News
SpaceX’s upgraded Super Heavy booster sails through first major test
SpaceX’s first upgraded 33-engine Super Heavy booster appears to have passed a crucial test with surprising ease, boding well for a smooth qualification process.
Attempting that test so early on did not appear to be SpaceX’s initial plan. Instead, shortly before Super Heavy Booster 4’s third and likely final removal from Starbase’s ‘orbital launch mount’ (OLM) on March 24th, SpaceX transported a massive structural test stand from a Starbase storage yard to the orbital launch site (OLS), where technicians have focused on modifying nearby ground systems to support apparent structural testing of Super Heavy Booster 7. As of March 31st, all available evidence suggested that SpaceX was preparing that stand to verify Booster 7’s mechanical strength and simulate the major stresses it might experience before investing a significant amount of time and resources in qualification testing.
However, SpaceX appeared to change its plans at the last minute.
Instead of starting with structural testing, after a brief two-day pause, SpaceX rolled Super Heavy B7 into place and craned the giant booster onto the orbital launch mount on April 2nd. On April 3rd, the launch mount’s “quick disconnect” device connected Super Heavy to the pad’s ground systems. On April 4th, just two days after its installation on the OLM, Super Heavy B7 kicked off the first in a series of qualification tests that will determine when or if the booster ultimately supports Starship’s first orbital launch attempt.
If testing goes perfectly, SpaceX CEO Elon Musk recently stated that Starship and Super Heavy – likely Ship 24 and Booster 7 – could be ready for an inaugural orbital launch attempt as early as May 2022. SpaceX appears to have leaped headfirst into Super Heavy Booster 7 qualification testing in a move that significantly increases the likelihood of meeting that extremely ambitious schedule. Normally, with a first-of-its-kind prototype debuting multiple significant design changes, SpaceX would start slow, possibly beginning with a basic pneumatic proof test to verify structural integrity at flight pressures – about 6.5-8.5 bar (95-125 psi) – with benign nitrogen gas before calling it a day.
With Booster 7, SpaceX likely still performed a quick pneumatic proof but then immediately proceeded into a full-scale cryogenic proof test. With Super Heavy B4, for example, SpaceX performed several increasingly ambitious cryogenic proof tests, filling the booster more and more each attempt but never actually topping it off. On Booster 7’s very first day of testing and first cryogenic proof attempt, SpaceX fully loaded the upgraded Super Heavy with a cryogenic fluid (likely liquid nitrogen) in just two hours – all with no significant unplanned holds (pauses).
In those two hours, SpaceX likely loaded Super Heavy B7’s liquid methane (LCH4) and oxygen (LOx) tanks with roughly 3400 metric tons (~7.5M lb) of liquid nitrogen (LN2) – not far off what Super Heavy would actually weigh at liftoff. At the peak of the test, Booster 7 was almost entirely covered in a thin layer of ice produced as the cryogenic liquid inside its tanks froze water vapor in the humid South Texas air onto its skin – an effect that effectively turns uninsulated cryogenic rockets into giant fill gauges. On top of running into no apparent issues, Super Heavy B7’s first cryogenic proof is also the first time any Super Heavy prototype has been fully filled during testing – an important milestone for any rocket prototype, let alone the largest rocket booster ever built.
Completing a full cryogenic proof test on its first try makes Booster 7 fairly unique among all Starship prototypes – not just Super Heavies. The contrast with Booster 4, which barely completed a handful of partial cryogenic proof tests in more than half a year spent at Starbase’s orbital launch site, is also extremely encouraging, suggesting that Booster 7 won’t be sitting inactive for months at a time.
Still, cryogenic proofing is just one of several important tests Booster 7 needs to complete. Even if the first test was nearly perfect and SpaceX doesn’t attempt one or several more cryoproofs with higher tank pressures or other tweaked variables, Super Heavy B7 needs to complete wet dress rehearsal testing (WDR) with flammable LCH4/LOx propellant and demonstrate autogenous pressurization (using heated propellant gas to pressure its tanks). At some point, SpaceX will also need to install a full 33 Raptor V2 engines on the booster and seal off the whole engine section and each Raptor with a heat shield.
Depending on how many Raptor V2 engines are available, SpaceX could begin static fire testing with just a few engines installed and shielded and then install the rest of the engines and heat shield later on. On the other hand, performing static fires without a full heat shield could risk damaging unprotected cabling or other subsystems, in which case wet dress rehearsal testing would likely follow immediately after cryoproofing and before engine or shield installation. After being skipped over, the structural test stand may also factor into Booster 7 qualification sometime before engine installation.
All told, plenty of uncertainty remains, but Super Heavy B7’s auspicious start suggests that the Booster 4 experience is far from a template and that SpaceX is much less interested in wasting time this time around.
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
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms
SpaceX reports its second earnings today: here’s what to expect
SpaceX reveals how its 1 Million AI satellite network will work and prevent space collisions
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
