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SpaceX resurrects California Starship factory plan just one year after abandoning it
Just nine months after scrapping temporary Starship facilities built at a Los Angeles port, the company has unexpectedly reconsidered that decision, restarting talks to build a steel Starship factory in California.
In March 2018, nearly two years ago, the public first became aware of SpaceX’s plans to build a Starship factory in Port of Los Angeles. Begun while Starship was still known as BFR (Big Falcon Rocket) and designed to be built almost entirely out of carbon-fiber composites, the company’s first in-house effort to build its next-generation rocket began in an unassuming tent erected on port property around December 2017. Unintentionally foreshadowing the future of both Tesla Model 3 and SpaceX Starship production, that temporary tent was completed in just a month or two and officially began supporting BFR prototype production in April 2018.
In December 2018, CEO Elon Musk rebranded BFR as Starship and revealed that SpaceX would take the extraordinary step of redesigning the fully-reusable rocket to use stainless steel instead of carbon fiber. One year after SpaceX began building carbon fiber hardware, Musk moved quickly to make the radical move to steel permanent, literally scrapping its BFR prototype tent and abandoning its lease of a separate facility that was meant to host a more permanent composite Mars rocket factory in the near future. Now, almost exactly a year canceling its Port of LA factory, SpaceX has returned with plans to build and finish new port-based Starship production facilities just a few months from now.
Completed in September 2018, the closest SpaceX ever got to producing its 2017 BFR iteration was a large ring-like composite structure, also known as a barrel section. Measuring some 9m (30 ft) wide and 4-6m (12-20 ft) long, both 2016, 2017, and 2018 variants of SpaceX’s next-generation fully-reusable rocket would have been assembled from a number of similar components — all to be built out of carbon composites with giant mandrels (a bit like inverse molds).
While it’s more than likely that SpaceX could have managed the feat, building a reusable orbital spacecraft like Starship out of carbon fiber posed a vast array of challenges. When Musk revealed that SpaceX would move from carbon fiber to steel in December 2018, the CEO went into some detail to explain several of those challenges and why the major change was thus worth the substantial body of work it would force the company to scrap and redo from scratch.
The two biggest hurdles for BFR were quite simple. From a technical perspective, carbon fiber is dramatically less temperature-resistant than most metals (especially steel), meaning that despite it offering a much higher strength-to-weight ratio on paper, almost every inch of the spaceship and booster’s exposed surfaces would have to be insulated. For Starship, this would be exceptionally challenging given that the spacecraft must fundamentally be able to survive numerous orbital-velocity reentries with little to no refurbishment in between. While a steel Starship would still need a proper heat shield on its windward half, the other half of its steel hull could likely be almost entirely unshielded thanks to the fact that most steels remain structural sound at much higher temperatures.
Beyond the “delightfully counterintuitive” technical properties that could make a steel Starship as light or even lighter than the carbon composite alternative, Musk also noted that a huge motivator for the switch was the fact that the cutting-edge composites SpaceX would have to buy were incredibly expensive. In September 2019, Musk stated that composites would have cost some $130,000 per ton, whereas a ton of the stainless steel SpaceX is now using can be purchased for just $2500. In simpler terms, from a material cost perspective, steel Starships and Super Heavy boosters could cost an incredible 50 times less than their carbon composite twins.
Port Factory 2.0
For now, it’s unclear exactly what SpaceX foresees for Starship’s newly re-proposed Port of LA factory. The same primary constraint remains: there is still no affordable way to ship full-scale 9m-diameter Starship hardware by road. The most likely explanation for the resurrected interest in port facilities is that SpaceX still wants to keep some major aspects of Starship manufacturing within reach of California’s vast aerospace talent pool, as well as the company’s own California headquarters, situated just 20 or so miles from Port of LA.
At the same time, SpaceX probably has all the space it could possibly want at its Hawthorne, CA headquarters after a massive Triumph facility was recently vacated, meaning that any intentional expansion in Port of LA is probably motivated by the need to transport massive rocket parts from California to Texas and Florida. Daily Breeze also reports that “SpaceX would manufacture its…Starship spacecraft and…Super Heavy [booster] on the property” if it receives approval, seemingly implying interest in full-scale rocket production at its prospective port factory.
Regardless of whether SpaceX wants to build smaller Starship subcomponents (i.e. nose cones, header tanks, fins, plumbing, crew compartments, etc.) or complete spaceships and boosters, the company is seemingly far more eager to get port facilities in place, this time around. Specifically, SpaceX told a city council member that it wanted to get a Port of LA facility up and running just 90 days after it expressed new interest in the concept.
To do so, SpaceX will copy the methods used to create both Tesla’s General Assembly 4 factory addition and its own massive Starship production space in South Texas, relying on Sprung Instant Structures to erect a massive semi-permanent tent or two in an extremely short period of time. Unfortunately, because of how abruptly SpaceX abandoned its Port of LA factory lease, the company will have to repeat the permitting and environmental review process from scratch, making it very unlikely that it will be able to begin construction within the next month or two.
Regardless, SpaceX certainly remains as agile as ever. Stay tuned for updates on this surprise resurgence of plans for a Port of LA Starship factory.
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Tesla Full Self-Driving (Supervised) has taken yet another significant step forward in Europe. On May 29, Estonia became the third European Union country to approve the advanced driver-assistance technology, following approvals in the Netherlands and Lithuania.
Tesla Europe announced the news on X, confirming the expansion has continued across the continent that, at one time, seemed to be taking its sweet old time giving any approval to the FSD suite.
FSD Supervised now approved in Estonia🇪🇪. Rollout will begin soon pic.twitter.com/y5a64qlp5m
— Tesla Europe, Middle East & Africa (@teslaeurope) May 29, 2026
Estonia’s Transport Administration (Transpordiamet) granted the approval by recognizing the type certification issued by the Dutch vehicle authority RDW. This mutual recognition mechanism, enabled by EU regulations, allows other member states to fast-track deployment without repeating extensive local testing.
The Estonian authority noted that Tesla’s FSD had undergone rigorous evaluation on European roads for approximately 18 months before the initial Dutch approval in April 2026.
FSD Supervised remains classified as a Level 2 advanced driver-assistance system (ADAS). Drivers must maintain full attention, keep their hands on the wheel, and stay ready to intervene at any moment.
The system assists with tasks such as automatic lane changes, navigation through city streets, and responding to traffic objects, but it does not constitute full autonomy. Estonian officials emphasized this distinction, underscoring that safety responsibility lies entirely with the driver.
The rapid progression across the Baltic region highlights Tesla’s strategic approach to European expansion. The Netherlands provided the foundational type approval in April, unlocking doors for neighboring countries.
Lithuania followed swiftly in mid-May, with rollout beginning shortly thereafter. Estonia’s decision, coming just days later, demonstrates how smaller, digitally progressive nations are accelerating adoption.
Tesla owners in Estonia can expect an over-the-air software update in the coming weeks, bringing the latest FSD capabilities to compatible vehicles
This expansion builds on Tesla’s global momentum. FSD Supervised is now available in 11 countries worldwide, including the United States, Canada, Australia, and South Korea. In Europe, the approvals signal growing regulatory confidence in Tesla’s vision-based AI approach, which relies on cameras and neural networks rather than lidar or radar-heavy alternatives used by some competitors.
For Tesla, these European milestones are more than symbolic. They validate years of data collection and software iteration while opening new revenue streams through FSD subscriptions and purchases.
As the company continues refining its AI models with real-world miles from diverse driving environments, including Estonia’s variable winter conditions, the dataset grows richer, potentially benefiting global users.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Tesla Full Self-Driving expansion in Europe continues with new addition
Elon Musk strikes down reports on SpaceX IPO rumors
