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SpaceX Starship factory breaks ground on an even bigger ‘high bay’
SpaceX appears to have more or less broken ground on a new, even bigger ‘high bay’ assembly facility at its Boca Chica, Texas Starship factory.
Barely one year ago, SpaceX erected the first prefabricated steel sections of what eventually become its Starship factory ‘high bay’ – a spartan 81m (~265 ft) tall designed at the most basic level to shield final Starship and Super Heavy booster assembly from the elements. Situated near the southernmost tip of Texas and just a few miles west of the Gulf of Mexico, those “elements” can be less than pleasant at SpaceX’s primary Starship factory, ranging from sauna-like heat and humidity and mosquitoes the size of quarters to regular downpours, thunderstorms, tropical conditions, and even hurricanes.
While a great deal of work at Starbase is still done out in the open with little more than an umbrella as protection, SpaceX has nevertheless worked to find a middle ground where the most sensitive work (mainly structural welding) can be mostly shielded from wind and rain. First, SpaceX built a (relatively) tiny ‘windbreak’ too small for much of anything. Two years later, the windbreak is partially used for Starship nose section assembly – when a nose cone is stacked on and welded to a separate stack of four steel rings.
A few months after the triangular windbreak was fully finished, SpaceX started work on a larger box-like building that would eventually be known as the Starship factory’s ‘midbay.’ Standing around 45m (~150 ft) tall, the midbay was designed to support the process of assembling Starship tank sections from several stacks of 2-4 steel rings but was – for whatever reason – left too short to support the full Starship assembly process.
Instead, once Starship tank sections were finished, they would have to be rolled out of the midbay for nose installation. Eventually, in July 2020, SpaceX began assembling an even larger ‘high bay’ that would ultimately measure 81m (~265 ft) tall and 20-25m (65-80 ft) wide and deep – easily big enough to fit the company’s existing Falcon 9 or Falcon Heavy rockets with room to spare. More importantly, of course, the high bay was built to be large enough to support Super Heavy assembly from start to finish, giving SpaceX teams a sheltered place to build the largest rocket boosters in history.
As of August 2021, SpaceX’s midbay has supported the assembly of 10 Starship prototypes, 5-6 propellant storage tanks, and several ‘test tanks,’ while the newer high bay has helped SpaceX build three (mostly) complete Super Heavy boosters in 2021. However, working at full speed, SpaceX’s midbay is really only capable of supporting the assembly of one Starship tank section (and more general work on two) at a time and the high bay – while offering at least twice the covered surface area – appears to be limited to simultaneous work on two or three different stacks (boosters, ships, tanks, etc.).
As SpaceX slowly but surely treks towards the end of approximately two years almost exclusively dedicated to building ever-changing prototypes, it’s been clear for a while that the company would need to drastically expand its production facilities to produce the dozens of Starships and boosters CEO Elon Musk has been publicly dreaming of. Even at lower volumes, those existing facilities – while great for producing a dozen or more prototypes per year – would still become a chokepoint for the near-term production of a small fleet of operational Starships and Super Heavies.
Construction starts soon on a much larger high bay just north of current high bay— Elon Musk (@elonmusk) July 25, 2021
In turn, Musk revealed that SpaceX was about to start building “a much larger high bay” adjacent to the existing structure in late July. On August 20th, a little over a year after assembly of the original high bay kicked off, SpaceX began the process of tearing up existing concrete for the even larger bay – breaking ground, at least in a sense. According to Musk, the newest addition to Starbase’s Starship factory will be about 10% taller (~90m vs 81m), substantially wider, and likely a bit deeper than the existing high bay, allowing for the installation of two side-by-side bridge cranes with tracks running the full width of the building.
With at least 2-3 times more surface area than the high bay, the new wide bay should give SpaceX enough space to simultaneously assemble something like 4-8 Starships or Super Heavy boosters. Depending on which direction SpaceX goes, the wide bay could also potentially be large enough for SpaceX to create the first true Starship and Super Heavy assembly lines, though that would be a substantial departure from Starbase’s existing approach to manufacturing.
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
Elon Musk says this part of Tesla ‘makes no sense’
