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SpaceX’s Starship to grow in height as workers prepare to stack its top section
SpaceX CEO Elon Musk has teased new details and posted several new photos of Starship Mk1, taken on September 25th as employees worked to lift the spacecraft’s lower half onto a mobile transporter. Up next: stacking the rocket’s two halves to reach its final 50m (160 ft) height.
The company is currently working around the clock to complete Starship Mk1’s assembly and integration ahead of Elon Musk’s planned September 28th presentation, meant to provide a detailed update on the state of the next-generation rocket’s design and development. A huge amount of work clearly remains but SpaceX is making major, visible progress almost every single day along the path to Starship’s first flight tests.
On the transporter pic.twitter.com/CGNj1MlKAU— Elon Musk (@elonmusk) September 26, 2019
Taken yesterday afternoon, Musk’s photos show scenes before and after technicians placed Starship Mk1’s lower half – its tank and propulsion section – on a ‘Roll-Lift’, a small transporter. It’s unclear why exactly this was done, but SpaceX moved the spacecraft prototype about 100m and then removed it from the transporter.
The most recent movement happened just a few hours ago – technicians used a crane delivered on September 24th to lift the half-Starship onto what looked like half a dozen steel blocks on the ground, all captured live on LabPadre’s 24/7 livestream. In order to install Starship Mk1’s separate landing legs, believed to attach somewhere inside the vehicle’s aft circumference, SpaceX likely needed to lift the aft section off the concrete mount that had been its home for the past several months.
Elon Musk also confirmed that Starship Mk1 will have six landing legs, another strong indicator that the ongoing Thursday morning work is focused on preparing Starship Mk1 for leg installation. According to Musk, Starship Mk1 will weigh as much as 200 metric tons (440,000 lb) empty, which is probably why the rocket prototype’s aft – and heaviest – half had to be loaded onto a Roll-Lift and could not simply be moved by the crane itself.
Starship’s updated design remains a bit of a mystery just two days before Elon Musk is scheduled to present an update, likely including new renders from SpaceX itself. It remains to be seen if Starship’s six landing legs will be fixed (versus retractable) or if the legs on the windward side of the ship will jut out into the airstream. To ensure stability when landing on unprepared terrain, as Musk described, six legs are certainly better than three, but the actual span of those legs is a more relevant determinant of stability. Wide, Falcon 9-style legs would be optimal, indicating that the final ship will likely lean towards legs that can be retracted or at least angled behind Starship’s reentry ‘shadow’.
Still a prototype (and possibly meant solely for suborbital operation), Starship Mk1 (and Mk2) may feature simplified legs and mechanisms to speed things along, serving as more of a rough draft while Starhopper was akin to a Starship abstract or prospectus. At this rate, we won’t have to wait very long at all to find out.
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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
