Starship Test Flight Becomes Musk’s IPO Stress Test
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Starbase – The latest Starship Test Flight gave Elon Musk something he badly needed before SpaceX’s expected Wall Street debut: progress. SpaceX launched its upgraded Starship V3 rocket from Starbase, Texas, on Friday, May 22, in the 12th integrated test flight of the giant launch system. The 407-foot rocket cleared the pad, separated its stages, deployed test satellites and sent the upper-stage spacecraft to a controlled splashdown in the Indian Ocean. The mission ended in flames, but that fiery finish was planned.
SpaceX’s Starship rocket just successfully performed a flip maneuver and precisely splashed down on target in the Indian Ocean next to a buoy with @Starlink on it.
The SpaceX team ends the stream with a “USA! USA! USA!” chant 🇺🇸 pic.twitter.com/rKwFHda4Jc
— Sawyer Merritt (@SawyerMerritt) May 22, 2026
The timing could hardly be more important. Reuters reported that SpaceX’s anticipated IPO is targeting a valuation around $1.75 trillion, with the Starship Test Flight seen as a critical step before investors get a closer look at Musk’s space empire.
What Worked During The Flight
The launch itself was a success. Starship V3 lifted off from Starbase during a 90-minute window that opened at 6:30 p.m. ET after a previous attempt was scrubbed because of a hydraulic pin issue.
The test marked the debut of the upgraded Starship V3 architecture. The rocket is taller and more powerful than previous versions, with upgraded engines and new systems designed for future reusability, orbital refueling and deep-space missions. AP reported that the new version is 407 feet tall and includes stronger engines, improved cameras and navigation upgrades.
SpaceX also achieved one of the mission’s key goals: payload deployment. Reuters reported that the flight released 20 mock Starlink satellites and two diagnostic satellites. Space.com reported that the two modified satellites were intended to help test Starlink V3 hardware and capture heat-shield imagery during the mission.
The upper-stage Starship then continued across the globe and completed a controlled splashdown in the Indian Ocean. That was a major step for a vehicle that has suffered several explosive failures during earlier tests.
What Failed During The Test
The Starship Test Flight was not flawless.
Reuters reported that one engine failed during the mission. Space.com said the Starship upper stage lost one engine but still achieved most of its objectives.
The Super Heavy booster also failed to complete its planned boost-back burn. Next Spaceflight reported that the booster “failed to properly ignite” for the boost-back burn, attempted a landing burn downrange and crash-landed in the ocean.
The in-space engine relight was also canceled. That matters because future Starship missions will need precise in-space operations, especially for NASA’s Artemis moon program and SpaceX’s long-term Mars plans.
Still, the test looked far stronger than several earlier Starship attempts. Previous flights ended in explosions, breakup or major system failures. Reuters noted that Starship’s history includes both catastrophic failures and major milestones, including a booster catch with launch-tower arms in 2024 and mock satellite deployment in 2025.
Why Investors Are Watching
For Musk, Starship is more than a rocket. It is central to the SpaceX story.
Starship is meant to lower launch costs, expand Starlink, carry large cargo, support NASA moon missions and eventually send humans to Mars. NASA is watching closely because Starship is tied to the Artemis lunar landing program. AP reported that NASA is relying on Starship for future moon missions and that Administrator Jared Isaacman attended the launch.
That makes every Starship Test Flight a business event as much as a space event. Friday’s flight did not prove Starship is ready for regular commercial use. It did show that the upgraded V3 system can fly, deploy test payloads and survive most of its mission profile. For investors, that may be enough to keep the IPO story alive.
