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SpaceX installs first ‘Mechazilla’ arm on Starship launch tower
One month after SpaceX stacked Starship’s South Texas ‘launch tower’ to its full height, the company has installed the first arm on what amounts to the backbone of ‘Mechazilla.’
At the end of July, after less than four months of work, a team of SpaceX workers and contractors installed the final prefabricated section of a ~145m (~475 ft) tall tower meant to support orbital Starship launches. Above all else, SpaceX’s first custom-built ‘launch tower’ is a sort of backbone or anchor point for several massive, mechanical arms that will accomplish the actual tasks of servicing – and, perhaps, catching – Starships and Super Heavy boosters.
Work on all three of the arms expected to make up what SpaceX CEO Elon Musk has described as “Mechazilla” has been visibly underway since the last week of June as a small army of welders carefully assembled dozens of sections of heavy-duty steel pipe into house-sized frames. Almost exactly two months later, SpaceX has installed the first of those three arms on the exterior of Starship’s skyscraper-sized launch tower.
Known as the tower’s quick-disconnect or QD swing arm, the standalone structure is reportedly designed to accomplish a few different tasks. First, as its unofficial name might suggest, the QD arm will hold a quick-disconnect umbilical connector that will temporarily attach to the base of Starships to load them with fuel, oxidizer, and other consumables and link them to ground power and networking. For years, it appeared that SpaceX planned to fuel Starship upper stages through their Super Heavy boosters, which will themselves be connected to umbilical panels on a table-like launch mount that sits beside the tower.
However, once work began on Starship S20, the first potentially space-capable prototype, it was clear that SpaceX had foregone the umbilical plate normally installed at the base of Starship skirts and moved that connection to the ship’s lower back. Musk later confirmed as much in interviews and tweets, revealing that longstanding plans to dock Starships aft to aft for in-space refueling were also up in the air. As of late, aside from reiterating that the launch pad itself (“Stage Zero,” per Musk) is even more complex and difficult than Starship or Super Heavy, SpaceX’s CEO has also repeatedly stated a desire to offload as many systems as possible onto the launch pad – seemingly regardless of the complexity of the alternative.
Enter the building-sized robot informally known as Mechazilla. While the relatively simple swinging ‘QD arm’ that will fuel Starship and stabilize both stages of the rocket is a common feature of rockets and launch pads, the only experience SpaceX itself has with umbilical swing arms is the Crew Access Arm (CAA) that allows astronauts and cargo to board Dragon spacecraft after Falcon 9 goes vertical – a structure with near-zero umbilical utility. Technically, the transporter/erectors (T/Es) that cradle Falcon rockets, lift them vertical, and fuel them before launch have some similarities with swing arms but SpaceX has always used simpler and more reliable passive mechanisms whenever possible.
A step further, though, SpaceX has also seemingly foregone the installation of a basic crane on top of its Starship tower and Musk himself has developed an almost infamous aversion to the inclusion of something as seemingly simple as landing legs on Super Heavy boosters – and, eventually, perhaps even (some) Starship variants. Instead of adding rudimentary legs to Super Heavy prototypes, Musk has seemingly pushed SpaceX to turn Starship’s launch tower into a complex, vulnerable, and fragile rocket recovery system. Beyond the comparatively mundane QD arm, Musk says that SpaceX will ultimately install a pair of massive house-sized steel arms mounted on a sort of external elevator. Those arms will apparently be capable of actuating and moving up and down the tower with the speed, precision, and reliability needed to quite literally catch Super Heavy boosters – and, eventually, Starships – out of mid-air.
The team tasked with designing and building those rocket-catching arms have affectionately deemed them “chopsticks” – a nod towards the kind of nuanced actuation they’ll need to recover the world’s largest rocket boosters and upper stages without missing or destroying them. Having really only just perfected propulsive vertical landing with Falcon 9 and Falcon Heavy boosters, SpaceX thus intends to throw a few extra points of failure into the mix.
To SpaceX and Musk’s credit, whether the company’s second attempt at catching rockets goes as well as the first, some version of the massive ‘chopstick’ arms SpaceX is working on was likely going to be necessary just to rapidly turn around boosters and Starships – and do so regardless (within reason) of weather conditions. By replacing a tower crane with giant arms, SpaceX will hopefully be able to stack Starship on Super Heavy (and Super Heavy on the launch mount) even in the high winds that are almost always present on the South Texas Gulf Coast. If SpaceX can also reliably catch boosters with those arms, it could be a significant upgrade for the operations side of Starship reusability. For now, though, only time will tell.
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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