News
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.
-
- Tesla Powerpack battery storage unit being installed at SpaceX’s facility in Boca Chica, Texas [Credit: Nomadd via NASASpaceFlight.com Forum]
-
- 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.
Teslarati – Instagram – Twitter
Tom Cross – Twitter
Pauline Acalin – Twitter
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’
