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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
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI, Elon Musk’s artificial intelligence startup, has purchased five additional 380 MW natural gas turbines from South Korea’s Doosan Enerbility to power its growing supercomputer clusters.
The deal, which was confirmed by Musk on X, highlights xAI’s effort to aggressively scale its operations.
xAI’s turbine deal details
News of xAI’s new turbines was shared on social media platform X, with user @SemiAnalysis_ stating that the turbines were produced by South Korea’s Doosan Enerbility. As noted in an Asian Business Daily report, Doosan Enerbility announced last October that it signed a contract to supply two 380 MW gas turbines for a major U.S. tech company. Doosan later noted in December that it secured an order for three more 380 MW gas turbines.
As per the X user, the gas turbines would power an additional 600,000+ GB200 NVL72 equivalent size cluster. This should make xAI’s facilities among the largest in the world. In a reply, Elon Musk confirmed that xAI did purchase the turbines. “True,” Musk wrote in a post on X.
xAI’s ambitions
Recent reports have indicated that xAI closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development. The funding, as per the AI startup, “will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products.”
The company also teased the rollout of its upcoming frontier AI model. “Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote in a post on its website.
Elon Musk
Elon Musk’s xAI closes upsized $20B Series E funding round
xAI announced the investment round in a post on its official website.
xAI has closed an upsized $20 billion Series E funding round, exceeding the initial $15 billion target to fuel rapid infrastructure scaling and AI product development.
xAI announced the investment round in a post on its official website.
A $20 billion Series E round
As noted by the artificial intelligence startup in its post, the Series E funding round attracted a diverse group of investors, including Valor Equity Partners, Stepstone Group, Fidelity Management & Research Company, Qatar Investment Authority, MGX, and Baron Capital Group, among others.
Strategic partners NVIDIA and Cisco Investments also continued support for building the world’s largest GPU clusters.
As xAI stated, “This financing will accelerate our world-leading infrastructure buildout, enable the rapid development and deployment of transformative AI products reaching billions of users, and fuel groundbreaking research advancing xAI’s core mission: Understanding the Universe.”
xAI’s core mission
Th Series E funding builds on xAI’s previous rounds, powering Grok advancements and massive compute expansions like the Memphis supercluster. The upsized demand reflects growing recognition of xAI’s potential in frontier AI.
xAI also highlighted several of its breakthroughs in 2025, from the buildout of Colossus I and II, which ended with over 1 million H100 GPU equivalents, and the rollout of the Grok 4 Series, Grok Voice, and Grok Imagine, among others. The company also confirmed that work is already underway to train the flagship large language model’s next iteration, Grok 5.
“Looking ahead, Grok 5 is currently in training, and we are focused on launching innovative new consumer and enterprise products that harness the power of Grok, Colossus, and 𝕏 to transform how we live, work, and play,” xAI wrote.
Tesla (NASDAQ: TSLA) stock received a price target update from Pierre Ferragu of Wall Street firm New Street Research, citing the company’s growing lead in self-driving and autonomy.
On Tuesday, Ferragu bumped his price target from $520 to $600, stating that the consensus from the Consumer Electronics Show in Las Vegas was that Tesla’s lead in autonomy has been sustained, is growing, and sits at a multiple-year lead over its competitors.
CES 2026 validates Tesla’s FSD strategy, but there’s a big lag for rivals: analyst
“The signal from Vegas is loud and clear,” the analyst writes. “The industry isn’t catching up to Tesla; it is actively validating Tesla’s strategy…just with a 12-year lag.”
The note shows that the company’s prowess in vehicle autonomy is being solidified by lagging competitors that claim to have the best method. The only problem is that Tesla’s Vision-based approach, which it adopted back in 2022 with the Model 3 and Model Y initially, has been proven to be more effective than competitors’ approach, which utilizes other technology, such as LiDAR and sensors.
Currently, Tesla shares are sitting at around $433, as the company’s stock price closed at $432.96 on Tuesday afternoon.
Ferragu’s consensus on Tesla shares echoes that of other Wall Street analysts who are bullish on the company’s stock and position within the AI, autonomy, and robotics sector.
Dan Ives of Wedbush wrote in a note in mid-December that he anticipates Tesla having a massive 2026, and could reach a $3 trillion valuation this year, especially with the “AI chapter” taking hold of the narrative at the company.
Ives also said that the big step in the right direction for Tesla will be initiating production of the Cybercab, as well as expanding on the Robotaxi program through the next 12 months:
“…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
Tesla analyst breaks down delivery report: ‘A step in the right direction’
Tesla has transitioned from an automaker to a full-fledged AI company, and its Robotaxi and Cybercab programs, fueled by the Full Self-Driving suite, are leading the charge moving forward. In 2026, there are major goals the company has outlined. The first is removing Safety Drivers from vehicles in Austin, Texas, one of the areas where it operates a ride-hailing service within the U.S.
Ultimately, Tesla will aim to launch a Level 5 autonomy suite to the public in the coming years.
Elon Musk confirms xAI’s purchase of five 380 MW natural gas turbines
Elon Musk’s xAI closes upsized $20B Series E funding round
