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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.
Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
