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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
Tesla’s secretive “Project Crystal Sun” gets a big green light in Texas
Fort Bend County approved four incentive agreements Thursday for Tesla’s proposed $10.1 billion solar factory.
Fort Bend County commissioners on Thursday approved a package of tax incentives for Tesla’s proposed $10.1 billion solar cell factory near Needville, Texas, giving the company one of the last local approvals it needs before it decides where to build. All four Tesla agreements passed 4 to 0.
The votes covered a property tax abatement inside Reinvestment Zone No. 34, a Chapter 381 economic development agreement, a foreign trade zone non-objection paired with payments in lieu of certain taxes, and a separate payment in lieu of taxes “true up” agreement, according to agenda notes from the Fort Bend Commissioners Court meeting.
The project, known internally as “Project Crystal Sun,” would make solar cells and finished modules on roughly 3,000 acres near FM 762 and FM 1994, south of the Brazos River. As Teslarati reported when the filing first surfaced in August, Tesla’s application under the state’s JETI Act splits the investment into $1.5 billion in real property and $8.6 billion in equipment, with 9,712 permanent jobs projected by 2033 and commercial operations targeted for the first quarter of 2029. The plant would handle the full chain from ingot and wafer production through cell testing.
Inside Tesla’s secretive $10 Billion “Project Crystal Sun” filing
Thursday’s approval does not lock in the site. Tesla has told the Texas Comptroller it is still weighing other locations, and site selection adviser David Dennison told Lamar Consolidated ISD trustees in September that the race had narrowed to Fort Bend and one out of state rival with a “very compelling package,” according to the Houston Chronicle. Tesla hopes to decide before the end of 2026, and the incentives still need sign off from the Comptroller and the Governor’s office.
Local officials have now done nearly everything within their control. Commissioners created the reinvestment zone in an August 24 special meeting, with Interim County Judge Daniel Wong formally withdrawing himself over his engineering firm’s past work with Tesla. Lamar CISD trustees voted 7 to 0 on September 15 to advance a JETI agreement that would tax Tesla’s qualifying property at 50 percent of its value for maintenance and operations from 2029 through 2038.
The plant lines up with a target Elon Musk set on Tesla’s Q4 2025 earnings call in January, when he said the company would “work toward getting 100 GW a year of solar cell production, integrating across the entire supply chain from raw materials all the way to finished solar panels.” In March, Tesla was reported to be negotiating a $2.9 billion purchase of Chinese solar manufacturing equipment bound for Texas. The Houston area already hosts Tesla’s Megafactory in Brookshire, where Megapack 3 production has started. Tesla said on its Q3 call that Megapack supply for 2027 is nearly sold out, and Musk wrote on X Thursday that the company is “increasing production of Megapacks as much as possible,” as demand from data centers climbs.
Tesla revealed plans to develop its own maps internally to fix Navigation issues and give owners more control over their routing.
On the company’s Q3 2026 Earnings Call, a question was asked about FSD Navigation issues, particularly speed limit recognition, parking, and routing. These are issues that surface from version to version and seem to be seriously challenging for Tesla’s AI team to resolve.
Tesla’s Head of AI, Ashok Elluswamy, said in response to the question:
“You’re totally right that we shouldn’t be depending on external people’s maps. So we are building our own maps, but not like the same way as OneMoreMap. We are building an entirely new architecture with essentially AI-based mapping and navigation.”
He continued:
“It’s going to be super awesome. It’s going to be integrated with voice. You can talk to it, ask for different routes. It’s going to learn your personalized preferences, plus the fleet preferences. The collective intelligence of all the cars is going to flow into making the maps and navigation super cool.”
Elluswamy said this issue should be confronted, and the mapping should be available for people by the time the v15 release starts deploying to customers.
“And over the next several months,” he added, “it’s just going to take over all of the navigation functions, parking, destination handling. And it will know you better than you know yourself in some regard for the driving task, and then handle it fully.”
Tesla Summon got insanely good in FSD v14.3.2 — Navigation? Not so much
Navigation is perhaps the most notable complaint with FSD, and although it has gotten better, it is still flawed. Much of the time, FSD will take people on routes that are not preferred by the driver, but Tesla tried to combat this with a routing feature in the Summer 2026 Update.
Tesla currently relies on Google for map data, but it is sort of counterintuitive to believe the company would rely on a third party for this. These improvements will be welcome, as routing and navigation have been such a pain point for so many owners for so long.
Quotes via Motley Fool
Tesla Full Self-Driving (Supervised) showed a record attach rate at delivery for new vehicles in the third quarter of 2026.
75 percent of new vehicle deliveries in North America included a subscription to FSD software, up from 55 percent in the prior quarter, a 20-percentage-point sequential gain in the company’s most mature market.
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
Tesla shed light on the Q3 Shareholder Deck that 75 percent of new deliveries came with an FSD subscription:
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets. “
The higher attach rate accompanied strong growth in the overall FSD consumer base, as active subscriptions rose to 1.75 million, a 67 percent year-over-year increase. For the first time, more than half of paid customers are on the monthly subscription, which is priced at $99 per month in the U.S.
People are buying FSD with a car attached, not the other way around
— Elon Musk (@elonmusk) October 21, 2026
The transition to subscriptions has accelerated since Tesla discontinued the one-time purchase option in most markets earlier this year. The recurring model improves revenue visibility and margins compared with large upfront payments. With three-quarters of North American deliveries now including FSD, the software is now an evidently large contributor to Tesla’s economics and ancillary revenue.
Geographic expansion remains important for further gains. FSD is now available in nine countries in the EU, and more than 100,000 customers have driven over 160 million kilometers. Tesla is pursuing broader EU-wide approval, with a related vote expected in December. Similar progress in additional markets could support higher attach rates beyond North America.
These results came as Tesla had a strong quarterly delivery performance of 486,532 vehicles in the quarter, which came with its largest passenger-vehicle backlog in four years. Battery supply continued to limit volume, but the company has pointed to FSD as a clear difference-maker that is helping sustain demand. As supervised capabilities improve, the attach rate will likely continue to improve.
At face value, it is a key measure of how Tesla is converting sales into autonomy progress.
Tesla’s secretive “Project Crystal Sun” gets a big green light in Texas
Tesla is building its own maps to fix Navigation issues
