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SpaceX execs bullish on BFR as Mars rocket test facilities expand in Texas [photos]
Aerial observations of SpaceX’s McGregor, Texas testing facilities on April 17 revealed an unusually frenetic level of construction and expansion centered around Raptor – the rocket engine intended to power BFR and SpaceX to Mars – and a new test-stand, the purpose of which is currently unknown.
With a minimum of 1200 seconds of hot-fires under its belt, SpaceX’s Raptor propulsion program is likely rapidly approaching the end of what is best described as the experimental phase of testing. While this has not been communicated by SpaceX, it is a logical conclusion following several recent developments. Namely the true beginning of BFR test article fabrication and an impressively bullish level of commitment and confidence in the fully reusable launch system demonstrated in the last few months alone by CEO Elon Musk and President/COO Gwynne Shotwell. While Musk is infamous both within and beyond his companies for painfully impractical development timelines, he demonstrated some level of growing consciousness of that fallibility at 2018’s SXSW, stating that he was working on recalibrating his expectations. Without taking a breath, he reiterated his anticipation for short hop tests of the first full-scale spaceship prototype in the first half of 2019.

SpaceX’s three-bay Raptor test stand as of April 17. The middle bay is currently home to the subscale Raptor test program. (Aero Photo)
While anyone familiar with Musk’s timeline antics may roll their eyes and laugh, far more shocking was Shotwell’s sudden pivot towards a new sense of optimism for the BFR program. At Satellite Conference 2018, the typically reserved and pragmatic executive confirmed beyond any doubt that she had become aggressively bullish on the Mars rocket, stating that she believed the spaceship would be ready for suborbital testing in 2019, while the booster-spaceship system could potentially reach orbit by 2020. Musk and Shotwell’s suggestion that BFR’s first suborbital testing – akin to an extreme version of SpaceX’s Grasshopper and F9R programs – is expected to begin in 2019 meshes well with a recent explosion of activity at Port of San Pedro in Los Angeles, CA, thanks to a combination of land acquisition, successful bureaucracy-wrangling, and the first hints of construction and BFR production. It’s highly unlikely that SpaceX would have chosen to temporarily move BFR prototyping into a giant tent on abandoned dock space rather than waiting for port and city approvals for their permanent port factory if they were not keen on moving full speed ahead with the fully reusable launch vehicle’s development.
SpaceX has completed over 1,200 seconds of firing across 42 main Raptor engine tests. pic.twitter.com/EhxbPjd8Cj
— SpaceX (@SpaceX) September 29, 2017
SpaceX’s Director of Real-Estate Bruce McHugh was less confident when he spoke before Port of San Pedro’s board of commissioners on April 19, although all in attendance expressed a huge amount of excitement at the increasingly likely prospects of a huge SpaceX rocket factory materializing in their neighborhood. Local contractors, economic development representatives, and many other community members were eager for the approval and permitting process to finish up, after which SpaceX is characteristically likely to begin demolition and construction in earnest at Berth 240, the prospective site for the company’s first dedicated BFR factory.
Early phases of in-house BFR structures prototyping is taking shape behind the flaps of a custom-ordered temporary tent, something like 60m long, 30m wide, and ~15m tall at the highest point – half an acre of eccentric but functional space for Mars rocket R&D, in other words. The primary benefit of these facilities’ dock-side locations is the minimization of the transportation hell that SpaceX would have had to suffer through to transport 9m-diameter rocket hardware through downtown Los Angeles – feats that would cost as much as $2.5 million one way each time components had to be moved from the Hawthorne factory to the Port of LA, where it would be finally shipped to Texas or Florida.
- SpaceX’s first major BFR and BFS fabrication tooling, likely being stored temporarily in a tent at Port of San Pedro. Note the tent framework at the top. (Elon Musk)
- Just a casual line of car-sized steel segments hanging around outside the BFR tent. (Pauline Acalin)
- It’s understood that SpaceX will eventually move this work to Berth 240 once more permanent facilities are constructed. (Pauline Acalin)
- SpaceX’s BFR tent and mandrel, caught on April 14th. (Pauline Acalin)
Speaking at a private talk given to MIT campus members in October 2017, attendees reported that Shotwell stated that although “[BFR’s] composite tanks [would] be a challenge [for SpaceX],” the company was already working on maturing the technologies required, and also noted that SpaceX was “building a larger [version of] Raptor right now.” Half a year later, outsiders have heard nothing of any additional carbon composite propellant tank testing at the new 9m diameter, but the existence of custom-ordered (i.e. very expensive and specialized) composite fabrication tooling of the same diameter as BFR effectively guarantees that SpaceX has settled upon and is confident in its approach to manufacturing the massive composite tankage and structures. Along with a similar line of thought, expensive tooling with a fixed diameter also indicates – albeit with less certainty – that the vehicle’s Raptor propulsion system is not expected to change significantly as BFR marches closer to suborbital and orbital testing. Raptor, in other words, is probably considerably more mature than SpaceX’s composite tankage expertise, itself fairly advanced given the mandrel and additional fabrication tooling already present at Port of San Pedro.
And yet, Shotwell’s most telling display of confidence occurred just a handful of days ago at the TED2018 conference. In a lengthy and fairly well-orchestrated interview with the session’s host Chris Anderson, Shotwell repeatedly and happily made comments indicating that she has become extremely bullish on BFR and BFS in the last several months. In her opinion, BFR (and point-to-point Earth transport) will be deployed “within a decade, for sure.” Prices would nominally be “between business and economy,” or a few thousand dollars per person. Speaking on the trip from Earth to Mars, she estimated a three-month journey with BFR Block 1, “but [SpaceX is] gonna try to do it faster.” She further confirmed that SpaceX intends to build much larger BFRs, meshing with Elon’s suggestions that 2016’s ITS concept is now perceived internally as a sort of BFR Block 2. Perhaps most importantly, she qualified her timeline estimates as “Gwynne-time” when Anderson jokingly deadpanned about the infamous Elon-time. Overall, Shotwell came across as more bullish than she has ever been before on BFR’s development and future prospects, including both point-to-point transport on Earth and crewed missions to the surface of Mars – both of which she expected to begin “within a decade, for sure.” Smirking, she quipped that she was “sure Elon would want us to go faster.”
- BFR heads to orbit in an updated overview of the Mars rocket. (SpaceX)
- Note the 2017/early-2018 variant’s single delta-wing and extendable leg pods (silver). (SpaceX)
- According to Hans Koenigsmann, this vision may actually be incompatible if NASA and the US government are given too much control. (SpaceX)
Not one to end on a quiet note, the typically pragmatic executive finished by describing how she believed that spreading human presence throughout the Sol System was only “the first step [towards] moving to other solar systems and potentially other galaxies; I think this is the only time I ever out-vision Elon.” Interstellar travel and faster-than-light propulsion aspirations aside, Shotwell’s comments mark a fairly incredible shift in attitude toward SpaceX’s far loftier ambitions. Musk seems to be working to recalibrate his timelines to be less naive at the same time as Shotwell’s confidence is steadily growing – the two executives, in other words, appear to be rapidly converging upon a middle ground of pragmatic optimism (that or Musk-time is contagious!).
- Raptor’s McGregor, TX engine test bays are seen here in April 2018. A subscale Raptor prototype is visible in the center bay. (Aero Photo/Teslarati)
- A new rocket test-stand takes shape at SpaceX’s McGregor, TX facilities. As of just a few months ago, this site was effectively barren of activity. (April 17, Aero Photo)
- SpaceX’s Merlin 1D (Vacuum and Sea Level) tests stands, as well as a bay for upper stage static fires. (April 17, 2018 – Aero Photo)
As shown above, the level of construction activity at SpaceX’s Texas testing facilities is fairly impressive and could perhaps be seen as evidence that both Musk and Shotwell are speaking from a place of something approaching pragmatism. While the purpose of the new stand (center) is not yet clear, several aspects indicate that it is unlikely to be more mundane. First, the massive water tower (one that did not exist just a month or two ago, might I add) dwarfs anything found at individual engine or upper stage test stands at the SpaceX facility. It’s possible that the existence of the flame trench alone necessitates the inclusion of such a large water suppression system for damage prevention, but the presence of the blue steel skeleton of a new flame bucket (operational iterations shown on the right) suggests otherwise. For example, the Merlin stands have no such water suppression system: they do use water suppression to avoid damaging the ground systems or the engines themselves, but that water is stored in a large ground-level tank. A tower, however, indicates that SpaceX wants much higher water pressures and flow rates to be available at the new stand, a requirement for significantly more powerful tests akin to SpaceX’s full-up Falcon 9 (and Heavy) test stand – the water towers at the S1 stand and this new stand appear to be identical in size.
In other words, it’s more probable than not that this new stand is being built to support either booster static fires or much larger tests of BFR hardware (perhaps multiple Raptors at once, akin to SpaceX’s very early tests of Falcon 9’s nine Merlins). It could, of course, be used for many different tasks, but only time will tell. Given the sheer level of physical progress made in the BFR program and the swelling confidence of Musk and Shotwell, I certainly know where I’d hedge my bets.
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Elon Musk
Tesla Optimus project fires up as Musk sees production line progress
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.
Investor's Corner
SpaceX gets initial stock coverage from Tesla’s biggest bull
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.









