SpaceX
SpaceX rocket fairing reappears on Mr Steven after six week hiatus
A hop and a skip away from SpaceX’s first Falcon 9 Block 5 recovery, the company’s famous fairing recovery vessel Mr Steven was caught by Teslarati photographer Pauline Acalin performing some unusual maneuvers at sea, hauling what can only have been the intact fairing half recovered after SpaceX’s March 30 launch of Iridium NEXT-5.
Why exactly the fairing half was aboard Mr Steven for high-speed trials and eventual delivery to Berth 240 – SpaceX’s future Mars rocket factory – is not entirely clear. The most obvious explanation is that these new operations are in some way related to Falcon 9 payload fairing drop tests hinted at recently by CEO Elon Musk, tests that would allow the company to hone the accuracy of the autonomous parafoils currently used to recover them. In light of Mr Steven’s newly upgraded net, the goal is to gently catch each fairing before they touch down on the ocean’s surface – per SpaceX’s Hans Koenigsmann, even partial immersion in seawater precludes any future attempts at reuse.
SpaceX technicians offload the Iridium fairing half from Mr Steven while docked at Berth 240, SpaceX’s BFR (Mars rocket) factory in-waiting. (Pauline Acalin)
While we originally speculated that water intrusion into the fairing halves’ aluminum honeycomb composite structures – a common failure mode in the history of the material’s use in aerospace – would pose a problem for fairing reuse sans net capture, the actual reason Koenigsmann gave was the fact that the environment inside Falcon fairings must be kept extraordinarily clean to avoid damaging the highly sensitive satellite and spacecraft payloads housed inside. In retrospect, it makes a whole lot of sense that cleaning a fairing thoroughly enough after exposure to seawater/sea spray and its multitudes of organic material, minerals, and simple saltwater could pose an extremely expensive (if not outright intractable) problem for routine reusability. Hence Mr Steven and his wonderfully analog recovery hardware (i.e. a giant net).
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- Fairing aboard, Mr Steven performed rapid turns and high-speed sprints with the fairing half aboard. (Pauline Acalin)
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- Mr Steven and his fancy net 2.0, caught on May 7. Bright yellow…for style. (Pauline Acalin)
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- On May 16, he arrived at Berth 240 with fairing half in tow. (Pauline Acalin)
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- Note the distinctive yellow netting draped over the fairing stand aboard Mr Steven. It’s unclear if this is actually the new yellow net spotted last week, or if it’s actually webbing dedicated to securing the fairing cradle. (Pauline Acalin)
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- It’s unclear why the Iridium fairing has been brought once again to Berth 240, aside perhaps from temporary storage. (Pauline Acalin)
After approximately six weeks of rest after its return to Port of San Pedro aboard Mr Steven, the fairing half found itself speeding around the mouth of Port of San Pedro aboard the net boat Mr Steven on May 16, after which it was carefully offloaded at SpaceX’s recently-leased Berth 240 facilities, set to one day become the company’s first Mars rocket and spaceship factory (currently housed in a giant tent a few miles away).
A careful scan of the day’s aviation activities showed no tracked helicopter flights that could have been involved in fairing drop tests, and it’s equally implausible that SpaceX would choose (or be permitted) to attempt to catch a 1000 kg autonomous parafoil a handful of miles from densely populated Los Angeles. Mr Steven’s distinctive yellow net – a brand new upgrade – was also visibly strewn about the vessel’s deck, over top of a basic wooden fairing stand, atop of which sat the sooty Iridium fairing half. Given the lengthy journey, it has made to be aboard Mr Steven, May 16’s unusual day of testing is presumably just the beginning of a number of outings, perhaps culminating in fairing drop and catch tests with a helicopter.
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- Regardless of why it’s there, the contrast of the dilapidated urban landscape and cutting-edge flight-proven rocket hardware is absolutely breathtaking.(Pauline Acalin)
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- Jump maybe 6 months ahead, and one can already begin to imagine that the first BFS test article may end up being craned aboard a barge before the exact same backdrop. (Pauline Acalin)
Regardless, the whole event was an incredible spectacle, caught in awesome detail by Pauline Acalin. One can only begin to imagine what other sights might one day – perhaps fairly soon – grace the dramatic dockside space SpaceX now owns at Berth 240.
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- It’s difficult to imagine how Mr Steven’s already vast net could plausibly be expanded by a factor of two in each dimension. I certainly can’t wait to see how SpaceX engineers and technicians tackle the task. (Pauline Acalin)
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- Fairing aboard, Mr Steven performed rapid turns and high-speed sprints with the fairing half aboard. (Pauline Acalin)
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- Mr Steven and the Iridium fairing half berthed at SpaceX’s Berth 240. (Pauline Acalin)
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- Mr Steven returns to port with the Iridium fairing half aboard. (Pauline Acalin)
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- Mr Steven out and about with a recovered but unreusable fairing half in May 2018, presumably for some sort of practice. (Pauline Acalin)
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- Mr Steven returns to port with the Iridium fairing half aboard. (Pauline Acalin)
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Elon Musk
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Tesla and SpaceX formed special committees to weigh a merger, and Elon Musk supports it.
Elon Musk confirmed Tuesday that Tesla and SpaceX have each formed special committees of independent directors to study a possible merger, the first formal step toward combining the two companies after months of speculation.
Musk made the disclosure during SpaceX’s third quarter earnings call. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders,” he said. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” He described the setup as “an odd kabuki dance where two groups of people are talking and I can’t be in the conversation.”
Musk did not hide where he stands. “Do I think it would be a good idea? Yes,” he said, pointing to shared work on super intelligence software, chip design, the Terafab facility in Austin, robotics, mass to orbit and connectivity. “I do think there’s a lot of merit to combining the companies as we are pretty much in the super intelligence singularity.”
He also tried to cool expectations. The committees have not agreed on terms for any transaction, and Musk said assuming a merger is a certainty “would be overstating it.” Any deal would go to shareholders, and on the Tesla side it would need approval from 50 percent of all outstanding shares, not just the shares that are voted. Musk called that “quite a high hurdle.”
That bar has tripped Tesla up before. The company’s 2025 attempt to declassify its board won support from only 39.4 percent of outstanding shares and failed. Musk’s own voting stake sits near 20 percent after he exercised his 2018 options in June, so a deal would need broad backing from institutions and a retail base that often leaves votes uncast.
Timing is another open question. Tesla filed its proxy statement Monday for its December 3 annual meeting, and the ballot has only three items: director elections for Musk, Robyn Denholm and JB Straubel, a say on pay vote and auditor ratification. Barclays analyst Dan Levy had argued that an announcement would need to land by late October or early November to make the annual meeting, as Teslarati noted in its SpaceX earnings preview. With no terms agreed, any vote would likely require its own special meeting.
Elon Musk gives his most telling Tesla-SpaceX merger conversation yet
Musk has been edging toward this for weeks. At the All-In Summit in September, he asked “who can imagine what action one might take when there’s so much close collaboration,” Teslarati reported. Last week’s Roadster unveil, built around SpaceX derived cold gas thrusters, pushed the talk further. The two companies already share the Terafab chip project, and Tesla holds a small SpaceX stake that came from its earlier investment in xAI.
SpaceX brought strong numbers to the conversation. It reported Q3 revenue of $14.58 billion, up 161 percent year over year, with its Super Intelligence segment now its largest at $7.56 billion. A higher SpaceX valuation would shape any exchange ratio Tesla holders are offered.
Tesla reports its own third quarter results after the close on Wednesday, October 21. Investors had already ranked merger timing among the top retail questions for SpaceX’s call, and the committees will almost certainly come up again on Tesla’s.
SpaceX reported its third-quarter 2026 financial results on October 20, posting the company’s first solidly profitable quarter since going public earlier in the year under the ticker $SPCX.
Revenue reached $14.58 billion, up 161 percent year-over-year from $5.6 billion, and well ahead of consensus estimates in the $12.7 to $12.9 billion range. The results highlight a rapid shift in SpaceX’s center of gravity toward artificial intelligence/super intelligence, while Starlink and traditional space operations continue to show robust progress.
Here are the key financial results for the quarter:
- Revenue of $14.58 billion (+161% YoY)
- Adjusted EBITDA of $8.8 billion (+306% YoY)
- GAAP net income of $4.4 billion (versus a $1.1 billion net loss in the prior-year quarter)
- Adjusted EPS of approximately $0.35 (versus roughly $0.13–0.16 expected)
- Income from operations of $2.8 billion
The AI/SI segment generated $7.56 billion in revenue, an 830 percent year-over-year increase, making it the company’s largest segment for the first time. Growth was primarily driven by the activation of major cloud services agreements, the integration of Cursor (acquired earlier in 2026), and rising usage of Grok models and the newly introduced Grok Bot personal agent.
🚨 SpaceX just reported earnings! Here are some highlights:
Financial:
Revenue $14.58B (+161% YoY) vs. consensus ~$12.7–12.9B
Adjusted EBITDA $8.8B (+306% YoY)
GAAP net income $4.4B (vs. prior-year loss; first solidly profitable quarter post-IPO)
Adjusted EPS ~$0.35 vs. ~$0.13–0.16 expectedSegments:
Super Intelligence (SI, formerly AI): $7.56B (+830% YoY) — now the largest segment, driven by cloud contracts, Cursor, and Grok.
Connectivity (Starlink): $5.25B (+69% YoY).
Space: $1.77B.Other highlights:
Starlink subscribers: 13.6M (+89% YoY).
Nameplate compute: 1.7 GW.
Capex: $19.6B (majority AI infrastructure).
Cash & marketable securities: ~$90B.
First revenue-generating Starship mission (26 V3 Starlink satellites, ~10× Falcon 9 downlink capacity per launch).— TESLARATI (@Teslarati) October 20, 2026
SI adjusted EBITDA reached $5 billion, and nameplate compute capacity stood at 1.7 GW at quarter-end, up from 1.4 GW in June and 0.6 GW a year earlier. Capital expenditures totaled $19.6 billion, with the majority allocated to AI infrastructure, including continued expansion of the Colossus facilities.
The Connectivity segment, which primarily surrounds Starlink, produced $5.25 billion in revenue, a 69 percent year-over-year and 22 percent sequentially. These are pleasant results to see and expected, considering how many airlines have adopted Starlink over the past year.
Starlink consumer subscribers reached 13.6 million, an 89 percent increase from the prior year, and a sequential gain of 1.6 million. Consumer average revenue per user improved to $69. Meanwhile, Enterprise and Government revenue also grew strongly, and Starlink is now installed on more than 3,800 aircraft, making internet more accessible and better performing than previous options.
The Space segment also performed well and contributed $1.77 billion in revenue, up 6 percent year-over-year and 84 percent sequentially. A major milestone was the successful first revenue-generating Starship mission (Flight 14), which deployed 26 V3 Starlink satellites. Those satellites added roughly 10 times the downlink capacity of a typical Falcon 9 Starlink launch.
SpaceX completed 12 customer launches during the quarter, including NASA’s Nancy Grace Roman Space Telescope mission, and continued to grow its backlog of crewed, national security, and commercial flights.
CFO commentary noted that the combination of launch leadership, recurring Starlink revenue, and rapid SI expansion is producing meaningful operating leverage.
The company ended the quarter with roughly $90 billion in cash and marketable securities, providing substantial resources for ongoing investment while targeting an investment-grade balance sheet. Sequential revenue nearly doubled from the $7.81 billion reported in the second quarter, illustrating the pace of the AI-driven acceleration. Things are looking strong for SpaceX.
What’s incredibly striking is the fact that SI has grown to be larger than the rest of the company in such a short amount of time. CEO Elon Musk said on the earnings call that Grok Bot is the “fastest-growing product I’ve ever seen,” so it seems that it could be a true keystone of SpaceXSI over the next few years.
SpaceX (NASDAQ: SPCX) will report its second public earnings call today since its IPO earlier this year, and there are a few things we expect to hear about, as well as Wall Street analysts, who have already outlined their expectations for the call.
Wall Street analysts have a consensus of $12.72 billion in revenue and an earnings per share (EPS) of $0.13. These are broken down into three sectors: Space, Connectivity, and AI/SI, which are perceived in this way:
- Space: $1.41 billion
- Connectivity: $4.84 billion
- AI/SI: $6.47 billion
Other outlets cluster near $12.8 or $12.9 billion in revenue and $0.14 – $0.15 EPS. This implies a roughly 65 percent sequential growth from Q2’s $7.81 billion, driven mostly by AI/SI, with the first post-IPO positive EPS expected.
Here are the three things to watch for on the call:
AI Revenue Ramp and the $100B+ ARR target
AI is truly the swing factor for SpaceX, and analysts expect it to roughly double from Q2’s $2.56 billion and become about half of total revenue. Management previously guided to a $100 billion+ annualized run rate by December, including the Cursor acquisition, which was $60 billion, to close the quarter.
Listen for updates on SpaceX’s compute capacity, especially pertaining to its contracts with Google, Anthropic, and others, revenue per watt, any new deals, and Cursor’s early contribution.
Starlink/Connectivity Metrics and Mobile Expansion
Connectivity remains a main profit engine for SpaceX. Subscriber additions will be something to pay attention to, as Q2 ended at 12 million and previews are looking at 14 million for this quarter. Additionally, ARPU trends, enterprise and government growth, and any commentary on Starlink Mobile will be something to pay attention to, especially following the recent low-band spectrum deal and FCC-related constellation approvals.
Capex Trajectory, Cash Burn/FCF, and Starship/Operational Updates
Q2 capex of roughly $18.4 billion weighed on the stock. Investors will look to scrutinize Q3 spending levels, any guidance on the pace into Q4/2027, free cash flow, backlog, and liquidity. Operational color on Starship (Flight 14 milestones and Flight 15 timing/reusability progress), Falcon cadence, and government/NASA contracts are also in focus.
Of course, there will also be some speculation on the potential Tesla-SpaceX merger, but there was nothing mentioned in the company’s proxy it sent earlier this week.
SpaceX will report earnings after market close today and will stream the call on X.
Watch live as SpaceX discusses our Q3 2026 earnings at 3:30pm CT today → https://t.co/Qrb0qeVG15
— SpaceX (@SpaceX) October 20, 2026
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