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SpaceX’s BFR factory abuzz with work activity and giant rocket tooling
A large temporary SpaceX facility intended for initial Mars rocket fabrication was spied abuzz with activity as employees work to assemble massive carbon composite tooling.
Hours after SpaceX CEO Elon Musk revealed the first photos of tooling for the manufacture of BFR, Teslarati photographer Pauline Acalin sped down to Port of San Pedro to survey a large dockside tent the company was constructing as of December 2017. Now complete, the temporary facility appears to be exploding with SpaceX activity as the company surges ahead with plans to assemble the first Mars rocket and spaceship prototypes – rocket-powered hops could begin as soon as early next year, with orbital launches following about a year after that.
@SpaceX showing off the main body tool for the BFR 🤩🤩🤩https://t.co/IvvN7z9kx5 pic.twitter.com/GqXssPJhqG
— Ascent Aerospace (@AscentAerospace) April 9, 2018
Per a number of related discoveries, the tooling pictured in Musk’s teaser is almost certainly located in the same tent pictured above. Of particular note, a source involved in the work has confirmed that SpaceX is using a new supplier for the custom tooling needed to manufacture BFR. The source’s comments were confirmed to be accurate minutes later in photos taken by Teslarati’s senior SpaceX stalker that peg Ascent Aerospace Coast Composites as the tooling manufacturer. As if to dispatch any lingering doubt, Ascent Aerospace appears to have also independently confirmed its involvement through a rare post on social media.
Based on Pauline Acalin’s photos of the previously unexplored SpaceX facility, the company has since filled the tent with a huge amount of hardware, and still more BFR tooling appears to be momentarily stored outside, brandishing the Ascent Aerospace name and logo. These additional components will likely be used in the manufacture of the less cylindrical segments of SpaceX’s Mars spaceship, among other possible uses. In essence, SpaceX will need to build monolithic carbon composite structures that can readily survive extreme temperatures, pressure differentials, supercool rocket propellant, significant G-loading, and much more. To a much lesser extent, this type of aerospace construction is already done on a large scale – Boeing’s 787 Dreamliner uses a significant amount of carbon composite in its fuselage and is around 6 meters in diameter to BFR/BFS’ 9m. As a beneficial consequence of such significant commercial interest in massive carbon composite structures, markets have grown to support the existence of a thriving niche of composite innovation and tooling production, maturing the technology and making the task far easier for SpaceX compared to developing tooling and processes from a blank sheet.
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- SpaceX appears to be hard at work at a temporary tent believed to house initial BFR manufacturing facilities. (Pauline Acalin)
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- SpaceX’s first major BFR and BFS fabrication tooling, likely being stored temporarily in a tent at Port of San Pedro. Note the tent framework at the top. (Elon Musk)
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- It’s understood that SpaceX will eventually move this work to Berth 240 once more permanent facilities are constructed. (Pauline Acalin)
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- Huge metal structures are being stored just outside a tent constructed for SpaceX’s initial BFR manufacturing. (Pauline Acalin)
Given the surprising level of activity at this BFR-focused facility, it is fair to conclude that SpaceX is wasting no time at all with the production of its first full-scale BFR prototypes. Altogether, the tent factory is gradually being filled to the brim with custom carbon composite tooling capable of fabricating Mars spaceship and booster structures, propellant tanks, delta winglets, and more. It’s no coincidence that this tent (and the prospective factory at Berth 240) were both located at Port of San Pedro – once completed, it should be comparatively easy to ship the massive components to SpaceX’s Texas or Florida facilities, both of which have been hinted as possible locations for BFR testing (and launches, eventually).
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Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
