, unfinished, for months without completing a single useful test. If the gamble works, the first stage of a two-stage Starship could be ready for an orbital launch attempt in just a few months. If the gamble fails and Booster 7 is damaged, destroyed, or otherwise unable to pass the necessary tests, SpaceX will simply move on to Booster 8 sooner than later, having wasted less time on a more cautious Booster 7 test campaign.
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It’s unclear how long it will take SpaceX to install all 33 Raptors, construct a heat shield around those engines, and finish buttoning up the rest of Booster 7. In an adjacent assembly bay, SpaceX appears to have nearly finished assembling a similarly upgraded Starship – Ship 24 – that’s first in line to ride Booster 7 into space. The company has also tentatively requested road closures for three 12-hour test windows on May 23rd, 24th, and 25th that either vehicle could use.
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Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
SpaceX has solved Starship’s biggest challenge, Elon Musk says
SpaceX is coming for wireless giants with Starlink Mobile
