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.
- F9R seen just before liftoff for a 2014 hop test at SpaceX’s McGregor, TX test facilities. (SpaceX)
- 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.
- A map showing several locations SpaceX planned (as of 2014) to develop.
- 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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Elon Musk
Elon Musk calls Earth’s data centers “peanuts” next to what SpaceX is planning in orbit
Elon Musk says SpaceX capex efficiency is underestimated as orbital data centers loom by 2028.
Elon Musk is pushing back on one of the biggest worries hanging over SpaceX stock. In a reply on X on Sunday, Musk said the company’s capital expenditure efficiency is severely underestimated. He was responding to a Milk Road Stocks post citing analyst Kyle Reidhead, who estimates SpaceX will need to spend roughly $470 billion over the next five quarters.
Reidhead built that figure around the target SpaceX set on its third quarter earnings call: 13 gigawatts or more of compute by the end of 2027. In his breakdown, Nvidia captures 83 to 89 percent of the spending. SpaceX ended the quarter with 1.7 GW of nameplate compute and guided to $35 billion to $40 billion in fourth quarter capex, as Teslarati reported.
Musk did not attach a number to his claim, but the earnings call shows the argument. CFO Bret Johnsen said new compute currently pays for itself in under a year at today’s pricing, and Musk said that window could shrink to six months next year. Using that pace, Reidhead argues about $230 billion of the $470 billion could come from operating cash flow and about $60 billion from SpaceX’s roughly $90 billion cash pile, leaving around $180 billion to borrow. Musk confirmed last week that SpaceX had already closed a new $40 billion debt raise to buy GPUs.
The ground buildout is not the end goal. It is what is meant to pay for the move to orbit. Replying on Friday to charts built from Sequoia partner Shaun Maguire’s SpaceX model, Musk wrote that “Terrestrial compute will be peanuts compared to orbital compute,” adding that orbital compute deployed per month “probably exceeds terrestrial around the end of 2028 and then far exceeds it in 2029.”
Maguire’s model shows how steep that path is. It has capex climbing from $88 billion this year to $290 billion in 2027 and $369 billion in 2028, with SpaceX burning $77.8 billion in cash this year and $122.6 billion next year before turning $114.9 billion cash positive in 2028. Musk’s response to the model was, “I think we can do better.”
The orbital half runs through Starmind. SpaceX plans to operate up to 1 million AI satellites flying in clusters of about 10, linked by roughly 10 terabits of bandwidth, with deployment of thousands of units starting as soon as late 2027 out of its Gigasat factory in Bastrop, Texas, according to SpaceX’s space safety page. Musk has said each Starmind spacecraft will carry more than 250 kW of solar power.
Getting there depends on launch volume. Maguire’s model assumes 250 Starship flights in 2028, up from two this year and 38 next year. The nearer test is financial: SpaceX guided to $33 billion to $37 billion in first quarter 2027 revenue, more than double the $14.58 billion it booked in Q3, and Musk reposted that guidance again on Sunday morning.
Elon Musk
SpaceX President to gift Trump Accounts her SpaceX stock
Gwynne Shotwell’s 2 million SpaceX shares are headed to children’s Trump Accounts starting this December.
SpaceX President Gwynne Shotwell said Friday that more than 2 million SpaceX shares belonging to her and her husband, Robert, will be distributed to children’s Trump Accounts in December, turning a pledge she made over the summer into an actual transfer. “Robert and I are thrilled that our gift of over 2 million shares of SpaceX stock will be distributed to children’s Trump accounts in December!” Shotwell wrote on X, adding that the shares are “transferring to escrow as we speak.”
The first round goes to children aged 11 to 17 who live in ZIP codes where the median family income is $57,000 or less, along with kids in ZIP codes with too few residents for the Census to report that figure. Shotwell said those families should receive a notice by Monday, Reuters reported.
A second gift is expected to be finalized in the next few weeks. That round will cover eligible children in military families serving overseas, children in foster care, and more kids in Texas counties near the Shotwells’ home where median family income is $90,000 or less. Elon Musk replied to the announcement with “Cool” and a heart emoji.
Shotwell first announced the donation on July 6, less than a month after SpaceX priced its record IPO at $135 per share on the Nasdaq. IPO filings showed Shotwell owned about 12.6 million SpaceX shares, Quartz reported at the time, which makes the gift roughly one sixth of her stake. At the roughly $146 per share used to value Musk’s own pledge earlier this month, 2 million shares are worth about $290 million.
How the stock would actually reach the accounts had been an open question since July. Treasury guidance acknowledged that stock donations could flow into Trump Accounts, but it did not explain the mechanics for a program whose contributions default into an S&P 500 index fund. Shotwell thanked the Treasury, the IRS, the Dell Foundation, Greater Horizons, Invest America and the law firms Morgan Lewis and Gibson Dunn for “working over the past few months to make this happen.”
The transfer also works as a dry run for a far larger gift. On October 19, Musk said he would give one of his SpaceX shares to every kid in America next year and called it “the first of many.” With roughly 72 million children in the country, that pledge is worth about $10.5 billion. President Donald Trump thanked Musk the same day and said the shares would go through Trump Accounts, though neither SpaceX nor the Treasury has published how or when that distribution will happen.
Shotwell’s recipients also fill a gap in the program itself. Trump Accounts launched on July 4, and the $1,000 Treasury deposit only goes to babies born between 2025 and 2028. Teenagers aged 11 to 17 receive no government seed money, so for many of the families getting a notice on Monday, SpaceX stock will be the first asset in the account. The accounts convert into retirement accounts when the child turns 18.
News
Tesla Full Self-Driving becomes main pillar of new Referral Program
Tesla Full Self-Driving is now the centerpiece of the company’s newly revised Referral Program, which launched on October 29.
Instead of referring people to purchase vehicles and the referrer receiving $250 in Tesla Credit, the new program now incentivizes Full Self-Driving subscriptions.
If a Tesla owner is on an FSD trial and uses a referral code to subscribe to Full Self-Driving, the person whose Referral Link was used will receive one month of FSD (Supervised). Their code can be utilized 12 times per year, with January 1 marking the reset date.
Realistically, this means that if your Referral Code is used by 12 Tesla owners on an FSD trial, you will receive a full year of FSD for free.
🚨 Here is Tesla’s new Referral Program for Full Self-Driving (Supervised):
When someone subscribes to FSD using your link, you’ll get a month free. Up to a year of FSD is available to you for free!
If you’d like to use my link: https://t.co/g00IX9OCE3 https://t.co/GFBzEO2jjS
— TESLARATI (@Teslarati) October 30, 2026
The previous program made it pretty difficult to get referrals; buying a vehicle is obviously a much larger financial strain than subscribing to Full Self-Driving for a month.
Of course, the previous Referral Program also offered a tangible benefit: $250 in credits you could use on Service, Supercharging, or anything in the Tesla Shop. It truly could pay for someone’s travel for a year. It recently bought me a new backpack and a T-shirt.
However, this new program is much more attainable for those who do not have a massive online presence of a slew of friends in the Tesla community who will use the code and max out subscriptions for vehicle purchases.
Woke up to maxed out Referrals! Thank you guys, that’s awesome!
Share your referral link below so others can use it! https://t.co/kesbwTcoTV
— TESLARATI (@Teslarati) October 30, 2026
The Full Self-Driving suite will now be the keystone of the Referral Program, which makes it more inclusive and more fun for everyone with an awesome benefit.
It also gives the impression that Tesla is truly focused on FSD subscriptions, something that saw a tremendous increase in volume in Q3, as 75 percent of deliveries for the quarter came with an FSD subscription attached.
Full Self-Driving data is so instrumental to the suite’s improvement that this kind of program benefits Tesla as much as it does the consumer.



