News
SpaceX’s Starship Super Heavy booster needs a custom assembly tower
SpaceX CEO Elon Musk has confirmed that Starship’s Super Heavy rocket booster will get its own tower-like vehicle assembly building (VAB) – and work on the structure may have already begun.
While the only visible work SpaceX has thus far completed on its next-generation Starship launch vehicle is related to the more complex and unproven upper stage of the rocket, its Super Heavy first stage (booster) is just as critical. For SpaceX, Starship was the perfect starting point, itself following on the footsteps of a largely successful multi-year Raptor engine development program. Substantially smaller than Super Heavy and requiring 5-10 times fewer engines, Starship serves as a testbed for an almost entirely new suite of technologies and strategies SpaceX is employing to build massive rockets out of commodity steel.
In recent months, particularly following the first successful pressure test of a full-scale Starship tank section in April, SpaceX has effectively proven that those uncharacteristically cheap and simple materials and methods can, in fact, build rocket structures that should stand up to orbital spaceflight. In theory, aside from the booster’s 31-engine thrust structure, the same methods and materials used to build Starships can be applied unchanged to manufacture Super Heavy. The booster’s almost unfathomable size, however, will necessitate its own dedicated assembly facilities.
While Starship itself is not exactly small at ~50m (165 ft) tall and 9m (30ft) wide, the Super Heavy booster tasked with launching the ship on its way to orbit will easily be the largest individual rocket stage ever built. Currently expected to measure 70m (230 ft) tall, Super Heavy – just the first stage of the Starship launch vehicle – will already be as tall as an entire Falcon 9 or Falcon Heavy and weigh roughly three times more than the latter triple-booster rocket when fully fueled. At liftoff, Super Heavy will produce more than triple the thrust of Falcon Heavy and double the thrust of Saturn V, the most powerful liquid-fueled rocket to reach orbit.
Thanks to the sheer size of the booster, SpaceX’s existing Starship-sized vehicle/vertical assembly building (VAB) is far too small for Super Heavy and is even too short to fully stack a ~50m Starship. SpaceX’s contractor of choice started assembling that VAB around January 15th and the facility was able to begin supporting its first Starship stacking and welding operations on March 2nd, just a month and a half later, with the structure fully completed by March 18th. As such, assuming the in-work foundation is as close to completion as it seems and SpaceX uses the same contractor for the next building, Super Heavy’s VAB could be ready to build the first massive booster prototype as early as July or August. Things could take a bit longer given that Musk says the booster VAB will be 81m (265 ft) tall, nearly twice the height of Starship’s VAB, but likely by no more than a few weeks.
That timeline meshes well with a senior SpaceX engineer and executive’s recent suggestion that the first orbital Starship launch attempt could still happen before the end of the year. Of course, for Super Heavy to become a genuine priority for SpaceX and receive the resources necessary to achieve that extremely ambitious goal, Starship will have to perform almost flawlessly during a series of increasingly challenging tests planned over the next few months. First up, SpaceX needs to finish repairing the launch pad after Starship SN4 exploded during testing and Starship SN5 needs to be transported to the pad to complete acceptance tests, static fire(s), and its first 150m (~500 ft) hop test. After that, SpaceX will either move on to a 2 km (1.25 mi) hop or a more ambitious 20 km (12.5 mi) flight designed to test Starship’s skydiver-like approach to landing.
If Starship SN5 or SN6 manage to complete those aforementioned tests, the horse may actually be in front of the cart for Super Heavy prototype production and Starship’s first orbital launch attempt.
Check out Teslarati’s Marketplace! We offer Tesla accessories, including for the Tesla Cybertruck and Tesla Model 3.
-
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.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
