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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 (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla (NASDAQ: TSLA) reports its earnings for Q3 today. Here’s what to expect, as the company will reveal its balance sheet after the market closes on Wednesday.
Tesla already reported deliveries just after Q3 ended, and it demolished Wall Street consensus estimates of roughly 462,000 vehicles. Tesla delivered 486,532 cars in the third quarter, which was a big beat, but was down 2.1 percent from the same quarter last year. Energy storage deployments were 13.7 GWh, up year-over-year.
Tesla showrooms picked clean ahead of Q3 end as demand looks strong
For the quarter, analysts have already compiled their predictions for what Tesla will report this afternoon:
- Total Revenues: $28.34B
- Non-GAAP EPS: $0.43
- Operating Margin: 2.5%
- Operating Income: $721M
- Free Cash Flow: ~-$4.51B
Here are a few things we are looking forward to hearing about on the call:
Automotive Gross Margin and Overall Profitability
This was 16.3 percent in Q2, down from 19.2 percent in Q1, and was impacted by warranty charges and some fading regulatory credits. Consensus implies overall gross margin near 18 percent, but a miss here would potentially reinforce concerns about pricing pressure on its vehicles.
Pay attention to energy storage margins as well, especially since Tesla missed GWh expectations, although it was still a strong quarter.
Robotaxi/Cybercab, Unsupervised FSD, and Optimus Progress
The Say questions from retail investors usually focus on these types of projects, and this quarter is no different. Scaling the Cybercab fleet beyond Austin amid the open NHTSA safety review, timeline for Unsupervised FSD in customer cars, Robotaxi unit economics, and Optimus cost per unit plus when it could start generating revenue, are all things to be looking for.
Any concrete timelines or regulatory path details will likely move the stock more than the near-term numbers. SpaceX merger speculation, which was detailed during SpaceX’s earnings call last night, may also surface, although the key details were shared last night.
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Say Investor Questions
- How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?
- When can we anticipate FSD unsupervised in customer cars?
- When will the CyberCab be available for customer purchase/ownership?
- What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?
- Tesla has acknowledged that HW3 vehicles cannot support unsupervised FSD. When will owners know whether they can upgrade their hardware for free, and when will Tesla provide a clear plan?
The full Earnings Call will be streamed this evening after market close around 5 p.m. this evening.
SpaceX confirmed the date of Starship’s 15th launch window with some massive ambitions for the mission, as it will attempt to catch Ship for the first time.
CEO Elon Musk confirmed during SpaceX’s Earnings Call last night on October 20 that it would launch Starship for its 15th test flight in November, and there are some incredible things the company wants to try, making it perhaps the most groundbreaking launch in the program’s history.
SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms
The most major development of the call was SpaceX’s intention to catch Ship alongside catching the Super Heavy Booster, something that has happened in the past. SpaceX showed an animation of the Ship catch, which will be done on the launch tower’s chopsticks:
SpaceX has released a new Starship tower catch animation for the upcoming Flight 15! https://t.co/kStn01Da8u
— Truthful🛰️ (@Truthful_ast) October 20, 2026
This monumental goal is to catch both the Ship and Booster in a dual-catch scenario, an incredible feat since SpaceX has never been able to reuse a Ship after launch. Musk said it would be “the first time that an orbital launch vehicle has been fully recovered,” and said it would be a “profound technology milestone.”
Musk said the odds of success on this first Ship catch attempt are “more likely than not,” but SpaceX is ultimately prepared for more tries moving forward. The SpaceX frontman said that, starting next year, Starship would have a “steady stream” of flights through the end of the year.
The cadence will accelerate in 2027, with Musk stating the company plans to target weekly flights in the first half of 2027 and twice-weekly by year-end.
The Flight 15 attempt follows that of Flight 14, which took off in late September and was Starship’s first orbital mission. It deployed 26 Starlink V3 satellites, accomplished a controlled ocean splashdown of both stages, and shed more light on potential challenges for the program moving forward.
As of now, the Starship program is firing on all cylinders.
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
Tesla reports Q3 Earnings today: here’s what to expect
