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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 (NASDAQ: TSLA) reports its earnings for Q3 today. Here’s what to expect, as the company will reveal its balance sheet after the market closes on Wednesday.
Tesla already reported deliveries just after Q3 ended, and it demolished Wall Street consensus estimates of roughly 462,000 vehicles. Tesla delivered 486,532 cars in the third quarter, which was a big beat, but was down 2.1 percent from the same quarter last year. Energy storage deployments were 13.7 GWh, up year-over-year.
Tesla showrooms picked clean ahead of Q3 end as demand looks strong
For the quarter, analysts have already compiled their predictions for what Tesla will report this afternoon:
- Total Revenues: $28.34B
- Non-GAAP EPS: $0.43
- Operating Margin: 2.5%
- Operating Income: $721M
- Free Cash Flow: ~-$4.51B
Here are a few things we are looking forward to hearing about on the call:
Automotive Gross Margin and Overall Profitability
This was 16.3 percent in Q2, down from 19.2 percent in Q1, and was impacted by warranty charges and some fading regulatory credits. Consensus implies overall gross margin near 18 percent, but a miss here would potentially reinforce concerns about pricing pressure on its vehicles.
Pay attention to energy storage margins as well, especially since Tesla missed GWh expectations, although it was still a strong quarter.
Robotaxi/Cybercab, Unsupervised FSD, and Optimus Progress
The Say questions from retail investors usually focus on these types of projects, and this quarter is no different. Scaling the Cybercab fleet beyond Austin amid the open NHTSA safety review, timeline for Unsupervised FSD in customer cars, Robotaxi unit economics, and Optimus cost per unit plus when it could start generating revenue, are all things to be looking for.
Any concrete timelines or regulatory path details will likely move the stock more than the near-term numbers. SpaceX merger speculation, which was detailed during SpaceX’s earnings call last night, may also surface, although the key details were shared last night.
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Say Investor Questions
- How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?
- When can we anticipate FSD unsupervised in customer cars?
- When will the CyberCab be available for customer purchase/ownership?
- What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?
- Tesla has acknowledged that HW3 vehicles cannot support unsupervised FSD. When will owners know whether they can upgrade their hardware for free, and when will Tesla provide a clear plan?
The full Earnings Call will be streamed this evening after market close around 5 p.m. this evening.
SpaceX confirmed the date of Starship’s 15th launch window with some massive ambitions for the mission, as it will attempt to catch Ship for the first time.
CEO Elon Musk confirmed during SpaceX’s Earnings Call last night on October 20 that it would launch Starship for its 15th test flight in November, and there are some incredible things the company wants to try, making it perhaps the most groundbreaking launch in the program’s history.
SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms
The most major development of the call was SpaceX’s intention to catch Ship alongside catching the Super Heavy Booster, something that has happened in the past. SpaceX showed an animation of the Ship catch, which will be done on the launch tower’s chopsticks:
SpaceX has released a new Starship tower catch animation for the upcoming Flight 15! https://t.co/kStn01Da8u
— Truthful🛰️ (@Truthful_ast) October 20, 2026
This monumental goal is to catch both the Ship and Booster in a dual-catch scenario, an incredible feat since SpaceX has never been able to reuse a Ship after launch. Musk said it would be “the first time that an orbital launch vehicle has been fully recovered,” and said it would be a “profound technology milestone.”
Musk said the odds of success on this first Ship catch attempt are “more likely than not,” but SpaceX is ultimately prepared for more tries moving forward. The SpaceX frontman said that, starting next year, Starship would have a “steady stream” of flights through the end of the year.
The cadence will accelerate in 2027, with Musk stating the company plans to target weekly flights in the first half of 2027 and twice-weekly by year-end.
The Flight 15 attempt follows that of Flight 14, which took off in late September and was Starship’s first orbital mission. It deployed 26 Starlink V3 satellites, accomplished a controlled ocean splashdown of both stages, and shed more light on potential challenges for the program moving forward.
As of now, the Starship program is firing on all cylinders.
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Wall Street analysts rapidly raised price targets on SpaceX (NASDAQ: SPCX) after the company reported a bullish third quarter for 2026 following the market close on October 20. Shares were sent sharply higher in after-hours and premarket trading.
SpaceX posted revenue of $14.6 billion, a 161 percent year-over-year increase that comfortably topped consensus estimates, which fell near $12.7 billion. The company also posted a net profit of $4.4 billion from a prior-year loss, with adjusted EBITDA reaching $8.8 billion.
More price target movement:
🚀 Cantor Fitzgerald lifted its target to $345 from $246 (Overweight).
🚀 Barclays raised its target to $300 from $254 (Overweight).
🚀 Citi increased its target to $240 from $200 (Buy),
🚀 UBS moved to $230 from $210 (Buy)
🚀TD Cowen raised its target to $224 from $200 (Buy).
🚀Morgan Stanley held an Overweight rating with a $300 target.
🚀Other firms also adjusted higher, including Wells Fargo (to $274 from $214) and Clear Street (to $248 from $217). Analysts broadly cited the strong quarterly print, accelerating AI compute expansion, Starlink progress, and Starship milestones as drivers of higher long-term growth and earnings power.— TESLARATI (@Teslarati) October 21, 2026
Its Super Intelligence (AI) division generated roughly $7.6 billion and became the largest revenue contributor, growing nearly 830 percent year-over-year, while the Connectivity segment delivered $5.2 billion on strong subscriber additions that lifted the consumer base to 13.6 million for Starlink.
The Earnings Call proved especially catalytic, as CEO Elon Musk and CFO Bret Johnsen outlined Q1 2027 revenue guidance of $33 billion to $37 billion, which was far above the roughly $22 billion analysts had modeled, alongside fourth-quarter capital-expenditure plans of $35 billion to $40 billion focused on AI compute infrastructure at sites including Memphis and Southaven.
SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms
Management targets 2.5 to 3 gigawatts of nameplate compute capacity by year-end and discussed pathways to 13 gigawatts or more by the end of 2027. Musk described relentless demand from hyperscalers and other customers, with compute pricing supporting payback periods of less than a year and potentially as short as six months.
Additional highlights included Starship’s recent orbital success and V3 satellite deployment, Starlink pricing and enterprise momentum, rapid Grok Bot adoption, spectrum expansion plans, and the formation of special committees to explore a possible combination with Tesla.
These elements prompted a wave of price-target increases:
- JPMorgan more than doubled its target to $500 from $240 while maintaining an Overweight rating.
- Cantor Fitzgerald lifted its target to $345 from $246 (Overweight).
- Barclays raised its target to $300 from $254 (Overweight).
- Citi increased its target to $240 from $200 (Buy),
- UBS moved to $230 from $210 (Buy), and
- TD Cowen raised its target to $224 from $200 (Buy).
- Morgan Stanley held an Overweight rating with a $300 target.
- Other firms also adjusted higher, including Wells Fargo (to $274 from $214) and Clear Street (to $248 from $217). Analysts broadly cited the strong quarterly print, accelerating AI compute expansion, Starlink progress, and Starship milestones as drivers of higher long-term growth and earnings power.
Shares, which closed at $147.79 on October 20, jumped roughly 8 percent in early premarket trading on October 21 as investors digested the results and the newly elevated Street targets.
The average analyst price target has moved higher, which reflects greater conviction in SpaceX’s trajectory across launch, connectivity, and the Super Intelligence business, even as elevated spending remains a point of focus.
Tesla reports Q3 Earnings today: here’s what to expect
SpaceX confirms Starship 15 launch window with massive ambitions
