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SpaceX’s South Texas Starship factory prepares for major upgrades
In what is probably a sign of things to come for SpaceX’s nascent Florida Starship factory, the company’s original Starbase facility in South Texas may be about to graduate from tents to more permanent buildings.
More than two years ago, in late 2019, SpaceX followed in the footsteps of Tesla and began constructing a surprisingly advanced factory out of a series of tents. Instead of Model 3s, though, SpaceX would be building and assembling sections of the largest and most powerful rocket ever built. Measuring approximately 120 meters (~390 ft) tall, 9 meters (~30 ft) wide, ~5000 tons (~11M lb) fully fueled, and capable of producing around 7500 tons (~16.5M lbf) of thrust at liftoff, Starship is a fully reusable rocket that aims to perfect what SpaceX has already achieved with partially reusable Falcon 9s and Heavies.
Nonetheless, Starship manufacturing represents a substantial departure from the methods SpaceX uses to build Falcon rockets.
Instead of heavily leaning on horizontal integration (meaning that the rockets are primarily assembled in a horizontal orientation), Starship and its Super Heavy booster are almost exclusively assembled vertically. Excluding the machining of major loadbearing structures, Starship manufacturing generally begins with giant rolls of thin (3-4mm or ~0.15 in) stainless steel. SpaceX uses a custom tool to unspool the sheet metal, cuts off a roughly 28-meter (~92 ft) long strip, and then welds the ends of that strip together to produce a cylindrical barrel. Repeat that process 57 times and you end up with enough rings to assemble a full Super Heavy booster and most of a Starship.
However, using increasingly custom tools, SpaceX first stacks and welds those individual rings together to form sections of two, three, four, or five. Each section is then prepared for its specific role with a range of cutouts, plumbing, reinforcements (vertical stringers or circumferential stiffeners), thrust structures (the plates that Raptor engines attach to), and other add-ons. Most importantly, certain stacks of rings are mated with large steel domes – welded together out of prefabricated steel plates – to form forward, common, and aft dome sections. For Starship, SpaceX also assembles the ship’s conical nose section in a similar manner.
Virtually all ring, dome, and nose assembly work is conducted in one of three massive tents – each about 114m x 35m (375′ x 110′) – that form the backbone of Starbase’s Starship factory. Finally, SpaceX has built a series of massive open-air bays where, once fully outfitted, each ship and booster section is stacked in a specific order and welded together to complete the basic structures of Starship and Super Heavy.
While SpaceX continues to speed towards the completion of Starbase’s largest and tallest Starship assembly bay yet, the latest news centers around Starbase’s tents. After physically relocating a smaller but still substantial tent believed to be used basic metalwork (laser/water cutting, presses, etc.), SpaceX has rapidly broken ground and partially completed the foundation of a massive, new building believed to be the start of an upgraded Starship factory.
According to RGV Aerial Photography, SpaceX isn’t merely expanding the main three-tent factory with a fourth larger, permanent building. Instead, it reportedly aims to replace all of Starbase’s tents with a single 300,000-square-foot (~28,000 square meter) building that will be about 18 meters (60 ft) tall and likely measure around 800 feet (250m) long and 400 feet (120m) wide. Starbase’s tents are roughly the same height but their tented roofs mean that only a fraction of that height can be used for ring work and only a fraction of the floor space for taller nose work.
In comparison, a 300,000 square-foot building would have almost two and half times as much covered floor space as Starbase’s three tents – all of which can theoretically be used for ring and nose section assembly. In fact, with a mostly flat 18-meter roof, SpaceX could feasibly expand most ‘stacks’ by a ring or two, which would reduce the number of sections (and thus stacking operations) needed to assemble a ship or booster.
All told, while tents (“sprung structures”) can clearly be indefinite solutions for things like automotive manufacturing, Starship production is one case in which a more permanent flat-ceiling building is undeniably superior. With more than two years of experience and data to draw from, SpaceX may finally be confident enough in its present-day Starship production methods to commit to the construction of Starbase’s next evolution. Stay tuned to see where it leads.
Elon Musk
Elon Musk calls Earth’s data centers “peanuts” next to what SpaceX is planning in orbit
Elon Musk says SpaceX capex efficiency is underestimated as orbital data centers loom by 2028.
Elon Musk is pushing back on one of the biggest worries hanging over SpaceX stock. In a reply on X on Sunday, Musk said the company’s capital expenditure efficiency is severely underestimated. He was responding to a Milk Road Stocks post citing analyst Kyle Reidhead, who estimates SpaceX will need to spend roughly $470 billion over the next five quarters.
Reidhead built that figure around the target SpaceX set on its third quarter earnings call: 13 gigawatts or more of compute by the end of 2027. In his breakdown, Nvidia captures 83 to 89 percent of the spending. SpaceX ended the quarter with 1.7 GW of nameplate compute and guided to $35 billion to $40 billion in fourth quarter capex, as Teslarati reported.
Musk did not attach a number to his claim, but the earnings call shows the argument. CFO Bret Johnsen said new compute currently pays for itself in under a year at today’s pricing, and Musk said that window could shrink to six months next year. Using that pace, Reidhead argues about $230 billion of the $470 billion could come from operating cash flow and about $60 billion from SpaceX’s roughly $90 billion cash pile, leaving around $180 billion to borrow. Musk confirmed last week that SpaceX had already closed a new $40 billion debt raise to buy GPUs.
The ground buildout is not the end goal. It is what is meant to pay for the move to orbit. Replying on Friday to charts built from Sequoia partner Shaun Maguire’s SpaceX model, Musk wrote that “Terrestrial compute will be peanuts compared to orbital compute,” adding that orbital compute deployed per month “probably exceeds terrestrial around the end of 2028 and then far exceeds it in 2029.”
Maguire’s model shows how steep that path is. It has capex climbing from $88 billion this year to $290 billion in 2027 and $369 billion in 2028, with SpaceX burning $77.8 billion in cash this year and $122.6 billion next year before turning $114.9 billion cash positive in 2028. Musk’s response to the model was, “I think we can do better.”
The orbital half runs through Starmind. SpaceX plans to operate up to 1 million AI satellites flying in clusters of about 10, linked by roughly 10 terabits of bandwidth, with deployment of thousands of units starting as soon as late 2027 out of its Gigasat factory in Bastrop, Texas, according to SpaceX’s space safety page. Musk has said each Starmind spacecraft will carry more than 250 kW of solar power.
Getting there depends on launch volume. Maguire’s model assumes 250 Starship flights in 2028, up from two this year and 38 next year. The nearer test is financial: SpaceX guided to $33 billion to $37 billion in first quarter 2027 revenue, more than double the $14.58 billion it booked in Q3, and Musk reposted that guidance again on Sunday morning.
Elon Musk
SpaceX President to gift Trump Accounts her SpaceX stock
Gwynne Shotwell’s 2 million SpaceX shares are headed to children’s Trump Accounts starting this December.
SpaceX President Gwynne Shotwell said Friday that more than 2 million SpaceX shares belonging to her and her husband, Robert, will be distributed to children’s Trump Accounts in December, turning a pledge she made over the summer into an actual transfer. “Robert and I are thrilled that our gift of over 2 million shares of SpaceX stock will be distributed to children’s Trump accounts in December!” Shotwell wrote on X, adding that the shares are “transferring to escrow as we speak.”
The first round goes to children aged 11 to 17 who live in ZIP codes where the median family income is $57,000 or less, along with kids in ZIP codes with too few residents for the Census to report that figure. Shotwell said those families should receive a notice by Monday, Reuters reported.
A second gift is expected to be finalized in the next few weeks. That round will cover eligible children in military families serving overseas, children in foster care, and more kids in Texas counties near the Shotwells’ home where median family income is $90,000 or less. Elon Musk replied to the announcement with “Cool” and a heart emoji.
Shotwell first announced the donation on July 6, less than a month after SpaceX priced its record IPO at $135 per share on the Nasdaq. IPO filings showed Shotwell owned about 12.6 million SpaceX shares, Quartz reported at the time, which makes the gift roughly one sixth of her stake. At the roughly $146 per share used to value Musk’s own pledge earlier this month, 2 million shares are worth about $290 million.
How the stock would actually reach the accounts had been an open question since July. Treasury guidance acknowledged that stock donations could flow into Trump Accounts, but it did not explain the mechanics for a program whose contributions default into an S&P 500 index fund. Shotwell thanked the Treasury, the IRS, the Dell Foundation, Greater Horizons, Invest America and the law firms Morgan Lewis and Gibson Dunn for “working over the past few months to make this happen.”
The transfer also works as a dry run for a far larger gift. On October 19, Musk said he would give one of his SpaceX shares to every kid in America next year and called it “the first of many.” With roughly 72 million children in the country, that pledge is worth about $10.5 billion. President Donald Trump thanked Musk the same day and said the shares would go through Trump Accounts, though neither SpaceX nor the Treasury has published how or when that distribution will happen.
Shotwell’s recipients also fill a gap in the program itself. Trump Accounts launched on July 4, and the $1,000 Treasury deposit only goes to babies born between 2025 and 2028. Teenagers aged 11 to 17 receive no government seed money, so for many of the families getting a notice on Monday, SpaceX stock will be the first asset in the account. The accounts convert into retirement accounts when the child turns 18.
Tesla Full Self-Driving is now the centerpiece of the company’s newly revised Referral Program, which launched on October 29.
Instead of referring people to purchase vehicles and the referrer receiving $250 in Tesla Credit, the new program now incentivizes Full Self-Driving subscriptions.
If a Tesla owner is on an FSD trial and uses a referral code to subscribe to Full Self-Driving, the person whose Referral Link was used will receive one month of FSD (Supervised). Their code can be utilized 12 times per year, with January 1 marking the reset date.
Realistically, this means that if your Referral Code is used by 12 Tesla owners on an FSD trial, you will receive a full year of FSD for free.
🚨 Here is Tesla’s new Referral Program for Full Self-Driving (Supervised):
When someone subscribes to FSD using your link, you’ll get a month free. Up to a year of FSD is available to you for free!
If you’d like to use my link: https://t.co/g00IX9OCE3 https://t.co/GFBzEO2jjS
— TESLARATI (@Teslarati) October 30, 2026
The previous program made it pretty difficult to get referrals; buying a vehicle is obviously a much larger financial strain than subscribing to Full Self-Driving for a month.
Of course, the previous Referral Program also offered a tangible benefit: $250 in credits you could use on Service, Supercharging, or anything in the Tesla Shop. It truly could pay for someone’s travel for a year. It recently bought me a new backpack and a T-shirt.
However, this new program is much more attainable for those who do not have a massive online presence of a slew of friends in the Tesla community who will use the code and max out subscriptions for vehicle purchases.
Woke up to maxed out Referrals! Thank you guys, that’s awesome!
Share your referral link below so others can use it! https://t.co/kesbwTcoTV
— TESLARATI (@Teslarati) October 30, 2026
The Full Self-Driving suite will now be the keystone of the Referral Program, which makes it more inclusive and more fun for everyone with an awesome benefit.
It also gives the impression that Tesla is truly focused on FSD subscriptions, something that saw a tremendous increase in volume in Q3, as 75 percent of deliveries for the quarter came with an FSD subscription attached.
Full Self-Driving data is so instrumental to the suite’s improvement that this kind of program benefits Tesla as much as it does the consumer.
Elon Musk calls Earth’s data centers “peanuts” next to what SpaceX is planning in orbit
SpaceX President to gift Trump Accounts her SpaceX stock
