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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
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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)
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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 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
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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:
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“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
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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.”
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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
