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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 shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
A Tesla analyst believes the company’s Full Self-Driving suite is close to an “inflection point,” where people will finally realize that it is more than what it appears, similar to how many view the iPhone.
Pierre Ferragu, an analyst who has covered Tesla for many years at New Street Research, says the Full Self-Driving suite is one piece of evidence supporting the view that a Tesla is more than a car. He compared it to the iPhone and noted that the high price tag seemed like a lot for a phone early on. Then people realized the iPhone was more than just something you make calls with. It made their lives simpler.
🚨 Analyst @p_ferragu says Tesla Full Self-Driving is at an “inflection point” in a recent commentary:
“A Tesla is not a car, the same way an iPhone was not a phone. As a tool that gets you to work peacefully every morning, it is not expensive. Give us 2 more quarters to see… pic.twitter.com/tm6xFrjVPV
— TESLARATI (@Teslarati) July 10, 2026
Suddenly, that price tag was justified.
Tesla offers several models under the average transaction price for a new vehicle, which was above $49,000, according to Kelley Blue Book. However, that does not take into account that many people can still not afford a $35,000 vehicle. Ferragu offers his thoughts:
“Remember when the addressable market of the iPhone was 10 million units? Then people realized how good it was, and now, nearly 250m are sold every year.
A similar evolution for Tesla is still on the table. A Tesla is not a car, the same way an iPhone was not a phone.
A model 3 at $35k + $100 per month is too expensive for most, but only as a car, the same way a $600 iPhone was too expensive for most, until most realized it was much more than a phone.
As a tool that gets you to work peacefully every morning, it is not expensive.”
This point is valid, especially considering the iPhone’s impact on the cell phone market. There are still a handful of players, but most people you know have an iPhone. The iPhone ties into Apple’s other ecosystem of products.
This is how Tesla plans to infiltrate the automotive market, and once the company offers a fully autonomous suite, or something that can allow for unsupervised self-driving, more and more people will flock to Tesla.
Ferragu believes Tesla needs two additional quarters of development before things will truly change. He didn’t elaborate on what will happen in two quarters, but he said it will give us all time to “see where this is heading.”
It is really quite interesting to see people’s reactions when they find out what a Tesla is capable of. Full Self-Driving is a great tool for taking stress out of travel; I use it daily, and it has made it really difficult to consider taking any other car on a drive of practically any length.
To me, it is really hard to believe that people will not at least seriously consider a Tesla as their next car if they experience Full Self-Driving. This is a major point for those who argue that Tesla should advertise in some way.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Elon Musk admits he was ‘clearly wrong’ about Anthropic
