News
NYC subway closure canceled, Elon Musk’s Boring Company tapped for ideas to improve other systems
The Governor of New York State, Andrew Cuomo, announced on Thursday evening that the current plan to shut down the 225,000 commuter-strong L-train tunnel in the New York City public transportation system for a 15-month-long repair process will no longer be necessary due to a plan implementing new reconstruction techniques. After consulting with a panel of expert engineers from Columbia and Cornell Universities, a new design was proposed to be used in the tunnel which would streamline the repair process and require closures during nights and weekends with partial train tunnel service still available. When asked in a conference call Friday whether other innovators such as Elon Musk of Tesla and The Boring Company were consulted, the governor said Musk had not advised on this specific issue, but was consulted on improvements to the subway’s signaling system. The Metropolitan Transport Authority (MTA), New York’s transportation network, accepted the Governor’s panel recommendations following the announcement.
The L train tunnel under the East River connecting Brooklyn and Manhattan in New York, known as the Canarsie Tunnel, was damaged during Hurricane Sandy, the Category 3 major hurricane which affected the entire eastern seaboard of the United States in 2012. Its storm surge hit NYC on October 29, flooding huge portions of the island, including 9 of the 14 underwater tunnels in the city’s transport system. Of these, 6 have already been repaired. According to the MTA, the damage to the Canarsie Tunnel is comparable to tunnel damage experienced on 9/11, underlining the extent of the repairs needed and the reason behind the original required shutdown.
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- Governor Andrew Cuomo with engineering consultants surveying the Canarsie Tunnel. | Credit: New York State Governor’s Office
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- Governor Andrew Cuomo with engineering consultants surveying the Canarsie Tunnel. | Credit: New York State Governor’s Office
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- A graphic representation of the duct banks damaged in the Canarsie Tunnel during Hurricane Sandy. | Credit: MTA
Saltwater flooding in from the East River during Sandy significantly damaged the infrastructure of the 7,100-foot-long tunnel, including tracks, signals, switches, cables, and lighting. The flood waters additionally filled protected cable tube pathways called “duct banks” throughout the tunnel, and once dry, the silt hardened to a cement-like consistency inside them, making it impossible to rip out and restore the damaged components. Canarsie Tunnel also opened in 1924, adding age to the brewing number of problems being amplified by the lingering effects of corrosive saltwater remnants from Sandy.
In 2016, residents were informed the tunnel was possibly going to be shut down for 15 months to address the extensive repairs, causing significant commute challenges for the approximately 225,000 riders depending on the service. The date for service closure was scheduled to begin April 27, 2019, but the impending deadline motivated Governor Cuomo to seek out alternative solutions. “I can’t tell you the number of people in Brooklyn who have looked me right in the eye and said, ‘Are you sure that there is nothing else that can be done and there’s no way you can possibly shorten this?’,” Cuomo stated in a recent press conference announcing the new subway repair plan.
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- Damage sustained by the Canarsie Tunnel during Hurricane Sandy. | Credit: MTA
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- Damage sustained by the Canarsie Tunnel during Hurricane Sandy. | Credit: MTA
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- Damage sustained by the Canarsie Tunnel during Hurricane Sandy. | Credit: MTA
The repair announcement was the end result of a review process Governor Cuomo began on December 14, 2018, wherein he and a consulting team walked through the damaged tunnel to assess the repairs needed first hand. While the plan will take longer than the original project’s timeline – 20 months instead of 15 – the ability to remain open during the repairs is a welcome relief for city residents. The technology that will enable the tunnel to remain open includes wire wrapping along with ultrasound and laser measurement (LIDAR) tools to assess and monitor damage. Engineers from Cornell University’s College of Engineering and Columbia University’s Fu Foundation School of Engineering and Applied Science with expertise in the type of construction involved were the primary sources for the solutions chosen.
Similar to the innovations that came from Musk’s Boring Company tunneling project, the governor has hopes that the unique system planned for the Canarsie Tunnel will inspire other similar repair projects. “This could be a national model because it is a totally different way to reconstruct a tunnel,” Governor Cuomo touted at the press conference. Also, according to the governor, the techniques in the new plan have been implemented in projects in Europe before for bridge repair, but not in tunnel reconstruction. He hopes to bring more out-of-the-box innovations to the city’s transportation as well. In reference to Elon Musk’s companies, he said, “I don’t believe a time where they’re talking about flying cars and you can get into a car and drive 100 miles on the LIE and never touch the steering wheel, that there’s not a better technology that can regulate the trains!”
For more about the announcement and repair plan, watch Governor Cuomo’s press conference below:
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Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
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SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
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Elon Musk issued a second pointed warning to SpaceX short sellers on Tuesday, just hours before the company was set to release its first quarterly earnings as a publicly traded firm. Responding to a report highlighting elevated short interest, Musk wrote on X: “I try to warn them, but they just double down …”
The comment came as data from S3 Partners showed roughly 95 percent of available SPCX shares to borrow were on loan, translating to about 34 percent short interest as a percentage of the float. The stock has traded under pressure since its record-breaking IPO in June 2026, declining significantly from early peaks.
I try to warn them, but they just double down … 🤷♂️
— Elon Musk (@elonmusk) August 4, 2026
This marks the second such message from Musk in under three weeks.
On July 17, amid post-IPO volatility, he stated: “The survival probability of firms who maintain a significant short position in SpaceX over time is very low.” At that time, SPCX had fallen roughly 30 percent from its peak above a $2.6 trillion valuation, with short sellers reportedly realizing gains of about $8.7 billion.
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Musk’s warning aligned with optimistic analyses projecting that Starship-driven cost reductions could enable a multi-trillion-dollar space economy through applications such as orbital solar power, asteroid mining, data centers, and Mars-related projects, positioning SpaceX as critical infrastructure.
SpaceX is scheduled to report second-quarter results after the market close later today, followed by a webcast. Analysts anticipate revenue near $6.9 billion, reflecting growth in Starlink, launch services, and AI-related segments. The earnings release precedes a major lockup expiration on August 6 that could free hundreds of millions of insider shares.
Musk has a long track record of confronting short sellers, particularly regarding Tesla, where he has argued that persistent bearish positions underestimate transformative technologies. Critics view his optimism as overly ambitious given near-term stock fluctuations, while supporters see temporary dips as opportunities in a longer-term expansion of the space economy.
As SpaceX opens its books to public scrutiny for the first time, the high short interest and Musk’s repeated cautions set the stage for heightened market attention on the results and management’s commentary.
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX reports beat in first earnings while minimizing losses
