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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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News
Tesla intertwines FSD with in-house Insurance for attractive incentive
Every mile logged under FSD now carries a documented financial value—lower risk, lower cost—based on Tesla’s internal driving data rather than external crash statistics alone.
Tesla intertwined its Full Self-Driving (Supervised) suite with its in-house Insurance initiative in an effort to offer an attractive incentive to drivers.
Tesla announced that its new Safety Score 3.0 will automatically have a perfect score of 100 with every mile driven with Full Self-Driving (Supervised) enabled.
The change is designed to boost customers’ average safety scores and deliver noticeably lower monthly premiums.
The move marks the clearest link yet between Tesla’s autonomous driving technology and its proprietary insurance product. Tesla Insurance already relies on real-time vehicle data—such as acceleration, braking, following distance, and speed—to calculate a Safety Score between 0 and 100. Higher scores have long translated into cheaper rates.
Under the previous system, however, even brief manual interventions could drag down the average, frustrating owners who rely heavily on FSD. Version 3.0 eliminates that penalty for supervised autonomous miles, effectively treating FSD-driven segments as the safest possible driving behavior.
The incentive is immediate and financial. Drivers who keep FSD engaged for the majority of their trips will see their overall score rise, potentially shaving hundreds of dollars off annual premiums.
Tesla framed the update as a direct response to customer feedback, many of whom had complained that the old scoring model punished the very behavior it was meant to encourage.
For now, the program applies only to new policies in six states: Indiana, Tennessee, Texas, Arizona, Virginia, and Illinois.
Existing policyholders are not yet included, a point that drew swift questions from the Tesla community. Many owners in other states, including California and Georgia, expressed hope that the benefit would expand nationwide soon.
The announcement arrives as Tesla continues to roll out FSD Supervised updates and push for regulatory approval of more advanced autonomy. By tying insurance savings directly to FSD usage, the company is putting its own actuarial weight behind the technology’s safety claims.
Every mile logged under FSD now carries a documented financial value—lower risk, lower cost—based on Tesla’s internal driving data rather than external crash statistics alone.
Tesla has not disclosed exact premium reductions or the full rollout timeline beyond the six launch states.
Still, the message is clear: the more drivers trust FSD Supervised, the more Tesla Insurance will reward them. In an era when legacy insurers remain cautious about autonomous tech, Tesla is betting that its own data will prove the safest miles are the ones driven hands-free.
Elon Musk
Tesla finalizes AI5 chip design, Elon Musk makes bold claim on capability
The Tesla CEO’s words mark a strategic shift. Tesla has long emphasized software-hardware co-design, squeezing maximum performance from every transistor. Musk previously described AI5 as optimized for edge inference in both Robotaxi and Optimus.
Tesla has finalized its chip design for AI5, as Elon Musk confirmed today that the new chip has reached the tape-out stage, the final step before mass production.
But in a brief reply on X, Musk clarified Tesla’s AI hardware roadmap, essentially confirming that the new chip will not be utilized for being “enough to achieve much better than human safety for FSD.”
He said that AI4 is enough to do that.
Instead, the AI5 chip will be focused on Tesla’s big-time projects for the future: Optimus and supercomputer clusters.
Musk thanked TSMC and Samsung for production support, noting that AI5 could become “one of the most produced AI chips ever.” Yet, the key pivot came in his direct answer: vehicles no longer need the bleeding-edge silicon.
And thank you to @TaiwanSemi_TSC and @Samsung for your support in bringing this chip to production! It will be one of most produced AI chips ever.
— Elon Musk (@elonmusk) April 15, 2026
Existing AI4 hardware, which is already deployed in hundreds of thousands of HW4-equipped Teslas, delivers safety metrics superior to human drivers for Full Self-Driving. AI5 will instead accelerate Optimus robot development and massive Dojo-style training clusters.
The Tesla CEO’s words mark a strategic shift. Tesla has long emphasized software-hardware co-design, squeezing maximum performance from every transistor. Musk previously described AI5 as optimized for edge inference in both Robotaxi and Optimus.
Now, with AI4 proving sufficient, the company avoids costly retrofits across its fleet while redirecting next-generation compute toward higher-value applications: dexterous robots and exponential training scale.
But is it reasonable to assume AI4 enables unsupervised self-driving? Yes, but with important caveats.
On the hardware side, the claim is credible. Tesla’s FSD stack runs end-to-end neural networks trained on billions of miles of real-world data. Internal safety data reportedly shows AI4-equipped vehicles already outperforming average human drivers by a significant margin in controlled metrics (collision avoidance, reaction time, edge-case handling).
Dual-redundant AI4 chips provide ample headroom for the driving task, leaving bandwidth for future model improvements without new silicon. Musk’s assertion aligns with Tesla’s pattern of over-provisioning compute early, then optimizing ruthlessly, exactly as HW3 once sufficed before HW4 scaled further.
Optimus and our supercomputer clusters.
AI4 is enough to achieve much better than human safety for FSD.
— Elon Musk (@elonmusk) April 15, 2026
Unsupervised autonomy, meaning Level 4 or higher, is not solely a compute problem. Regulatory approval remains the primary gate.
Even if AI4 achieves “much better than human” safety statistically, agencies like the NHTSA demand exhaustive validation, liability frameworks, and public trust.
Tesla’s supervised FSD has shown rapid gains in recent versions, yet real-world edge cases, like construction zones, emergency vehicles, and adverse weather, still require driver intervention in many jurisdictions. Competitors like Waymo operate limited unsupervised fleets, but only in geofenced areas with extensive mapping. Tesla’s vision-only, fleet-scale approach is more ambitious—and harder to certify globally.
In short, Musk’s post is both pragmatic and bullish. AI4 is likely capable of unsupervised FSD from a technical standpoint. Whether regulators and consumers agree, and how quickly, will determine if Tesla’s bet pays off.
The company’s capital-efficient path keeps existing cars relevant while pouring future compute into robots. If the safety data holds, unsupervised autonomy could arrive sooner than many expect.
Elon Musk
Elon Musk signals expansion of Tesla’s unique side business
Long envisioning the Tesla Diner as more than a charging stop, Musk has clearly adopted the idea that the Supercharger and Restaurant combo is a good thing for the company to have. It’s a blend of classic American drive-in culture with futuristic Tesla flair, complete with a 1950s-inspired design, movie screens, and on-site dining.
Elon Musk has signaled an expansion of Tesla’s unique side business, something that really has nothing to do with cars or spaceships, but fans of the company have truly adopted it as just another one of its awesome ventures.
Musk confirmed on Wednesday that Tesla would build a new Diner location in Palo Alto, Northern California. After hinting last October that it “probably makes sense to open one near our Giga Texas HQ in Austin and engineering HQ in Palo Alto,” it seems one of those locations is being set into motion.
Sure
— Elon Musk (@elonmusk) April 15, 2026
Long envisioning the Tesla Diner as more than a charging stop, Musk has clearly adopted the idea that the Supercharger and Restaurant combo is a good thing for the company to have. It’s a blend of classic American drive-in culture with futuristic Tesla flair, complete with a 1950s-inspired design, movie screens, and on-site dining.
He first floated broader expansion plans shortly after the LA opening in July 2025, noting that if the prototype succeeded, Tesla would roll out similar venues in major cities worldwide and along long-distance Supercharger routes.
Earlier hints included a confirmed second site at Starbase in Texas, tied to SpaceX operations, underscoring the Diner’s role in enhancing Tesla’s ecosystem behind vehicles.
The Los Angeles location on Santa Monica Boulevard in West Hollywood has served as a high-profile test case. Opened in July 2025 at 7001 Santa Monica Blvd., it features the world’s largest urban Supercharging station with 80 V4 stalls open to all NACS-compatible EVs, over 250 dining seats, rooftop views, and 24/7 service.
The retro-futuristic building replaced a former Shakey’s and quickly became a destination. Tesla reported selling 50,000 burgers in the first 72 days—an average of over 700 daily—drawing crowds with Cybertruck-shaped packaging, breakfast extensions until 2 p.m., and movie screenings.
Palo Alto stands out as a logical next step for several reasons. As Tesla’s longstanding engineering headquarters in the heart of Silicon Valley, the city is home to thousands of Tesla employees, engineers, and executives who could benefit from a convenient, branded gathering spot.
The area boasts high EV adoption rates, dense tech talent, and heavy traffic along key corridors, making a large Supercharger-diner an ideal fit for both daily commuters and long-haul travelers.
Proximity to Stanford University and the innovation ecosystem would amplify its appeal, potentially serving as a showcase for Tesla’s vision of integrated mobility and lifestyle experiences. It could be a great way for Tesla to recruit new talent from one of the country’s best universities.
If Tesla and Musk decide to move forward with a Palo Alto diner, it would build directly on the LA prototype’s momentum while addressing Musk’s earlier calls for expansion near core Tesla hubs.
Whether it materializes as a full confirmation or evolves from these hints remains to be seen, but the pattern is clear: Tesla is testing ways to make charging stops memorable. For EV drivers and enthusiasts alike, a Silicon Valley outpost could blend cutting-edge tech with nostalgic comfort, further embedding Tesla into everyday culture. As Musk’s comments suggest, the future of the Diner looks promising.









