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SpaceX begins installing ‘Mechazilla’ arms designed to catch Starship rockets
After a busy few weeks spent attaching Mechazilla’s two rocket-catching arms to a carriage-like backbone, SpaceX has begun the process of installing the integrated structure on Starbase’s ~450 ft (~135m) tall Starship ‘launch tower’.
Once complete, SpaceX will have created a first-of-its-kind launch tower designed to stack and manipulate Starships and Super Heavy boosters in far worse conditions than cranes can tolerate and catch both rocket stages out of mid-air. Referred to internally as ‘chopsticks,’ the giant pair of steel arms will join a third ‘quick disconnect’ (QD) arm tasked with stabilizing Super Heavy during Starship installation and feeding the reusable upper stage power, comms links, and some 1200 tons (~2.65M lb) of propellant.
Together, they will enable SpaceX to attempt Starship’s first orbital test flights and, perhaps one day, help the next-generation rocket launch in almost any weather and achieve unprecedentedly rapid reusability. But first, SpaceX needs to finish installing and rigging the massive structure.
Beginning on August 29th after less than three months of assembly, SpaceX installed Starship’s QD arm on the launch tower. About a month later, the QD arm was mostly finished off with the installation of a claw-like grabber meant to stabilize Super Heavy and is now only missing its namesake quick-disconnect (an actuating device that will connect Starship to the pad and rapidly disconnect at liftoff). Assembly of the last three major components of Mechazilla – a carriage-like structure and two giant arms – began in July and, much like the tower’s QD arm, wrapped up about three months later.
On October 6th, SpaceX began combining those three main parts by flipping the carriage – a bit like a spine and ribcage with ‘skates’ that attach to rails on the launch tower’s legs – vertical and staging it on a temporary support structure. Both ‘chopsticks’ were then flipped into the correct orientation and moved into position with separate cranes for installation on the carriage/backbone. From start to finish, that process took around 9-10 days and culminated with the installation of two giant cylindrical pins with built-in bearings on October 14th and 15th. By the 17th, both cranes had detached from the assembled Mechazilla arms and carriage were, leaving it precisely balanced against the support structure and more or less freestanding.
Just a few days later, after a last-second attempt on October 19th was called off as night fell, SpaceX tried again on the 20th and completed the first step of installing Mechazilla’s catch arms on the launch tower without apparent issue. Likely weighing several hundred tons, Starbase’s largest crane lifted the massive structure up and over an adjacent launch mount and then carefully inched it closer to the tower. Prior to the lift, SpaceX technicians staged 12 ‘skates’ on three of the tower’s four legs – two upper and two lower skates per leg.
Here's one with the QD arm back. If QD engaged, chopsticks can't get past. Elon said only need for "ship mate". Chopstick sequence:
1. Lift SH onto OLM
2. Rise, swing to side, lower, grasp SS
3. Rise above SH
4. Deploy QD arm and claw
5. Lower SS onto SH
6. At launch, open wide! pic.twitter.com/iRRfXQ5uEn— LunarCaveman (@LunarCaveman) October 1, 2021
Once the carriage was in the right position, workers were able to wrap its upper arms around the tower and began connecting the carriage to those skates with several more large pins. It’s unclear how much progress was made in the hours after the lift but it appears that the carriage has been attached to maybe four or five of six upper skates. Work continued well after nightfall, meaning that it will likely only take a few days to complete all 12 connections. However, even after all skates are installed, the carriage, arms, and skates will still be hanging by crane or winch.
To truly install the structure on the tower, SpaceX will have to finish installing and rigging thousands of feet of steel cable that – via a complex system of pulleys – will connect to powered ‘drawworks’ that will support the carriage and catch arms and lift the assembly up and down the tower like an elevator car. The catch arms and carriage will also need to be mated with a giant ‘cable carrier’ (already staged on the tower) that will connect the structure to ground and control systems.
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’
