SpaceX
SpaceX job posts confirm Starship’s Super Heavy booster will be built in Texas
A duo of SpaceX job postings at the company’s South Texas facilities have confirmed that both Starship and Super Heavy “flight article” vehicles will initially be fabricated and assembled on-site in Boca Chica, also implying that the rocket’s first orbital launch attempts will occur in the same vicinity.
Construction of the first massive Super Heavy booster could begin in Boca Chica within the next several months, presumably progressing in a similar fashion to Starship’s full-scale hopper prototype. According to CEO Elon Musk, Starhopper hop tests and Super Heavy construction could begin – respectively – as early as March and April 2019, perhaps just one or two months from now.
Where to build a giant rocket?
“Tank fabricators will work to build the primary airframe of the Starship and Super Heavy vehicles at the SpaceX South Texas build site. [They] will work with an elite team of other fabricators and technicians to rapidly build the tank (cylindrical structure), tank bulkheads, and other large associated structures for the flight article design of both vehicles.” – SpaceX, 02/15/19
Posted on February 15th, both open positions centered around structural assembly (i.e. welding) critical for the construction of the massive propellant tank domes, barrel sections, and other major structure of Starship and Super Heavy. Following an unanticipated pivot to stainless steel – rather than advanced carbon composites – as the primary structural material of choice for BFR, the project has been continually marked by a flurry of impressive technical progress at the same time as many previously foundational aspects became uncertain.
Most notably, SpaceX appeared to terminate a lease agreement it had held with the Port of Los Angeles for a large berth meant to be developed into a dedicated factory for BFR’s massive spaceship upper stage and booster, whose 9m (~30 foot) diameter would have been highly impractical to build somewhere that wasn’t either at the rocket’s launch site or directly adjacent to a port. With its headquarters in Hawthorne, CA (southwestern Los Angeles), SpaceX’s first choice was unsurprisingly the Port of LA, a location that would have allowed its 5000+ local employees to have seamlessly transferred to the BFR program without requiring highly disruptive relocations.
The source info is incorrect. Starship & Raptor development is being done out of our HQ in Hawthorne, CA. We are building the Starship prototypes locally at our launch site in Texas, as their size makes them very difficult to transport.
— Elon Musk (@elonmusk) January 16, 2019
Known as Berth 240, SpaceX’s lease began in March 2018 but was reportedly terminated in January 2019, likely meaning that the company will have to vacate the premises next month. While an official SpaceX statement and subsequent Elon Musk tweets relating to that report served to partially correct the record and confirm that “Starship prototypes” would be built locally in South Texas, Super Heavy was never mentioned. SpaceX’s latest job postings complete the image, indicating that all aspects of the first Starship and Super Heavy prototypes will be assembled in South Texas.
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Weighing just shy of 4.5 million kilograms (~10M lbs) fully-fueled and standing around 118m (387 ft) tall with both stages stacked together, BFR is a beast of a launch vehicle and will require wholly new methods of production and assembly thanks to its sheer scale and the extensive integration of stainless steel alloys into its design. Compared to SpaceX’s Falcon 9 rocket, which is by no means small, Super Heavy on its own could end up being 68m (224 ft) tall, just slightly shorter than a complete Falcon 9 with a booster, upper stage, and fairing (71m, 233 ft). Standing on its tripod fins, Starship stands around 55m (180 ft) tall, although all of these figures are liable to change, as they come from a September 2018 SpaceX presentation that occurred before Musk publicized the move to stainless steel.
Ask and you shall receive! Here's an image with the mighty #SaturnV compared to the @SpaceX's upcoming #Starship and #Superheavy stack! Really gives a sense of scale how truly massive the rocket will be! 🤯
This and many of my other renders are now also available at my shop! pic.twitter.com/qTscwzWyKF
— Kimi Talvitie (@kimitalvitie) January 12, 2019
Likely to remain unchanged is the diameter of Starship and Super Heavy: 9m (30 ft), roughly 2.5 times wider than Falcon 9’s booster and upper stage. Even more true for a 9m-diameter rocket also meant to rely on a partial implementation of stainless steel balloon tanks, transporting Starship and Super Heavy more than a few thousand feet horizontally is going to be an extraordinary challenge, although SpaceX’s Boca Chica facilities are conveniently located just a mile or less from the Gulf of Mexico. While road transport is entirely out of the question, Saturn V’s massive first and second stage boosters proved to be relatively easy to transport thanks to the production facility being directly adjacent to a large body of water (or a river to get there, in their case).
“For all their prodigious bulk, [Saturn V’s 33.0 ft (10.1 m) diameter first and second stages] could be transported with comparative ease via seagoing barges [from Michoud, Louisiana to Cape Canaveral, Florida].” – Roger Bilstein/NASA, p. 301
Assuming SpaceX chooses to assemble Super Heavy with the same vertical, outdoors approach, Boca Chica, Texas is going to be greeted by a view even more exotic than the already-impressive progress being made with Starship’s Starhopper prototype. CEO Elon Musk noted that he believed the first Super Heavy prototype would begin to be built this spring (as early as April). In the meantime, SpaceX continues to exploit the benefits of stainless steel whenever it can, utilizing the company’s wealth of Hawthorne, CA expertise and infrastructure to fabricate subassemblies that can easily be shipped by road or plane to South Texas. After arrival, Boca Chica-based employees or contractors can be tasked with the considerably less infrastructure-intensive work of final assembly and integration, a challenging and critical process but one that is at least slightly more setting-agnostic.
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- Local representatives were given tours of SpaceX’s Boca Chica facilities and work earlier this week. (Alex Dominguez – 02/10/19)
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- (Bobby Guerra – 02/11/19)
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- Aerospace-grade bubble wrap! (NASASpaceflight – bocachicagal)
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- Much like Falcon 9, Starhopper has begun to be outfitted with plumbing necessary to pressurize and fill its propellant tanks, among other things. (NASASpaceflight – bocachicagal)
SpaceX’s propulsion team continues to test the first full-scale Raptor engine a few hundred miles north of Boca Chica while Starhopper is gradually outfitted with a range of avionics, wiring, and plumbing needed for the vehicle’s hop test debut. That could come as early as March, according to Musk, although further delays should come as no surprise.
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SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
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SpaceX stock did the opposite of what most of Wall Street expected this week, when the day designed to be its most dangerous turned into a rally, and the rally kept going.
Thursday marked the first major lockup expiration since SpaceX’s June IPO, making roughly 911.5 million insider held shares eligible to trade for the first time, more than doubling the company’s public float. Analysts and short sellers had spent weeks bracing for a flood of selling, especially after the stock fell 13 percent following its first earnings report as a public company on Tuesday. Instead, shares rose 6.1 percent Thursday to close at $114.92, and by Friday they were trading near $129, up more than another 12 percent on the day.
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
The setup made the outcome notable. Short interest had climbed to roughly 34 percent of the float heading into earnings, among the highest of any large cap stock, with about 95 percent of available shares to borrow already on loan. CEO Elon Musk warned short sellers twice in the weeks before the lockup, writing on X that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” then following up on the morning of earnings with “I try to warn them, but they just double down.”
When the newly unlocked shares hit the market and the selloff never showed up, some of that short position appears to have started unwinding. TipRanks reported that options activity shifted toward bullish strategies like put selling and risk reversals following the rally, with roughly $600 million in options premium trading Thursday alone. Retail buyers also stepped in during the earnings dip, according to Vanda Research.
The fundamentals behind the stock have not changed much in a week. SpaceX’s revenue nearly doubled year over year to $7.8 billion, with Starlink subscribers doubling to 12 million and the company’s AI segment growing 247 percent. What spooked investors on Tuesday was the spending side. Capital expenditures jumped to more than $18 billion for the quarter, up from $2.8 billion a year earlier, with AI investment alone rising from $749 million to $15.8 billion. Wall Street remains split on whether that spending is building infrastructure SpaceX needs or outrunning what the business can currently support, a debate Teslarati has tracked since shares first came under pressure.
None of that resolves the bigger question hanging over the stock. Thursday’s release was only the first of nine staggered lockup tranches, with roughly $800 billion worth of additional shares scheduled to become eligible through October, and Musk’s own stake stays locked until next June. If this week is any indication, the market is treating that supply as something it can absorb rather than something to fear, at least for now.
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Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
