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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.
Elon Musk
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.
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.
🚨 Our LIVE updates on the Tesla Earnings Call will take place here in a thread 🧵
Follow along below: pic.twitter.com/hzJeBitzJU
— TESLARATI (@Teslarati) April 22, 2026
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.
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.
Elon Musk
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.
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.
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.
Investor's Corner
Tesla (TSLA) Q1 2026 earnings results: beat on EPS and revenues
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.
Tesla Q1 2026 Earnings Results
Tesla’s Earnings Results are as follows:
- Non-GAAP EPS –Â $0.41 Reported vs. $0.36 Expected
- Revenues –Â $22.387 billion vs. $22.35 billion Expected
- Free Cash Flow –Â $1.444 billion
- Profit –Â $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.
Q1 2026 Earnings Call at 4:30pm CT https://t.co/pkYIaGJ32y
— Tesla (@Tesla) April 22, 2026
