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SpaceX installs Raptor Vacuum engine on first orbital-class Starship
Update: Providing the best views yet of the Raptor Vacuum installation process, SpaceX began installing one of Starship S20’s six engines (one of at least two recently trucked to the launch site) on Monday morning.
It remains to be seen exactly how many engines will be installed on Ship 20 or how many will be ignited during its first static fire test but barring the delivery of more Raptors, signs currently point to an initial test of two engines – one sea-level-optimized Raptor Center (RC) and one Raptor Vacuum with a much larger nozzle. Whenever Ship 20 does fire up those engines, it will be the first static fire of a RVac engine installed on a Starship and the first simultaneous, side-by-side static fire of two different Raptor variants. Since publishing time, SpaceX has cancelled a Tuesday road closure, pushing Starship S20’s first static fire attempt to no earlier than (NET) Wednesday evening.
For the third time in two months, SpaceX has begun installing Raptor engines on its first orbital-class Starship prototype – hopefully for good.
In no uncertain terms, Starship 20’s (S20) path to what could be its last Raptor installations has been about as windy and mysterious as they come. Starship 20 (S20) left the Starbase factory floor for the first time in early August – all six Raptors installed in another program first – for a brief fit check and photo op. After spending about an hour installed on top of Super Heavy Booster 4 (B4), Ship 20 was removed and returned to the build site, where teams removed all six engines and finished wiring and plumbing the vehicle.
Days before the ship’s long-anticipated trip to Starbase’s suborbital launch site for qualification testing, the mount SpaceX prepared for the process quickly had hydraulic rams – used to safely simulate Raptor thrust – were abruptly removed. Starship S20 was then installed on the Pad B mount, where SpaceX proceeded to reinstall six Raptors. Weeks later, after slow heat shield repairs neared completion, SpaceX again removed Ship 20’s Raptors and reinstalled the hydraulic rams it had removed – unused – the month prior. Finally, on September 30th, some seven weeks after the prototype arrived at the suborbital launch site, SpaceX put Starship S20 through its first major test – a lengthy ‘cryoproof’.
Now, ten days after completing a seemingly flawless cryoproof test on its first try, SpaceX has once again trucked multiple Raptors – at least one sea level and one vacuum engine – from the Starbase build site to Starship S20’s suborbital test stand. From the outside looking in, it’s hard not to view the contradictory path S20 took to its first tests – and is still taking to its first static fire(s) – as an unusually visible sign of some kind of internal tug of war or major communication failure between different SpaceX groups or executives.
It’s impossible to determine anything specific beyond the apparent fact that several of the steps taken from Ship 20’s first factory departure to its first cryoproof and static fire tests could have probably been deleted entirely with no harm done and many dozens of hours of work saved. At the end of the day, Starship S20 completed cryoproof testing without issue on the first try and is now seemingly on track to begin its first static fire test campaign later this month.
At the moment, SpaceX has three possible static fire test windows scheduled from 5pm to midnight CDT on Tuesday, Wednesday, and Thursday (Oct 12-14). A similar Monday window was canceled days ago on October 7th, suggesting that more cancellations are probably on the horizon. For now, there’s a chance that Starship S20 – with anywhere from two to all six Raptor engines installed – will fire up for the first time before next weekend. It’s hard to say how exactly SpaceX will proceed. It’s not inconceivable that SpaceX will install all six engines and gradually ramp up to a full six-engine static fire over several tests.
Given that SpaceX has already static fired three Raptor Center (RC) engines on multiple Starship and Super Heavy prototypes, odds are good that Starship S20’s test campaign will be similar – beginning with a three-Raptor static fire, in other words. SpaceX could then add one, two, or all three Raptor Vacuum engines into the fray for one or more additional tests with 4-6 engines total. It’s also possible that suborbital launch mount and pad limitations will prevent more than three engines from firing at once, in which case SpaceX would presumably perform two separate tests of Ship 20’s Raptor Center and Raptor Vacuum engines.
Given that two Raptor variants have never been static fired simultaneously on the same vehicle, it’s hard to imagine that SpaceX won’t also want to perform one or several combined static fires with Raptor Vacuum and Raptor Center engines on Ship 20.
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
