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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
Tesla analyst breaks down delivery report: ‘A step in the right direction’
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026,” Ives wrote.
Tesla analyst Dan Ives of Wedbush released a new note on Friday morning just after the company released production and delivery figures for Q4 and the full year of 2025, stating that the numbers, while slightly underwhelming, are “better than feared” and as “a step in the right direction.”
Tesla reported production of 434,358 and deliveries of 418,227 for the fourth quarter, while 1,654,667 vehicles were produced and 1,636,129 cars were delivered for the full year.
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Interestingly, the company posted its own consensus figures that were compiled from various firms on its website a few days ago, where expectations were set at 1,640,752 cars for the year. Tesla fell about 4,000 units short of that. One of the areas where Tesla excelled was energy deployments, which totaled 46.7 GWh for the year.
🚨 Wedbush’s Dan Ives has released a new note on Tesla $TSLA:
“Tesla announced its FY4Q25 delivery numbers this morning coming in at 418.2k vehicles slightly below the company’s consensus delivery estimate of 422.9k but much better than the whisper numbers of ~410k as the…
— TESLARATI (@Teslarati) January 2, 2026
In terms of vehicle deliveries, Ives writes that Tesla certainly has some things to work through if it wants to return to growth in that aspect, especially with the loss of the $7,500 tax credit in the U.S. and “continuous headwinds” for the company in Europe.
However, Ives also believes that, given the delivery numbers, which were on par with expectations, Tesla is positioned well for a strong 2026, especially with its AI focus, Robotaxi and Cybercab development, and energy:
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026. We look forward to hearing more at the company’s 4Q25 call on January 28th. AI Valuation – The Focus Throughout 2026. We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
It’s no secret that for the past several years, Tesla’s vehicle delivery numbers have been the main focus of investors and analysts have looked at them as an indicator of company health to a certain extent. The problem with that narrative in 2025 and 2026 is that Tesla is now focusing more on the deployment of Full Self-Driving, its Optimus project, AI development, and Cybercab.
While vehicle deliveries still hold importance, it is more crucial to note that Tesla’s overall environment as a business relies on much more than just how many cars are purchased. That metric, to a certain extent, is fading in importance in the grand scheme of things, but it will never totally disappear.
Ives and Wedbush maintained their $600 price target and an ‘Outperform’ rating on the stock.
Investor's Corner
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Deliveries stood at 406,585 Model 3/Y and 11,642 other models, for a total of 418,227 vehicles.
Tesla (NASDAQ:TSLA) has reported its Q4 2025 production and deliveries, with 418,227 vehicles delivered and 434,358 produced worldwide. Energy storage deployments hit a quarterly record at 14.2 GWh.
Tesla’s Q4 and FY 2025 results were posted on Friday, January 2, 2026.
Q4 2025 production and deliveries
In Q4 2025, Tesla produced 422,652 Model 3/Y units and 11,706 other models, which are comprised of the Model S, Model X, and the Cybertruck, for a total of 434,358 vehicles. Deliveries stood at 406,585 Model 3/Y and 11,642 other models, for a total of 418,227 vehicles.
Energy deployments reached 14.2 GWh, a new record. Similar to other reports, Tesla posted a company thanked customers, employees, suppliers, shareholders, and supporters for its fourth quarter results.
In comparison, analysts included in Tesla’s company-compiled consensus estimate that Tesla would deliver 422,850 vehicles and deploy 13.4 GWh of battery storage systems in Q4 2025.
Tesla’s Full Year 2025 results
For the full year, Tesla produced a total of 1,654,667 vehicles, comprised of 1,600,767 Model Y/3 and 53,900 other models. Tesla also delivered 1,636,129 vehicles in FY 2025, comprised of 1,585,279 Model Y/3 and 50,850 other models. Energy deployments totaled 46.7 GWh over the year.
In comparison, analysts included in Tesla’s company-compiled consensus expected the company to deliver a total of 1,640,752 vehicles for full year 2025. Analysts also expected Tesla’s energy division to deploy a total of 45.9 GWh during the year.
Tesla will post its financial results for the fourth quarter of 2025 after market close on Wednesday, January 28, 2026. The company’s Q4 and FY 2025 earnings call is expected to be held on the same day at 4:30 p.m. Central Time.
Elon Musk
Starlink achieves major milestones in 2025 progress report
Starlink wrapped up 2025 with impressive growth, adding more than 4.6 million new active customers and expanding service to 35 additional countries, territories, and markets.
Starlink wrapped up 2025 with impressive growth, adding more than 4.6 million new active customers and expanding service to 35 additional countries, territories, and markets. The company also completed deployment of its first-generation Direct to Cell constellation, launching over 650 satellites in just 18 months to enable cellular connectivity.
SpaceX highlighted Starlink’s impressive 2025 progress in an extensive report.
Key achievements from Starlink’s 2025 Progress
Starlink connected over 4.6 million new customers with high-speed internet while bringing service to 35 more regions worldwide in 2025. Starlink is now connecting 9.2 million people worldwide. The service achieved this just weeks after hitting its 8 million customer milestone.
Starlink is now available in 155 markets, including areas that are unreachable by traditional ISPs. As per SpaceX, Starlink has also provided over 21 million airline passengers and 20 million cruise passengers with reliable high-speed internet connectivity during their travels.
Starlink Direct to Cell
Starlink’s Direct to Cell constellation, more than 650 satellites strong, has already connected over 12 million people at least once, marking a breakthrough in global mobile coverage.
Starlink Direct to Cell is currently rolled out to 22 countries and 6 continents, with over 6 million monthly customers. Starlink Direct to Cell also has 27 MNO partners to date.
“This year, SpaceX completed deployment of the first generation of the Starlink Direct to Cell constellation, with more than 650 satellites launched to low-Earth orbit in just 18 months. Starlink Direct to Cell has connected more than 12 million people, and counting, at least once, providing life-saving connectivity when people need it most,” SpaceX wrote.
Tesla analyst breaks down delivery report: ‘A step in the right direction’
Tesla releases Q4 and FY 2025 vehicle delivery and production report
