News
SpaceX Falcon Heavy testing delayed after government shutdown
As the U.S. Senate’s majority party searches for ten additional votes in order to end a federal government shutdown that began late Saturday, all “non-essential” activities at the country’s numerous government-operated space launch facilities have ground to an immediate halt and will remain in limbo until a funding bill compromise is hammered out.
While SpaceX is a wholly private space launch company, it relies almost unilaterally upon launch support and range expertise provided by NASA and the US Air Force, both in Cape Canaveral, FL and Vandenberg, CA. Sadly, the Air Force personnel SpaceX depend upon to conduct launches, static fires, and other ignition tests at its launch pads are not considered “essential” under regulations that prevent the federal government from coming to a complete halt in the event of a funding-related shutdown.
Unfortunately, a budget agreement wasn't reached, resulting in a gov't shutdown. This will unfortunately disrupt the lives and operations here at Patrick AFB. Go to https://t.co/yvmNBH1LMy for info on the current shutdown, impact on base resources, & financial resource options.
— Space Launch Delta 45 (@SLDelta45) January 20, 2018
SpaceX did appear to complete the most thorough round of Falcon Heavy testing yet late Saturday evening, the US Senate’s failure to either pass a continuing resolution or a new funding bill for the fiscal year led to a complete federal government shutdown soon after. As a result, nearly all of the US Air Force’s 45th Space Wing – a crucial backbone of East coast range and launch operations – was furloughed indefinitely, pending new funding from Congress. SpaceX had previously requested a new static fire date for Falcon Heavy on Monday, January 22 (today), a date that is now clearly going to move right for at least as long as the government lacks funding for basic launch operations.
Thankfully, activities like the extensive propellant loading tests that occurred on Saturday night do not technically require range support, so long as no engine ignition or static fire components are included. In the event of a catastrophic failure, the government-run range would be tasked with ensuring the safety of those in the vicinity and coordinating the emergency response that would immediately follow. This policy is brought somewhat into question by the failure of Amos-6 – although that Falcon 9 was being prepared for a static fire test, its highly-destructive failure is understood to have occurred at least five or more minutes before the planned point of ignition. Nevertheless, SpaceX will be able to continue some level of testing with Falcon Heavy, if needed.
Elsewhere, instability
While SpaceX’s Falcon Heavy has undoubtedly garnered magnitudes more eyeballs than the company’s Falcon 9 activities, the government shutdown could be far more consequential for SpaceX’s customers if it cannot be halted within a handful of days. A federal shutdown lasting several days is a hugely disruptive and damaging event on its own, lack of range support on the East coast could quickly begin to eat into SpaceX’s GovSat-1 preparations, the launch of which is targeting NET late January/January 30. For GovSat-1’s flight-proven booster, a static fire at the launch site is unlikely to be bypassed (SpaceX has never skipped a prelaunch static fire), and would typically occur no fewer than four or five days before launch. As a result, in the somewhat unlikely event that the shutdown stretches beyond the next several days, SpaceX customers SES and GovSat could see their launch delayed, an event that would likely bring financial consequences to the public-private satellite venture.
Looking slightly farther into the future, SpaceX’s flight-proven launch of PAZ and two of its own prototype communications satellites is just about two weeks away from its own static fire test, this time at the West Coast’s Vandenberg Air Force Base. Such an extended shutdown would be utterly unprecedented, but if 2017 and 2018 have done anything at all, they’ve tempered tendencies towards knee-jerk claims of “that’ll never happen!”
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- A panorama of LC-39A in November 2017. (Tom Cross/Teslarati)
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- SpaceX’s Vandenberg launch complex, SLC-4E, depends upon an Air Force range to operate. (SpaceX)
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- LC-40, located in Cape Canaveral Air Force Station, is SpaceX’s second pad. (Tom Cross)
Here’s to hoping that Congress can get their act together and return to those they represent the bare minimum of federal stability, for both federal employees and those that depend upon them.
Update: After a solid two days of shutdown, the Senate has apparently reached an agreement to pass a continuing resolution that will maintain funding for another three weeks, after which a new FY2018 budget must be passed to avoid another shutdown. While this thankfully means that the impact to the Space Coast and the Air Force’s 45th Space Wing should be relatively small, I have left my above thoughts on the potential impacts of a longer shutdown untouched for posterity.
Senate has voted on an amended bill to fund U.S. government for 3 weeks. Bill now heads back to the House for debate & vote. If it passes the House without changes, the President then needs to sign it into law. Once all those things happen, the government reopens. Then… 1/2
— Chris G (@ChrisG_SpX) January 22, 2018
Follow along live as launch photographer Tom Cross and I cover these exciting proceedings as close to live as possible.
Teslarati – Instagram – Twitter
Tom Cross – Instagram
Eric Ralph – Twitter
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’
