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SpaceX to build world’s most advanced rocket engine factory in Central Texas

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CEO Elon Musk says that SpaceX has plans to build the “most advanced rocket engine factory in the world” in Central Texas to support the growing needs of Starship and Super Heavy.

If all goes according to plan, that facility could also become the highest-output rocket factory ever built, churning out hundreds of Raptor engines each year to outfit a vast interplanetary fleet of Starships and the earthbound Super Heavy boosters that will send them on their way to Earth orbit, the Moon, Mars, and beyond.

Musk revealed plans for a dedicated Raptor engine factory on July 10th – shortly after showing off an impressive group of at least ten qualified Raptor engines staged inside a production tent at SpaceX’s Boca Chica Starship factory. In just the three days since that photo, SpaceX has installed three Raptor engines – possibly all of which were visible in the July 10th family photo – on the first functional Super Heavy booster prototype.

A day later, Musk revealed that SpaceX had finally settled on a crucial aspect of Super Heavy’s design, determining that operational Starship boosters will ultimately be outfitted with 33 more or less identical Raptor engines. Following another surprise Musk reveal earlier this month, that means that every two-stage Starship vehicle will require 39 to 42 Raptor engines – 36-39 sea level variants and three vacuum-optimized engines with larger nozzles.

While Raptor’s current design isn’t quite there, Musk says that SpaceX will debut an upgraded “Raptor 2” engine in the not too distant future, raising maximum thrust to 230 tons (~510,000 lbf). Aside from the removal of a few structural components required for engine gimballing on 20 booster Raptors, every engine on Starship – save for 3-6 vacuum variants – will thus be identical.

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According to Musk, a new cutting-edge SpaceX factory located at the company’s expansive McGregor, Texas rocket development and testing facilities factory will ultimately mass-produce between 800 and 1000 Raptor 2 engines per year. Raptor Vacuum production will remain at SpaceX’s Hawthorne, California headquarters alongside work on mysterious “new, experimental designs.” Under the new paradigm sketched out by Musk, Raptor would mirror SpaceX’s Merlin engine family – comprised of two commonized sea level and vacuum variants (Merlin 1 and Merlin Vacuum) for more than a decade.

A visual comparison of Merlin 1D (optimized for sea level) and Merlin Vacuum. (SpaceX)
Raptor and Raptor Vacuum, September 2020. (SpaceX)

With just a single high-volume variant required, Raptor 2 production could be extraordinarily efficient and would easily outpace any other large liquid engine production in history at 800-1000 engines completed each year. Technically, at its peak in the 1970s and 1980s, the Soviet Union was producing hundreds of R7 (Soyuz) booster engines annually and upwards of 1000+ per year if one counts the several different kinds of engines on each R7/Soyuz booster. However, the annual production of a single variant of any other large liquid rocket engine in history has never come close to the targets set out by Musk for SpaceX’s Raptor 2 factory.

Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Tesla’s Supercharger Diner probably just secured more locations

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tesla diner
Credit: Tesla

Tesla’s Supercharger Diner in Los Angeles dominated the company’s global usage rankings after just one year, proving the concept is more than just a one-off novelty location that will fade away.

The performance could incite the company to build more locations, something that CEO Elon Musk has hinted at for some time.

Tesla’s Supercharger Diner delivered 21.2 GWh of energy in its first year of operation, the company’s head of Charging, Max de Zegher, revealed on X. Of the top 10 most utilized Supercharger locations in Tesla’s global infrastructure, the Diner in Los Angeles was the most used by drivers, and it wasn’t particularly close:

On its launch day one year ago, nobody was too sure what the Tesla Diner would be about. It seemed like an interesting concept, and considering it had been in the works for years, it was a highly anticipated launch that many were looking forward to.

Based on its success, we could see additional Diners with Superchargers built throughout the United States, and potentially beyond. Musk has said on several occasions that the company would be willing to bring the Diner idea to more markets.

Tesla makes major change at Supercharger Diner amid epic demand

Of the markets that Musk has mentioned, both Palo Alto and Austin have come to be perceived as ideal selections. However, there are no concrete plans as of now to build new Supercharger Diners anywhere; the location on Santa Monica Boulevard will remain the exclusive spot to pick up Tesla-inspired eats, at least for the time being.

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Tesla short sellers win big after shares fall after earnings

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A red Tesla Roadster driving around a turn
(Credit: Tesla)

Tesla short sellers won big following the company’s massive fall on Wall Street after it reported subpar Earnings on Wednesday.

Tesla short sellers collected about $4.12 billion in single-day profits on Thursday, according to BloombergShares fell as much as 15 percent during Thursday’s session. It closed as one of the worst days for Tesla on Wall Street in the past three years.

Investors sold off the stock after Tesla said it would aggressively direct its spending toward AI and its Optimus robot project. The company had record revenues, which were driven by one of the strongest quarters in terms of vehicle deliveries in company history.

However, it missed EPS estimates by reporting just $0.33, a far cry from the $0.53 analysts expected.

S3 Partners reported that about 3 percent of Tesla’s outstanding stock is sold short. Managing Director at S3, Ihor Dusaniwsky, provided the short seller’s potential profit, as well as another figure: shorts have likely had paper gains of $8.92 billion this year, as Tesla shares are down 30 percent in 2026.

Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue

Tesla has burned short sellers many times in the past, but the company’s latest Earnings Call was a chance for those skeptics to taste some payback. Although the company gave some very transparent information regarding future projects, the rollout of Robotaxi, Optimus, and Semi, many investors took their profits on Thursday.

Notable short sellers like Michael Burry have been transparent about their skepticism around Tesla shares. Burry just revealed three weeks ago that he had opened up a new short on the stock, stating he shorted Tesla shares at $416.22. “Happy it jumped back to this level,” he said in a blog post.

At the time of publication, Tesla shares were down about 3 percent and the stock was trading at $309.92.

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Tesla door handle saga gets its latest chapter and a big change is coming

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Credit: Tesla | Model 3 Owner's Manual

Tesla’s long-standing saga regarding its door handles and a manual release has entered its latest chapter, and as a result, a big change is coming.

On Friday, the National Highway Traffic Safety Administration (NHTSA) denied Tesla’s petition that was seeking a defect investigation into roughly 180,000 Model 3 vehicles for an issue involving the emergency mechanical door release.

NHTSA said that Tesla’s petition did not present evidence of a safety-related defect in the door handles or their emergency releases. Instead, the agency determined that it would rather solve the issue of the lack of labeling or location of emergency mechanical door releases and the federal safety rules that govern them.

Essentially, the NHTSA wants to create and enforce rules that would require automakers to make emergency door latch releases more clearly labeled in a car. Despite a Tesla having manual door releases on all four passenger doors, many people do not know they exist or how they work.

Tesla addresses door handle complaints with simple engineering fix

In recent times, Tesla has faced some criticism involving its door handles, specifically because some occupants have reported that they are unable to exit their vehicles after losing power. The door handles on a Tesla are electronically operated, but in the event that the 12V battery dies, there is a manual release that can be used.

The NHTSA only identified a single complaint involving the mechanical door releases: a 2022 Model 3 owner said the release was concealed and unlabeled after the vehicle lost power after a front-end collision. It has also already started to create a separate rulemaking process to make emergency door-egress systems more obvious.

It should be noted that all Teslas have mechanical emergency door releases, but they are placed in various locations as the vehicles have aged and been redesigned from year to year. Refer to the safety manual for your vehicle if you have any confusion about where the emergency releases are and how they work.

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