In the air with the shocks is fine.
Tighten the axle nut before, not necessarily torqued but good and tight.
Not a good thing if the bike is on the ground.
After the four are torqued, then finish the axle nut.
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I disagree RickyD.
Torque the axle completely BEFORE torqueing the final drive bolts. THAT IS THE WHOLE POINT. Torqueing the axle is how you align the final drive. It can be done with shocks attached, but why not leave the right side shock off so NOTHING interferes with the alignment of the pumpkin.
Definitely don't put her down to the ground before its all tightened up
If you did what Ricky suggested with the right shock attached, I doubt seriously the final drive is properly aligned. I would not ride that way, not for one mile