News
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 As previously discussed, it was already known that SpaceX had withdrawn initial plans to build its own dedicated natural gas power plant, desalination plant, and natural gas refinery and liquefaction facilities at or near the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:
- 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.
Investor's Corner
Tesla gets tip of the hat from major Wall Street firm on self-driving prowess
“Tesla is at the forefront of autonomous driving, supported by a camera-only approach that is technically harder but much cheaper than the multi-sensor systems widely used in the industry. This strategy should allow Tesla to scale more profitably compared to Robotaxi competitors, helped by a growing data engine from its existing fleet,” BoA wrote.
Tesla received a tip of the hat from major Wall Street firm Bank of America on Wednesday, as it reinitiated coverage on Tesla shares with a bullish stance that comes with a ‘Buy’ rating and a $460 price target.
In a new note that marks a sharp reversal from its neutral position earlier in 2025, the bank declared Tesla’s Full Self-Driving (FSD) technology the “leading consumer autonomy solution.”
Analysts highlighted Tesla’s camera-only architecture, known as Tesla Vision, as a strategic masterstroke. While technically more challenging than the multi-sensor setups favored by rivals, the vision-based approach is dramatically cheaper to produce and maintain.
This cost edge, combined with Tesla’s rapidly expanding real-world data engine, positions the company to scale robotaxis far more profitably than competitors, BofA argues in the new note:
“Tesla is at the forefront of autonomous driving, supported by a camera-only approach that is technically harder but much cheaper than the multi-sensor systems widely used in the industry. This strategy should allow Tesla to scale more profitably compared to Robotaxi competitors, helped by a growing data engine from its existing fleet.”
The bank now attributes roughly 52% of Tesla’s total valuation to its Robotaxi ambitions. It also flagged meaningful upside from the Optimus humanoid robot program and the fast-growing energy storage business, suggesting the auto segment’s recent headwinds, including expired incentives, are being eclipsed by these higher-margin opportunities.
Tesla’s own data underscores exactly why Wall Street is waking up to FSD’s potential. According to Tesla’s official safety reporting page, the FSD Supervised fleet has now surpassed 8.4 billion cumulative miles driven.
Tesla FSD (Supervised) fleet passes 8.4 billion cumulative miles
That total ballooned from just 6 million miles in 2021 to 80 million in 2022, 670 million in 2023, 2.25 billion in 2024, and a staggering 4.25 billion in 2025 alone. In the first 50 days of 2026, owners added another 1 billion miles — averaging more than 20 million miles per day.
This avalanche of real-world, camera-captured footage, much of it on complex city streets, gives Tesla an unmatched training dataset. Every mile feeds its neural networks, accelerating improvement cycles that lidar-dependent rivals simply cannot match at scale.
Tesla owners themselves will tell you the suite gets better with every release, bringing new features and improvements to its self-driving project.
The $460 target implies roughly 15 percent upside from recent trading levels around $400. While regulatory and safety hurdles remain, BofA’s endorsement signals growing institutional conviction that Tesla’s data advantage is not hype; it’s a tangible moat already delivering billions of miles of proof.
News
Tesla to discuss expansion of Samsung AI6 production plans: report
Tesla has reportedly requested an additional 24,000 wafers per month, which would bring total production capacity to around 40,000 wafers if finalized.
Tesla is reportedly discussing an expansion of its next-generation AI chip supply deal with Samsung Electronics.
As per a report from Korean industry outlet The Elec, Tesla purchasing executives are reportedly scheduled to meet Samsung officials this week to negotiate additional production volume for the company’s upcoming AI6 chip.
Industry sources cited in the report stated that Tesla is pushing to increase the production volume of its AI6 chip, which will be manufactured using Samsung’s 2-nanometer process.
Tesla previously signed a long-term foundry agreement with Samsung covering AI6 production through December 31, 2033. The deal was reportedly valued at about 22.8 trillion won (roughly $16–17 billion).
Under the existing agreement, Tesla secured approximately 16,000 wafers per month from the facility. The company has reportedly requested an additional 24,000 wafers per month, which would bring total production capacity to around 40,000 wafers if finalized.
Tesla purchasing executives are expected to discuss detailed supply terms during their visit to Samsung this week.
The AI6 chip is expected to support several Tesla technologies. Industry sources stated that the chip could be used for the company’s Full Self-Driving system, the Optimus humanoid robot, and Tesla’s internal AI data centers.
The report also indicated that AI6 clusters could replace the role previously planned for Tesla’s Dojo AI supercomputer. Instead of a single system, multiple AI6 chips would be combined into server-level clusters.
Tesla’s semiconductor collaboration with Samsung dates back several years. Samsung participated in the design of Tesla’s HW3 (AI3) chip and manufactured it using a 14-nanometer process. The HW4 chip currently used in Tesla vehicles was also produced by Samsung using a 5-nanometer node.
Tesla previously planned to split production of its AI5 chip between Samsung and TSMC. However, the company reportedly chose Samsung as the primary partner for the newer AI6 chip.
Elon Musk
Elon Musk: Tesla could be first to build AGI in humanoid form
Musk’s statement was shared in a post on social media platform X.
Elon Musk predicted that Tesla could become one of the developers of Artificial General Intelligence (AGI) in humanoid form. Musk’s statement was shared in a post on social media platform X.
In his post, Musk stated that “Tesla will be one of the companies to make AGI and probably the first to make it in humanoid/atom-shaping form.”
The comment comes as Tesla expands development of its Optimus humanoid robot.
During Tesla’s Q4 earnings report, Elon Musk stated that production of the Model S and Model X would be phased out at its Fremont, California, facility. The vehicles’ production line will then be converted to a pilot line for Optimus. Tesla is looking to produce 1 million units of the humanoid robots annually to start.
Musk has previously stated that Optimus could eventually function as a von Neumann probe. The concept, proposed by mathematician John von Neumann, describes a machine capable of replicating itself using planetary resources and sending those replicas to other worlds.
Optimus would likely only be able to achieve this potential if it manages to achieve Artificial General Intelligence.
Other leaders in the AI sector have also expressed strong expectations about AGI’s potential. Demis Hassabis, CEO of Google DeepMind, recently spoke about the technology at the India AI Impact Summit 2026, as noted in a Benzinga report.
“It’s going to be something like ten times the impact of the Industrial Revolution, but happening at ten times the speed,” Hassabis said.
Elon Musk’s recent comments about Tesla producing a product with AGI could hint at further collaboration among his companies. So far, Tesla is actively pursuing autonomous driving, but it is xAI that is pursuing AGI with its Grok program.
Considering that Elon Musk mentioned a Tesla humanoid product with AGI, it appears that an Optimus robot running xAI’s AI models could become a reality.
xAI had recently merged with SpaceX, though reports suggest that Elon Musk is also considering an even bigger merger for all his companies, including Tesla.
Tesla gets tip of the hat from major Wall Street firm on self-driving prowess
Tesla to discuss expansion of Samsung AI6 production plans: report
