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SpaceX contemplates Mars rocket factory on the South Texas coast
In statements provided to the Brownsville Herald, a Texan paper dedicated to a South Texas region that includes SpaceX’s Boca Chica launch site, state representative René Oliveira hinted that SpaceX’s plans for the region could go “well beyond conducting launches.”
SpaceX and South Texas
The Herald’s Steve Clark provided a great summary of the history between SpaceX and Texas in recent years, particularly related to the company’s efforts to construct a launch facility in the region. Aside from a considerable effort to create a sturdier foundation for the pad along the sandy, shifting shoreline of Boca Chica, Texas, the company’s work in the region has been rather quiet since the prospective pad’s announcement in 2014. Through a combination of tax incentives and a direct cash infusion, the state of Texas and the Rio Grande Valley region have both in some way strived to strengthen their relationships with SpaceX and solidify the iconic group’s presence in the region.
For Brownsville and Boca Chica, in particular, the latter of which has a population well under 100 individuals, SpaceX’s permanent presence would be a massive boom for the local economy by bringing an infusion of dozens or potentially hundreds of skilled, full-time positions to the quiet region.
In recent months, SpaceX has been very gradually progressing development of facilities around their potential launch site, albeit not the pad itself. These changes include a nearly complete public-private radio communications facility intended to both give college students hands-on experience and communicate with SpaceX’s Crew Dragon capsule as early as late 2018. Intriguingly, a Tesla energy installation has also been recently spotted at the facility.
Finally, a vast crane has been semi-permanently stationed on SpaceX property and had a corrugated shed build around it to protect it from the elements and SpaceX stalking fans in the region.
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- Tesla Powerpack battery storage unit being installed at SpaceX’s facility in Boca Chica, Texas [Credit: Nomadd via NASASpaceFlight.com Forum]
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- The boom of a giant crane (possibly meant for BFS) seen in late 2017, parked at SpaceX’s Boca Chica facilities. (Reddit /u/ ticklestuff)
More than just a launch pad?
State Rep. Oliveira’s statements can be seen in full below.
“About a year ago, SpaceX came to me with their concept of a new, larger, expanded plan for Boca Chica Beach,” Oliveira said. “The concept went well beyond conducting launches, and would require new commitments for construction, investment and jobs to support the new operations.”
“We looked at the original plan for the launch site, and the chain of work that would be done inside and outside on the rockets that would take off from Boca Chica. The concept SpaceX is examining would bring a lot of that work to Boca Chica, going well beyond the original plan.”
He [State Rep. René Oliveira, D-Brownsville] declined to reveal the details of the new concept for Boca Chica, saying it’s up to SpaceX to detail its plans and associated costs when it makes a request to CCSDC to apply for funding.
The timing of SpaceX concept, reportedly presented to Oliveira in late 2016 or early 2017, strongly indicate that the rocket company is considering a considerable expansion of their aspirations for the South Texas facilities under construction. Partly based on Oliveira’s suggestion that SpaceX and Brownsville “looked at…the chain of work” necessary for rockets to launch Boca Chica, the most obvious conclusion available is that SpaceX is thinking about developing Boca Chica into a veritable rocket city.
A Falcon 9 conducts tests at SpaceX’s McGregor testing facility in central Texas. (SpaceX)
A major problem facing SpaceX’s Mars rocket (BFR) program is dealing with the vehicle’s sheer size, 9m (30 feet) in diameter and at least as tall as Falcon 9. This size would make transporting the vehicle cross-country by road all but impossible, potentially forcing the company to abandon a bulwark of their current Falcon manufacturing strategy. The most obvious solution, as discussed briefly by CEO Elon Musk and President Gwynne Shotwell, would be to build a rocket factory where the launch pad is located. Boca Chica is thus almost certainly a prime location under SpaceX’s consideration for both the launch complex and factory needed to build and operate BFR. And this argument has been strengthened in recent months by statements from both executives hinting that prototype BFR spaceship (BFS) tests could begin in South Texas as soon as early 2019.
To say that the creation of such a manufacturing and launch infrastructure would transform the region would be an understatement. The sheer shock value of a small city being able to lay claim to the only private orbital launch complex in the US would be valuable in its own right, not to mention the distinct possibility that such a facility might one day launch the first humans to Mars. If the educated speculation above is, in fact, the truth of the matter, SpaceX can be expected to begin earnestly petitioning the local and state governments for additional public funds to partially support the major undertaking. Most importantly, the company would almost certainly need to procure an updated or wholly new environmental impact assessment from the FAA before being allowed to begin construction beyond the scope of the original 2014 grant.
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Tesla stock (NASDAQ: TSLA) endured one of its sharpest single-day declines in years on July 23, tumbling approximately 14.5 percent and closing near $320 after opening the session around $374. The drop erased more than $140 billion in market value amid heavy trading volume and left the shares at multi-week lows.
The sell-off followed the company’s second-quarter 2026 results, released the previous evening. Tesla reported record revenue of $28.2 billion, up 26 percent year over year, driven by a Q2-record 480,126 vehicle deliveries. Energy storage deployments also rose strongly.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Yet profitability disappointed sharply. Operating income fell 57 percent to $398 million, compressing the operating margin to just 1.4 percent. Non-GAAP earnings per share came in at $0.33, well below the roughly $0.53 analysts had expected. Free cash flow turned negative by $1.1 billion as capital expenditures surged 142 percent to $5.8 billion, largely tied to accelerated spending on artificial intelligence, robotics, and autonomous systems.
The losses on capex were expected, as Tesla said it would be spending heavily in 2026.
Investors also reacted to lingering uncertainty surrounding key product timelines. During the Earnings Call, management reiterated ambitions for Robotaxi deployment and the Optimus humanoid robot, but offered limited new concrete milestones, renewing questions about execution pace that have long accompanied Tesla’s ambitious roadmap.
The magnitude of the decline places it among Tesla’s more severe one-day percentage losses since its 2010 initial public offering. Historically, the two largest single-day drops (split-adjusted) remain September 8, 2020, when shares fell 21.1 percent amid broader market volatility and valuation concerns, and January 13, 2012, with a 19.3 percent plunge during the company’s early growth struggles.
Other notable declines include an 18.6 percent drop on March 16, 2020, at the onset of pandemic-related market turmoil. Thursday’s move ranks roughly ninth on the all-time list but stands out as the steepest in more than a year.
Despite the short-term pain, Tesla’s long-term trajectory has repeatedly recovered from such volatility. The latest results underscore both the strength of its core automotive and energy businesses and the near-term costs of heavy investment in next-generation technologies.
Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.
Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.
Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.
Delaying the approval of FSD in France will cost lives
— Elon Musk (@elonmusk) July 22, 2026
While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.
Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.
Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.
Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.
France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.
Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.
In a striking revelation that underscores the lucrative crossover between Big Tech and space exploration, Alphabet Inc., Google’s parent company, disclosed a massive $94.1 billion equity stake in SpaceX following the rocket company’s blockbuster initial public offering earlier this year.
The disclosure came in Alphabet’s quarterly filing, marking the first time the long-held private investment has been publicly valued at market prices. Google was an early backer, investing alongside Fidelity in 2015 with roughly $500-900 million at a time when SpaceX was valued around $12 billion.
That bet has delivered extraordinary returns, roughly a hundredfold, transforming a strategic play on satellite internet and launch capabilities into one of Alphabet’s largest assets.
Google, $GOOGL, has said they hold $94 billion in SpaceX, $SPCX, shares after IPO.
— unusual_whales (@unusual_whales) July 23, 2026
Of the total holding, approximately $80 billion remains subject to short-term post-IPO lockup restrictions, preventing near-term sales. An additional $14.1 billion faces longer-term restrictions, extending into the third quarter of 2027. This structure limits immediate liquidity but protects against market volatility as SpaceX transitions into public trading.
The SpaceX position contributed significantly to gains in Alphabet’s broader investment portfolio, which also includes a major stake in AI leader Anthropic. Combined, these holdings helped drive nearly $100 billion in investment gains during the second quarter, providing a substantial boost to net income amid ongoing AI spending pressures.
Analysts view the disclosure as validation of Alphabet’s venture strategy beyond its core search and cloud businesses. The investment aligns with deeper ties, including reported multi-billion-dollar deals for AI computing capacity on SpaceX infrastructure. As SpaceX advances Starship flights, Starlink expansion, and ambitious Mars goals under Elon Musk, Google’s stake positions it to benefit from the commercialization of space.
For Alphabet, the windfall highlights how patient, forward-looking bets in transformative sectors can yield outsized rewards. While lockups temper short-term impact, the holding cements SpaceX as a cornerstone of Alphabet’s diversified portfolio in an era where aerospace, AI, and connectivity increasingly intersect. Investors will watch closely as restrictions lift and SpaceX’s public performance unfolds.
Tesla stock tumbles after earnings, one of its sharpest single-day declines
Elon Musk is not happy about this Tesla Full Self-Driving approval delay
