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SpaceX's California Starship factory plans detailed ahead of permitting decision
SpaceX’s California Starship factory plans have been detailed in new documents published by the Los Angeles Board of Harbor Commissioners, one of the last big steps before a crucial permitting decision is made later this week.
First reported on February 1st, SpaceX has resurrected plans to build a Starship factory in Los Angeles, just 20 or so miles away from the company’s Hawthorne, California headquarters. SpaceX abandoned its lease of Port of Los Angeles Berth 240 in the spring of 2019, a decision made a handful of months after the company dramatically scrapped plans to build its next-generation rocket out of carbon-fiber composites. Now known as Starship and Super Heavy and radically redesigned to use steel for 99% of its structural elements, SpaceX has been building prototypes of the Starship upper stage for more than 14 months.
That work has been performed almost exclusively at Boca Chica, Texas facilities that have been in an almost continuous period of gradual expansion and upgrades since late-2018. Situated a few miles from the Mexican border on the southernmost tip of Texas’ Gulf Coast, Boca Chica is an exceptional location for orbital launches from the continental United States but is less than optimal when it comes to build (and more importantly) staffing a high-quality rocket factory. Since Starship prototype fabrication and integration was shifted almost entirely to Texas, SpaceX has had to send expert Hawthorne-based employees to Boca Chica for weeks at a time, often hitching a ride on CEO Elon Musk’s private jet. With a dedicated Port of LA Starship factory, life could be made much easier, cheaper, and – ultimately – better for everyone involved.
While its growth has been undeniably gradual, SpaceX is in the late stages of building an impressive manufacturing base around its Boca Chica launch facilities. As of Tuesday, February 17th, company contractors have effectively completed the shells of two massive ‘sprung structures’ (tents) that are already being used to house certain Starship fabrication, assembly, and integration operations.
Nearby, a separate group is in the late stages of constructing the primary structure of a ~50m (160 ft) tall Vehicle Assembly Building (VAB) with an even taller building also in the pipeline, both of which should allow Starship and Super Heavy stacking, welding, and outfitting to be done in a sheltered, partially climate-controlled environment. Additionally, SpaceX has delivered hardware needed to build a dedicated on-site waterjet shop, giving its Boca Chica outpost the ability to precisely fabricate its own metal parts.
According to SpaceX’s updated 2020 Port of Los Angeles regulatory documents, the company has major ambitions for its resurrected California Starship factory. In simple terms, it really does want to build a true Starship factory instead of something smaller or more specialized. Specifically, SpaceX wants Berth 240 to be able to independently form Starship’s steel rings, stack and weld those rings together, outfit integrated barrel sections with all necessary access ports, plumbing, and flight-related hardware, and build any number of other Starship parts (likely fins, legs, noses, etc.).
This time around, SpaceX would refurbish and reuse five aging structures already present at Berth 240, avoiding the potential hassle, delays, and cost of building an entirely new factory (as was previously the plan). It’s likely that SpaceX would eventually erect similar sprung structures on Berth 240’s empty lot, and it looks like the modified permit applications would even allow the company to build the same factory it previously proposed in addition to the new plans to reuse existing structures.
Although reusing abandoned buildings built a century ago will almost bring its own challenges, SpaceX’s tweaked approach does make it likelier (even if still improbable) that the company will be able to realize its ambitious goal of kicking off Berth 240 Starship production just a month or two from now. While not discussed in the permit, SpaceX’s new plans would presumably also involve shipping fully-completed Starship subsections (meaning just a few stacked steel rings at a time) from California to Texas, where Boca Chica workers would ultimately integrate those segments to form finished ships and boosters that can then be acceptance-tested and launched.
For now, though, SpaceX still has to reacquire its old Berth 240 lease and environmental permits before it can begin repairing existing structures and building out its prospective Port of LA rocket factory. Up next, the Los Angeles Harbor Commission will meet on Thursday, February 20th to hear several permit appeals, SpaceX’s included.
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Tesla stock (NASDAQ: TSLA) endured one of its sharpest single-day declines in years on July 23, tumbling approximately 14.5 percent and closing near $320 after opening the session around $374. The drop erased more than $140 billion in market value amid heavy trading volume and left the shares at multi-week lows.
The sell-off followed the company’s second-quarter 2026 results, released the previous evening. Tesla reported record revenue of $28.2 billion, up 26 percent year over year, driven by a Q2-record 480,126 vehicle deliveries. Energy storage deployments also rose strongly.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Yet profitability disappointed sharply. Operating income fell 57 percent to $398 million, compressing the operating margin to just 1.4 percent. Non-GAAP earnings per share came in at $0.33, well below the roughly $0.53 analysts had expected. Free cash flow turned negative by $1.1 billion as capital expenditures surged 142 percent to $5.8 billion, largely tied to accelerated spending on artificial intelligence, robotics, and autonomous systems.
The losses on capex were expected, as Tesla said it would be spending heavily in 2026.
Investors also reacted to lingering uncertainty surrounding key product timelines. During the Earnings Call, management reiterated ambitions for Robotaxi deployment and the Optimus humanoid robot, but offered limited new concrete milestones, renewing questions about execution pace that have long accompanied Tesla’s ambitious roadmap.
The magnitude of the decline places it among Tesla’s more severe one-day percentage losses since its 2010 initial public offering. Historically, the two largest single-day drops (split-adjusted) remain September 8, 2020, when shares fell 21.1 percent amid broader market volatility and valuation concerns, and January 13, 2012, with a 19.3 percent plunge during the company’s early growth struggles.
Other notable declines include an 18.6 percent drop on March 16, 2020, at the onset of pandemic-related market turmoil. Thursday’s move ranks roughly ninth on the all-time list but stands out as the steepest in more than a year.
Despite the short-term pain, Tesla’s long-term trajectory has repeatedly recovered from such volatility. The latest results underscore both the strength of its core automotive and energy businesses and the near-term costs of heavy investment in next-generation technologies.
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
Tesla stock tumbles after earnings, one of its sharpest single-day declines
Elon Musk is not happy about this Tesla Full Self-Driving approval delay
