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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’s secretive “Project Crystal Sun” gets a big green light in Texas
Fort Bend County approved four incentive agreements Thursday for Tesla’s proposed $10.1 billion solar factory.
Fort Bend County commissioners on Thursday approved a package of tax incentives for Tesla’s proposed $10.1 billion solar cell factory near Needville, Texas, giving the company one of the last local approvals it needs before it decides where to build. All four Tesla agreements passed 4 to 0.
The votes covered a property tax abatement inside Reinvestment Zone No. 34, a Chapter 381 economic development agreement, a foreign trade zone non-objection paired with payments in lieu of certain taxes, and a separate payment in lieu of taxes “true up” agreement, according to agenda notes from the Fort Bend Commissioners Court meeting.
The project, known internally as “Project Crystal Sun,” would make solar cells and finished modules on roughly 3,000 acres near FM 762 and FM 1994, south of the Brazos River. As Teslarati reported when the filing first surfaced in August, Tesla’s application under the state’s JETI Act splits the investment into $1.5 billion in real property and $8.6 billion in equipment, with 9,712 permanent jobs projected by 2033 and commercial operations targeted for the first quarter of 2029. The plant would handle the full chain from ingot and wafer production through cell testing.
Inside Tesla’s secretive $10 Billion “Project Crystal Sun” filing
Thursday’s approval does not lock in the site. Tesla has told the Texas Comptroller it is still weighing other locations, and site selection adviser David Dennison told Lamar Consolidated ISD trustees in September that the race had narrowed to Fort Bend and one out of state rival with a “very compelling package,” according to the Houston Chronicle. Tesla hopes to decide before the end of 2026, and the incentives still need sign off from the Comptroller and the Governor’s office.
Local officials have now done nearly everything within their control. Commissioners created the reinvestment zone in an August 24 special meeting, with Interim County Judge Daniel Wong formally withdrawing himself over his engineering firm’s past work with Tesla. Lamar CISD trustees voted 7 to 0 on September 15 to advance a JETI agreement that would tax Tesla’s qualifying property at 50 percent of its value for maintenance and operations from 2029 through 2038.
The plant lines up with a target Elon Musk set on Tesla’s Q4 2025 earnings call in January, when he said the company would “work toward getting 100 GW a year of solar cell production, integrating across the entire supply chain from raw materials all the way to finished solar panels.” In March, Tesla was reported to be negotiating a $2.9 billion purchase of Chinese solar manufacturing equipment bound for Texas. The Houston area already hosts Tesla’s Megafactory in Brookshire, where Megapack 3 production has started. Tesla said on its Q3 call that Megapack supply for 2027 is nearly sold out, and Musk wrote on X Thursday that the company is “increasing production of Megapacks as much as possible,” as demand from data centers climbs.
Tesla revealed plans to develop its own maps internally to fix Navigation issues and give owners more control over their routing.
On the company’s Q3 2026 Earnings Call, a question was asked about FSD Navigation issues, particularly speed limit recognition, parking, and routing. These are issues that surface from version to version and seem to be seriously challenging for Tesla’s AI team to resolve.
Tesla’s Head of AI, Ashok Elluswamy, said in response to the question:
“You’re totally right that we shouldn’t be depending on external people’s maps. So we are building our own maps, but not like the same way as OneMoreMap. We are building an entirely new architecture with essentially AI-based mapping and navigation.”
He continued:
“It’s going to be super awesome. It’s going to be integrated with voice. You can talk to it, ask for different routes. It’s going to learn your personalized preferences, plus the fleet preferences. The collective intelligence of all the cars is going to flow into making the maps and navigation super cool.”
Elluswamy said this issue should be confronted, and the mapping should be available for people by the time the v15 release starts deploying to customers.
“And over the next several months,” he added, “it’s just going to take over all of the navigation functions, parking, destination handling. And it will know you better than you know yourself in some regard for the driving task, and then handle it fully.”
Tesla Summon got insanely good in FSD v14.3.2 — Navigation? Not so much
Navigation is perhaps the most notable complaint with FSD, and although it has gotten better, it is still flawed. Much of the time, FSD will take people on routes that are not preferred by the driver, but Tesla tried to combat this with a routing feature in the Summer 2026 Update.
Tesla currently relies on Google for map data, but it is sort of counterintuitive to believe the company would rely on a third party for this. These improvements will be welcome, as routing and navigation have been such a pain point for so many owners for so long.
Quotes via Motley Fool
Tesla Full Self-Driving (Supervised) showed a record attach rate at delivery for new vehicles in the third quarter of 2026.
75 percent of new vehicle deliveries in North America included a subscription to FSD software, up from 55 percent in the prior quarter, a 20-percentage-point sequential gain in the company’s most mature market.
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
Tesla shed light on the Q3 Shareholder Deck that 75 percent of new deliveries came with an FSD subscription:
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets. “
The higher attach rate accompanied strong growth in the overall FSD consumer base, as active subscriptions rose to 1.75 million, a 67 percent year-over-year increase. For the first time, more than half of paid customers are on the monthly subscription, which is priced at $99 per month in the U.S.
People are buying FSD with a car attached, not the other way around
— Elon Musk (@elonmusk) October 21, 2026
The transition to subscriptions has accelerated since Tesla discontinued the one-time purchase option in most markets earlier this year. The recurring model improves revenue visibility and margins compared with large upfront payments. With three-quarters of North American deliveries now including FSD, the software is now an evidently large contributor to Tesla’s economics and ancillary revenue.
Geographic expansion remains important for further gains. FSD is now available in nine countries in the EU, and more than 100,000 customers have driven over 160 million kilometers. Tesla is pursuing broader EU-wide approval, with a related vote expected in December. Similar progress in additional markets could support higher attach rates beyond North America.
These results came as Tesla had a strong quarterly delivery performance of 486,532 vehicles in the quarter, which came with its largest passenger-vehicle backlog in four years. Battery supply continued to limit volume, but the company has pointed to FSD as a clear difference-maker that is helping sustain demand. As supervised capabilities improve, the attach rate will likely continue to improve.
At face value, it is a key measure of how Tesla is converting sales into autonomy progress.
Tesla’s secretive “Project Crystal Sun” gets a big green light in Texas
Tesla is building its own maps to fix Navigation issues
