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SpaceX assembles Falcon Heavy rocket for first launch in 40 months
SpaceX has assembled the fourth Falcon Heavy for the rocket’s first launch in 40 months.
A photo shared by SpaceX on October 23rd shows that it has mated Falcon Heavy’s three first stage boosters together while preparing for prelaunch testing. Simultaneously, workers have completed the equally important task of converting 39A’s transporter/erector (T/E), which has been configured for single-core Falcon 9 rockets for over three years.
The transporter/erectors SpaceX use for all Falcon launches are a bit like a mobile backbone and launch tower combined. Their first purpose is to transport horizontal Falcon rockets to and from their integration hangars and launch pads. They’re also tasked with raising Falcon rockets vertical and lowering them back down for transport or worker access. Most importantly, they connect to a pad’s ground systems and distribute propellant, gases, power, and communications to Falcon 9 and Falcon Heavy through multiple umbilicals and quick-disconnect ports.
Falcon Heavy, which can only be launched out of LC-39A, has three times as many boosters as Falcon 9 and necessitates significant modifications to the pad’s T/E when switching between the two. The process is much harder when moving from F9 to FH, and waiting almost three and a half years between Falcon Heavy launches likely hasn’t made the conversion any easier. But on October 23rd, after numerous tests and weeks of work, the Pad 39A T/E picked up the ‘reaction frame’ that attaches to the bottom of Falcon rockets and was brought horizontal.
Thanks to the nature of Falcon Heavy and Pad 39A’s infrastructure, what happens next is more or less guaranteed. During normal Falcon 9 operations, 39A’s integration hangar is large enough for two or three unrelated Falcon boosters to remain while the T/E rolls inside to pick up a full Falcon 9. More importantly, Falcon 9’s booster and upper stage can technically be integrated off to the side and craned onto the T/E when ready. But with Falcon Heavy, which has a first stage akin to three Falcon 9 boosters sitting side by side, there isn’t enough room inside the hangar to integrate the rocket with the T/E inside.
For Falcon Heavy, the T/E can thus only roll back into the hangar once the rocket’s three boosters and upper stage have been fully assembled and are suspended in mid-air. SpaceX’s October 23rd photo shows that three of the four cranes required for that lift appear to already be in position, further confirming that T/E rollback is imminent. Once the T/E rolls back to the hangar and Falcon Heavy is attached, the rocket will eventually be transported to the pad and brought vertical for wet dress rehearsal (WDR) and static fire testing.
Update: SpaceX began rolling the T/E to Pad 39A’s integration hangar around 1 am EDT, October 24th.
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The US Space Force’s USSF-44 payload – a mysterious pair of satellites that are more than two years behind schedule – will almost certainly not be installed on Falcon Heavy during prelaunch testing, so the rocket will need to roll back to the hangar at least one more time after testing to have its payload fairing attached.
Combined, that prelaunch process could easily take a week or more. Multiple sources report that Falcon Heavy is scheduled to launch no earlier than (NET) 9:44 am EDT (13:44 UTC) on Halloween, October 31st. But even if the rocket rolls out today (Oct 24), the odds are stacked against Falcon Heavy sailing through its first integrated prelaunch tests in 40 months, and delays are likely.
For Falcon Heavy’s fourth launch, all three of the rocket’s boosters – B1064, B1065, and B1066 – are new, as are its upper stage and payload fairing. An FCC permit for the launch has confirmed that SpaceX will intentionally expend the rocket’s new center core while its twin side boosters will attempt a near-simultaneous landing back at Cape Canaveral. USSF-44 will be SpaceX’s first attempted launch directly to geostationary orbit (GEO), an exceptionally challenging mission that requires the rocket’s upper stage to coast in space for around 4-6 hours between two major burns.
If successful, Falcon Heavy will insert the USSF-44’s mystery satellites into a circular orbit ~35,600 kilometers (~22,150 mi) above Earth’s surface. At that altitude, orbital velocity matches Earth’s rotation and spacecraft can effectively hover – indefinitely – above their region of choice.
Falcon Heavy is the most powerful operational rocket in the world. At liftoff, it weighs around 1420 tons (~3.1M lb) and can produce more than 2300 tons (~5.1M lbf) of thrust. In a fully expendable configuration, Falcon Heavy can launch 26.7 tons (59,000 lb) to an elliptical geostationary transfer orbit and 63.8 tons (141,000 lb) to low Earth orbit. SpaceX doesn’t advertise its direct-to-GEO capabilities.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
