News
SpaceX sends Starship’s first vacuum Raptor engine to Boca Chica
For the first time, SpaceX has shipped a vacuum-optimized Raptor engine to its Boca Chica, Texas Starship factory days after the company’s present reiterated plans for an inaugural orbital launch attempt as early as July.
Back in March 2021, CEO Elon Musk confirmed that he’d set SpaceX a goal of attempting Starship’s first orbital launch no later than the end of July – around four and a half months distant at the time. Fifteen weeks later, though the prospects of an orbital launch attempt happening in July have practically shrunk to zero, SpaceX COO and President Gwynne Shotwell – best known for acting as a more grounded foil to Musk’s often impractical schedule estimates – reiterated that the company is still “shooting for July” for Starship’s first orbital launch attempt.
As of late June, hitting that target would require SpaceX to string together numerous extraordinary feats of engineering and rocketry in record time or attempt some extremely unorthodox corner-cutting.
The launch pad and launch vehicle hardware needed for Starship’s first space shot are currently far from ready for flight. On June 24th, Musk unexpectedly revealed that the Super Heavy booster prototype SpaceX is now in the late stages of assembly isn’t actually the booster that will carry Starship on its first space launch attempt. In other words, though dozens of rings in various states of work are strewn about SpaceX’s Boca Chica factory, the company has yet to begin assembling the massive 65m (~215 ft) tall booster required for the first orbital launch attempt.
Using Super Heavy Booster 3 (B3) as a ruler, assembly could easily take 9-10 weeks – starting whenever the process actually begins. If SpaceX started stacking Booster 4 today, in other words, it’s unlikely that the rocket would even be complete by the end of August. Barring SpaceX taking unprecedented shortcuts, completing the booster is just part of the process of preparing for flight and B4 would still need to be qualified for flight, likely involving at least one cryogenic proof and static fire test.
In a best-case scenario where SpaceX begins assembly today, manages to halve Booster 4 assembly time in one fell swoop, the sneaks the second Super Heavy ever completed through qualification testing in a single week, the orbital flight test booster still wouldn’t be ready for Starship installation (likely another unprecedented first) before mid-August.
That would then leave SpaceX five or six weeks to fully assemble Starship S20, a process that has yet to begin. Like Starship SN15, which Musk said sported “hundreds of improvements”, Musk has also stated that Ship 20 and all after it will feature another batch of upgrades needed to take Starship orbital. Starship SN15 was very gradually stacked and assembled over the course of almost four months, though that slow assembly can likely be blamed on the fact that SpaceX is busy testing Starships SN8 through SN11 and was effectively waiting to see if any other major changes might be required.
While most of S20’s upgrades are a mystery, the ship’s thrust dome – spotted in work at Boca Chica earlier this month – has already confirmed that the prototype will be the first with the necessary hardware for Raptor Vacuum engine installation. That likely means that S20 will also be the first Starship to attempt to static fire six Raptor engines*, potentially producing more thrust than a Falcon 9 booster. On June 27th, one such vacuum-optimized Raptor (RVac) arrived in Boca Chica for the first time ever, making it clear that the comparatively brand new engine may already be ready to start integrated Starship testing.
*Update: SpaceX CEO Elon Musk says that the Raptor Vacuum delivered to Boca Chica on June 27th is, in fact, meant for Starship S20, seemingly confirming that the prototype will fly with a full six Raptor engines.
Of course, beyond Starship and Super Heavy, SpaceX also has a great deal of work left to get the rocket’s first orbital-class launch facilities partially operational. SpaceX will need to complete and activate at least one or two more custom-built propellant storage tanks, sleeve those three or four tanks with three or four massive thermos-like ‘shells,’ complete thousands of feet of insulated plumbing and wiring, finish a massive ‘launch table,’ install that table on a six-legged ‘launch mount;’ outfit that table and mount with an array of power, avionics, hydraulics, and fueling equipment and plumbing; complete a ~145m (~475 ft) ‘integration tower,’ and perform the first fit checks and shakedown tests with a real booster or Starship.
Only then will SpaceX be able to attempt Starship’s first space launch. All told, it might not be literally impossible for SpaceX to complete all the above work in less than five weeks, but it’s safe to say that the odds of that happening could probably make a lottery ticket blush. Regardless, if Starship reaches orbit at any point before the end of 2021, it would beat out simpler “next-generation” rockets like Ariane 6, ULA’s Vulcan, and Blue Origin’s New Glenn despite beginning concerted development years later and with a far less certain funding situation.
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
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms
SpaceX reports its second earnings today: here’s what to expect
SpaceX reveals how its 1 Million AI satellite network will work and prevent space collisions
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
