News
SpaceX begins huge dirt pile removal to pave way for BFR spaceship hop tests
After more than two years of silence, SpaceX has taken the first major tangible steps towards the construction of a dedicated South Texas rocket testing facility.
In anticipation of a full-scale BFR spaceship (BFS) hop test campaign that could begin as early as late 2019, local contractors and a smattering of SpaceX employees have begun to earnestly break down and repurpose a large quantity of dirt – known as a surcharge pile – to allow the construction of real facilities to begin.
Documented as of late by a handful of interested local observers and another subset of less local but equally interested followers, SpaceX’s prospective South Texas test and launch facilities have experienced a near-unprecedented burst of activity over the last two months, most notably including the arrival of a small fleet of heavy machinery and construction contractors at a site SpaceX has been working on for three years.
After ~36 months of dead silence, this activity correlates well with recent comments from SpaceX executives Elon Musk and Gwynne Shotwell indicating that the company is still targeting inaugural BFR spaceship hop tests sometime near the end of 2019.
Shotwell: think we’ll be “hopping” the second stage of BFR (the BFS) late next year. #DARPA60
— Jeff Foust (@jeff_foust) September 6, 2018
The infrastructure needed for those early tests could be quite sparse depending on the status of the BFR hardware to be ‘hopped’ – Falcon 9’s Grasshopper and F9R test campaigns, for example, operated off of a tiny concrete pad with extremely minimalist ground support equipment (GSE). Photos from a number of videos SpaceX posted during those crafts’ 2012-2014 series of hop tests demonstrate this minimum well, although chances are good that the company will build up Boca Chica a bit beyond the test pad used for Falcon 9 booster recovery R&D.
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- F9R seen just before liftoff for a 2014 hop test at SpaceX’s McGregor, TX test facilities. (SpaceX)
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- Just the bare necessities. (SpaceX)
SpaceX’s Grasshopper and F9R hop tests took place exclusively at the company’s well-established McGregor, Texas testing facilities, offering a range of large hangars, three operational Merlin 1D and Vacuum test bays, and dedicated stands for integrated first and second stage static-fire tests, among countless other rocketry-related amenities. The secluded South Texas coastal region where SpaceX wants to test – if not launch – integrated BFRs has none of McGregor’s preexisting infrastructure, however – anything SpaceX needs will have to be built from scratch on-site.
There is activity. pic.twitter.com/A8JYw6vdW6
— Nehkara (@Nehkara) October 13, 2018
Thus far, almost no real structures have been constructed, aside from a small-ish sheet metal shed that was literally built around a huge crane that arrived on SpaceX property a few months prior. Over the last two or so years, all activity at the South Texas site clustered specifically around a plot where two large radio dishes – and eventually cryogenic storage tanks – were delivered, installed, and/or stored. However, the actual site of the pad SpaceX originally planned to launch Falcon 9 and Heavy from is a mile or two East of that highly visible development, the same location where a flurry of activity has begun in the last month.
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- A map showing several locations SpaceX planned (as of 2014) to develop.
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- SpaceX’s proposed launch site (right) and the currently location of radar dishes, a large crane, and several propellant tanks. (Google)
In 2015, SpaceX trucked in several hundred thousand tons of dirt to be packed on top of the site where the company eventually planned to build a large Falcon integration hangar and then left for several years to crush the softer marshlands beneath it into firm submission. That time appears to be up, as the work now ongoing at that site is focused on removing that surcharging dirt now that the soil beneath it is stable enough to host heavy, long-term structures like a rocket launch pad.
Most of that massive dirt pile will likely remain at SpaceX’s South Texas property, to be used as a basic construction material as the company begins to build some semblance of the facility described in its approved 2014 environmental impact assessment. As it takes shape, it will become clear just how closely SpaceX is sticking to those original plans. BFR hop tests could begin by late 2019 if prototype spaceship construction – already in work at a tent in Port of Los Angeles – proceeds smoothly.
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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’
