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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.
News
Tesla considers making a big move with Model Y pricing as demand is skyrocketing
“Trending toward a need to expedite output even further, which could mean adjusting pricing upward in the coming days. Trying hard not to, will see.”
Tesla is considering making a big move with Model Y pricing as demand is skyrocketing due to the EV tax credit expiring in just over a month.
With the $7,500 EV tax credit set to be removed on September 30, Tesla is experiencing increased demand for its Model 3 and Model Y. Customers are doing whatever they can to take delivery of the car they ordered as soon as possible.
The IRS recently adjusted the EV tax credit’s rules slightly.
Previously, the vehicle had to be delivered by September 30, but a slight tweak the agency made last week will now allow customers to enter a legally binding contract along with a marginal down payment by that date. The delivery can occur after September 30, and the car can still qualify for the credit.
However, demand is getting so crazy for the Model Y that Tesla is considering a price increase on the all-electric crossover, as well as a potential boost in production output to keep up with orders.
Inventory is dwindling in several markets across the United States, a good sign for the company, as it could have one of its best quarters in recent history in terms of deliveries.
However, Tesla is thinking of bumping the price slightly, Raj Jegannathan, the company’s VP of IT, AI Infrastructure, Apps, Infosec, and Vehicle Service Operations, said on X:
Trending toward a need to expedite output even further, which could mean adjusting pricing upward in the coming days. Trying hard not to, will see.
— Raj Jegannathan (@r_jegaa) August 25, 2025
The price adjustment would come as a response to increasing production output, Jegannathan’s response seems to indicate.
The bump would help Tesla’s margins, but the idea that the company could adjust pricing by increasing it would not be popular with potential car buyers. It might encourage some buyers to put their orders in sooner, hoping to avoid a new, higher price.
However, it could also steer some buyers away from putting an order in on a vehicle, especially if the price increase is more than a few hundred dollars.
Tesla boosted the price of the Model S, Model X, and Cybertruck recently, but brought in a “Luxe Package” to help justify it.
It comes with Free Full Self-Driving, Free lifetime Supercharging, four years of premium service, and lifetime Premium Connectivity.
Tesla has produced its 100,000th new Model Y at Gigafactory Berlin. The milestone was announced by the electric vehicle maker through its official Tesla Manufacturing account on social media platform X.
New Tesla Model Y milestone
The milestone was announced by Tesla on X, when the company wrote “Today, we built the 100,000th New Model Y at Giga Berlin!” The announcement was accompanied by an image of a new Model Y coming off the line.
The milestone was received warmly by members of the Tesla community, many of whom expressed excitement at the further progress of the new Model Y program at Giga Berlin. The facility, after all, only produces Model Y units, which would make it the perfect site to produce new variants like the Model Y Performance and possibly even the Model Y L, which was recently launched in China.
New Model Y ramp
As noted in a previous report from electrive, the initial production of the new Model Y started in Giga Berlin around mid-January 2025. Since the new Model Y involved a changeover from the legacy Y to the new variant, the ramp of the new Model Y’s production at the Germany-based facility was likely a gradual process over the past months.
It would then be no surprise if the next 100,000 new Model Y units would be produced in Giga Berlin in a shorter period. Giga Berlin could become an even bigger factor in Tesla’s global sales, after all, especially if it becomes the site that produces the Model Y Performance and the Model Y L for Europe and other territories. Giga Berlin, if any, seems to be quite busy recently, with aerial videos of the facility showing a fleet of mysteriously covered Model Y units being stored within the complex.
News
Tesla set to win big after IRS adjusts EV tax credit rules
“For purposes of sections 25E, 30D, and 45W, a vehicle is ‘acquired’ as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal down payment or a vehicle trade-in.”
Tesla is set to potentially come out as a big winner as the IRS has adjusted the rules of the $7,500 EV tax credit slightly.
The $7,500 tax credit for electric vehicles is set to expire on September 30, but the IRS has made a slight adjustment to the terms of the credit that will give consumers a bit more time to buy an EV and receive the discount.
The original terms of the EV tax credit were that delivery of an EV must be completed by September 30. Even if you had made a reservation or put a down payment on an EV, if it did not arrive and take delivery by September 30, the credit would not apply to you.
Tesla is ready with a perfect counter to the end of US EV tax credits
This put some people in quite a tough situation. As wait times for some EVs, especially Tesla Model Y and Model 3 vehicles, continue to be pushed back due to an increase in demand as consumers are trying to take advantage of the credit, some car buyers ordered a car that was not the trim level, paint color, or interior color that they wanted.
However, the IRS has adjusted the terms of the tax credit to enable people to have a bit more time to get the vehicle they want.
Late last week, the agency said that the meaning of “acquired” has been changed, and now, if a consumer has entered a legally binding contract to take delivery of the vehicle, which includes a nominal down payment on the car, they can take delivery after the previous September 30 deadline and still qualify for the credit.
The IRS wrote:
“For purposes of sections 25E, 30D, and 45W, a vehicle is ‘acquired’ as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal down payment or a vehicle trade-in.”
🚨 HUGE NEWS: The $7,500 EV Tax Credit is EXTENDED (sorta) 🚨
The IRS just updated its guidance:
If you enter a binding contract and make a payment (even a small downpayment or trade-in) before Sept 30, 2025, you’ve officially “acquired” the vehicle.
That means you’ve… pic.twitter.com/7Ciye8OfqB
— DennisCW | wen myp (@DennisCW_) August 22, 2025
Tesla could come out as a big winner here because of this. The company is experiencing a lot of demand for its cars because of the tax credit’s expiration, and now that the rule has been adjusted to include orders received by the 30th as long as they’re accompanied by a nominal down payment, some of these high-demand deliveries could leak into Q4.
Q3 is likely going to be a very strong quarter for Tesla, and questions remain about how the company will perform in subsequent quarters since the tax credit is going away. However, this slight adjustment is a big plus for Tesla and other EV makers.
Tesla considers making a big move with Model Y pricing as demand is skyrocketing
Tesla produces 100,000th new Model Y in Giga Berlin
Tesla set to win big after IRS adjusts EV tax credit rules
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