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SpaceX Starship factory aiming to build five megarockets in 2023
CEO Elon Musk says that SpaceX’s South Texas Starship aims to build up to five of the two-stage megarockets in 2023.
SpaceX’s Boca Chica, Texas hardware endeavors began in an empty field in late 2018, kicking off Starhopper testing in 2019. In late 2019 and early 2020, the company began building the bones of the factory that exists today, relying heavily on several giant tents (“sprung structures”) similar to those used by Tesla. SpaceX has already begun the process of replacing those tents with larger, permanent buildings, but two of the original tents continue to host crucial parts of the Starship manufacturing process.
In terms of useful output, that manufacturing slowed down a bit in 2022. That slowdown can likely be partially explained by the need to move equipment and processes into the first finished section of Starfactory. But in general, SpaceX was simply focused on finishing and testing Starship S24 and Super Heavy B7 – both stages of the latest vehicle meant to attempt Starship’s first orbital launch.
Only by late 2022 did Ship 24 more or less complete proof testing, and Booster 7 is still several major tests away from solidifying full confidence in its design. SpaceX has only conducted limited testing with fully-stacked Starships, further reducing the amount of confidence the company can have in the assembled rocket. Lacking the data needed to know with certainty whether the tweaked designs of Starship and Super Heavy are good enough for several orbital test flights, it’s thus unsurprising that SpaceX only produced a handful of usable ships and boosters in 2022.
The update that's rolling out to the fleet makes full use of the front and rear steering travel to minimize turning circle. In this case a reduction of 1.6 feet just over the air— Wes (@wmorrill3) April 16, 2024
But if CEO Elon Musk’s forecast is correct, the company has plans to increase Starbase’s useful output in 2023. According to Musk, SpaceX aims to build “about five full stacks” this year, translating to five flightworthy Starships and five Super Heavy boosters.
In 2022, SpaceX finished Booster 7 and built Booster 8, Booster 9, and most of Booster 10. Booster 8 was almost immediately relegated to the retirement yard. Booster 9, featuring some significant design changes, completed a limited amount of proof testing and returned to the factory in early January – likely for Raptor engine installation. The fate of Booster 10 is unclear, but it stands as a prime example of how fast SpaceX can actually build massive Starship hardware when conditions are right. SpaceX began stacking B10 in late October 2022 and the vehicle is just two stacks away from full height three months later.
In the same period, SpaceX finished and immediately retired Starship S22, finished and began testing Ship 24, finished and began testing Ship 25, and finished stacking Ship 26. Booster 9’s upgrades partially insulate it from the most disappointing possible scenario, retirement before flight. Even if Booster 7 fails during prelaunch testing or its launch attempt, revealing major design flaws, it’s possible that Booster 9’s changes have already addressed those weaknesses, allowing it to continue the flight test campaign. Ship 25’s fate is even more dependent on the fate of Ship 24.
In 2022, SpaceX ultimately produced two “full stacks,” with a third (S26/B10) likely to be completed – albeit with a less certain fate – in early 2023. Delivering five full stacks this year – meaning five ships and five boosters that make it far enough to be paired with another and fully stacked – would be a major improvement. However, as was the case in 2022, higher-volume production will remain a risky proposition until the designs of the vehicles being built have been fully qualified.
Given how long it’s taken SpaceX to partially qualify Super Heavy Booster 7, it appears that the largest source of uncertainty will remain for at least another month or two, if not well into mid-2023. Starship production has many uncertainties of its own, and all of them are complicated by not knowing if a Super Heavy booster will be available to launch each new ship in a timely fashion.
Ultimately, an entirely different constraint means that “five full stacks” may be all SpaceX needs to build for the next 12+ months. After a long and painful process, the FAA completed an environmental review of SpaceX’s Starbase, Texas facilities, permitting a maximum of five orbital (full-stack) Starship launches per year. Starship’s FAA orbital launch license, which has yet to be granted, could be even more restrictive. A second Starship pad under construction in Florida is unlikely to be cleared for orbital launches until Starship has proven itself to be moderately safe in South Texas, which could easily take 12-18 months, if not longer.
Combined with the fact that no super-heavy-lift rocket in history has flown five times in its first year of launch activity, a trend Starship seems unlikely to break, SpaceX could practically halt production entirely in 2023 and still have a full year of testing ahead of it while only using Ships 24-26 and Boosters 7, 9, and 10. Unintuitively, that bodes well for a busy 2023 of Starship test flights, as much of the hardware required for three flight tests is already close to completion or almost ready to begin preflight testing.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s Robotaxi dreams just took a massive step toward reality
The Tesla and SpaceX merger everyone is talking about is quietly building
