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SpaceX ramps South Texas activity to prepare for 2019 BFR spaceship testing

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At the same time as the hardware for SpaceX’s first BFR spaceship is entering the early stages of manufacturing, the company’s South Texas test facility is slowly taking shape after more than 18 months of what can be fairly described as hibernation.

The likeliest location for a near-future spaceship test stand or pad has also experienced a comparatively vast influx of construction workers and general activity that began earlier this month September, nearly two and half years after SpaceX began preparing the unstable coastal wetland with the addition of several hundred tons of soil.

It may not look like much, but ~5 contractors and a few pieces of heavy machinery truly is an explosion of SpaceX activity in South Texas. The hill in the background is the soil surcharging mound. (Maria Pointer, 09/19/2018)

According to a number of posts from local Texans that are also members of a small SpaceX fan group on Facebook, activity around the company’s Boca Chica, Texas facilities has exploded in recent months, and even more so over the last several weeks. SpaceX’s ground tracking facility has harbored the vast majority of attention for some time, particularly following the relatively recent arrival of a massive crane, construction of a shelter for said crane, and the appearance of two massive vacuum-insulated tanks for liquid oxygen (LOX) and liquid methane/natural gas (LNG).

Presently sat beside two large antennae on the Crew Dragon tracking facility’s plot, those propellant tanks are certainly both eye-catching and definitive evidence that something huge and nearby will soon need large quantities of liquid propellant. In the case of the LOX tank, a back-the-envelope estimate suggests that it can hold an obscene 400 metric tons (~900,000 lbs) of liquid oxygen, while the much smaller LNG tank (assumed, not guaranteed) would be capable of holding less than 25,000 kg of liquid methane, thanks mainly to the fact that liquid methane is roughly three times less dense than LOX.

Thankfully, SpaceX’s BFR Raptor engines will nominally burn oxygen and methane at a ratio of approximately 3.8 to 1, meaning that every 1 kg of methane exiting the rocket will be accompanied by 3.8 kg of oxygen. The fact that this ratio is actually larger than the density ratio of LOX and LNG means that the propellant tanks can be almost the same size

Most notably, as described above, is the abrupt return of construction and site preparation activities at what once was expected to be a Falcon 9 and Heavy launch pad. Over the last 24+ months, SpaceX has simply let the lot sit, although in this case, that sitting was rather productive. Known as soil surcharging, the site was essentially leveled, loaded with hundreds of tons of soil, plumbed with drainage pipes, and then left alone up to this point to let gravity do the rest of the work. Put simply, the unsteady soil of coastal Texas was aggressively drained and compacted into something stable enough to build expensive, long-term facilities on.

 

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The hundreds of truckloads it took to bring in the soil will have to be repeated in reverse, removing most of the same soil to leave a level field ready for foundation-laying and series construction. Heavy machinery and construction contractors began arriving earlier this month, indicating that that process is about to begin, after which construction of the facilities that will eventually support Grasshopper-style spaceship testing can begin in earnest. Those BFR hop tests are scheduled to begin no earlier than late 2019.


For prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket recovery fleet check out our brand new LaunchPad and LandingZone newsletters!

Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story

Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.

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Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.

The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.

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The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.

For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.

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Tesla isn’t joking about building Optimus at an industrial scale: Here we go

Tesla’s Optimus factory in Texas targets 10 million robots yearly, with 5.2 million square feet under construction.

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Tesla’s Q1 2026 Update Letter, released today, confirms that first generation Optimus production lines are now well underway at its Fremont, California factory, with a pilot line targeting one million robots per year to start. Of bigger note is a shared aerial image of a large piece of land adjacent to Gigafactory Texas, that Tesla has prominently labeled “Optimus factory site preparation.”

Permit documents show Tesla is seeking to add over 5.2 million square feet of new building space to the Giga Texas North Campus by the end of 2026, at an estimated construction investment of $5 billion to $10 billion. The longer term production target for that facility is 10 million Optimus units per year. Giga Texas already sits on 2,500 acres with over 10 million square feet of existing factory floor, and the North Campus expansion is being built to support multiple projects, including the dedicated Optimus factory, the Terafab chip fabrication facility (a joint Tesla/SpaceX/xAI venture), a Cybercab test track, road infrastructure, and supporting facilities.

Credit: TESLA

Texas makes strategic sense beyond the existing infrastructure. The state’s tax structure, lower labor costs relative to California, and the proximity to Tesla’s AI training cluster Cortex 1 and 2, both located at Giga Texas and now totaling over 230,000 H100 equivalent GPUs, means the Optimus software stack and the factory producing the hardware will share the same campus. Tesla’s Q1 report also confirmed completion of the AI5 chip tape out in April, the inference processor designed specifically to power Optimus units in the field.

As Teslarati reported, the Texas facility is intended to house Optimus V4 production at full scale. Musk told the World Economic Forum in January that Tesla plans to sell Optimus to the public by end of 2027 at a price between $20,000 and $30,000, stating, “I think everyone on earth is going to have one and want one.” He has previously pegged long term demand for general purpose humanoid robots at over 20 billion units globally, citing both consumer and industrial use cases.

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Tesla (TSLA) Q1 2026 earnings results: beat on EPS and revenues

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Credit: Tesla

Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.

The earnings results come after Tesla reported a miss on vehicle deliveries for the first quarter, delivering 358,023 vehicles and building 408,386 cars during the three-month span.

As Tesla transitions more toward AI and sees itself as less of a car company, expectations for deliveries will begin to become less of a central point in the consensus of how the quarter is perceived.

Nevertheless, Tesla is leaning on its strong foundation as a car company to carry forward its AI ambitions. The first quarter is a good ground layer for the rest of the year.

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Tesla Q1 2026 Earnings Results

Tesla’s Earnings Results are as follows:

  • Non-GAAP EPS – $0.41 Reported vs. $0.36 Expected
  • Revenues – $22.387 billion vs. $22.35 billion Expected
  • Free Cash Flow – $1.444 billion
  • Profit – $4.72 billion

Tesla beat analyst expectations, so it will be interesting to see how the stock responds. IN the past, we’ve seen Tesla beat analyst expectations considerably, followed by a sharp drop in stock price.

On the same token, we’ve seen Tesla miss and the stock price go up the following trading session.

Tesla will hold its Q1 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.

You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.

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