Tesla's flying Roadster stuns Texas crowd but faces regulatory black hole as FAA says it is not an aircraft

Elon Musk unveiled the Tesla Roadster 2 at SpaceX's McGregor, Texas test facility on Thursday, driving it up a vertical wall, flipping it through the air using cold-gas thrusters, and launching it over a row of vehicles including a Cybertruck and a Semi. The unmanned car hit 0 to 60 mph in 0.81 seconds and racked up 47 million views on X within hours of Musk posting the clip. Production is set to begin in 2028, with the standard version priced above $200,000 and the full 'rocket' flight system available by invitation only for a $50,000 deposit.

The FAA says the Roadster does not meet its definition of an aircraft, leaving no federal agency clearly responsible for regulating a car that leaves the ground.

Drivers seeking the flying version may reportedly need a pilot's licence, with former FAA official Michael McCormick warning regulatory review alone could take 'at least a year'.

Barclays and prediction market Kalshi reportedly put the odds of a Tesla-SpaceX merger at above 50% before March, with the Roadster launch deepening speculation about a deal.