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SpaceX begins Starship launch mount installation at historic Pad 39A in Florida
At the same time as SpaceX’s Boca Chica, Texas team is working around the clock to prepare Starship Mk1 for several major tests, the company is building a second dedicated Starship launch complex at Pad 39A and as of November 4th, that construction effort has reached a symbolic milestone.
According to photos taken by local resident and famed rocket and ship photographer Julia Bergeron on a bus tour of Kennedy Space Center (KSC), SpaceX has officially begun to install a large steel structure at Launch Complex 39A, a pad the company has leased from NASA since 2014. Known as a launch mount, the massive structure will one day support SpaceX’s first East Coast Starship and Super Heavy static fires and test flights.
At SpaceX’s Boca Chica, Texas Starship facilities, the company has already made a huge amount of progress fabricating and outfitting a brand new launch mount that will soon support Starship Mk1’s first propellant loading, static fire, and flight tests. The spartan steel structure looks different from anything SpaceX has built in the past for Falcon 9 and is equally unrecognizable alongside the renders of a finished-product launch pad included in an updated Starship launch video.
What is undeniable, nevertheless, is the speed with which technicians have taken the Texas launch mount from a group of unconnected, partially-finished parts to a nearly complete structure with the business half of Starship Mk1 installed on top. SpaceX workers have built the mount, completed a large amount of plumbing to connect it to nearby liquid oxygen, methane, nitrogen, and helium reserves, and installed Starship on the mount in less than two months. The final integration of different prefabricated pieces began barely a month before Starship was moved to the pad, as pictured below.
Two pads, two approaches
Although Boca Chica’s launch mount is quite large, based on Julia’s photos of Pad 39A, Florida’s nascent launch mount is going to be significantly bigger. The section that SpaceX began installing in the first days of November appears already be much taller than the mount in Texas, and it also looks more like a rectangular corner than anything resembling part of Boca Chica’s hexagonal structure.
At the same time, the apparent rectangular corner being worked on in Florida would be a much better fit for the partially-enclosed launch mount structure shown in SpaceX’s official 2019 Starship launch video.
This is all to say that it looks like SpaceX is taking significantly different approaches with its two prospective Starship launch sites, which should come as no surprise in the context of the Starship program. SpaceX is already competitively building multiple Starship prototypes at two separate facilities in Boca Chica, Texas and Cocoa, Florida, a competition that has already produced visible differences between Mk1 and Mk2 prototypes. There’s a good chance that SpaceX intends to preserve that competitive atmosphere with Starship’s launch facilities, not just the rocket itself.
Additionally, it’s clear that Texas and Florida currently serve very different roles in the actual testing of Starship prototypes. Boca Chica has been active in that regard for more than half a year, ranging from the first Starhopper static fire in April to Starhopper’s 150-meter test flight in August. Florida has been almost entirely focused on iterating the build process itself and has already prefabricated nearly two dozen single-weld steel rings that will soon become Starship Mk4.
A step further, SpaceX CEO Elon Musk has made it clear that he is pushing for Starship’s first orbital launch to occur in the first half of 2020, an incredibly ambitious target given that the first Super Heavy booster prototype has yet to begin fabrication or assembly of any kind. Regardless, with that ambitious target in mind, SpaceX still needs to try to build a launch facility capable of standing up to a vehicle more powerful than Saturn V unfathomably quickly.
Head in the clouds
More likely than not, SpaceX’s Pad 39A Starship facilities will (attempt to) be that launch facility. An August 2019 environmental impact statement revealed that SpaceX would avoid Pad 39A’s massive flame trench and instead build a separate water-cooled thrust diverter, a technology SpaceX is extremely familiar with.
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The diverter will likely have to be larger than anything SpaceX has ever attempted to build and will take a significant amount of time and money to fabricate, but the approach could potentially allow SpaceX to build Super Heavy-rated launch facilities from scratch in just 6-12 months. Put simply, however, SpaceX is not going to want to build a Starship-sized thrust diverter and launch mount in Florida if it will almost immediately have to build a second, larger replacement big enough for orbital launch attempts with Super Heavy.
All things considered, it’s thus reasonably likely that SpaceX’s first draft of Florida Starship launch facilities will immediately jump to something sized for Super Heavy static fires and launches, even if that means it will take much longer to complete. If the pace of launch pad development in Boca Chica is anything to go by, it’s entirely possible that SpaceX will go from breaking ground at Pad 39A (mid-September 2019) to a more or less complete Starship-Super Heavy launch mount in roughly half a year.
Even if it takes more than a year to build, SpaceX could still be ready to attempt Starship’s first orbital launch well before the end of 2020.
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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.
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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
