News
SpaceX’s Florida Starship shown off in aerial footage as Texas prototype grows rapidly
Local amateur photographer and spaceflight fan Michael Tapes has graciously shared a new aerial view of SpaceX’s Florida Starship facility, where dozens of workers can be seen buzzing around what is hoped to become the first orbital-class prototype of the massive spaceship and upper stage.
Tapes’ aerial footage offers a unique look at the layout of SpaceX’s Florida site as of July 9th, illustrating just how active and expansive it is. Some workers can be seen building something (perhaps preparing a new worksite) under a large, white tent, while another group surveys two large Starship segments and a third works to prepare new stainless steel ring sections. Of note, those two large Starship segments appear to be bereft of any obvious activity, perhaps a consequence of a fire that caused about $100,000 in damage the day prior (July 8th).
In fact, the shipping container that took what looks like the entirety of fire-related damage is visible on the west side of the SpaceX facility’s main hangar. Workers could be seen heading inside the extremely scorched container, likely removing debris, cleaning up the site of the incident, and preparing to scrap the damaged container itself.
Thankfully, nobody was injured by the fire and ~$100K of damage is certainly an inconvenience but is definitely nothing more for a multibillion-dollar company like SpaceX. Given that dozens of vehicles are visible in the parking lot, it’s safe to say that tons of work is ongoing under the roofs of the site’s many covered buildings, potentially designing Starship/Super Heavy, working on the rocket’s first orbital-class thrust structures, building new steel ring segments, and much more. With any luck, work on orbital Starship assembly and integration has already resumed following the small July 8th fire.
Star(ship) Wars
Speaking of that work, prior to the last week or so of progress on SpaceX South Texas’ own orbital Starship prototype, both Florida and Texas appeared to be more or less tied with two large Starship segments each and various other 9m-diameter subsections spread around their respective facilities. Impressively, Boca Chica has been marked by a flurry of recent work as multiple in-process steel rings were stacked on top of the Texas Starship’s propulsion and tankage section.
In just the last two weeks of June, workers thus pushed through the brutal South Texas heat and humidity to stack three new sections of fuselage, literally doubling the height of Boca Chica’s (hopefully) orbital-class Starship prototype in a dozen or so days. The ship’s conical nose section continues to be polished, while some sort of additional work is likely going on inside, away from public view. It’s hard to get a good overhead view but it’s safe to assume that – in the large barrel sections both in Florida and Texas – technicians are working to install (or at least prepare for) stainless steel tank domes, one of the last major finishing touches for spacecraft’s tank sections.
A huge amount of work remains for both sites but the visible progress as new ship segments are stacked and welded together is undeniably cathartic and satisfying. Working 10-12 hour shifts exposed to the Texas and Florida summer sun, heat, and wildlife is in no uncertain terms bound to be a hellish experience, but at least the hard work is so obviously producing results.
The most exciting kind of grass-watching
Back in Florida, several additional Starship barrel sections are in various stages of work, at least two of which appear to be nearly ready for stacking atop the propellant tank section already being assembled. Meanwhile, propellant tank domes were spotted in different stages of fabrication inside the Florida facility’s main hangar-cum-production-line, awaiting their turn to leave the building and prepare for installation on Starship East.
All said and done, once those visible segments are installed, Starship East will (at least by appearances) be neck and neck with its Texas sibling once more. In reality, there is likely no actual race between the two sites and they are reportedly sharing any critical discoveries and lessons-learned. Nevertheless, humans are notoriously competitive and one can only begin to imagine the (hopefully friendly) rivalry forming between the geographically distinct teams.
At the same time, SpaceX’s Florida team has several home-field advantages, so to speak, owing to their proximity to the several hundred SpaceXers working at the company’s Florida launch facilities and recovery fleet. Additionally, Florida’s Starship facility is just a few dozen miles away from SpaceX’s Kennedy Space Center Pad 39A, the most likely site of Starship’s (and Super Heavy’s) first suborbital and orbital launch attempts.
At the end of the day, a little friendly internal competition and – more so – a literal Starship A/B test are bound to be a huge benefit for SpaceX’s next-gen launch vehicle program, significantly increasing the speed at which the company can make mistakes, solve problems, and get Starship ready for orbit.
Check out Teslarati’s Marketplace! We offer Tesla accessories, including for the Tesla Cybertruck and Tesla Model 3.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s dedicated factory for building up to ten million Optimus units is officially under construction at Gigafactory Texas.
Drone footage released on May 27 by Giga Texas observer Joe Tegtmeyer captures the significant milestone of the first steel structure officially standing at Tesla’s new Optimus factory on the North Campus of the facility.
Phase two of land reclamation is advancing steadily, and the progress will let the new building extend nearly the full length of the main Giga Texas factory, potentially exceeding 4,000 feet, while measuring somewhere between 50 and 70 meters narrower. Extensive foundation work is proceeding as well.
Big news at the new Optimus 10m/y factory construction site today! The 1st steel structure has been erected & as expected the second phase of land reclamation is underway.
This will allow this new factory to grow to nearly the same length as the main Giga Texas factory,… pic.twitter.com/FidRLV6XpU
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) May 27, 2026
This facility forms a central element of Tesla’s broader North Campus expansion at Giga Texas. The project will add more than 5.2 million square feet of new industrial space. It sits alongside other advanced developments, including a Terafab for next-gen AI chips. The scale reflects Tesla’s commitment to transforming humanoid robotics into a core pillar of the company’s future.
Musk has said that Optimus will be the biggest product in the world on several occasions. He believes it will be Tesla’s biggest valuation contributor.
Tesla prepares to expand Giga Texas with new Optimus production plant
Tesla plans to build about 10 million robots at the site annually once it is completed, which would be about 27,000 units each day.
The Optimus plant at Giga Texas is part of Tesla’s phased strategy for Optimus manufacturing. In an effort to start production of the robot well before the Giga Texas plant is complete, Tesla ended production of the Model S and Model X vehicles, which were built in Fremont, California, to make way for initial Optimus manufacturing efforts.
Production there will start in either July or August of this year, and early units will support internal factory tasks while the team gathers real-world data to refine processes. The Gigafactory Texas facility will house a second-gen production line. It targets high-volume output starting in Summer 2027.
Musk has repeatedly described Optimus as potentially more valuable than Tesla’s entire vehicle business. Current versions are already completing minor tasks around various facilities, while Tesla continues to refine its abilities and add new features.
Tesla’s total investment could reach several billion dollars. Significant challenges lie ahead, including the creation of an entirely new manufacturing ecosystem, the refinement of AI systems for dependable autonomy, and the development of reliable supply chains for actuators, sensors, and other components.
Nevertheless, the visible progress at Giga Texas highlights Tesla’s capacity to translate ambitious concepts into physical reality.
Tesla’s Optimus factory stands as much more than a simple expansion project, as it is quite literally the second phase of what could potentially be the biggest product ever. With construction beginning, 2027 is poised to become a transformative year for Tesla, as it evolves even further from an electric vehicle leader into a pioneer of intelligent, general-purpose machines.
The Tesla and SpaceX merger everyone is talking about is quietly building
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
