Tesla reveals SpaceX-powered Roadster, fueling merger speculation

Tesla unveiled its next-generation Roadster on Thursday, showcasing a prototype developed with SpaceX that demonstrated hover capabilities and extreme acceleration. The event, livestreamed from a SpaceX test site in McGregor, Texas, marked the first public look at the vehicle almost a decade after Elon Musk's company began accepting deposits.

The two-seater sports car accelerated from zero to 60 miles per hour in under a second, a feat demonstrated by Lars Moravy, Tesla's vice president of vehicle engineering. The vehicle also performed aerodynamic maneuvers, including clinging upside down to a ramp and hovering mid-air before landing. These capabilities rely on SpaceX technology, including thrusters, carbon overlay pressure vessels, diffusers, and powerful fans. Franz von Holzhausen, Tesla's design leader, attended the event alongside Musk.

Musk stated that the new Roadster would enter production in 2028. Tesla did not announce a price or disclose specifications for other performance variants. The company also noted that the vehicle is not intended to be street-legal, with Musk describing it on stage as "not necessarily a safety-optimized car." Notably, the Roadster will not include Tesla's Full Self-Driving system. Musk declared it the last vehicle the company produces intended to be controlled by a human driver.

The unveiling has intensified speculation regarding a potential merger between Tesla and SpaceX. The two companies have shared personnel and paid each other for services for years, with collaboration increasing in 2026 following SpaceX's initial public offering in June. Gwynne Shotwell, SpaceX's chief operating officer, told CNBC ahead of the IPO that a merger "might make Elon's life a little easier." Dan Levy, a Barclays analyst, predicted in a note this week that such a transaction could occur before the end of 2026.

Financial valuations underscore the scale of these entities. SpaceX is currently valued at approximately $2 trillion, while Tesla has a market capitalization of $1.4 trillion. Together, they are among only 12 U.S. companies worth at least $1 trillion each.

Prospective buyers in the U.S., Canada, and China can now reserve the refreshed model by paying $50,000, a window that reopened recently after Tesla initially took deposits in 2017 but missed every targeted delivery date. Musk first promoted the concept in November 2017 and subsequently via tweets in June of that year, suggesting the car would include small rocket thrusters to improve speed and braking.

The long wait has drawn mixed reactions from early supporters. Sam Altman, co-founder of OpenAI and former friend of Musk, mocked the delays on social media last year before securing a refund. The two men later faced each other in court over OpenAI governance matters. Conversely, Lawrence O'Connor, founder and CEO of Other World Computing in Austin, Texas, retained his reservation for a Founder's Edition model. O'Connor told CNBC he effectively provided an "interest-free loan" of $250,000 by reserving the car in November 2017. After watching the Thursday demonstration, O'Connor described the result as "off the charts."

Tesla is scheduled to report third-quarter results after the bell on Wednesday.