News
SpaceX’s South Texas Starship factory has a new tallest building
Less than four months after construction began, the newest addition to SpaceX’s South Texas Starship factory is now the facility’s tallest building.
While substantially shorter than the Starship launch tower SpaceX has constructed a few miles down the highway and likely still a few months away from completion, Starbase’s new ‘wide bay’ became the tallest on-site manufacturing building on February 17th, 2022. Barring surprises, it’s poised to substantially improve the factory’s maximum Starship and Super Heavy booster production capacity within the next few months.
On February 17th, after extending the crane used for the task, SpaceX and contractors installed the first prefabricated section of the wide bay’s fifth ‘level,’ raising the new structure slightly higher than Starbase’s ‘high bay’ assembly building – the previous record holder. Measuring around 85 meters (280 ft) tall, the high bay is currently used for all Super Heavy booster assembly and also supports the final ‘stack’ of Starship prototypes, which – when fully stacked – are taller than the ‘mid bay’ their tank sections are first assembled in.
SpaceX and its primary contractor began assembling the high bay in July 2020. The building reached its full height by early October and was ready – with a slight workaround – to start stacking SpaceX’s first Super Heavy booster prototype by January 2021. Despite the fact that the new building is significantly larger and requires several times as much framework, SpaceX’s ‘wide bay’ assembly has only taken slightly longer. Based on past trends, it will likely take less than a week for all four sections of the wide bay’s fifth level to be installed, at which point the whole structure will be approximately 90 meters (~295 ft) tall.
It remains to be seen if the wide bay will get a smaller sixth level for its roof. SpaceX turned the top of the high bay into a combination of a bar, meeting room, entertainment venue, and an observation deck with wraparound windows.
SpaceX has never used the high bay to stack more than one vehicle (Starship or Super Heavy) at a time, seemingly implying that it only has enough usable floor space for three 9-meter (30 ft) wide sections of either rocket. Measuring about 40 meters (130 ft) tall, Starbase’s ‘midbay’ is the hub for Starship tank section stacking but is too short to be used for nose section installation.
If SpaceX maintains its pace, the wide bay could easily have its basic structure completed by the end of next month. Additionally, a supplier has already delivered most of the components needed for the wide bay’s two large bridge cranes, meaning that SpaceX likely won’t have to cut a hole in its roof – like it was forced to do with the high bay – to begin using the new building as soon as possible.
It’s not entirely clear how the wide bay will integrate into the current ship and booster assembly flow but the building will likely measure around 35m by 50m wide (115 ft x 165 ft), 95-100m (310-330 ft) tall, and offer approximately twice as much usable surface area as the high bay upon completion. CEO Elon Musk says that SpaceX’s goal for Starbase is to complete at least one Starship and Super Heavy booster per month by the end of 2022. With the wide bay and some general streamlining, that may actually be achievable.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
News
Tesla Model Y L is gaining momentum in China’s premium segment
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla’s domestic sales in China held steady in November with around 73,000 units delivered, but a closer look at the Model Y L’s numbers hints at an emerging shift towards pricier variants that could very well be boosting average selling prices and margins.
This suggests that the addition of the Model Y L to Tesla China’s lineup will not result in a case of cannibalization, but a possible case of “premiumization” instead.
Tesla China’s November domestic numbers
Data from the a Passenger Car Association (CPCA) indicated that Tesla China saw domestic deliveries of about 73,000 vehicles in November 2025. This number included 34,000 standard Model Y units, 26,000 Model 3 units, and 13,000 Model Y L units, as per industry watchers.
This means that the Model Y L accounted for roughly 27% of Tesla China’s total Model Y sales, despite the variant carrying a ~28% premium over the base RWD Model Y that is estimated to have dominated last year’s mix.
As per industry watcher @TSLAFanMtl, this suggests that Tesla China’s sales have moved towards more premium variants this year. Thus, direct year-over-year sales comparisons might miss the bigger picture. This is true even for the regular Model Y, as another premium trim, the Long Range RWD variant, was also added to the lineup this 2025.Â
November 2025 momentum
While Tesla China’s overall sales this year have seen challenges, the Model Y and Model 3 have remained strong sellers in the country. This is especially impressive as the Model Y and Model 3 are premium-priced vehicles, and they compete in the world’s most competitive electric vehicle market. Tesla China is also yet to roll out the latest capabilities of FSD in China, which means that its vehicles in the country could not tap into their latest capabilities yet.Â
Aggregated results from November suggest that the Tesla Model Y took the crown as China’s #1 best-selling SUV during the month, with roughly 34,000 deliveries. With the Model Y L, this number is even higher. The Tesla Model 3 also had a stellar month, seeing 25,700 deliveries during November 2025.
Tesla needs to come through on this one Robotaxi metric, analyst says
Tesla gets bold Robotaxi prediction from Wall Street firm
