Tesla shows next-gen Roadster prototype that hovers, production set for 2028

Tesla showed its long-delayed next-generation Roadster on Thursday, almost a decade after it began taking deposits for the electric sports car. The event was livestreamed from a SpaceX test site in McGregor, Texas, near Waco. Elon Musk was joined by design leader Franz von Holzhausen and Lars Moravy, vice president of vehicle engineering. Musk opened by promising "some crazy stuff" and the result of a collaboration between "the world's best car company and the world's best rocket company."

The demo: a white sports car raced up a curved ramp, clung to it upside down, vaulted off, flipped in mid-air and hovered slowly before landing on the ground. The two-seater can go from zero to 60 miles per hour in under a second, according to Tesla's own timer, and Moravy demonstrated the run for the live audience. CNBC describes the prototype as built to be as lightweight as possible, with a steer-by-wire system, a steering yoke and a set of SpaceX-developed technologies: thrusters, carbon overlay pressure vessels and diffusers, and powerful fans that let the car do "some gymnastics."

Musk said the next-generation Roadster would enter production in 2028. The price was not announced, and Tesla did not disclose specifications for other performance-level variants. It was unclear whether the vehicle would be street-legal; on stage Musk said, "This is not necessarily a safety-optimized car." Tesla left its "FSD" automated driving system out of the car, and Musk said the Roadster will be the last vehicle the company produces that is intended to be controlled by a human driver. CNBC expects it to be a high-end, low-volume model, and says it is not likely to have any material financial impact on Tesla.

The reveal has fed speculation about a Tesla-SpaceX merger. Musk's companies have long worked with and paid each other, and the collaboration has grown in 2026, with talk of a tie-up swirling since SpaceX went public in June. SpaceX COO Gwynne Shotwell told CNBC before the IPO that a merger "might make Elon's life a little easier." Barclays analyst Dan Levy predicted in a note this week that such a transaction could happen before the end of 2026. SpaceX is valued at about $2 trillion and Tesla has a market cap of $1.4 trillion, two of just 12 U.S. companies worth at least $1 trillion.

The history is long. Musk first promoted the refreshed Roadster at an event in November 2017, and in June 2018 tweeted that a SpaceX option package would include "~10 small rocket thrusters arranged seamlessly around car," which could improve speed and braking and may "even allow a Tesla to fly." Tesla began taking $50,000 deposits in 2017 and has missed every targeted delivery date. As recently as last October Musk was hyping a demo he hoped to hold before the end of 2025; that did not happen. Tesla reopened reservations in recent weeks, taking $50,000 deposits in the U.S., Canada and China. The original Roadster, engineered by a team led by founding CEO Martin Eberhard on a Lotus Elise chassis, was first delivered in 2008 and sold in small volumes for roughly $100,000 until 2012.

Reservation holders reacted differently. OpenAI co-founder Sam Altman, described as Musk's former friend, mocked Musk on X last year over the delays, posting screenshots of his reservation and refund requests: "I really was excited for the car! And I understand delays. But 7.5 years has felt like a long time to wait." He got his refund, and the two later ended up in court earlier this year over a separate matter about OpenAI's governance and ownership structure. Others kept their reservations. Lawrence O'Connor, founder and CEO of Other World Computing in Austin, Texas, reserved a Founder's Edition in November 2017, which he called an "interest-free loan" of $250,000 to the company. After the event he said what he saw was "off the charts." Tesla is due to report third-quarter results after the bell on Wednesday.

Key facts

Tesla showed a white Roadster prototype at a livestreamed event at a SpaceX test site in McGregor, Texas; it drove up a curved ramp, flipped in mid-air and hovered slowly before landing.
Tesla's own timer put the two-seater's zero to 60 mph time at under a second; Musk said production would begin in 2028.
No price was announced, other performance variants were not detailed, and it was unclear whether the car would be street-legal. Musk: "This is not necessarily a safety-optimized car."
The car has no FSD; Musk said it will be the last Tesla intended to be driven by a human. It uses SpaceX-developed thrusters, carbon overlay pressure vessels and diffusers, and powerful fans.
Tesla has taken $50,000 deposits since 2017 and missed every delivery target; the unveiling added to speculation about a Tesla-SpaceX merger, which Barclays' Dan Levy predicted could happen before the end of 2026.

Why it matters

On Thursday Tesla showed a prototype of the Roadster that Musk first promoted in November 2017, this time with SpaceX-developed technology built into the car rather than described in tweets. In 2018 Musk said rocket thrusters might "even allow a Tesla to fly"; the prototype on Thursday hovered slowly. CNBC's own view is that the car is a high-end, low-volume model unlikely to have any material financial impact on Tesla. The bigger context is the speculation about a Tesla-SpaceX merger, with SpaceX valued at about $2 trillion and Tesla at $1.4 trillion.

Who it affects

Reservation holders are the most directly affected: some have waited since 2017, such as Lawrence O'Connor, who put down $250,000 for a Founder's Edition and called the show "off the charts." Sam Altman, by contrast, took his refund. Tesla and SpaceX shareholders have a stake in the merger speculation, and Tesla investors have third-quarter results due on Wednesday after the bell.

How to use it

Nothing is on sale. Tesla has reopened reservations in recent weeks and is accepting $50,000 deposits from prospective buyers in the U.S., Canada and China. Musk said production would start in 2028. The price was not announced, and Tesla did not disclose specifications for other performance-level variants.

How solid is it

The event itself and the demo are reported by CNBC. The under-a-second zero to 60 mph figure is Tesla's own timer reading, demonstrated live by Moravy, and is not independently verified. The 2028 production date is Musk's statement, from a company that has missed every targeted delivery date since 2017 and a demo target for the end of 2025. The merger talk is speculation and an analyst prediction, not an announced plan.

Risks and caveats

The headline-grabbing hovering was a slow, short demonstration on a prototype; the source gives no hovering height or duration beyond "hovering slowly." It was unclear whether the vehicle would be street-legal, and Musk said on stage that it is not necessarily safety-optimized. Beyond the 0 to 60 time there are no stated specifications such as top speed, range or battery size, and no price. Buyers who put down $50,000 deposits are committing to a car with no announced price and a history of missed dates.

“You're going to see the results of what happens when you have a collaboration with the world's best car company and the world's best rocket company.”

— Elon Musk, ahead of the Roadster demo