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SpaceX’s Starbase environmental review is inches from the finish line
Update: Just two days after the FAA’s latest delay announcement, an online portal documenting SpaceX’s Starbase environmental assessment progress has been updated to show that the last step requiring “interagency consultations” was completed on June 2nd.
In theory, that means that to successfully complete its Programmatic Environmental Assessment (PEA) for orbital Starship launches, SpaceX merely needs to incorporate all recommendations, requirements, or mitigations added during the interagency review process into one final draft and presumably secure the approval of all relevant stakeholders one last time. Once those documents are complete, approved, and published, all Starbase will need to begin orbital Starship test flights is an FAA launch license.
Securing that launch license is its own can of worms with plenty of unique challenges, but it’s highly unlikely that SpaceX and the FAA won’t be able to come to some kind of agreement allowing the company to begin those test flights within a month or two of receiving a good environmental review. According to the FAA, the final results of the Starbase PEA are scheduled to be released on June 13th.
The US Federal Aviation Administration says that its environmental review of SpaceX’s plan to conduct orbital Starship launches out of South Texas has been delayed for the fifth time in five months.
However, despite the chronic delays and the FAA’s odd decision to announce a new delay every month instead of simply acknowledging that it doesn’t know when the process will be finished, there are now even more reasons to expect a positive outcome.
Even though there were attempts to spin the new information into something negative, a document acquired through the Freedom Of Information Act (FOIA) by Bloomberg revealed that the US Fish and Wildlife Service (FWS) had decided to approve its portion of the Starbase environmental review. Their only condition: that SpaceX implement a few small mitigation measures, “including contracting with a qualified biologist to conduct monitoring of vegetation and birds, operating an employee shuttle between the launch facility site and nearby town of Brownsville, reducing vehicle traffic, and adjusting lights to minimize the impact on sea turtles.” Bloomberg chose not to publish the documents it received through the FOIA process.
In the same set of documents, the FWS also revealed that SpaceX has removed a request for permission to build a small desalination plant, a natural gas production and liquefaction plant, and a natural gas power plant at or near Starbase’s launch site from Starbase’s first Programmatic Environmental Assessment (PEA). That change comes as little surprise. In fact, SpaceX’s decision to pursue a “programmatic” assessment instead of a more common standalone assessment means that the company will be able to pursue additions to a basic Starbase environmental approval without having to rebuild the foundation each time.
In this case, a “basic approval” would mean the ability to conduct at least a few orbital Starship launches per year. Once that foundation is secured, SpaceX should be able to tier new environmental assessments on top of it and pursue permission for a desalination plant, natural gas production, more annual launches, or any other additions that might benefit Starbase. The simpler the foundation, the harder it should be for environmental stakeholders and agencies to protest or prevent SpaceX from receiving a good outcome.
“The FAA now plans to release the Final PEA on June 13, 2022 to account for ongoing interagency consultations concerning Section 4(f) of the Department of Transportation Act. All other consultations and analysis have been completed at this time.”
Another cause for optimism: after four delays of one or two months, the FAA’s latest delay announcement only pushes the conclusion of the review from May 31st to June 13th. Additionally, the FAA confirmed that only one small component of the entire review remains unfinished. Every other major component has been completed successfully and will likely result in a Finding Of No Significant Impact (FONSI) or Mitigated FONSI that would greenlight the environmental side of conducting orbital Starship launches out of Boca Chica, Texas.
When the draft PEA was first published, the FAA noted several points of contention over Section 4(f) compliance, which is designed to “protect significant publicly owned public parks, recreation areas, and wildlife and waterfowl refuges, as well as significant historic sites, whether they are publicly or privately owned.” At the time, the main problem was SpaceX’s request to close the public Boca Chica Beach and the only highway to it for up to 500 hours (~42 days), as well as a contingency that would allow for another 300 hours of closures to safely respond to emergencies.
Thanks to an even more in-depth environmental impact statement (EIS) completed in 2014 for a Falcon 9 and Falcon Heavy launch pad where Starship’s launch site now stands, we know that SpaceX has already met Section 4(f) demands with a plan for up to 180 hours of road closures per year. In the absolute worst-case scenario, SpaceX should be able to drastically reduce its road closure request to satisfy the Department of Transportation. Subsisting on roughly 20-30 days of closures per year would undoubtedly maim Starbase’s utility but it would at least allow SpaceX to conduct a few basic orbital test flights and some limited ground testing while it rapidly redirects most of its effort to finishing alternative Starship production and launch facilities in Florida.
Regardless, it’s now quite likely that SpaceX’s Starbase environmental review will finally be over by the end of June, freeing up the FAA and SpaceX to focus fully on the launch license side of the equation. Meanwhile, SpaceX still has weeks or even months of work ahead of it to prepare a Starship and Super Heavy pair for their first orbital launch attempt, so (for now) there is no risk of the company being forced to sit around and wait for the gears of bureaucracy to turn.
Tesla is using the vehicles’ internal microphones to improve build quality, Vice President of Engineering Lars Moravy revealed recently.
It’s no secret that Tesla is always finding ways to make its manufacturing operations more efficient, accurate, and valuable. Constantly trying to make its cars better, the company has never placed any restrictions on what it will do to improve everything from panel gaps to paint.
As Teslas have been driving autonomously on the property of the Gigafactory Texas plant for a while now, Moravy revealed to Herbert Ong in a new interview that cars rolling off production lines now autonomously navigate themselves through a bumps, squeaks, and rattles (BSR) portion of the line. This helps to identify any loose or improperly installed internal parts.
The cabin’s microphones, which are used for a variety of things in ownership, simultaneously monitor any noises inside the vehicle while it rolls through the BSR portion of the production line. Moravy actually revealed that Tesla is trying to build “Full Self-Hearing,” an AI system that will detect minor imperfections so they can be corrected before delivery.
It’s no secret that build quality is something that Tesla struggled with as it scaled to a fully massive production operation that manufactures over 1.6 million vehicles per year. However, in recent years, especially, there have not been as many complaints. Tesla has truly improved upon its build quality and paint quality over the past several years, especially in the U.S.
Tesla’s ‘megacasts’ are key to massive build quality improvements
While those improvements have been evident, there are still some complaints; no automaker is perfect with this. But this step will now ensure that every single car that rolls off the production lines at Gigafactory Texas will be void of any creaks, squeaks, or squeals when it leaves the factory.
This measure is one of the most unique we’ve seen in terms of a strategy to avoid build quality issues, but it is not exclusive to Tesla.
Ford uses acoustic analysis AI to find abnormalities in seat motors, climate control units, and other components. Suppliers and OEMs will also use microphone arrays or particle velocity sensors in end-of-line stations.
The full interview with Lars Moravy is available below:
🚨 If you’re a Tesla investor, this is one interview you don’t want to skip. The full video posted below.
Jeff Lutz @thejefflutz and I sat down with Tesla VP of Engineering Lars Moravy, and it was packed with insights!
A few of the biggest takeaways:
• Cybercab is expected to… pic.twitter.com/fhYSr2dCqP
— Herbert Ong (@herbertong) July 1, 2026
Investor's Corner
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
Tesla (NASDAQ: TSLA) beat Wall Street expectations of 406,000 vehicles delivered in Q2 by reporting 480,126 deliveries for the three months ending in June.
Tesla reported it delivered 467,762 Model 3 and Model Y units, while 12,364 Model S, Model X, and Cybertrucks switched hands during the quarter. The Model S and Model X were officially sunset this past quarter and will no longer be part of the company’s Production & Delivery reports moving forward.
🚨 BREAKING: Tesla delivered 480,126 vehicles in Q2, ANNIHILATING Wall Street expectations of 406,000. Production was reported at 451,758.
Deliveries:
Model 3/Y: 467,762
Other Models: 12,364Production:
Model 3/Y: 442,936
Other Models: 8,822 https://t.co/TTHwQAsKt8 pic.twitter.com/7qI4Zj6FE5— TESLARATI (@Teslarati) July 2, 2026
The quarter is a pleasant surprise and a good rebound from Q1, when Tesla slightly missed the Wall Street consensus of 365,645 cars by reporting 358,023 deliveries for the first three motnhs of the year.
Energy storage deployments also provided some strength in Tesla’s delivery report, hitting 13.5 GWh for Q2. This is a particular division of Tesla’s business that has been overwhelmingly robust over the past few years, truly being a strong point of the company’s overall model.
For the year, Tesla analysts still predict deliveries to trend in the 1.69 million unit region, a modest 3 to 5 percent increase from the 1.64 million cars the company delivered last year. Tesla will likely return to more sequential and noticeable year-over-year growth as the Cybercab project starts to ramp up considerably in the next few years.
Tesla has some other potential catalysts to spur vehicle deliveries, too. Not only is it expecting Cybercab to truly start making a change in the next few years, but other vehicles could be entering the company’s lineup.
Tesla sends production Cybercab with no steering wheel, pedals to on-road testing
The slightly longer Model Y L has been a highly speculated release candidate in the U.S. It has already done incredibly well in China, and U.S. buyers have been wanting slightly more interior space than the Model Y. Now that the Model X is gone, it is more needed than ever.
Q2 highlights a pretty stable automotive division within Tesla, and no true concerns arise from these figures, especially considering it managed to beat expectations convincingly.
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.
Tesla is using vehicle microphones to improve build quality: here’s how
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
