News
SpaceX could begin testing its Mars rocket in Texas by late 2018, early 2019
On the heels of a successful wet dress rehearsal for Falcon Heavy, SpaceX’s President and COO Gwynne Shotwell spoke briefly about SpaceX for an aerospace conference located at Texas’ Academy of Medicine, Engineering & Science. Ars Technica’s senior spaceflight editor Eric Berger was in attendance and provided a rough outline of live tweets during the first group of presentations.
While the phrasing cannot provide absolute confirmation, Berger summarized a statement by Shotwell suggesting that SpaceX’s Boca Chica, Texas launch site, currently in the early stages of construction, could be ready to host “vehicle tests” as soon as late 2018, early 2019. At this point in time, based on comments from Shotwell and CEO Elon Musk, it can be reasonably assumed that SpaceX’s Texas launch facilities will be dedicated mainly to the company’s interplanetary colonization efforts, and will probably be tailored to support the testing and eventual launches of BFR/BFS.
Some news from Shotwell: Brownsville launch site ready for vehicle tests in late 2018, early 2019. Move to launch site after that.
— Eric Berger (@SciGuySpace) January 11, 2018
After nine months of earnest construction and rehabilitation, SpaceX’s LC-40 pad was recently reactivated and has since supported two launches without any major hitches. At the same time, LC-39A in flux in order to support launches of SpaceX’s new Falcon Heavy rocket, the size of which required some concomitant upgrades to multiple ground systems. With both of those major tasks now effectively complete, SpaceX’s pad construction team is free to either refocus their efforts towards Boca Chica. Over the past several months, Boca Chica has seen a gradual but consistent level of development, mainly by way of unaffiliated SpaceX contractors. These changes have been dutifully tracked over the last several years on NASASpaceflight.com forums by a handful of friendly local residents interested in the changes coming to Boca Chica and Brownsville, Texas, a nearby town.
SpaceX’s Boca Chica facilities and STARGATE dishes (center-left) seen at sunset from the top of the giant crane garage. (anonymous Instagram user)
Most significantly, the last several months have seen three major developments. First and most prominently, a permanent facility called STARGATE externally appears complete and its two large radio communication dishes have been installed nearby. The STARGATE facility is a public-private partnership between the University of Texas at Brownsville (now part of University of Texas Rio Grande Valley) and SpaceX, with the academic components focusing on research that SpaceX undoubtedly has interest in: improved orbital spacecraft tracking and communications. Operationally, SpaceX will use the facilities to communicate with and operate its Crew Dragon spacecraft during launches, set to begin with an uncrewed demonstration mission as early as August 2018.
Second, an absolutely massive trolley crane appeared on SpaceX’s land and was eventually housed in an apparently purpose-built shed. The crane dwarfs anything currently used at SpaceX’s launch facilities and is almost certainly a custom-ordered piece of equipment, and thus would be both expensive and explicitly purposeful. What that purpose might be is currently unknown, but it is entirely plausible that the crane is intended to support initial testing (or even limited manufacturing) of SpaceX’s first BFS prototype rockets. This speculation has now been strengthened by Shotwell’s January 11 2018 comment on potential “vehicle tests” occurring at the site within a year or so, and also meshes with a presentation she gave in October 2017 at MIT. It also fits with Elon Musk’s 2017 IAC comments that BFR construction tooling and facilities were respectively already ordered and under construction.
The boom of the giant crane seen in late 2017, parked at SpaceX’s Boca Chica facilities. (Reddit /u/ ticklestuff)
Third and last, the aforementioned SpaceX-following locals observed the early stages of a solar power install beginning on some of SpaceX’s Boca Chica land in late 2017, and also noted that at least some of its contractors were part of Tesla Solar. Plans and permits for solar power were acknowledged as far back as 2014, although at that point the contractor was Solar City (now a part of Tesla). A handful of months later, NASASpaceflight user and all-around awesome guy Nomadd has installed a webcam on a tall pole with a wonderful view of both the solar installation (now nearly completed) and STARGATE. The acre of solar panels can be expected to produce as much as half a megawatt (MW) at peak sun, likely more than enough to offset a considerable amount of the facilities’ electricity usage even after it begins to be see serious use.
-
- A Tesla Energy/Solar City contractor’s vehicle spotted at the Boca Chica solar installation. (NSF /u/ bocachicagal)
-
- As of last week, the solar installation appears to be nearly complete. (NSF /u/ Nomadd)
Originally announced as an additional Falcon launch facility in 2014, Boca Chica has remained relatively dormant over the last three years, and it is truly exciting to see activity ramping up. There are admittedly significant barriers that will prevent SpaceX from effortlessly repurposing its Boca Chica pad for BFR, a much larger rocket. If SpaceX intends to do that, they will almost certainly need to pass a significantly updated FAA environmental impact review and account for any remediations that might be required. Still, that is a small ask for for Brownsville’s local government and Texas as a whole, both of which have clearly enjoyed and begun to benefit from SpaceX’s presence in the otherwise unknown area. SpaceX is unlikely to give up on Boca Chica in the near term, so long as Ms. Shotwell maintains her belief that it is effectively the perfect location for BFR launches.
Overall, Shotwell’s comments over the last several months and today in particular are increasingly encouraging, and things are likely to only speed up as 2018 progresses, allowing SpaceX to focus more and more of its expertise on BFR, BFS, and its South Texas testing and launch facilities.
Full disclosure: As Shotwell did not specify which vehicle or vehicles could be expected to begin testing in 2018/2019, it is possible that Falcon 9, not BFR, was the statement’s target. This article should be taken with a grain of salt, as it is educated speculation based upon public information from SpaceX executives and Texas contractors. Teslarati reached out to SpaceX for additional information, but the company was unable to comment further on Shotwell’s presentation at the moment.
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
