SpaceX
SpaceX’s Mr Steven preps for “claw” upgrade for football field-sized net
Photos from Teslarati photographer Pauline Acalin show that SpaceX’s Mr. Steven fairing recovery vessel is undergoing extensive upgrades to the arms that secure the catch net, likely in support of what CEO Elon Musk described as a factor-of-four extension of the net’s catching area.
In order to accomplish that fourfold increase in usable area, SpaceX will have to effectively double the reach of Mr Steven’s four ‘limbs’, a significant change that explains why the vessel appears to have had all four arms amputated. Intriguingly, the vessel’s upgrades are taking place at SpaceX’s recently-leased Berth 240, the company’s preferred location for berthing its fleet of rocket recovery vessels, conducting Falcon 9 booster recovery ops, and -eventually – the first Mars rocket factory in 2019.
As of now, it’s unclear what approach SpaceX will take for upgrading Mr Steven’s arms – with only one detached example visible at Berth 240, it appears that the company will either add on to the hardware already built for the boat or start from scratch in order to optimally extend their reach. A new net, of course, will also be needed to span the fourfold increase in area – in other words, up to roughly 6000 square meters, 65,000 square feet, or 1.5 acres. I have little doubt that SpaceX will be able to reliably catch Falcon 9 payload fairings with a net as large or larger than American and European football fields (~1.3 acres vs. ~1.7 acres).
An artist rendering of a Falcon 9 fairing parasailing towards Mr Steven’s net. Original photos by Chuck Bennett (Instagram @chuckbennett) and SpaceX. (Chuck Bennet/SpaceX/Eric Ralph)
SpaceX’s has roughly four weeks until their next West coast launch and thus another opportunity to attempt to catch a Falcon 9 payload fairing. That mission is currently scheduled for early July 20th from Space Launch Complex 4E (SLC-4E) in Vandenberg Air Force Base. Teslarati’s West coast photographer will continue to check up on Mr Steven to judge whether the vessel will be ready in time for launch.
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- One of Mr Steven’s four amputated arms, removed in preparation for upgrades. (Pauline Acalin)
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- A sad Mr Steven sits beside Berth 240, sans arms. (Pauline Acalin)
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- Berth 240 demolition begins! (Pauline Acalin)
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- A Falcon 9 fairing overlooks SpaceX’s Berth 240 construction progress, June 20th. (Pauline Acalin)
BFR factory construction
Meanwhile, serious demolition has begun at Berth 240, likely preparing a number of basic necessities before any major building begins. A giant pile of broken concrete lays witness to that process, likely involving the appraisal, repair, and replacement of utilities and pipe systems currently buried under the facility. Forlorn Falcon 9 payload fairings – pulled intact out of the Pacific Ocean – can be seen stoically looking on while construction crews begin the first steps of a process that will, at least eventually, culminate in the completion of a factory for the rocket that will obsolete Falcon 9, Falcon Heavy, and their fairings.
Based on land use approvals published in March 2018, the construction will be cut into two phases, with phase one focusing on a smaller, intermediary building capable of support limited Falcon recovery work and potentially initial BFR prototype construction, allowing that process to be moved from the temporary tent it currently is housed in. Phase 2 would see a larger build constructed around the preceding facility, necessitating the demolition of one of Berth 240’s historic buildings. Per the filings, Phase 1 is expected to be finished within 16-18 months of approval, placing its completion sometime in mid to late 2019.
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- Note the fencing around the actual foundation site for SpaceX’s proposed BFR factory. (Pauline Acalin)
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- Renders of the proposed BFR factory at Berth 240. (SpaceX)
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- Blueprints of the proposed BFR factory at Berth 240. (SpaceX)
The Ontario Teachers’ Pension Plan (OTPP) stands to reap one of the most extraordinary returns in pension fund history thanks to a bold 2019 investment in SpaceX.
According to a recent report from The Globe and Mail, the Toronto-based fund invested roughly $300 million CAD (~$220 million USD at the time) in Elon Musk’s space company as its inaugural deal through the Teachers’ Innovation Platform.
At SpaceX’s anticipated $1.75 trillion IPO valuation, set for a mid-June debut on Nasdaq under ticker $SPCX, that stake could now be worth up to $11.6 billion USD. This would represent a roughly 50x return and easily become OTPP’s most successful single investment ever.
The fund manages $279 billion in assets for approximately 346,000 working and retired teachers in Ontario, potentially delivering an average boost of around $33,500 per member if fully realized.
SpaceX has filed its S-1 and plans to price shares at $135 each, aiming to raise a record $75 billion in what would be the largest IPO in history, surpassing Saudi Aramco. The company reported $18.67 billion in revenue for 2025, driven primarily by Starlink satellite internet growth and NASA contracts, though it continues to post significant losses tied to ambitious R&D in Starship and AI initiatives.
Important pieces moving forward include:
- Starlink Expansion: The satellite broadband service is scaling rapidly, targeting global connectivity, especially in underserved rural and remote areas. This segment offers massive recurring revenue potential as numbers climb.
- Starship and Reusability Leadership: SpaceX’s fully reusable Starship aims to slash launch costs dramatically, enabling frequent missions, Mars ambitions, and lucrative government/defense contracts. Success here could unlock exponential growth.
- AI and Diversification: Recent moves, including ties to xAI, position SpaceX in high-growth AI infrastructure, broadening beyond traditional aerospace.
- Validation Scrutiny: While the $1.75 trillion target excites investors, analysts like Morningstar value the company closer to $780 billion, citing high multiples (around 90x trailing revenue) and execution risks. A 180-day lockup period will prevent early investors like OTPP from selling immediately post-IPO.
The irony has not been lost on observers. Ontario’s government previously canceled a Starlink rural internet contract amid political tensions involving Musk, yet the pension fund’s savvy investment, made when SpaceX was valued around $33-36 billion, and Starlink was nascent, delivers outsized gains independent of politics.
For OTPP, this windfall strengthens its already solid 111 percent funding ratio and underscores the value of patient, innovation-focused capital allocation.
For SpaceX, the IPO marks a new chapter: greater transparency, access to public markets for talent retention and growth capital, and heightened pressure to deliver on its multi-planetary vision.
All eyes are fixed on whether SpaceX can justify its lofty valuation through sustained execution. For Ontario teachers, the returns are already stellar, but SpaceX, like other Musk companies in the past, has plenty of things to prove. Perhaps the most ideal person for the job is at the helm, hoping to bring the company to a massive valuation.
Elon Musk
SpaceX’s amended S-1 is sparking a major Tesla merger conversation
A single line in SpaceX’s amended S-1 just sent Tesla stock down 5% in one day.
A single line buried in SpaceX’s amended S-1 filing is doing more to move Tesla’s stock price than anything Tesla itself has announced in months. The clause, disclosed as SpaceX prepares for what could be the largest IPO in Wall Street history, states that the company “may issue a significant amount of equity in connection with future transactions.” While this may be seen as boilerplate language in S-1 filings, the historical ties between SpaceX and Tesla, and with Elon Musk reportedly discussing a possible merger with close colleagues, investors are interpreting it as something closer to a signal.
The concern among institutional investors like Gary Black, managing director of The Future Fund, pointed directly to the amended filing on X, saying it “strongly suggests more SPCX equity will be issued,” which could potentially be used to acquire Tesla. He estimated such a deal could be 28% dilutive to Tesla shareholders since SpaceX would likely command a significantly higher valuation multiple. Black added that institutional investors he knows hate the idea of a combination because they prefer pure plays over conglomerates, which he said “nearly always gravitate to the lowest common multiple.”
The Tesla and SpaceX merger everyone is talking about is quietly building
The bull case runs the math differently. Tesla influencer and retail shareholder advocate AleXandra Merz pushed back on what she called a widespread misunderstanding of how merger-of-equals deals actually work. Rather than simply splitting the difference between two market caps, a merger exchange ratio is negotiated based on relative fair market values, meaning the lower valued company typically sees its stock reprice upward toward the deal value.
Under her model, SpaceX enters at a $2.5 trillion valuation and Tesla at $1.6 trillion, producing a combined entity worth $4.1 trillion split evenly between both shareholder groups. That implies Tesla’s side of the deal would be valued at $2.05 trillion, a gain of roughly $450 billion from its current market cap. She cited Dow-DuPont and CBS-Viacom as historical examples of how markets reprice both companies toward the announced exchange ratio after a deal is unveiled.
What does a Merger of Equals mean to Elon’s compensation packages?
Well, it changes everything.
Enjoy https://t.co/uekCldyITw pic.twitter.com/kolq1C9qTu
— AleXandra Merz 🇺🇲 (@TeslaBoomerMama) June 1, 2026
The SpaceX S-1 amendments also revealed just how much financial infrastructure already binds the two companies together. As Teslarati has reported, SpaceX purchased $697 million in Tesla Megapacks, $131 million in Cybertrucks, and the two companies have shared supply chain resources, and semiconductor fabrication plans since well before any merger conversation became public. A retail poll by Tesla influencer Sawyer Merritt is finding that 36% of respondents do not plan to buy SpaceX shares at IPO and 15.3% saying their decision depends on the valuation.
Do you plan on buying @SpaceX stock at its IPO?
— Sawyer Merritt (@SawyerMerritt) June 1, 2026
Whether the merger happens or not, the amended filing is seemingly moving markets and sharpened a debate that is no longer theoretical. SpaceX is weeks away from trading publicly, and Tesla shareholders are now watching every word of every filing for clues about what Musk plans to do next.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
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