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SpaceX begins installing new ‘Raptor 2’ engines on Super Heavy booster
SpaceX has begun installing new ‘Raptor 2’ engines on Super Heavy Booster 7 after the prototype completed a range of tests and returned to the company’s South Texas ‘Starbase’ rocket factory.
Earlier this month, SpaceX transported Booster 7 (B7) in the opposite direction, returning the 67-meter (~220 ft) tall rocket to Starbase’s orbital launch site (OLS) for the second time after it was forced to head back to the factory for repairs. Repairs completed, SpaceX dove headfirst into the process of verifying that the booster had been returned to full health and immediately filled its tanks to the brim with at least 3000 tons (>6.5M lb) of liquid nitrogen and oxygen – better known as a cryogenic proof test.
Less than 48 hours after completing its first post-repair test, Booster 7 sailed through another full cryoproof test without losing a beat. On May 13th, two days later, SpaceX attached a crane to Super Heavy B7 and removed it from the orbital launch mount before rolling the rocket back to Starbase’s build site on May 14th. Without official confirmation, which is increasingly rare, it was impossible to determine the results of the testing with certainty, but the speed of the process and Booster 7’s rapid launch mount removal made the two most extreme outcomes the most likely.
A quick return to the build site could have been explained by a significant vehicle failure or a major issue with SpaceX’s repair job – no point in continuing to test a vehicle that can’t be fully tested. On the exact opposite hand, a near-perfect test campaign in which all objectives were more or less achieved without major hiccups could also explain the quick return. In general, the evidence was in favor of the more optimistic explanation. Had a major issue been uncovered during the first post-repair cryoproof, it’s difficult to imagine that SpaceX would have completed the exact same test – in full less than 48 hours later.
However, SpaceX moved an in-situ Raptor engine installation stand towards Booster 7 and the orbital launch mount shortly before testing restarted, hinting – for the moment – that the company wanted to begin installing Raptor engines immediately after cryoproof testing. But mid-way through testing, the stand was moved back to its storage area and Super Heavy was instead removed from the mount and returned to the factory, adding a little uncertainty.
Concerns were immediately assuaged on May 17th when SpaceX was spotted moving Raptor engines from a production tent to the ‘megabay’ assembly building containing Booster 7. While the location of the new bay makes it difficult to peek inside from public viewpoints, preventing direct confirmation, it’s very likely SpaceX has begun installing new Raptor 2 engines on Super Heavy B7.
Additionally, confirming some of the more optimistic speculation about SpaceX’s decision to move Booster 7 back to build site, two of the three Raptor engines spotted on May 17th were also labeled “E26” and “E28.” Unless SpaceX’s engine numbering conventions have changed, the labels identify the engines as three of 20 ‘Raptor Boost’ engines that will ultimately populate the outer ring of Super Heavy B7’s aft end. More importantly, the installation of any Raptor Boost 2 (RB2) engines likely indicates that SpaceX has decided to install a full set of 33 Raptors on the booster before kicking off static fire testing.
To limit risk, SpaceX could have begun test-firing Booster 7 with just 1-3 Raptor engines installed and gradually added more as confidence grew. Instead, SpaceX appears to have accepted the added risk of losing 33 brand-new Raptor 2 engines in one fell swoop in return for the possibility of a much faster test campaign. If there are no major surprises during static fire testing, in other words, Booster 7 could be ready for flight far more quickly if the process begins with all 33 engines already installed. Installing Booster 7’s Raptors, heat shield, and aerocovers will be easier back at the build site.
Doing it all at once should also help prevent Booster 7 from suffering Booster 4’s fate and wallowing, unfinished, for months without completing a single useful test. If the gamble works, the first stage of a two-stage Starship could be ready for an orbital launch attempt in just a few months. If the gamble fails and Booster 7 is damaged, destroyed, or otherwise unable to pass the necessary tests, SpaceX will simply move on to Booster 8 sooner than later, having wasted less time on a more cautious Booster 7 test campaign.
It’s unclear how long it will take SpaceX to install all 33 Raptors, construct a heat shield around those engines, and finish buttoning up the rest of Booster 7. In an adjacent assembly bay, SpaceX appears to have nearly finished assembling a similarly upgraded Starship – Ship 24 – that’s first in line to ride Booster 7 into space. The company has also tentatively requested road closures for three 12-hour test windows on May 23rd, 24th, and 25th that either vehicle could use.
Tesla Full Self-Driving (Supervised) showed a record attach rate at delivery for new vehicles in the third quarter of 2026.
75 percent of new vehicle deliveries in North America included a subscription to FSD software, up from 55 percent in the prior quarter, a 20-percentage-point sequential gain in the company’s most mature market.
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
Tesla shed light on the Q3 Shareholder Deck that 75 percent of new deliveries came with an FSD subscription:
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets. “
The higher attach rate accompanied strong growth in the overall FSD consumer base, as active subscriptions rose to 1.75 million, a 67 percent year-over-year increase. For the first time, more than half of paid customers are on the monthly subscription, which is priced at $99 per month in the U.S.
People are buying FSD with a car attached, not the other way around
— Elon Musk (@elonmusk) October 21, 2026
The transition to subscriptions has accelerated since Tesla discontinued the one-time purchase option in most markets earlier this year. The recurring model improves revenue visibility and margins compared with large upfront payments. With three-quarters of North American deliveries now including FSD, the software is now an evidently large contributor to Tesla’s economics and ancillary revenue.
Geographic expansion remains important for further gains. FSD is now available in nine countries in the EU, and more than 100,000 customers have driven over 160 million kilometers. Tesla is pursuing broader EU-wide approval, with a related vote expected in December. Similar progress in additional markets could support higher attach rates beyond North America.
These results came as Tesla had a strong quarterly delivery performance of 486,532 vehicles in the quarter, which came with its largest passenger-vehicle backlog in four years. Battery supply continued to limit volume, but the company has pointed to FSD as a clear difference-maker that is helping sustain demand. As supervised capabilities improve, the attach rate will likely continue to improve.
At face value, it is a key measure of how Tesla is converting sales into autonomy progress.
Update: 10/22 10:51a – Para 1 consumers changed to “customers” for accuracy.
Tesla Cybercab units finally got a definitive date for when they will be able to be purchased by customers, ending speculation regarding whether the fully autonomous vehicle would be available in the near term.
During Tesla’s third-quarter 2026 earnings call on October 21, Vice President of Engineering Lars Moravy said the company is aiming to begin delivering its purpose-built Cybercab robotaxi to customers before year-end.
🚨 In short, Cybercabs are slated to go to customers by end of the year. All units are going into Robotaxi fleet currently, per @larsmoravy
Cybercab will be “transport-as-a-service,” but vast majority of Cybercab will be “Tesla-owned,” @elonmusk says https://t.co/R8Qu8QWdmp
— TESLARATI (@Teslarati) October 21, 2026
“We’re trying to get Cybercabs to customers by the end of this year, 2026,” Moravy said. He added that production is underway on the line at Gigafactory Texas, but “all of those are currently going to our own internal Robotaxi fleet.”
Moravy explained that as operations scale, Tesla will “mainly deliver fully designed autonomous vehicles to our customers,” with the Cybercab as the first such vehicle. Initial customer deliveries will start small while the company gains experience with delivery logistics, ownership models, fleet management, and operating autonomous vehicles outside its direct control.
CEO Elon Musk reinforced the limited nature of private sales, describing the Cybercab primarily as a “transport-as-a-service” offering rather than a personal ownership vehicle like the Model 3, Model Y, or upcoming Roadster. “The vast majority of the Cybercab stuff will be Tesla-owned and transport-as-a-service,” Musk said.
The Cybercab is a two-seater vehicle developed by Tesla without a steering wheel or pedals. It relies completely on Tesla’s Full Self-Driving suite and has been in production since February. Early units have been put in Tesla’s Robotaxi service as of early September, when the company launched rides to the public. Tesla previously indicated it would aim to sell Cybercabs for about $30,000.
Unsupervised Full Self-Driving is expected to ship to consumer cars during Q2 2027, Ashok Elluswamy, Tesla’s Head of AI, indicated during the call. Early buyers or fleet operators may receive vehicles whose autonomous operation remains geographically restricted due to lagging regulatory agencies. There are some hurdles that remain ahead of Cybercab deliveries.
Tesla (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla buyers are buying for Full Self-Driving and not for the car, data shows
Tesla Cybercab gets a for sale date at last
