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SpaceX a big step closer to orbital Starship launches after passing FAA environmental review
SpaceX has secured environmental approval from the FAA and relevant federal, state, and local stakeholders to conduct orbital Starship launches on the South Texas coast.
After a relatively normal 12 months of work and half a dozen poorly communicated delays, the FAA has ultimately issued SpaceX an extremely favorable “Mitigated Finding of No Significant Impact” or Mitigated FONSI for its plans to conduct a very limited number of orbital Starship launches per year out of Boca Chica, Texas. With the receipt of that final programmatic environmental assessment (PEA), SpaceX has arguably hurdled the most difficult regulatory barrier for Texas orbital Starship launches and secured itself a foundation upon which it should be able to attempt to expand the scope of Starbase’s long-term utility.
To secure that favorable result, however, SpaceX ultimately agreed to dozens upon dozens of “mitigations” that will take a significant amount of work to complete and maintain in order to partially alleviate some of the launch site’s environmental impact. It’s also far from the last regulatory hurdle standing between SpaceX and orbital Starship launches.
In many ways, Starbase’s Final PEA is a bit simpler than what SpaceX initially requested in its September 2021 draft. As previously discussed, it was already known that SpaceX had withdrawn initial plans to build its own dedicated natural gas power plant, desalination plant, and natural gas refinery and liquefaction facilities at or near the launch site before the draft was finalized. The Final PEA goes a bit further, simplifying SpaceX’s initial request for two “phases” of annual Starship launch operations and settling on a single “operational phase” that allows up to five suborbital and five orbital Starship launches per year.
However, aside from the already expected removal of onsite methane fuel production and all associated facilities, the rest of the Final PEA appears to be surprisingly close – if not outright identical – to SpaceX’s Starbase Draft PEA. Crucially, SpaceX was not forced to reduce the number of permitted orbital launches, suborbital launches, or ship/booster static fire tests it originally pursued. While a maximum of five orbital launches will severely limit Starbase’s utility outside of early flight testing, it’s still a big improvement over a compromise for 1-4 annual launches.
Perhaps even more notably, the Final PEA also includes permission for up to 500 hours of highway closures for nominal operations and up to 300 hours of closures for emergency anomaly response per year – exactly what SpaceX requested in its Draft PEA. In 2014, SpaceX completed an even more thorough environmental impact statement (EIS) for Falcon rocket launches out of Boca Chica and received approval for no more than 180 hours of annual closures – a restriction that could have made Starbase virtually unusable as a hub for Starship development.
Of the dozens of mitigations SpaceX will have to implement to conduct Starship launches under its new Starbase PEA, a majority appear to be normal and reasonable. Most focus on specific aspects of things already discussed, like protecting turtles (lighting, beach cleanup, education, nest scouting and monitoring, etc.), safeguarding other protected species, respecting impacted areas of historical importance; ensuring that road closures avoid certain holidays and periods to limit Starbase’s impact on local use of public parks and beaches; and other common-sense extensions of existing rules and regulations. In a few cases, SpaceX has even agreed to deploy solar-powered Starlink internet terminals to enable “enhanced satellite monitoring” of wildlife for the US Fish and Wildlife Service and Peregrine Fund.
Others are oddly specific and read a bit more like local and state agencies taking advantage of their leverage to get SpaceX to manage and pay for basic infrastructure maintenance and improvement that any functional government should already be doing. The lengthy list of odd “mitigations” includes the following:
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- Quarterly beach and highway cleanups
- Construct at least one highway wildlife crossing
- Construct a wildlife viewing platform along Highway 4
- Complete and maintain traffic control fencing demarcating the boundaries of TPWD land along said public highway
- $5,000 per year to “enhance” the Texas Parks and Wildlife Department’s (TPWD) fishing “Tackle Loaner Program”
- Prepare a history report on any events and activities of the Mexican War and Civil War that took place in all affected areas of historical importance
- Fund the development of five signs explaining the “history and significance” of those areas
- “[Replicate and install] the missing stars and wreaths on the Palmetto Pilings Historical Marker”
Ultimately, the Final PEA SpaceX received is an extremely positive outcome, and there should be little doubt that SpaceX will complete all mitigations requested of it and help improve aspects of Boca Chica, Texas as a result. Up next, SpaceX will need to secure an orbital Starship launch license from the FAA by demonstrating, to the agency’s satisfaction, that it meets “safety, risk, and financial responsibility requirements” in addition to all environmental requirements. The company has already begun that process with the FAA, but it could still take weeks or months after the Final PEA to secure an operator license or experimental permit. Any such license or permit will be conditional upon the completion of all mitigation requirements established by the PEA.
Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?'”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
