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Elon Musk reveals SpaceX Starship production well underway inside new Texas factory
SpaceX CEO Elon Musk has offered a new glimpse inside the company’s rapidly-expanding South Texas Starship factory, revealing the beginnings of the next-generation rocket’s first true assembly line — and a wealth of spacecraft hardware.
Situated two or so miles from the Gulf of Mexico (and Mexico itself) in Boca Chica, Texas, SpaceX has been seriously planning a presence in South Texas for more than five years. Originally meant to host the United States’ first private orbital launch complex for Falcon 9 and Falcon Heavy rockets, only a small amount of work – known as soil surcharging – was done in the four years that followed SpaceX’s 2014 announcement. In late 2018, however, work began in earnest to build basic launch and manufacturing facilities.
Less than six months later, the first true Starship prototype – known as Starhopper and built from scratch out in the South Texas elements – ignited its Raptor engine for a brief static fire test, bringing the first to facilities and rocket to life less than half a year after they were little more than a pile of dirt and steel sheets. Now, barely nine months after Starhopper’s first static fire test, SpaceX is working around the clock to erect a full-scale rocket factory and build what could become the first orbital-class Starships. On February 9th, Elon Musk offered the best glimpse yet of the incredible progress SpaceX has made in a matter of weeks.
Barely a month ago, the rocket hardware pictured above did not exist, while the giant Tesla-inspired tent containing those Starship parts was a half-finished skeleton. Now, Elon Musk says that SpaceX has effectively completed three of the hardest parts of its first upgraded Starship prototype (SN01), while an additional two (of three) of those parts – known as propellant tank domes – are already in work for a second Starship (SN02).
Outside of the ‘sprung structure’ (i.e. tent) shown in Musk’s February 9th photo, SpaceX contractors appear to be just days away from completing the shell of a second identical tent, ultimately doubling the space available for enclosed manufacturing operations. At the same time as both Starship hardware and production facilities are rapidly coming together, SpaceX is also erecting what is presumed to be a Vehicle Assembly Building – a potentially massive structure that will protect vertical Starships and Super Heavy boosters from the elements while workers assemble them into finished rockets.
Inside the finished tent, SpaceX appears to have set up the first true Starship assembly line (of sorts), expanding from working on a single kind of prototype at a time to concurrent (serial) production of major components. Visible are three Starship bulkheads (tank domes) – two completed instances of which have already been transported outside and integrated with finished ring segments, forming two halves of Starship SN01’s complete liquid methane (LCH4) tank.
Near the back of the tent, work is also ongoing on several Starship SN01 tank rings. In the center, technicians are outfitting Starship SN01’s engine and ‘skirt’ section, where the bottommost tank dome will attach to three (up to six) Raptor engines. To the left, a stack of two rings appears to be stored off to the side, while – only slightly visible in Musk’s photo – another pair of rings is being welded together with the help of a rotating table.
Far from its full capacity and working out of a much smaller tent, SpaceX’s dedicated ringforming station – tasked with turning coils of steel into finished Starship rings – has finished no less than 34 steel rings since the January 1st. SpaceX is still clearly learning and at least third of those rings wound up being scrapped due to defects, but the material cost of all of those rings (~55 tons of steel) is probably less than $150,000. Additionally, those 34 completed segments would reach more than 60 meters (200 ft) tall if stacked, enough to build almost two Starship tank and engine sections – domes excluded.
In simple terms, SpaceX has pivoted away from the more boutique style of prototype fabrication used for Starhopper and Starship Mk1 and is now building Starship SNxx hardware extremely quickly. At the same time, the enclosed manufacturing space available to SpaceX is probably going to double before this week is out. Ultimately, SpaceX’s March 2020 Starship SN01 flight debut target is quickly becoming less and less crazy by the day.
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Elon Musk
SpaceX’s newest logo confirms everything about what it’s become
SpaceX officially absorbed xAI under the SpaceXAI brand, completing the largest private merger in history.
SpaceX made its corporate transformation official in May 2026 when Elon Musk posted on X that xAI would cease to exist as a standalone company. “xAI will be dissolved as a separate company, so it will just be SpaceXAI, the AI products from SpaceX,” he wrote.
A new SpaceXAI logo was announced today, visually embedding the xAI letters inside the SpaceX identity, which can be seen as a deliberate design choice that signals the merger is not a partnership but a full absorption and XAi a core function of the same company. The same way Starlink is not a separate brand but a SpaceX product. The announcement closed the loop on a process that began February 2, 2026, when SpaceX acquired xAI in the largest private merger in history, valued at $1.25 trillion. SpaceX at $1 trillion and xAI at $250 billion.
We are now @SpaceXAI. pic.twitter.com/ema66xDWC9
— SpaceXAI (@SpaceXAI) July 6, 2026
The reason SpaceX bought xAI was stated plainly by Musk at the time of the deal: to build orbital data centers. SpaceX had simultaneously filed with the FCC to launch up to one million satellites designed to function as AI compute nodes in low Earth orbit, escaping what Musk described as the energy constraints limiting AI development on Earth.
xAI provided the AI software stack, with Grok, the X platform, and the Colossus supercomputer infrastructure in Memphis with over 220,000 NVIDIA GPUs, while SpaceX provided the rockets, Starlink, and the capital base to fund it. The two companies needed each other. xAI was burning $2.5 billion in losses on $250 million in revenue. SpaceX was generating an estimated $8 billion in profit on $15 billion in revenue and needed an AI narrative to command the valuation it was targeting for its IPO.
What SpaceX has done, regardless of how the orbital AI vision ultimately plays out, is walk into a public market as something no company has been before: a rocket manufacturer, satellite internet provider, AI software company, social media platform, and supercomputer operator under one ticker. Whether that combination is worth $2 trillion depends entirely on which of those businesses you believe in most.
Tesla brought its innovative Cybercab robotaxi to the National Federation of the Blind (NFB) Annual Convention in Austin, Texas, on July 3 at the JW Marriott Austin.
The hands-on demonstration highlighted the vehicle’s thoughtful design for blind and visually impaired users, underscoring Tesla’s commitment to inclusive autonomous mobility. Attendees, many using white canes or accompanied by service dogs, experienced the steering-wheel-free Cybercab firsthand.
Cybercab at the National Federation of the Blind’s Annual Convention in Austin for a hands-on experience of its accessibility features for blind or visually impaired customers⁰⁰For example:⁰– Braille lettering on physical controls
– Space for service animals & assistive… pic.twitter.com/8wrJcDHkw7— Tesla Robotaxi (@robotaxi) July 6, 2026
The showcase emphasized practical features tailored to the needs of the blind community. Braille lettering appears on physical controls, including door releases and emergency buttons, allowing users to navigate interfaces independently through touch. Generous interior space accommodates service animals and assistive devices such as canes, guide dogs, or mobility aids without compromising comfort.
Wheelchair-height seating facilitates easier transfers for users with additional mobility challenges. Photos from the event captured blind attendees approaching the vehicle confidently, service dogs relaxing inside, and hands exploring Braille-equipped handles.
Tesla Robotaxi’s official account detailed these elements, noting the Cybercab’s focus on accessibility, especially noting the Braille lettering and additional space for service animals.
How Tesla Will Transform Mobility for the Blind
Autonomous vehicles like the Cybercab promise revolutionary independence for the roughly 2.2 million visually impaired Americans. Traditional barriers—reliance on sighted drivers, costly paratransit, or limited public transit—often restrict spontaneous travel. Tesla Full Self-Driving aims to eliminate the need for a human operator, enabling on-demand, door-to-door rides via simple app hailing with voice guidance.
Users gain freedom to work, socialize, shop, or attend events anytime without scheduling hassles or safety concerns. This reduces isolation, boosts employment opportunities, and enhances quality of life, turning mobility from a dependency into true personal autonomy.
The NFB demonstration not only gathered valuable feedback but also generated excitement about a future where technology levels the playing field. By prioritizing inclusive design, Tesla advances a vision of transportation that serves everyone, potentially reshaping daily life for blind individuals and setting a standard for the autonomous industry.
As Cybercab deployment scales, these accessibility innovations could mark a significant step toward equitable mobility.
Investor's Corner
Tesla challenges startups to score a gig inside its most advanced European factory
Tesla is challenging startups to bring their best battery tech directly to Gigafactory Berlin.
Tesla has issued an open challenge to startups across Europe, inviting them to bring their best battery technology directly to the floor of Gigafactory Berlin. The program, called the JUNI x Tesla Battery Cell Giga Challenge, opened applications this month with a deadline of July 24, 2026, and is targeting startups with solutions that can make battery cell manufacturing faster, cheaper, safer, and more scalable at an industrial level.
The timing of the challenge is directly tied to Tesla’s most aggressive European battery investment yet. On May 12, 2026, Giga Berlin plant manager André Thierig announced a $250 million investment to scale the factory’s annual 4680 cell production capacity from 8 GWh to 18 GWh, more than doubling the previous target set just months earlier in December 2025. Thierig confirmed the expansion on X, saying the investment “will enable 18 GWh of annual 4680 cell production and create more than 1,500 new jobs.” Combined with a previously announced battery investment at the Grunheide site now approaches $1.2 billion.
Today, we announced a $ 250m investment for our Giga Berlin Cell factory. This will enable 18GWh of annual 4680 cell production and create more than 1500 new jobs. Good news during challenging times for the German industry. pic.twitter.com/ou4SWMfWh9
— André Thierig (@AndrThie) May 12, 2026
The challenge is looking specifically for startups with proven solutions across five categories: materials, equipment, operations, automation, and artificial intelligence. Applications are screened directly by Tesla’s cell manufacturing team in Grunheide, and the strongest submissions move through technical discussions, a pitch day in front of Tesla stakeholders, and potentially a paid pilot project with the cell team. Tesla is not looking for ideas at concept stage. The program requires applicants to demonstrate working prototypes, test data, or prior pilots before being considered.
The historical context matters here. Elon Musk first announced plans for what he called the world’s largest battery cell production facility alongside the Giga Berlin car factory back in 2020, targeting up to 250 GWh of annual capacity. Those plans were shelved in 2022 when Tesla shifted its battery investment focus to the United States to take advantage of Inflation Reduction Act incentives. The revival of cell production at Giga Berlin, now backed by over $1 billion in committed capital, represents a return to an ambition that was set aside for three years. As Teslarati has reported, the 4680 format is central to Tesla’s long-term cost reduction strategy across vehicles, energy storage, including the Tesla Semi and Cybercab.
By opening the challenge to outside startups, Tesla is acknowledging that reaching 18 GWh at Grunheide will require technology it does not currently have in-house, and it is willing to pay for the right solutions. For a startup in the battery supply chain, a paid pilot with Tesla’s European cell team is as close to a direct commercial path as the industry offers.
SpaceX’s newest logo confirms everything about what it’s become
Tesla flexes how it will help the blind with Cybercab
