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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.
Elon Musk
Elon Musk teases massive new Tesla-xAI joint project known as ‘Digital Optimus’
It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.
Elon Musk teased a massive new project, to be developed jointly by Tesla and xAI, called “Digital Optimus” or “Macrohard,” the first development under Tesla’s investment agreement with xAI.
Musk announced on X that Digital Optimus will “be capable of emulating the function of entire companies.”
Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla’s investment agreement with xAI.
Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of…
— Elon Musk (@elonmusk) March 11, 2026
It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.
Essentially, it will be an AI version of a desk worker in many capacities, including accounting, HR tasks, and others.
Musk said:
“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind).”
Its key applications would be used for enterprise automation, simulating entire companies, high-volume repetitive tasks, and potentially, future hybrid use with the Optimus robot, which would handle physical tasks, while Digital Optimus would handle the clerical work.
The creation of a digital AI suite like Digital Optimus would help companies save time and money, as well as become more efficient in their operations through massive scalability. However, there will undoubtedly be concerns from people who are skeptical of a fully-integrated AI workhorse like this one.
From an energy consumption perspective and just a general concern for the human workforce, these types of AI projects are polarizing in nature.
However, Digital Optimus would be a great digital counterpart to Tesla’s physical Optimus robot, as it would be a hyper-efficient addition to any company that is looking for more production for less cost.
Musk maintains that there is no other company on Earth that will be able to do this.
Elon Musk
Tesla China posts strong February wholesale growth at Gigafactory Shanghai
The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.
Tesla China sold 58,599 vehicles wholesale in February, reflecting strong year-over-year growth. The figure includes both domestic deliveries in China and vehicles exported to international markets.
The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.
Tesla’s February wholesale result represents a 91% increase year over year, compared with 30,688 vehicles in February 2025. Month over month, the result was down 15.2% from January, when Tesla China recorded 69,129 wholesale units.
The February total reflects combined sales of the Model 3 and Model Y produced at Gigafactory Shanghai. The facility produces the two vehicles for both domestic sales and exports.
Gigafactory Shanghai continues to serve as Tesla’s primary vehicle export hub, supplying vehicles to markets across Asia and Europe. Data compiled by Tesla watchers shows that 18,485 vehicles were sold domestically in China in January 2026, while exports accounted for 50,644 units during the same period.
Tesla has also been extending financing programs in China as it pushes to strengthen domestic demand. The company recently extended its seven-year ultra-low-interest and five-year interest-free financing programs through March 31, marking the second extension of the promotion this year.
The financing initiative was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China’s planned 5% NEV purchase tax in 2026. The promotion was originally scheduled to expire at the end of January before being extended to February and then again through the end of the first quarter.
Tesla’s efforts come amid growing competition in China’s EV market. According to data compiled by CNEV Post, Tesla’s 2025 retail sales in China reached 625,698 vehicles, representing a 4.78% year-over-year decline. Part of that decline was linked to the Model Y changeover to its updated variant in early 2025, which temporarily reduced deliveries during the transition period.
News
Tesla Model Y L spotted on transport trucks in Australia
One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier.
Tesla’s upcoming Model Y L has been spotted on transport trucks in Australia. Sightings of the six-seat extended wheelbase Model Y variant have been reported on social media platform X by members of the Australian Tesla community.
One of the sightings was reported along Victoria Parade in Melbourne, and it showed multiple Model Y L vehicles on a transport carrier.
The sighting follows earlier observations by Tesla enthusiasts in Sydney, where a covered vehicle believed to be a Model Y L was spotted at a Supercharger.
The Sydney sighting drew attention after observers noted that the vehicle’s tare weight appeared to match the ADR approval listing for the Model Y L, suggesting it could indeed be the extended wheelbase variant of the electric SUV.
Tesla has previously confirmed that the Model Y L will launch in Australia and New Zealand in 2026. The confirmation was reported by techAU following a media release from Tesla Australia and New Zealand.
The Model Y L expands the existing Model Y lineup with seating for six passengers. The vehicle features a longer body compared with the standard Model Y in order to accommodate a spacious second and third row.
Tesla has opted for a 2-2-2 seating configuration instead of a traditional seven-seat layout for the Model Y L. The design includes two individual seats in the middle row to provide easier access to the third row and additional passenger space.
Tesla Australia and New Zealand has also stated that the Model Y L will be covered under the company’s updated warranty structure beginning in 2026.
Tesla has not yet announced pricing or official range figures for the Model Y L in Australia.
Elon Musk teases massive new Tesla-xAI joint project known as ‘Digital Optimus’
Tesla China posts strong February wholesale growth at Gigafactory Shanghai
