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SpaceX fully stacks Starship rocket for the first time in six months
For the first time in more than six months, SpaceX has stacked both stages of its next-generation Starship rocket, creating the largest and most powerful launch vehicle ever fully assembled.
It’s not the first time. SpaceX has conducted three other ‘full-stack’ Starship demonstrations: once in August 2021 and again in February and March 2022. But earlier this year, SpaceX (or at least CEO Elon Musk) decided to give up on the Starship upper stage and Super Heavy booster prototypes that had supported all three of those prior tests and, at one point, been considered a candidate for the rocket’s first orbital launch attempt. Booster 4 and Ship 20 were consigned to a retirement yard by June 2022.
By then, SpaceX had already begun testing the new favorites for Starship’s orbital launch debut: Super Heavy Booster 7 (B7) and Starship 24 (S24). Almost exactly six months after the start of that busy period of testing, both prototypes recently reached the point where SpaceX was confident enough in their progress to combine the two for the most challenging phase of Starship testing yet.
After an aborted predawn attempt on October 11th, SpaceX technicians worked out some mystery kinks in crucial infrastructure located at Starship’s first (nearly) finished orbital launch pad in Boca Chica, Texas. As part of a cart-before-horse gamble made by CEO Elon Musk that has seen SpaceX entirely remove legs from all recent Starship and Super Heavy prototypes in the hope that it will one day be able to catch the building-sized rocket stages out of mid-air, the company has built a launch tower ~145 meters (~475 ft) tall and outfitted it with three giant robotic arms. Two of those arms are identical and linked together, forming a sort of claw that could one day close around hovering rockets to preclude the need for landing legs. A simpler third arm swings in and out to connect Starship’s upper stage to the launch pad’s power, propellant, and gas supplies.
The ‘chopsticks,’ as they’re known, have another even more important purpose: assembling Starship rockets at the launch pad. Thanks to their sturdy connection to a tower with a foundation sunk deep into the Boca Chica wetlands and a design that forgoes a hanging hook or jig for giant arms, they are far less sensitive to winds than the immense crane otherwise required to stack Starship on top of Super Heavy. Sitting a stone’s throw from the Gulf of Mexico, storms and high winds are not exactly uncommon.
Around sunset on October 11th, SpaceX had better luck on its third attempt and was able to move the arms into place under Ship 24. Weighing 100 tons or more (~220,000+ lb) and measuring nine meters (~30 ft) wide and ~50 meters (~165 ft) tall, the Starship was then slowly lifted about 80 meters (~250 ft) off the ground, translated over to Booster 7, and lowered on top of the 69-meter-tall (~225 ft) first stage. After about two more hours of robotically tweaking their positions, the two Starship stages were finally secured together. With the arms still attached to Ship 24, SpaceX workers were able to approach the rocket and prepare to connect the swing arm’s quick-disconnect umbilical to Starship.
Since they began qualification testing in April and May 2022, Booster 7 and Ship 24 have each completed several cryogenic proof tests, eight ‘spin-primes’ of some or all of their Raptor engines, and several static fires of those same engines. Most recently, Ship 24 ignited all six of its Raptors, but the seemingly successful September 8th test was followed by more than a month of apparent repairs. Booster 7 last completed a static fire that ignited a record seven of its 33 Raptor engines – offering an idea of how much further SpaceX still has to go to finish testing the Super Heavy.
According to CEO Elon Musk, Booster 7 and Ship 24 will attempt Starship’s first full-stack wet dress rehearsal (WDR) once all is in order. The prototypes will be simultaneously loaded with around 5000 tons (~11M lb) of liquid oxygen and methane propellant and then run through a launch countdown. Diverging just before ignition and liftoff, a WDR is meant to be more or less identical to a launch attempt.
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If the wet dress rehearsal goes to plan, SpaceX will then attempt to simultaneously ignite all 33 of the Raptor engines installed on Super Heavy B7, almost certainly making it the most powerful liquid rocket ever tested. Even if all 33 engines never reach more than 60% of their maximum thrust of 230 tons (~510,000 lbf), they will likely break the Soviet N-1 rocket’s record of 4500 tons of thrust (~10M lbf) at sea level. It would also be the most rocket engines ever simultaneously ignited on one vehicle. SpaceX will be pushing the envelope by several measures, and success is far from guaranteed.
It’s unclear if SpaceX will immediately attempt a full wet dress rehearsal or 33-engine static fire. Based on the history of Ship 24 and Booster 7 testing, it would be a departure from the norm if the company doesn’t slowly build up to both major milestones with smaller tests in the interim. At minimum, assuming WDR testing is completed without major issue, SpaceX will likely attempt at least one or more interim static fires with fewer than 33 engines before attempting the first full test.
If both milestones (a full WDR and 33-engine static fire) are completed without significant issue, there’s a chance that SpaceX could move directly into preparations for Starship’s first orbital launch attempt without unstacking the rocket. In the likelier scenario that some issues arise and some repairs are required, the path will be more circuitous but should still end in an orbital launch attempt late this year or early next.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
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.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
