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SpaceX Texas test HQ fires up a dozen Falcon, Starship rocket engines in six hours
Though it often falls under the radar relative to SpaceX’s high-profile Boca Chica Starship hub, another even more important Texas outpost appears to be busier than ever testing the rocket engines and boosters instrumental to all SpaceX operations.
Famous for occasionally supporting half a dozen or more rocket tests on busy days, SpaceX’s McGregor, Texas facilities showed off exactly that kind of rapid-fire activity on Friday, March 19th, flexing the sheer variety and volume of rocket hardware liable to pass through its gates.
Located on the grounds of a former US military explosives factory, SpaceX’s McGregor, Texas rocket development and test facilities have been testing Falcon, Dragon, and Starship parts and supporting each program’s development for a decade and a half. After being fabricated and assembled in Hawthorne, California, virtually every single active propulsive component SpaceX has ever flown has spent some amount of time in McGregor.
For boosters, every cold gas maneuvering thruster is qualified in Texas before being sent back to Hawthorne for final installation. Each stage’s nine Merlin 1D engines are individually tested in McGregor, shipped back to Hawthorne, installed on a booster, shipped back to McGregor, and static fired as an integrated first stage before SpaceX deems a Falcon 9 or Falcon Heavy core ready for flight. The exact same process (separate engines and thruster qualification followed by integrated vehicle testing) is performed with Falcon upper stages and their Merlin Vacuum engines, as well as all Dragon spacecraft and their Draco (and SuperDraco) thrusters. The same is true for the two Raptor engine variants and cold-gas thrusters that power Starship.
On March 19th, nearly all of those different engines and vehicles – and the separate stands used to test each of them – came together for an exceptionally busy day at McGregor. According to local resident Reagan (@bluemoondance74), who lives within earshot of SpaceX’s extraordinarily busy rocket testing HQ, at least five unique tests were performed in just six hours – all but one of which was squeezed into the last ~125 minutes.
Around 2:40 pm, an unknown test – possibly a Merlin Vacuum (MVac) or Merlin 1D (M1D) engine – kicked off the salvo. Four hours later, SpaceX completed arguably the most significant test of the day, firing up the first Falcon Heavy center core to head to McGregor in almost 24 months. Assuming that static fire was a success, the booster will be inspected, have its tanks cleaned, and be shipped to Florida to complete the first stage of SpaceX’s fourth Falcon Heavy rocket for a launch as early as July.
An hour and a half after the Falcon Heavy center core’s static fire, SpaceX fired up a Raptor engine (either a sea level or vacuum variant), followed by another likely M1D or MVac test just minutes later. Finally, at 8:52 pm, SpaceX ignited a second Raptor engine at an entirely separate vertical test stand (known as the tripod stand) recently modified to support testing Starship engines in a more flight-like configuration. Altogether, assuming no repeated tests, SpaceX effectively tested a booster and 13 (9+4) rocket engines in a little over six hours.
More likely than not, one or both of those Raptors will soon find themselves on a Starship or Super Heavy prototype in Boca Chica. The M1D and/or MVac engines will assuredly find a place on a future Falcon booster or upper stage. The Falcon Heavy center core (B1065 or B1066) is scheduled to launch as early as July 2021 and will be the first of its kind to fly in an intentionally expendable configuration. Another Falcon Heavy center core – possibly B1067 – will likely also find itself in McGregor within the next few months for the rocket’s fifth launch, scheduled no earlier than (NET) October 2021.
All told, SpaceX’s McGregor rocket testing HQ is about as busy as – if not busier than – it’s ever been as the company works towards an unprecedentedly ambitious 48-launch 2021 manifest, builds and flies at least four Dragon spacecraft, and pursues an even more ambitious effort to begin orbital Starship launches this summer. Quieted away in rural Texas, McGregor may largely go unnoticed but its infrastructure remains as integral as ever for virtually every single SpaceX project – past, present, and future.
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
In early 2026, Tesla made a bold strategic pivot: it largely eliminated the option to purchase Full Self-Driving (FSD) software outright and shifted to a subscription-only model. The change, effective around mid-February, ended the one-time fee that had previously ranged as high as $15,000 and later dropped to $8,000. Instead, customers would access FSD (Supervised) for $99 per month in the U.S.
At the time, skeptics questioned whether locking customers into recurring payments would hurt adoption or alienate buyers who preferred ownership of the feature. Tesla bet that a lower barrier to entry, seamless integration at purchase, and the ability to cancel at any time would drive higher uptake.
The results from Q2 2026 speak for themselves: the decision has been a resounding success, delivering the largest quarterly growth in FSD subscriptions in the company’s history.
Tesla FSD subscriptions went up 56% in Q2 2026 to 1.48 million, an increase of 200,000 from Q1 2026.
Tesla added more FSD subscribers in Q2 than in any quarter in its history. pic.twitter.com/jTciTD2JqW
— Sawyer Merritt (@SawyerMerritt) July 22, 2026
According to Tesla’s Q2 shareholder update, active FSD subscriptions reached 1.48 million globally by the end of June 2026. That represents a 56 percent increase year-over-year and a 15.6 percent jump from the prior quarter. Tesla added roughly 200,000 new subscriptions in the period alone—the biggest single-quarter gain on record.
North America led the charge, with more than 55 percent of new vehicle deliveries including an FSD subscription at the time of purchase, a record attach rate for the region.
Tesla explicitly noted that “more customers [are] opting for subscription at the time of vehicle purchase,” crediting the model shift and prominent placement of the option in the ordering process. Subscriptions now contribute meaningfully to ancillary revenue, helping offset pressure elsewhere in the business.
The financial upside is substantial: At $99 per month, 1.48 million active subscriptions generate approximately $146.5 million in monthly recurring revenue. Over a full year, that equates to roughly $1.76 billion in annualized recurring revenue (ARR) from FSD subscriptions alone, assuming steady retention and no major pricing changes.
These figures represent pure, high-margin software revenue. Unlike vehicle sales, which carry production costs, warranty obligations, and supply-chain risks, FSD subscriptions flow largely to the bottom line once the software is developed and deployed over-the-air.
Tesla does not break out exact FSD subscription revenue in its filings (it sits within “Services and Other”), but the category grew 50 percent year-over-year in Q2, with executives highlighting subscriptions as a key driver.
The subscription model offers several structural advantages. It lowers the upfront cost of a new Tesla, potentially broadening the buyer pool and supporting vehicle demand, especially important amid fluctuating EV market conditions. It creates a predictable revenue stream that compounds as the fleet grows and more owners try (and stick with) the software.
Legacy one-time purchasers still exist, but new growth is overwhelmingly subscription-based following the February cutoff.
Early data also suggests improving retention and satisfaction, as well. Tesla has rolled out iterative FSD updates, including v14 features, and expanded availability to additional markets. Recent regulatory approvals in parts of Europe have further boosted interest, with owners in newly enabled countries eager to activate the software they had been waiting for.
FSD is still supervised; regulatory hurdles for true unsupervised autonomy persist in many regions, including the United States, and competition in advanced driver-assistance systems is intensifying. Yet the Q2 numbers validate Tesla’s bet: by removing the large upfront commitment and making FSD accessible via subscription, the company has accelerated adoption faster than many anticipated.
What began as a controversial switch-up has become a clear win. With nearly 1.5 million subscribers, record attach rates, and nearly $1.8 billion in potential annual recurring revenue already in view, Tesla’s FSD business is transitioning from a promised future to a tangible, fast-growing profit engine.
If the momentum continues, and especially if unsupervised capabilities unlock robotaxi opportunities, the subscription flywheel could become one of the most valuable assets in Tesla’s portfolio.
Elon Musk claps back at France’s Tesla Full Self-Driving approval delay
Google’s massive stake in SpaceX will shock you
