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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.
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- A Tesla Energy/Solar City contractor’s vehicle spotted at the Boca Chica solar installation. (NSF /u/ bocachicagal)
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- As of last week, the solar installation appears to be nearly complete. (NSF /u/ Nomadd)
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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.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
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.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
